Vietnam–Canada: Advancing investment cooperation in the energy sector

Vietnam is seeking reliable partners for transitional fuels such as LNG as energy demand grows and supply diversification becomes more urgent. In an interview with VnEconomy, Canada’s Ambassador to Vietnam, Jim Nickel, said Canada is ready to expand LNG supply, promote investment cooperation, and build long-term partnerships with Vietnam in the energy sector.

Vietnam–Canada trade ties expand rapidly

The ambassador said bilateral economic ties are growing quickly. Over the past 4–5 years, bilateral trade has doubled. In 2025, two-way trade between Vietnam and Canada grew by more than 30%, reaching about $20.6 billion in total two-way trade, based on Canada’s trade statistics.

He also highlighted the trade balance from Canada’s perspective: for every $1 billion of Canadian exports to Vietnam, Vietnam exports to Canada amount to roughly $19 billion in goods, indicating Vietnam’s strong export position to Canada.

The relationship is supported by the Comprehensive Partnership established in 2017 and both countries’ participation in the CPTPP, which the ambassador said links the two economies as reliable partners.

Energy cooperation priorities and Canada’s role in the transition

Asked about Canada’s oil and gas sector and global energy role, the ambassador said energy is a priority area for cooperation, covering energy security, energy sovereignty, and joint commitments to reducing emissions toward net-zero.

He described Canada as one of the world’s largest energy producers, ranking fourth in crude oil production and fifth in natural gas production. Canada’s strategic direction, he said, is to maintain its role as a reliable supplier while supporting the global energy transition through cleaner production, low-emission technologies, LNG development, and carbon capture and storage (CCUS).

Beyond energy, he cited potential collaboration areas including aerospace, technology and innovation, information and communications technology, clean technologies, education, and agriculture and agri-food.

Canada’s LNG supply capacity and logistics advantages

The ambassador said Canada’s LNG exports to Asia have expanded in recent years. He noted that in June 2025, LNG facilities on the Pacific coast of British Columbia began exporting to China, Korea, Japan, Taiwan, and the Philippines.

Current LNG export capacity is about 14 million tonnes per year, with plans to double to about 28 million tonnes per year in the coming year. He added that Canada has two LNG projects under construction, expected to come online in 2026 and 2027, with additional projects under consideration.

On longer-term targets, he referenced Prime Minister Mark Carney’s goal that Canada could export about 50 million tonnes of LNG per year by the 2030s and up to 100 million tonnes per year by the 2040s, positioning Canada as a large and reliable supplier of a transitional fuel.

Shipping time and strategic route considerations

For Vietnam’s energy security, the ambassador emphasized logistics. He said shipping time from British Columbia to Vietnam is about 15 days, compared with roughly 30 days from the US Gulf to Vietnam—about half the time. He added that this can reduce transport costs and support a more direct and stable Pacific route.

He also pointed to the strategic value of avoiding routes that may involve chokepoints such as the Panama Canal or geopolitically sensitive areas including the Hormuz or Malacca Straits.

Emissions profile of LNG

The ambassador said LNG has significantly lower emissions than many traditional fuels. He stated that Canada’s LNG currently has emissions about 60% lower than the global average, and that with new facilities, improved technologies, and LNG plants using hydroelectric and other renewables, emissions could fall to around 90% below the global average.

Potential for Vietnamese investment in Canadian upstream and LNG projects

On whether Vietnamese entities could invest in Canada’s upstream oil and gas sector, the ambassador said Canada welcomes foreign investment and offers a safe, transparent, and reliable environment for long-term returns.

He cited examples of international participation in Canada’s LNG development, including Malaysia’s Petronas taking a 25% equity stake in the first LNG project exporting to Asia. He also noted investments by PetroChina and Korea Gas Corporation in upstream gas assets, LNG facilities, and broader energy development.

To illustrate investment scale, he said total foreign direct investment in Canada’s energy sector is currently around $157 billion. He added that Canada is ready to support PVN, EVN, or other Vietnamese partners interested in engaging with Canada’s energy resources.

Message to Vietnam’s business community and policymakers

Concluding the interview, the ambassador said Canada has traditional energy resources, renewable energy, emissions-reduction technologies, and robust energy R&D, alongside experienced companies operating across the energy value chain.

He said Vietnam’s growing economy and rising energy demand make cooperation important for developing reliable, safe, and cleaner energy. He added that partnership opportunities extend across oil and gas, LNG, CCUS, renewable energy, and nuclear options including traditional nuclear energy and small modular reactors (SMRs).