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Vietnam Oil and Gas Market Size (2024 - 2029)

The Vietnamese oil and gas market is poised for growth, driven by substantial fuel demand and interest from international investors, despite challenges such as high government interference and the impact of the COVID-19 pandemic. The market's expansion is supported by the upstream segment, which is expected to grow rapidly due to new exploration and production projects. The increasing demand for natural gas, particularly in the power sector, further contributes to the market's potential.

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Market Size of Vietnam Oil and Gas Industry

Vietnam Oil and Gas Market- Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR > 3.50 %
Market Concentration Medium

Major Players

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*Disclaimer: Major Players sorted in no particular order

Vietnam Oil and Gas Market Analysis

The Vietnamese oil & gas market is expected to register a CAGR of around 3.5% during the forecast period. The COVID-19 pandemic significantly affected the oil and gas market due to crashed oil demand in the national and international markets. The refining companies had to reduce their output in response to such a significant decline. For example, the 130,000-bpd Dung Quat refinery in Central Vietnam reduced its output to 80% of capacity amid widespread lockdown. The upstream sector also faced issues due to a disrupted supply over the entire value chain. The Vietnamese oil and gas market is largely driven by the high fuel demand (particularly diesel, Naptha, and LPG) in the national market and the high demand for Vietnam's sweet crude in national and international markets. However, the high government interference in the petroleum industry reduces the ease of doing business index for private investors, hampering the market's growth.

  • The upstream segment is expected to grow rapidly during the forecast period due to the upcoming exploration and production projects in Vietnam.
  • Despite the unfavorable investment climate in the country, many international companies have shown interest in investing in its oil and gas market. VietsovPetro, a Russia-Vietnam joint venture, extended its cooperation agreement with Petrovietnam till 2030 to pursue the exploration and production activities in the country. The India-based oilfield equipment manufacturer, United Drilling Tools, recently promoted its products in Vietnam. Such developments create ample opportunities for the Vietnamese upstream market.
  • The increased natural gas demand, particularly in the power sector, is expected to boost the oil and gas market in the future.

Vietnam Oil and Gas Industry Segmentation

The scope of the Vietnamese oil and gas market includes:

Sector
Upstream
Downstream
Midstream
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Vietnam Oil and Gas Market Size Summary

The Vietnamese oil and gas industry is poised for moderate growth, driven by increasing domestic fuel demand and international interest in its sweet crude. Despite challenges posed by the COVID-19 pandemic, which led to reduced refinery outputs and disrupted supply chains, the market is expected to expand, particularly in the upstream sector. This growth is supported by upcoming exploration and production projects, as well as international investments from companies like VietsovPetro and United Drilling Tools. However, high government interference remains a barrier to private investment, impacting the ease of doing business in the sector.

The demand for natural gas, especially in the power and fertilizer industries, is anticipated to further stimulate the market. Vietnam's plans to increase the share of natural gas in its power generation mix, currently dominated by coal, align with its environmental goals. Significant projects, such as the LNG-to-power initiatives in Mui Ke Ga and Bac Lieu, are set to enhance the country's energy infrastructure. Key players in the moderately fragmented market, including ExxonMobil and Eni SpA, are actively investing in exploration and production activities, indicating a robust outlook for Vietnam's oil and gas industry.

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Vietnam Oil and Gas Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Crude Oil Production and Forecast, in thousand barrels, till 2027

    3. 1.3 Natural Gas Production and Forecast, in billion cubic meters, till 2027

    4. 1.4 Refining Capacity and Forecast, in thousand barrels per day, till 2027

    5. 1.5 Recent Trends and Developments

    6. 1.6 Government Policies and Regulations

    7. 1.7 Market Dynamics

      1. 1.7.1 Drivers

      2. 1.7.2 Restraints

    8. 1.8 Supply Chain Analysis

    9. 1.9 PESTLE Analysis

  2. 2. MARKET SEGMENTATION

    1. 2.1 Sector

      1. 2.1.1 Upstream

      2. 2.1.2 Downstream

      3. 2.1.3 Midstream

Vietnam Oil and Gas Market Size FAQs

The Vietnam Oil and Gas Market is projected to register a CAGR of greater than 3.5% during the forecast period (2024-2029)

Vietnam Oil and Gas Group, Mitsui Chemicals Inc., ExxonMobil Corporation, Eni SpA and Idemitsu Kosan Co. Ltd are the major companies operating in the Vietnam Oil and Gas Market.

Vietnam Oil and Gas Market Report Snapshots

Vietnam Oil and Gas Industry Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)