Vietnam’s refined petroleum production increased by 165.2 percent in January compared to the 2019 baseline, according to Vietnam’s Industrial Production Index. This was an improvement from December 2024, when output was 154.8 percent above 2019 levels.
Month-on-month, production rose by 4.8 percent in January compared to December. However, year-on-year output declined by 6.0 percent from January 2024.
Of note, Vietnam’s refined petroleum production plays an important role in the country’s energy sector, supplying both domestic demand and contributing to the export market. The country has a relatively small but growing refining capacity, which is essential for meeting the energy needs of the industrial, transport, and residential sectors.
The main refinery in Vietnam is the Dung Quat Refinery, located in Quang Ngai Province. This refinery, which began operation in 2009, is the first and largest refinery in the country. It was developed with the assistance of international partners and has a capacity of refining around 6.5 million tons of crude oil per year. The Dung Quat Refinery produces a range of refined petroleum products, including gasoline, diesel, jet fuel, and liquefied petroleum gas (LPG), which are crucial for meeting domestic consumption needs.
In addition to the Dung Quat Refinery, the Nghi Son Refinery is another major facility that began operations in 2018. Located in Thanh Hoa Province, the Nghi Son Refinery is a joint venture between Vietnamese state-owned PetroVietnam, Kuwait Petroleum International, and Japanese investors. This refinery has a larger refining capacity, processing up to 10 million tons of crude oil annually. It also produces a variety of refined petroleum products, with a particular focus on high-quality gasoline and diesel, to meet the demands of both domestic and regional markets.
Despite these developments, Vietnam still faces challenges in fully meeting its domestic petroleum needs. The country’s domestic refining capacity is not enough to cover all of its petroleum consumption, which means that a significant portion of refined petroleum products must be imported.
As Vietnam’s industrialisation continues and demand for energy grows, the petroleum refining sector is expected to expand. Additionally, there is a growing focus on producing cleaner fuels, such as low-sulfur diesel, in line with international environmental standards. The government’s policies aim to increase the efficiency of the refining industry and reduce environmental impacts, including improving technology and investing in the development of new, more efficient refining facilities.
See also: Vietnam’s Petroleum Industry