Oil and gasoline performs an necessary role in the global economics typically and Vietnam significantly. Aside from its economic advantages, it is the very important energy in each day life, engages a large number of qualified staff into the business. Let take a more in-depth look at the Vietnam oil and gas trade, its SWOT. Indeed, higher understanding of this industry in Vietnam will better your probability of efficiently organising businesses, investing in Vietnam, hiring Vietnamese staff in oil and gas.
1. Construction of Vietnam oil and gasoline sector
The oil and gasoline sector in Vietnam has been dominated by Vietnam Oil and Gasoline Group (PetroVietnam – PVN) and controlled by the Ministry of Trade and Trade. In Vietnam, this sector is one of high priorities for the event, as it is seen as the key to national financial progress and energy security. It is the country largest overseas current earner and one among main procurers of imported know-how. Crude oil has earned over $17 billion for Vietnam since its first export shipment in 1987. This business contributes $1 billion to the State budget every year.
PVN and Vietnam Nationwide Petroleum Group (Petrolimex) are the 2 greatest gamers in oil and fuel. Whereas Petrolimex is now concerned only in transportation and distribution, PVN additionally produces refined products and gas processing. Established in 1975, PVN is the one domestic petroleum firm and represents the Vietnam authorities in operating and managing Vietnam oil and gas industry. This group revenue primarily comes from oil and gasoline manufacturing, urea manufacturing, power production, manufacturing of petroleum, petrochemical merchandise, petroleum buying and selling actions. Meanwhile, Petrolimex was established from equalization and restructuring of Vietnam National Petroleum Corporation. Petrolimex primary enterprise scope is importing, exporting and dealing in petroleum, refining and petroleum products, investing in different fields that Petrolimex is operating and other sectors allowed by the law.
2. Oil and gasoline manufacturing
It isn exaggerating to claim that Vietnam is biased with abundant natural assets. This nation has wonderful potential in oil and fuel reserves, principally located within the South of Vietnam.
Vietnam crude oil reserves are the second largest in East Asia, just behind China, with 600 million barrels. Largest oil producing fields listed here are Bach Ho (White Tiger), Rang Dong (Dawn), Dai Hung (Huge Bear), Hold Ngoc, Su Tu Den (Ruby). Averagely, 500,000 barrels of crude oil are produced per day. Within the brief time period, new tasks will keep growing output; and in the long run, an absence of main new projects will make production decline, elevating requirement for internet crude import to one hundred 700b/d by 2022.
As an oil exporter, Vietnam has been supplying round zero.6% of the worldwide demand. The United States is the biggest importers of crude oil from Vietnam, holding 27.9% of Vietnam export volume. Singapore takes 27% of the country export volume, adopted by Japan 22%, China 18%, Netherlands 2.Eight%, and Malaysia 2%.
Vietnam- Pure Gas Production, Import Capacity and Consumption (Cr: BMI Analysis)
Other than crude oil, Vietnam is wealthy in pure fuel, too. It has proven fuel reserves of nearly 7 trillion cubic feet in serveral fields eg., Cuu Long basin offshore from Mekong Delta in Southern Vietnam, Tien Hai (Thai Binh), Lan Tay/ Lan Do in Nam Con Son basin off South Vietnam, etc. Vietnam natural gas manufacturing and consumption have been growing quickly because the late nineties, and primarily for home demand. Based on BMI Research (UK), its consumption in Vietnam will grow strongly by nearly 60% over the next decade due to wider application of CNG-fuelled vehicles in the transportation sector and rising gasoline-fired electricity era in the ability sector. This may lead to the country fuel demand growing at averagely four.9% per 12 months over the subsequent decade, from eight.8 bcm in 2014 to 14.1 bcm in 2024. LNG imports are anticipated to entail.
3. Refinery and petrochemical business Growing sector in Vietnam and Great curiosity to international investors
The refinery Dung Quat in the central province of Quang Ngai
Underneath Vietnam WTO commitments, in the upstream phase, overseas corporations are allowed to explore oil and fuel independently. Although there requires the presence of PVN one of biggest players in Vietnam oil and gasoline – in all producing projects, international oil firms are allowed to hold majority stakes and gain a share of output. In the meantime, within the downstream phase, the Vietnamese authorities has allowed the involvement of non-public sector and overseas companies. That means capital, experience and superior technology are being brought in to assist improve refining capacity in Vietnam. With the government openness to foreign partnership, increasingly more companies have pursuits in Vietnam refinery and petrochemical sector, especially companions from Japan, Kuwait, Thailand, UK, Russia, the U.S, India, South Korea.
Dung Quat (Quang Ngai province) – the first refinery in Vietnam – came into operation in 2009. The foreign oil corporations, including Essar Group (India), Royal Dutch Shell (Netherlands) and SK Energy (South Korea) were negotiated to upgrade and sell part of this refinery. The refinery most capability is 6.5 million tons of crude oil/ 12 months, equally to 148,000 barrels/ day.
One other venture is Nghi Son refinery (Thanh Hoa province). This is a joint venture between Vietnam oil and gas main PVN (contributing 25.1% of the capital) and worldwide companies, together with, Kuwait Petroleum International and Idemitsu Kosan (Japan) (each holding 35.1%), while another Japanese firm, Mitsui Chemicals, has the remaining 4.7% of stake. Nghi Son is the second and largest oil refinery venture in Vietnam. It anticipated to function in 2017 and attain the maximum capability of 10 million tons in 2018.
Vietnam is planning to construct some refineries they are: Long Son refinery (Vung Tau province), Van Phong refinery (Khanh Hoa province), Vung Ro refinery (Phu Yen province).
4. Oil and gas manpower
Vietnam has been considered one of the highest sights to overseas buyers in oil and gasoline not only due to the adjustments to government policies i.e. allowing overseas ownership of larger corporations, significant funding in infrastructure, but additionally due to this country properly-educated workforce.
Indeed, this sector growing fast in Vietnam has been attracting lots of workers and induces extra investment in HR development. There have been about 2,000 staff within the business in 1975 when PVN was based; 21,000 in 2005; 35,000 in 2009; Forty four,000 in 2010; 60,000 in 2011. Throughout 2012-2015, the oil and gasoline business maintained hiring a secure quantity ofworkers in oil and gas sector. Workforce on this sector is properly educated at greater stage than workers in different sectors. 90% of staff are concerned in lengthy-term training. The rate of employees with greater education or above degree is excessive, too, and increasingly greater. Plus, Vietnam manpower has extra alternatives to entry superior applied sciences followed by the country expanding exploitation, oil production and refining. Despite increased accessibility to technologies, that nonetheless doesn absolutely the demand. That why with eagerness to be taught, increasingly workers in Vietnam have chosen to work in international nations like Dubai to be upgraded with reducing-edge applied sciences apart from, in fact, incomes extra money.