Long Son Petrochemicals Complex

Energy is not only an input for production but also a factor that directly influences production costs, competitiveness, logistics operations, and the stability of supply chains. Vietnam, an economy with a high degree of openness, strong dependence on international trade, and continued reliance on imported energy sources, has been significantly affected. In March, domestic fuel prices surged, with gasoline rising 29.72% and diesel increasing 57.03% compared to the previous month. The consumer price index in April 2026 rose 0.84% from the previous month, partly driven by a 35.3% increase in domestic gas prices following global fuel trends, contributing 0.46 percentage points to overall CPI growth, while kerosene prices increased 26.95%.

At present, Vietnam can meet around 65% to 70% of domestic petroleum demand if the country’s two refineries, Nghi Son and Dung Quat, operate at full capacity. However, with total annual demand at approximately 26 to 27 million tons and domestic output only around 14 to 15 million tons, the remaining volume still depends on imports. Current impacts therefore extend beyond oil prices to the entire energy supply chain. As a result, strengthening national reserves and removing obstacles to bring completed renewable energy projects into operation to support short-term supply have become urgent priorities.

In recent years, the development of national reserves has received close attention from the Government and the Prime Minister, reflected in the approval of the National Reserve Development Strategy to 2030 under Decision 305/QD-TTg issued on April 12, 2024. The strategy sets out a reserve development roadmap for a range of essential commodities, including petroleum products and crude oil. Earlier, the Prime Minister issued Decision 861/QD-TTg dated July 18, 2023, approving the National Petroleum and Gas Supply and Reserve Infrastructure Plan for the 2021–2030 period, with a vision toward 2050. This is one of 38 key national sector plans, providing a legal basis for the Ministry of Industry and Trade to coordinate with ministries, sectors, and localities in identifying locations, scale, and investment roadmaps for an integrated storage and reserve system.

Petroleum product storage facilities have been strongly developed by key distributors, while crude oil reserve infrastructure remains largely linked to refineries such as Dung Quat and Nghi Son. In response to this situation, the Prime Minister has directed Vietnam National Industry - Energy Group (PetroVietnam) to study an investment project for a crude oil reserve facility in Nghi Son, clearly defining its scale, investment phases, funding sources, and implementation roadmap, while also proposing preferential mechanisms and policies to address operational and management issues related to reserve crude oil that have attracted public attention.

Research and development of reserve infrastructure at other strategic locations such as Dung Quat and Long Son are also being implemented in line with the national sector plan. The synchronized execution of the National Reserve Strategy and infrastructure planning will be a key factor in completing the energy reserve system and achieving approved energy security targets.

To fundamentally address current petroleum and energy challenges, Vietnam needs a comprehensive approach that clearly distinguishes between short-, medium-, and long-term scenarios rather than relying on temporary measures. According to Dr. Nguyen Quoc Thap, Chairman of the Vietnam Petroleum Association, the market should be managed flexibly while import sources are diversified to reduce risks. In the medium term, the focus should be on building energy reserve systems and completing the liquefied natural gas supply chain. Over the long term, planning needs to be reviewed and adjusted to reduce dependence on imports and increase the share of renewable energy. One key solution is developing appropriately scaled crude oil and petroleum reserves while expanding international cooperation and diversifying partners through energy diplomacy to ensure a stable, long-term supply.

According to Dr. Vu Sy Cuong of the Institute of Technology and Financial Development under the Academy of Finance, current short-term solutions mainly rely on direct government intervention tools such as economic diplomacy and reductions in fuel taxes and fees to support the market. However, it is necessary to clearly define the duration of these measures and establish concrete medium-term plans rather than stopping at immediate responses.

A sustainable energy policy system must be built on three main pillars. These include securing and diversifying supply sources, which is a key factor requiring both stable traditional supply and efforts to diversify and restructure new energy types. Energy restructuring and conservation are also needed. In both the medium and long term, Vietnam must promote efficient and economical energy use among both households and businesses; policies encouraging rooftop solar power for households are needed to address immediate demand in the short term; and pricing mechanisms as well as demand regulation also require reform.

“The most fundamental issue Vietnam currently lacks is policy consistency. In partnerships, changing petroleum supply partners or suddenly halting major power projects can easily create concerns among international partners regarding the stability of the Vietnamese market. Without promptly developing detailed scenarios and maintaining consistency in governance, Vietnam will remain vulnerable to every fluctuation in the global energy market,” Cuong said.