Vietnam to Cut Petroleum Imports to Narrow Trade Gap next Year

Vietnam, which is now has to import almost petroleum products to meet local demand due to no refineries, will reduce importation of petroleum products by around three million metric tons to limit trade deficit next year, said Deputy Minister of Industry and Trade, Nguyen Thanh Bien.

 

The expected operation of Vietnam’s first oil refinery in February 2009 will help reduce the country’s dependence on fuel imports and lower the trade deficit, he added.

 

It is also expected to cover the import reduction volume, Mr Bien said.

 

The underway refinery worth US$2.5 billion, with expected products of propylene, liquefied petroleum gas (LPG), lead-free petrol, diesel and fuel oil, will meet 33 per cent of the country’s entire demand for petrol and oil once fully operational.

 

In the first ten months of this year, Vietnam spent US$10.25 billion on importing 11.05 million metric tons of petroleum products, up 71.1 per cent on year in value and 5.3 per cent in volume.

Vietnam is estimated to incur a smaller trade deficit of US$19.9 billion next year, up 5 per cent on-year. (Thanh Nien Daily, GSO Oct 2008)