Volatile fuel prices and the risk of energy supply disruptions are testing Vietnam’s ability to manage systemic risks as global geopolitical tensions grow increasingly unpredictable Fuel price surge jolts households and businesses A fuel price shock triggered by supply disruptions linked to the conflict in the Middle East has affected economies worldwide, including Vietnam, which still relies heavily on imported fuel. Vietnam’s two oil refineries—Dung Quat and Nghi Son—currently meet about 70% of domestic fuel demand. However, to produce that volume, the country must import around 19 million tons of crude oil as feedstock. To cover the remaining 30% of demand, Vietnam imports another 10 million tons of refined petroleum products. “The total cost of importing refined fuel and crude oil is about US$18 billion. In addition, Vietnam imports more than 3.2 million tons of liquefied gas, valued at over US$2 billion, to supply power plants and domestic consumption,” said Nguyen Quang Khai, who previously served as Vietnam’s ambassador to Iraq, the UAE and several Middle Eastern countries. This dependence means Vietnam’s economy is vulnerable whenever global oil prices rise, pushing up import costs and domestic retail fuel prices. The effects have become more immediate under a new pricing mechanism […]
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