HANOI: Vietnam has announced a temporary reduction in import tariffs on oil and petroleum products under the Most-Favoured Nation (MFN) principle to 0% as part of its response to the global energy crisis.
The measure includes petrol, diesel, jet fuel and related petrochemical feedstocks, all of which will now face a zero tariff rate. The policy is intended to stabilise the domestic energy market, improve flexibility in sourcing imports and strengthen Vietnam’s energy security.
According to a report published by the Department of International Trade Promotion through the Office of Commercial Affairs in Ho Chi Minh City, the escalating conflict in the Middle East has significantly affected the stability of global energy markets.
Particular concern has centred on the risk of disruption to oil shipments through the Strait of Hormuz, a vital strategic route for transporting Middle Eastern oil to global markets.
These developments have placed upward pressure on international crude prices and heightened concerns over energy supply security in many countries.
Vietnam remains significantly dependent on imported oil and energy-related feedstocks. Against this backdrop, the government has introduced policy measures to manage energy risks and preserve stability in the domestic energy market.
On March 9, 2026, the Vietnamese government issued Decree No. 72/2026/NĐ-CP, reducing special import tariff rates under the MFN framework for certain fuel and related raw materials.
The aim is to reinforce domestic energy market stability, increase flexibility in securing energy supplies from global markets and support the country’s long-term energy security. MFN tariff rates apply to trading partners that are members of the World Trade Organization.
The tariff reduction is therefore viewed as a trade and energy policy tool that will allow businesses to import fuel from a broader range of sources during a period of heightened volatility in global energy markets.
Under the decree, the MFN tariff on unleaded petrol and gasoline blending components such as RON95 has been cut from 10% to 0%. Import duties on diesel and jet fuel have also been reduced from 7% to 0%.
In addition, key feedstocks used in petrochemicals and oil refining, including naphtha, reformate and condensate, have also had their tariff rates reduced to 0%.
The measure took effect from the date of announcement and will remain in force until April 30, 2026. It may be extended if global energy markets remain highly volatile.
From an economic and international trade perspective, the tariff cut is regarded as an important policy instrument for improving the flexibility of the energy supply chain and enabling energy operators to diversify their sources of imports, thereby reducing overdependence on any single market.
Data from Vietnam Customs show that in 2025, the country imported around 9.9 million tonnes of refined oil products worth more than US$6.8 billion. Diesel accounted for the largest share, followed by petrol and jet fuel. Vietnam’s main suppliers were South Korea, Singapore, China and Malaysia, reflecting its close integration with regional Asian energy trade networks.
At the same time, Vietnam also imported large volumes of crude oil for domestic refining. In the same year, crude imports exceeded 14.1 million tonnes, worth more than US$7.7 billion.
Kuwait was the largest crude supplier, accounting for about 80% of total imports, particularly for the Nghi Son Refinery, which relies heavily on Kuwaiti feedstock.
On March 9, 2026, Vietnamese Prime Minister Pham Minh Chinh held a telephone discussion with Kuwaiti Prime Minister Sheikh Ahmed Abdullah Al-Ahmad Al-Sabah to reaffirm cooperation in ensuring continued crude oil supplies to Vietnam.
Vietnam’s two main refineries — Nghi Son Refinery and Dung Quat Refinery — currently meet around 70% of the country’s total fuel demand.
Even so, Vietnam still needs additional imports to cover domestic demand. Amid continuing volatility in global energy markets, the government has also taken parallel proactive measures. The prime minister said Vietnam had arranged an additional 4 million barrels of oil from international partners to strengthen short-term supply security.
The latest MFN tariff cuts reflect the Vietnamese government’s broader approach to managing energy risks amid global geopolitical uncertainty. The measure not only improves flexibility in sourcing energy from international markets, but also plays an important role in stabilising the domestic energy market, reducing supply risks and supporting long-term energy security.
This is a key factor for sustaining economic activity and industrial development in Vietnam going forward.
The Office of Commercial Affairs in Ho Chi Minh City said the reduction of MFN tariffs on petroleum products to 0% is likely to make the competitive structure of the regional energy and petrochemical markets more flexible.
At a time when global energy prices remain volatile and supply is tight, the measure should improve the agility of oil procurement from world markets, allowing Vietnamese businesses to broaden their import sources. This could help stabilise or even reduce energy costs in Vietnam’s manufacturing and logistics sectors compared with a scenario in which no such measure had been introduced.
In terms of trade structure, the policy may also intensify competition among energy exporters from various regions seeking access to the Vietnamese market, potentially influencing the direction of Asean energy trade in the period ahead.
For Thai businesses, especially those operating in energy, petrochemicals and energy-intensive industries, the measure may create both competitive pressure and fresh opportunities. On one hand, opening MFN imports could allow exporters from countries outside free trade agreements to access Vietnam more easily, leading to tougher price competition.
On the other hand, Thai companies with investments or business operations in Vietnam may benefit from more stable energy costs, which could strengthen the competitiveness of production sectors, particularly petrochemicals, plastics, logistics and transport.
Thai operators should therefore closely monitor developments in Vietnam’s energy policy and import tariff measures, while considering adjustments to their energy and raw material sourcing strategies in line with the changing market structure.
They should also explore greater cooperation in energy and petrochemicals within regional supply chains, including making use of Asean trade and logistics networks.
If global energy markets remain highly volatile, tariff and trade measures of this kind in Vietnam could become an important mechanism that opens up new business opportunities in the Vietnamese market for regional operators, including Thai companies. - The Nation/ANN
