The recent visit by Prime Minister Pham Minh Chinh to Saudi Arabia to attend the ASEAN-Gulf Cooperation Council (ASEAN-GCC) Summit has opened up numerous international cooperation opportunities for Vietnam’s oil and gas industry, helping it to develop in the future.

Insiders said the unexpected fluctuations in crude oil prices and the strong energy transition trend are posing many challenges for Vietnam's petroleum industry.

Vietnam still heavily relies on the global supply of petroleum products. To reduce this dependence, the government has been implementing various policies to realise the goal of renewable energy development in the future.

Expanding cooperation with countries that have strength in energy, diversifying supply sources, and shifting towards green energy consumption will be effective solutions to ensure price stability domestically in the context of unpredictable geopolitical risks and global financial fluctuations.

International cooperation is expected to provide an opportunity for the oil and gas industry to become self-reliant on supply.

The fluctuations in the global crude oil market have had an impact on Vietnam. Notably, the country’s crude oil and petrol imports reached 7.81 million tonnes and 8.03 million tonnes, representing growth rates of 8.3% and 23.1%, respectively.

In contrast, the cumulative crude oil exports in the first 9 months of 2023 reached 2.03 million tonnes, a decrease of 14.9% compared to the same period last year. The cumulative export of gasoline also fell by 9.1%, reaching 1.66 million tonnes.

According to the World Bank, Vietnam’s economic growth is expected to expand by 5.4% and 6% in 2024 and 2025, respectively. Therefore, the demand for crude oil in particular and energy in general is on par with the country's economic growth.

To ensure energy security and meet the consumption demand, the Government is promoting sustainable economic development and the green energy industry, and intensifying cooperation with foreign partners.

In the framework of his trip to Saudi Arabia in October, PM Pham Minh Chinh held talks with Saudi Arabia's Crown Prince and Prime Minister Mohammed bin Salman, during which the Vietnamese leader called on Saudi Aramco, one of the largest companies in terms of market capitalisation in the world, to consider investing in Vietnam's oil and gas industry.

The trip reaffirmed the potential for bilateral cooperation between Saudi Arabia and Vietnam in various fields, particularly in the oil and gas sector.

Representatives of Saudi Aramco also expressed their desire to invest in developing an oil refinery in Vietnam.

If Aramco’s plan is implemented, it will bring several high-value and high-tech investment projects to the Southeast Asian nation.

Furthermore, the firm is also focusing on investing in new low-carbon emission technologies to help mitigate pollutant emissions. This aligns with the long-term goal of the Vietnamese government in developing renewable energy projects.

This partnership is expected to open up prospects for improving and upgrading infrastructure and technology for businesses operating in oil and gas exploitation and production. It will also ensure domestic supply, energy security, and sustainable economic development in the context that the global market still carries many risks./.