Vietnam product markets 2021 outlook to 2050

Total products in Vietnam was 109,000 b/d in net deficit in 2020, growing to 122,000 b/d deficit in 2021. The country had deficits in all products with the exception of a small surplus in naphtha, with the biggest contributor to the deficit being diesel/gasoil. The start-up of Nghi Son refinery in 2018, the second largest refinery in Vietnam, has reduced Vietnam's reliance on product imports. However, the deficits are expected to widen going forward due to steady demand growth and insufficient incremental refinery supply. In 2020, oil product demand decreased slightly to 471,000 b/d from 476,000 b/d in 2019, as Vietnam was minimally impacted by Covid-19. Looking forward, as Vietnam's economy expands, the country's oil product demand is forecast to grow at an average rate of 1.9% a year from 2020 to 2050. Demand is expected to reach 847,000 b/d in 2050.