Vietnam product markets long-term outlook H2 2020

Total products in Vietnam was 134,000 b/d in net deficit in 2020. 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, the second largest refinery in Vietnam, in 2018 has reduced Vietnam's reliance on product imports. However, the deficits are expected to widen due to steady demand growth and insufficient incremental refinery supply. In 2020, oil product demand decreased slightly to 473,000 b/d from 476,000 b/d in 2019, due to Vietnam being 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 2.2% a year from 2020 to 2050. Demand is expected to reach 907,000 b/d in 2050.