Vietnam weighs national oil stockpile as economic insurance

Deputy Chairman of the National Assembly’s Committee on Delegation Affairs Dang Ngoc Huy urged the early construction of a national oil stockpile, saying it is “insurance for the economy” even though the costs could be high. The comments were made as the National Assembly continued, on the morning of April 10, to discuss in groups the five-year plan for economic and social development.

Energy security target and current stockpile gap

Mr. Dang Ngoc Huy said Politburo Resolution 70 on ensuring energy security sets a target for oil stockpiles to reach about 90 days by 2030. He noted that Vietnam’s current national oil stockpile covers only about 7–10 days of consumption, and at most 30 days if commercial reserves held by enterprises are included.

“We cannot operate an economy of 514 billion USD, ranking 32nd in the world, with an energy buffer that is constantly on alert,” he said, adding that Vietnam still lacks an independent national oil reserve.

Independent reserve requirement and cost-benefit argument

Mr. Huy said current national reserves are kept in the shared stock of importers’ enterprises, which he said runs counter to the principle of the National Reserves Law requiring independent management of quantity and quality.

He acknowledged that some views argue building independent stockpiles is costly, but said the cost of lacking reserves is “many times higher.” He cited a recent episode when world oil prices rose sharply, leading to queues of about half an hour to buy fuel. He also linked fuel price increases to pressure on transportation, logistics, and the progress of key national projects.

“Building a national strategic stockpile is buying insurance for the economy,” the deputy chief said, and he supported the government’s target to form a 90-day oil stockpile system as outlined in the government report.

Investment needs and proposed implementation roadmap

Deputy Chief of the Economic and Finance Committee of the National Assembly Pham Thi Thuy Chinh said investment in oil stockpiles needs to be increased because this sector accounts for 21% of total stockpile expenditure. She also proposed modernizing technology and the storage system for stockpiled items, including petrol and diesel.

To ensure the goal is not “just on paper,” Mr. Dang Ngoc Huy proposed that the Prime Minister take “breakthrough measures” such as budget allocation and policies to commence the national oil stock system immediately. He also proposed a specific roadmap: reaching 60 days by 2028 and 90 days by 2030.

Current arrangements and planned construction

Vietnam currently does not have a separate national oil stockpile. Stockpiles are stored in the shared warehouse of large trading enterprises through contracts, with fees paid; these stocks cover only about 7–10 days of consumption.

Recently, the government directed the Ministry of Industry and Trade to work promptly with foreign partners to begin construction of the strategic oil stockpile at Nghi Son (Thanh Hoa).

Market volatility, fuel price adjustments, and policy responses

The Middle East conflict has pushed global energy markets higher, with Vietnam facing significant impacts and retail fuel prices rising. From late February to the present, domestic retail fuel prices have undergone 15 price adjustments.

Current prices cited were gasoline RON 95-III at 23,540 dong per liter and diesel at 32,960 dong per liter. The article noted that there were periods when these prices rose to nearly 34,000 dong and 45,000 dong per liter, respectively.

At the Hanoi panel, Vietnam Airlines CEO Le Hong Ha said the conflict has made the market “extremely volatile and difficult to predict.” He said the National Assembly’s resolution to cut taxes on fuel and aviation fuel is necessary and timely to ease difficulties and stabilize macroeconomic conditions.

Mr. Le Hong Ha added that taxes are only one tool for price regulation, and that the government needs more substantive and effective policies in price management, including ensuring fuel supply and market supply. He proposed that the National Assembly adopt a reasonable authorization mechanism allowing the government to act in advance of real situations.

Prime Minister: adjust energy strategy and ensure contingencies

Responding to delegates’ comments, Prime Minister Le Minh Hung said that amid international and regional changes, Vietnam must make timely adjustments to its energy strategy. He said the government report to the National Assembly also includes plans to build national reserves for essential goods, including oil and petroleum, and that Vietnam must continue building basic energy plants alongside developing sustainable renewable energy.

He also said he had discussed adjusting and supplementing Plan VIII with Minister of Industry and Trade Le Manh Hung.

Speaking on April 9 at the Parliament’s hall, the Prime Minister affirmed that there would be no instability or economic crisis in any scenario and that contingency measures would be in place. He said Vietnam would ensure national energy security in both the short and long term, especially for crude oil and natural gas supply.