SEATTLE (Oil Monster): Vietnam is accelerating efforts to build strategic petroleum reserves as global energy market volatility intensifies, driven largely by geopolitical tensions in the Middle East. The move is aimed at strengthening national energy security and reducing reliance on imports.
ALSO READ:
Vietnam faces falling oil production as Iran war disrupts global supplies
Vietnam Says Saudi Aramco Wants to Invest in Oil Refining, Petrol Distribution
Currently, Vietnam meets only about 70% of its domestic fuel demand through local production, with the remainder dependent on imports. Declining crude output has further increased the need for imported feedstock for refining. Experts, including representatives from the Vietnam Energy Association, stress that existing commercial reserves—covering roughly 20 days for key firms—are insufficient to manage supply disruptions.
Recent incidents, including shortages at the Nghi Son Refinery and Petrochemical Plant, have underscored vulnerabilities in supply chains. Authorities are now prioritizing the development of national reserves to act as a buffer against price shocks and inflation.
Government leaders have emphasized the need for a transparent, flexible reserve system aligned with international standards. Alongside this, Vietnam is advancing its energy transition, including the rollout of biofuels, to diversify supply and enhance long-term sustainability.
