Vietnam’s petroleum industry is a cornerstone of the national economy, playing a critical role in energy security, industrial development, and export revenue. The sector spans the entire value chain, from exploration and production to refining, distribution, and export. Offshore oil fields, particularly in the Cuu Long and Nam Con Son basins, serve as the backbone of Vietnam’s crude oil and natural gas output, while refineries like Dung Quat and Nghi Son contribute to the domestic supply of refined petroleum products.
Driven by rising domestic energy demand and regional economic integration, the industry has attracted significant foreign investment and partnerships. Global energy companies collaborate with state-owned PetroVietnam and its subsidiaries, advancing exploration and production activities with modern technologies. The country is also investing heavily in expanding its refining and petrochemical capabilities to reduce reliance on fuel imports and support industrial growth.
However, the petroleum sector faces challenges, including fluctuating global oil prices, regulatory complexities, and the need to transition toward cleaner energy sources. With ongoing investments, government reforms, and a strategic focus on sustainable energy practices, Vietnam’s petroleum industry is poised to become a vital driver of economic development.
Vietnam’s petroleum industry in numbers
Vietnam’s petroleum industry has grown exponentially in recent years on the back of surging demand. Here are some key data points.
Vietnam’s petroleum market
Vietnam’s oil consumption reached a record high in 2023, hitting 602 thousand barrels per day, marking a decade of consistent growth in energy demand. This figure represents a compound annual growth rate of 5.0 percent from 2013, when consumption stood at 370 thousand barrels per day, according to the Energy Institute’s Statistical Review of World Energy. In 2023, Vietnam accounted for 0.6 percent of global oil consumption.
The country’s oil consumption has surged over the years, driven by rapid industrialisation, urbanisation, and increasing transportation needs. However, the COVID-19 pandemic in 2020 led to a significant drop to 507 thousand barrels per day, reflecting the global decline in energy demand during lockdowns and restricted economic activities. By 2021, consumption began to recover, and by 2023, it surpassed pre-pandemic levels.
Vietnam’s petroleum imports-exports
Vietnam’s petroleum trade has experienced significant fluctuations in recent years, reflecting the dynamic nature of its energy sector.
Vietnam’s petroleum imports, November 2024
| November | October | MoM | YTD | |
| Total | 564,615,360 | 659,007,645 | -14.32% | 7,152,489,518 |
| Other | 5,051 | 1,503 | 236.06% | 178,660,555 |
| Singapore | 184,824,098 | 278,587,341 | -33.66% | 1,920,004,742 |
| South Korea | 163,250,368 | 150,258,537 | 8.65% | 2,127,619,374 |
| Thailand | 93,692,017 | 118,499,077 | -20.93% | 561,857,929 |
| Malaysia | 71,160,308 | 39,311,683 | 81.02% | 1,542,856,489 |
| China | 51,683,518 | 72,349,504 | -28.56% | 821,144,829 |
| Russia | 0 | 0 | 0.00% | 345,600 |
Source: Vietnam Imports Tracker
Vietnam’s petroleum exports, November 2024
| November | October | MoM | YTD | |
| Total | 144,993,165 | 170,810,657 | -15.11% | 1,756,705,596 |
| Other | 84,072,247 | 81,952,843 | 2.59% | 861,690,645 |
| Cambodia | 23,771,935 | 19,325,223 | 23.01% | 289,339,639 |
| South Korea | 14,220,169 | 17,415,338 | -18.35% | 188,378,063 |
| China | 10,236,161 | 22,856,393 | -55.22% | 162,617,244 |
| Singapore | 7,787,358 | 22,027,883 | -64.65% | 156,244,500 |
| Laos | 3,487,351 | 3,133,186 | 11.30% | 54,128,796 |
| Malaysia | 1,273,243 | 2,148,036 | -40.73% | 31,460,206 |
| Thailand | 100,125 | 1,020,946 | -90.19% | 7,350,832 |
| Indonesia | 44,576 | 0 | 0.00% | 1,723,011 |
| HongKong | 0 | 930,809 | -100.00% | 3,772,660 |
Source:Vietnam Exports Tracker
Petroleum production in Vietnam
Refined petroleum production in Vietnam increased marginally by 0.47 percent in November 2024 compared to October 2024, according to Vietnam’s General Statistics Office.
Year-on-year, the sector saw a 4.71 percent decline in November 2024 compared to November 2023. However, the cumulative production for the first eleven months of 2024 rose significantly by 14.84 percent compared to the same period in 2023, signalling long-term growth despite short-term fluctuations.
Domestic petroleum firms in Vietnam
PetroVietnam (Vietnam Oil and Gas Group)
PetroVietnam is Vietnam’s state-owned oil and gas corporation and the backbone of the country’s petroleum industry. It oversees activities across the entire value chain, including exploration, production, refining, and distribution. PetroVietnam also manages key offshore oil fields and partners with foreign companies in major joint ventures.
PVEP (PetroVietnam Exploration Production Corporation)
As a subsidiary of PetroVietnam, PVEP specialises in upstream activities, including oil and gas exploration and production. The company manages various domestic and international projects, with a focus on offshore oil fields in Vietnam.
Binh Son Refining and Petrochemical Company (BSR)
BSR operates the Dung Quat Refinery, Vietnam’s first refinery, which plays a vital role in processing domestically produced crude oil. The company supplies refined petroleum products for domestic consumption and has plans to expand capacity to meet growing energy demand.
PV Oil (PetroVietnam Oil Corporation)
PV Oil is responsible for the trading, export, and distribution of crude oil and petroleum products. It operates an extensive network of retail fuel stations across Vietnam and is also involved in international crude oil sales.
Vietsovpetro
Vietsovpetro, a joint venture between PetroVietnam and Russia’s Zarubezhneft, is one of the oldest and most successful operators in Vietnam’s offshore oil sector. It has been instrumental in developing major oil fields such as Bach Ho (White Tiger) and continues to contribute significantly to national crude oil production.
Petrolimex (Vietnam National Petroleum Group)
Petrolimex is a major player in petroleum product distribution, operating an extensive network of retail stations. It focuses on importing, distributing, and retailing refined petroleum products, including gasoline and diesel.
These domestic firms play a crucial role in driving Vietnam’s petroleum industry, ensuring energy security and supporting the country’s economic development.
Foreign petroleum firms in Vietnam
Vietnam’s petroleum industry has attracted significant participation from foreign companies, contributing to the sector’s development through investment, technology transfer, and expertise. Notable foreign petroleum firms operating in Vietnam include:
ExxonMobil Corporation
ExxonMobil, a leading American oil and gas corporation, is involved in exploration and production activities offshore Vietnam. The company has been engaged in significant projects, including the Ca Voi Xanh (Blue Whale) gas field, which is expected to be a substantial contributor to Vietnam’s energy supply.
Eni S.p.A
Eni, an Italian multinational oil and gas company, has been active in Vietnam’s upstream sector. The company holds interests in various exploration blocks and has been involved in the discovery and development of hydrocarbon resources, contributing to the country’s energy landscape.
JX Nippon Oil & Gas Exploration Corporation
JX Nippon, through its subsidiary Japan Vietnam Petroleum Company, has been operating in Vietnam since the early 1990s. The company is involved in the exploration and production of oil and gas, notably in Block 15-2 offshore Vietnam, and has renewed contracts to continue its operations beyond 2025.
Zarubezhneft
Zarubezhneft, a Russian state-controlled oil company, has a longstanding presence in Vietnam through its joint venture with PetroVietnam, known as Vietsovpetro. This collaboration has been instrumental in developing major oil fields, including the Bach Ho (White Tiger) field, significantly contributing to Vietnam’s oil production.
Idemitsu Kosan Co., Ltd.
Idemitsu Kosan, a Japanese petroleum company, is a key stakeholder in the Nghi Son Refinery and Petrochemical Complex, Vietnam’s largest refinery. This facility plays a crucial role in meeting the country’s refined petroleum product demands and reducing dependence on imports.
These foreign firms have been pivotal in advancing Vietnam’s petroleum industry by bringing in capital investment, technological expertise, and international best practices, thereby enhancing the sector’s efficiency and integration into the global energy market.
Vietnam’s main petroleum products
Vietnam’s petroleum industry produces a range of products that cater to both domestic energy needs and export markets. The main petroleum products include:
Crude oil
Vietnam extracts crude oil from offshore fields, primarily in the Cuu Long and Nam Con Son basins. While a significant portion is exported, a growing share is refined domestically to meet energy demands.
Natural gas
Natural gas is a vital product from offshore reserves, used for power generation, industrial production, and as a feedstock for the petrochemical industry. The development of fields like Ca Voi Xanh (Blue Whale) enhances Vietnam’s natural gas supply.
Gasoline and diesel
Refined from domestic and imported crude oil, gasoline and diesel are essential fuels for the transportation and agricultural sectors. These products are distributed nationwide through retail networks managed by firms like Petrolimex and PV Oil.
Jet fuel
Jet fuel is a key refined product, supporting Vietnam’s growing aviation industry. Domestic refineries, such as Dung Quat and Nghi Son, produce a significant share of the jet fuel consumed locally.
Liquefied Petroleum Gas (LPG)
LPG, a byproduct of oil refining and natural gas processing, is widely used for cooking, heating, and industrial applications. The domestic demand for LPG has grown steadily due to urbanisation and rising living standards.
Petrochemical feedstocks
Vietnam produces petrochemical feedstocks such as naphtha and propylene, used in manufacturing plastics, chemicals, and synthetic materials. These feedstocks are crucial for industrial and export-oriented production.
Fuel oil
Fuel oil, also known as heavy oil, is used in industrial heating, power generation, and shipping. It remains a key product for certain sectors despite the global shift towards cleaner energy sources.
These petroleum products play a central role in Vietnam’s energy supply chain, supporting industrial development, transportation, and household energy needs. The sector’s diversification into refining and petrochemical production further strengthens Vietnam’s energy independence and economic growth.
Petroleum regulations in Vietnam
Vietnam’s petroleum industry operates under a robust regulatory framework designed to ensure resource management, attract investment, and promote sustainable development. Key petroleum regulations include:
Law on Petroleum
The Law on Petroleum serves as the primary legislation governing exploration, production, and distribution activities. It outlines the procedures for licensing, production-sharing contracts (PSCs), and cooperation with foreign and domestic entities. Recent amendments aim to improve transparency, streamline operations, and enhance investor confidence.
Environmental regulations
Petroleum companies must comply with stringent environmental laws to mitigate the impact of exploration, drilling, and refining activities. Environmental Impact Assessments (EIAs) are mandatory before project approval. Firms are required to implement measures to manage emissions, waste, and spills, aligning with Vietnam’s commitment to sustainable development.
Taxation and royalties
The industry is subject to taxation and royalty frameworks that regulate revenues from oil and gas production. Corporate income tax rates and royalty rates vary based on project scale and location, with special incentives available for high-risk offshore exploration projects.
Foreign investment policies
Vietnam encourages foreign investment in its petroleum sector through production-sharing contracts and joint ventures with domestic firms like PetroVietnam. Regulations define the scope of foreign participation, ensuring resource sovereignty while enabling knowledge transfer and capital investment.
Refining and trading regulations
The government regulates refining, import/export activities, and the distribution of petroleum products to ensure energy security and price stability. Domestic refineries must meet quality and safety standards, while trading firms are licensed to ensure fair competition and market efficiency.
Health and safety standards
Strict health and safety guidelines govern petroleum exploration, refining, and distribution. Companies must implement risk management strategies and worker safety protocols to minimise hazards in this high-risk industry.
These regulations aim to balance economic growth, resource sustainability, and environmental protection, ensuring that Vietnam’s petroleum industry remains competitive and resilient in the global energy landscape.
What’s next?
Vietnam’s petroleum industry operates under a comprehensive regulatory framework designed to ensure resource management, attract investment, and promote sustainable practices. The Law on Petroleum governs exploration, production, and distribution activities, outlining licensing processes and production-sharing contracts to encourage foreign and domestic investment. Environmental regulations mandate impact assessments and strict controls on emissions, waste, and spills to minimise ecological harm.
Furthermore, taxation and royalty systems regulate revenues from oil and gas production, offering incentives for high-risk offshore projects. Refining and trading activities are closely monitored to ensure energy security and market stability, while health and safety standards enforce strict measures to protect workers and minimise industrial risks. These regulations aim to balance economic growth with environmental protection and energy security, supporting the long-term sustainability and competitiveness of Vietnam’s petroleum sector.
That said, Vietnam’s petroleum industry is dynamic and as part of a rapidly developing economy can be prone to change quickly. With this in mind, firms in the energy space interested in Vietnam’s petroleum industry should make sure to keep up to date with the latest developments by subscribing to the-shiv.