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Market Profile

  • Population: 97.58 million, about 50% below 40
  • GDP (2020): USD 341 billion
  • Government: Communist State
  • Main Language: Vietnamese, English
  • Currency: Vietnamese Dong (VND)
  • World Bank “Ease of Doing Business” Rank: 70

Why Vietnam?

  • Vietnam’s crude oil reserves are the second largest in East Asia, just behind China, with 600 million barrels
  • As an oil exporter, Vietnam has been supplying around 0.6% of the global demand
  • Vietnam remains one of the fastest-growing Asian economies with high GDP growth in recent years, based on the power of FDI

EXPORT

Doing Business in Vietnam

  • Vietnam’s shift from a centrally planned to a market economy has transformed the country from one of the poorest in the world into a lower middle-income country. Vietnam now is one of the most dynamic emerging countries in East Asia region
  • Moving from a traditional and agricultural economy, the Vietnamese government has been slowly but steadily opening the economy to foreign investments and expatriate workers
  • An attractive tax system has also been implemented to help the growth of local businesses and ensure the attractiveness of the country to foreign investors

Impact of COVID-19

  • The Vietnamese economy has been hit by the ongoing COVID-19 pandemic, but has shown remarkable resilience. GDP grew by 2.9 percent in 2020. It was one of the few countries in the world to do so, but the crisis also left a lasting impact on households, with 45% of households reporting lower household income in January 2021 than in January 2020
  • Vietnam’s economy is set to grow 6.6 percent in 2021 on the back of successful control of COVID-19 infections, strong performance by export-oriented manufacturing and robust recovery in domestic demand

Main Industries in Vietnam

Information Technology

Manufacturing & Service

Tourism

Logistics

Construction & Materials

Agricultural

Top 5 Main Export Partners

  • United States
  • China
  • Japan
  • South Korea
  • Hong Kong

Top 5 Main Import Products in Vietnam

  • Integrated Circuits
  • Telephones
  • Refined Petroleum
  • Fabric
  • Semiconductor Devices
  • Vietnam is ranked 70th in the World Bank’s 2020 Ease of Doing Business index, compared to Malaysia’s 12th position. As such, foreign companies may find it challenging to enter the market without having built-up a network of contacts as well as a solid, on-the-ground understanding of the country

  • Economic challenges include lack of infrastructure, business climate shortcomings, pending public sector reforms, growing inequality, a weak banking system

  • The current big obstacles for the searching, exploration and exploitation of PetroVietnam are the lack of capital and incomplete mechanism and policies which impede its investment and fail to attract foreign investment
  • Continued strong economic growth, ongoing reform, and a large population of 102 million – half of which are under the age of forty – have combined to create a dynamic and quickly evolving commercial environment in Vietnam

  • Under its World Trade Organization commitments, the Vietnamese government has opened its oil and gas sector to foreign companies, which it hopes will bring in capital, expertise and technologies to help achieve the country’s major industry goals

  • Vietnam’s expanding offshore exploration and production has created a steadily growing market for oil and gas equipment and services. Opportunities exist in the following areas:
    • Search, survey and exploit in deep offshore water
    • EOR: boost oil recovery from mature fields through advanced technologies
    • Technologies to optimise E&P in deep-water fields, processing of natural gas
    • EPC, consulting services for deep-water field development
  • Setting up a 100% foreign owned enterprise
  • Entering a joint venture with domestic investors
  • Merger and acquisition
  • Expansion of an existing investment project
  • Purchasing of shares or making additional capital contribution to an existing business

  • Vietnam holds 9.87% of Southeast Asia’s oil and gas reserves, the fourth largest in Southeast Asia after Thailand

  • Vietnam is a country with crude oil reserves of 4.4 billion barrels, or 0.3% of the world’s discovered oil reserves, the second-highest in East Asia, the third in Asia, the 28th in the world

  • Along with that, Vietnam ranks 36th in the world in terms of crude oil exploitation scale and 4th in Southeast Asia in terms of oil exports
  • Vietnam is the third-largest oil producer with 13.45% production while the second least country to produce natural gas with only 4.13% in Southeast Asia

  • Vietnam was a net export for crude oil in 2016

EXPORT

STAKEHOLDERS IN VIETNAM

Government

Ministry of Industry and Trade

  • Responsible for promoting, managing, regulating, managing and growing the industry and trade sector including oil and gas and renewable energy
  • Administers and issue Investment Restriction Certificate (IRC)

Petrovietnam

  • 100% state owned enterprise operating across the entire oil and gas value chain.
  • Act as the sole local partner in PSCs, JOCs and JVs in Vietnam
  • Vietnam’s largest economic group and a substantial contributor to Vietnam’s GDP annually 

Foreign Investment Agency

  • Organization under Ministry of Planning and Investment
  • Assist Minister in monitoring foreign investment activities in Vietnam and Vietnam’s investment activities abroad

Operators

Petrovietnam

Largest operator with major stakes in production

Exxon Mobil Corporation

Operates LNG import terminal in the northeastern Vietnam port city

Repsol SA

Operates three blocks in southern Vietnam (Represent – Hibiscus)

Petronas Carigali Overseas Sdn Bhd

Operates two blocks in northern Vietnam

Perenco Vietnam As

Operates some blocks in North-West & North-East Vietnam

Eni Vietnam B.V

Big operators with major stakes in production in country’s offshore

Rosneft Oil Company

Operates in two offshore Vietnam blocks and participate in The Nam Con Son Pipeline project

Other Operators:
  • Idemitsu Kosan Co Ltd
  • Shell
  • Vietgazprom
  • Vietsovpetro JVC
  • Mitra Energy Ltd
  • Korean National Oil Corporation
  • Delta Offshore Energy
  • JVPC (Japan Vietnam Petroleum)

OGSE Companies

Petrolimex Saigon

Provides land transportation services of petroleum, gas and chemicals

PTSC Offshore Services

Offshore transportation, installation, modification and manpower supply services

Hoang Long JOC

Drilling, subsurface services and HSE

Vietsovpetro

Offshore design, EPCI, jacket and topside installation

Phu My Plastic Production

Leading manufacturers of biodegradable resin in Vietnam

EXPORT

LIST OF MALAYSIAN OGSE

Sapura Energy Bhd

Provides offshore installation and field joint services for pipeline project

UMD Energy Sdn bhd

EPCI services for water injection pipeline project

Bumi Armada Bhd

Provides bare boat charter of floating production storage offloading (FPSO)

Blackstone E&C Sdn Bhd

Provides Front-End Engineering and Design (FEED) and detailed engineering design

Yinson Holdings Bhd

Provides Floating Production, Storage and Offloading (FPSO)

SynergenOG Sdn Bhd

Conduct safety review and ALARP evaluation

MCCS International Sdn Bhd

Provides nitrogen leak testing service

KNM Group Bhd

Supply of shop assembled large columns in petrochemical complex in South of Vietnam

Contact Details

MALAYSIAN GOVERNMENT OFFICES IN VIETNAM

Embassy of Malaysia in Vietnam 
Embassy of Malaysia, Hanoi, 
43 -45 Dien Bien Phu Street, Ba Dinh District

Tel: +84 4 3734 3849
Email: mwhanoi@kln.gov.my 
Web: www.kln.gov.my/web/vnm_hanoi

Consulate General of Malaysia, Ho Chi Minh City
109, Nguyen Van Huong
Thao Dien Ward, Thu Duc City
Ho Chi Minh City Vietnam

Tel: +8424 3829 9023
Email: mwhochiminh@kln.gov.my 
Web: www.kln.gov.my/web/vnm_ho-chi-minh-city 

 

Click i-ogse@mprc.gov.my to request more information

TRADE ASSOCIATIONS/ INSTITUTES BASED IN VIETNAM

MATRADE Ho Chi Minh City 
Consulate General of Malaysia – Trade Office (MATRADE)
Trade Section (MATRADE)
1206-1207, 12th Floor, Me Linh Point Tower
No. 2, Ngo Duc Ke Street, District 1
Ho Chi Minh City, Viet Nam

Name: Mr. Raphy Md. Radzi – Trade Commissioner
Tel: +8428 3822 1468
Email: hcmc@matrade.gov.my 
Web: www.matrade.gov.my

MITI Hanoi
Embassy of Malaysia in Vietnam
Embassy of Malaysia, Hanoi, 
43 -45 Dien Bien Phu Street, Ba Dinh District
 
Name: Mr Suresh Kaliyana Sundram – Minister Counsellor
Tel: +8424 3734 3849
Email: suresh@miti.gov.my 
Web: www.miti.gov.my

For any enquiries, contact our Administrator

Level 19, MoF Inc. Tower,
9, Persiaran KLCC,
50088 Kuala Lumpur,
Malaysia

+603-86558750

i-ogse@mprc.gov.my

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