Vietnam's domestic crude oil production is expected to decline this decade, according to a government document released this week, increasing the country's reliance…
Vietnam's domestic crude oil production is expected to decline this decade, according to a government document released this week, increasing the country's reliance on imports as its offshore fields mature and geopolitical tensions threaten global supplies.
The new forecasts for dwindling oil output come as Vietnam, a regional industrial hub hosting large manufacturing operations of electronics and garment multinationals, is bracing for oil shortages caused by the U.S.-Israeli war on Iran and subsequent export bans from energy suppliers.
Crude output is projected to fall to 5.8 million-8.0 million metric tons a year during the 2026–2030 period, down from an average annual output of 8.6 million tons in the last five years, according to the figures released by the industry ministry.
The fall in domestic output is set to further increase reliance on imports which last year rose 5.3% to 14.2 million tons, according to Vietnam's customs data.
Around 80% of the crude oil Vietnam imported last year came from Kuwait, whose exports are currently frozen by Iran's closure of the Strait of Hormuz.
Vietnam also imports refined fuels, while its two refineries cover around 70% of the country's needs, producing gasoline, diesel and other fuels mostly from imported crude.
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