Amid rapid response measures, proactive solutions and flexible policymaking, Vietnam has managed to secure its fuel supply, effectively addressing disruptions and maintaining the continuity of economic activities.
Editorial note:
Rising tensions in the Middle East have triggered sharp fluctuations in global fuel markets, directly impacting economies worldwide, including Vietnam. As supply chains face disruptions and prices surge, economies are placed under significant strain, with the risk of stagflation - high inflation coupled with slow growth.
Over the past month, however, domestic fuel supply has largely remained stable, with supply chains operating smoothly. Price increases have been brought under control, and from their peak, fuel prices have eased to more manageable levels, helping reduce pressure on production, business operations and household expenses.
Flexible fuel price management, combined with swift and decisive government actions and responsive policymaking in the face of external shocks, has reinforced confidence among businesses and the public, supporting economic stability and growth.
VietNamNet presents a series of articles offering insights into this issue.
Stepping up energy diplomacy and flexible policymaking
The escalation of military conflict in the Middle East in recent weeks has sent shockwaves through global fuel markets, raising the risk of supply disruptions and sharp price volatility.
Vietnam remains a net importer of fuel. In 2025, the country imported 14.1 million tonnes of crude oil and 9.9 million tonnes of refined petroleum products, with a combined import value of US$14.5 billion, underscoring its exposure to external supply fluctuations despite domestic production and refining capacity.
As a result, the domestic fuel market has been affected by disruptions in input materials for production, while imports have faced challenges due to export restrictions imposed by some countries in the region. Notably, feedstock supply for the Nghi Son Refinery - which accounts for around 40% of Vietnam’s fuel consumption - has been particularly sensitive to external volatility.
“Stabilizing fuel prices is important, but the top priority is securing alternative crude oil sources to ensure energy security,” said Nguyen Tu Anh, Director of Macroeconomic Policy Research at the Green-X Center (VinUni University). According to him, only by maintaining sufficient fuel supply can the economy avoid falling into crisis.
In practice, over the past month, phrases such as “ensuring fuel supply,” “diversifying import markets,” and “maintaining energy security” have appeared frequently in directives issued by the Politburo, the Government and relevant ministries.
Just days after the Middle East conflict escalated, Prime Minister Pham Minh Chinh signed a decision to establish a task force on energy security, emphasizing a firm commitment to prevent fuel shortages under any circumstances.
The Government also reduced preferential import tariffs on certain petroleum products to 0% from March 9 to April 30, 2026, enabling businesses to better access supply amid global market volatility.
At the same time, Vietnam has intensified “energy diplomacy” efforts to secure and diversify crude oil sources. The Prime Minister has held phone talks with leaders of multiple countries to promote cooperation, ensure continued crude oil supply and discuss broader energy partnerships.
On March 20, the Politburo issued Conclusion No. 14-KL/TW on ensuring fuel supply and stabilizing prices in the new context. It assigned Party committees of the Ministries of Foreign Affairs, Industry and Trade, and Finance to proactively engage with international partners, facilitating domestic enterprises in sourcing raw materials and ensuring supply for production and business activities.
These coordinated actions demonstrate how both the Politburo and the Government moved swiftly to stabilize fuel supply and prices.
Refineries maintain sufficient input to run at full capacity
The refinery has sufficient crude oil supply to operate at full capacity. Photo: BSR
“We do not wait until shortages occur to respond. The Government and ministries have been proactive, preparing contingency plans and policy solutions for different scenarios to enhance resilience, enabling timely decisions that ensure fuel supply,” said Nguyen Thi Minh Thao, Head of the Business Environment and Competitiveness Research Department at the Central Institute for Economic Management.
According to her, this reflects a rapid and timely response, particularly through a series of flexible policies addressing urgent challenges related to essential commodities such as fuel.
As a result, fuel supply has remained fundamentally stable, with no shortages or disruptions, helping sustain continuous economic activity.
A recent report from Binh Son Refining and Petrochemical Joint Stock Company shows that in the first quarter of 2026, the Dung Quat Refinery operated safely at 123.5% of its designed capacity, producing 2.03 million tonnes and selling 2.02 million tonnes of products, equivalent to 113% of its plan. This has contributed significantly to stabilizing domestic fuel supply.
These results stem from proactive measures to maximize output, including outsourcing processing at the Phu My Condensate Plant, purchasing high-octane blending components and increasing gasoline supply to the market.
Regarding feedstock, Nguyen Viet Thang, General Director of BSR, said the company has secured approximately 2.3 million barrels of additional crude oil for May and June 2026. This will allow Dung Quat to maintain operations at a minimum of 118% of its design capacity in June.
BSR is also actively negotiating imports from partners in Africa, the US and Southeast Asia to ensure stable supply in the coming months.
Similarly, the Nghi Son Refinery and Petrochemical complex activated its crisis management mode when the Middle East conflict disrupted crude oil supply from Kuwait.
The refinery has expanded its crude oil basket and supplier base, while arranging additional intermediate feedstocks such as SRFO and VGO to maintain operations at 100% capacity.
It has secured sufficient crude oil to sustain continuous operations through the end of May at optimal capacity.
While crude supply for both refineries is currently secured, the situation in the Middle East remains complex and unpredictable, with potential risks that could persist.
In response, alongside ensuring supply, the Government and relevant ministries have called on businesses and citizens to enhance energy conservation. At the same time, the rollout of E10 gasoline is being accelerated, expected to begin in April instead of June 2026, to ease pressure on conventional fuel supply.
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