Market Size of Vietnam Oil and Gas Industry
| 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
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
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 |
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.
Vietnam Oil and Gas Market Size - Table of Contents
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1. MARKET OVERVIEW
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1.1 Introduction
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1.2 Crude Oil Production and Forecast, in thousand barrels, till 2027
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1.3 Natural Gas Production and Forecast, in billion cubic meters, till 2027
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1.4 Refining Capacity and Forecast, in thousand barrels per day, till 2027
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1.5 Recent Trends and Developments
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1.6 Government Policies and Regulations
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1.7 Market Dynamics
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1.7.1 Drivers
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1.7.2 Restraints
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1.8 Supply Chain Analysis
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1.9 PESTLE Analysis
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2. MARKET SEGMENTATION
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2.1 Sector
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2.1.1 Upstream
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2.1.2 Downstream
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2.1.3 Midstream
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Vietnam Oil and Gas Market Size FAQs
What is the current Vietnam Oil and Gas Market size?
The Vietnam Oil and Gas Market is projected to register a CAGR of greater than 3.5% during the forecast period (2024-2029)
Who are the key players in Vietnam Oil and Gas Market?
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.
