How Vietnam Is Securing Oil Supply After the Strait of Hormuz Shock

Diversifying crude and fuel imports beyond the Middle East

Vietnam’s core response has been to reduce exposure to Middle Eastern supply routes and diversify import sources.

Refiners and fuel importers have increased purchases from alternative regions—including West Africa, the Mediterranean, and the United States—while still maintaining limited Middle Eastern supply where possible.^[19]

This shift is designed to lower the risk of supply interruptions tied to the Hormuz chokepoint. However, the available evidence does not provide precise country‑by‑country replacement volumes, indicating that diversification is still evolving rather than representing a full structural shift in sourcing.

At the policy level, the Vietnamese government also moved to support supply security by cutting import tariffs on petroleum products and refinery inputs to 0%, lowering barriers to purchasing fuel from global markets during the disruption.^[23]

Domestic refineries running at high capacity

Vietnam relies heavily on its two main refineries—Dung Quat and Nghi Son—to stabilize domestic fuel supply.

During the disruption, the government and industry prioritized keeping these facilities running at high utilization:

• The Dung Quat refinery has operated above its design capacity, helping maintain domestic supply stability.^[22]
• Around 30–35% of Dung Quat’s crude feedstock is imported, giving operators flexibility to shift sourcing to regions such as West Africa or the United States when Middle Eastern supplies become uncertain.^[19]

Authorities report that domestic petroleum supply has remained broadly stable thanks to the combination of refinery output and increased imports.^[18]

Imports surge as Vietnam secures supply

While domestic refining helps, Vietnam still relies significantly on imported fuel and crude oil.

The scramble to secure supplies during the crisis pushed imports sharply higher. According to Vietnam Customs data, the country imported about 3.37 million tonnes of petroleum products worth roughly US$2.93 billion in the first quarter of 2026, representing a 44% increase in volume and a 77.8% increase in value compared with the same period a year earlier.^[17]

The surge reflects both:

• stronger domestic energy demand
• precautionary buying to ensure supply amid geopolitical instability

Higher global prices also contributed to the jump in import spending.

Inflation and trade pressures from higher energy costs

Rising oil prices and increased imports have direct macroeconomic implications for Vietnam.

Because the country still imports a large share of its energy needs, higher global prices translate into larger fuel import bills and increased pressure on the trade balance.^[17][8]

Energy price spikes can also ripple through the economy via transport, logistics, and industrial production costs. Across Asia, analysts warn that oil shocks tied to the Hormuz crisis could slow economic growth and increase inflation risks in import‑dependent economies.^[8][9]

Vietnam has attempted to cushion the domestic impact with measures such as tax reductions and price‑stabilization policies, but global price movements remain the dominant factor.

Why Vietnam’s energy outlook remains fragile

Even with diversification and strong refinery output, analysts warn that Vietnam’s energy security remains structurally vulnerable.

Several factors explain why:

Continued dependence on imports

Vietnam’s domestic refineries meet about 70% of national fuel demand, meaning the country must still rely heavily on imported crude oil and refined products.^[29]

Exposure to global oil prices

Diversifying suppliers reduces route risk but does not shield Vietnam from global price spikes when worldwide supply tightens.

Structural regional vulnerability

Across Asia, economies remain deeply reliant on Middle Eastern energy flows. Disruptions to major chokepoints like the Strait of Hormuz can therefore trigger widespread price shocks even when alternative suppliers are available.^[8][9]

The bottom line

Vietnam has managed the immediate shock from the Strait of Hormuz disruption through a combination of diversified crude sourcing, high refinery utilization, tariff reductions, and increased imports. These steps have kept fuel supplies stable despite global turmoil.

However, the strategy also reveals a deeper challenge: Vietnam’s energy system remains tied to volatile global markets. As long as the country depends on imported crude and refined fuels, geopolitical disruptions—especially at critical chokepoints like Hormuz—will continue to pose a significant economic risk.