Norway’s products and services have good reputation in Vietnam for their high quality and durability. Vietnamese perceive Norwegian businesses as trustworthy partners who are looking for long-term partnerships. The bilateral cooperation shows steady growth concentrating on oil & gas, maritime, aquaculture and seafood.
Vietnam is developing with great potential
Vietnam has a good potential for developing the ocean economy. It has become a low-middle income country since 2010 with GDP per capita of $ 2100 in 2015. In 2018, real GDP is now projected to reach 6.8 percent and Vietnam is expected to continue its economic growth at a rate of over 6% for the next decade as reported by the World Bank. The population in Vietnam was over 95 million in 2017, and the middle-income class is enlarging. Those factors have created favorable conditions for investments and trade to expand.
The government of Vietnam has a sustainable ocean economy strategy towards 2030 based on the development of oil and gas industry, maritime industry and aquaculture.
More focus on exploration in the underexplored offshore territories
Although the crude oil price is low, petroleum industry still plays an important role in Vietnam’s economy and makes a significant contribution to the state budget. Vietnam is keen to reach the next stage in the development of the country’s energy sector. To meet this need, the Government of Vietnam is encouraging investment from both local and foreign sources in offshore oil and gas exploration and production.
Vietnam will focus more on exploration in the underexplored offshore territories with deep water reserves. In 2018 Vietnam produced around 14 million tons of crude oil and over 10 billion cubic meters of natural gas. In the years to come, oil production will decline but gas production will increase. The number of major gas projects is likely to increase substantially in the years to come such as Bock B in the south-west of Vietnam and Blue Whale in the center of Vietnam.
To meet the energy demand, Vietnam has a plan to import LNG and natural gas from Indonesia. This is good news for Norwegian companies, which possess the state-of-the-art LNG technologies.
Opportunities for Norwegian companies:
• LNG technologies
• Deep water technologies
• Enhance Oil Recovery technologies for brown and marginal fields
• Equipment supply for building platforms
• Hi-end services (expertise, technologies, integrated services).
For more details, please see: “Vietnam oil and gas overview – Innovation Norway Hanoi” and contact our expert Hai Tien Le.
Hai Tien Le
Senior Market Advisor
Innovation Norway, Vietnam
T: +84 903 275 759
Photo: Gaetano Cessati, Unsplash.com