Vietnam

Investment & Operational Criteria

Key Indicators

Risk Premia

3.125

%

Outlook

Neutral

Rating

A|2S|±

Ranking

23

Reserves (1P)

Total

mm boe

Oil

50

%

Summary

Recent improvements in governmental relations has been reflected in our Outlook Neutral.

Updated

June 11, 2021

Country Basics

Region

Asia - South East

Reserves (1P)

Oil

mm bbl

Gas

bcf

Location

VietnamVietnam

South eastern Asia, bordering the Gulf of Thailand, Gulf of Tonkin, and South China Sea, as well as China, Laos, and Cambodia.

Outline

Tax Regime
Type

PSC/PSA

Tax Regime
Notes

Contractors are permitted to participate in, and operate, the exploration, development and production of petroleum resources in Vietnam by entering into a PSC with Vietnam Oil and Gas Group (Petrovietnam). The PSC will be in accordance with the model contract issued by the Vietnamese Government.

Investment & 
Operational
Climate

Since the launch of Doi Moi (to renovate) in 1986, Vietnam has moved from a closed, centrally planned economy, towards a globally integrated, socialist-oriented market economy. Over the past 30 years, Vietnam’s average economic growth rate of 5.5% has been second only to China in Asia. In 2017, Vietnam’s GDP growth was a remarkable 6.8% and 2017 marked the third consecutive year of +6% growth. Vietnam started 2018 with high expectations, as the Asian Development Outlook report forecasts Vietnam’s economy to expand by 7.1% in 2018, due to robust growth driven by strong manufacturing and export growth, rising domestic consumption, strong investment, and an improving agricultural sector. This has led PriceWaterhouse Coopers to predict that: 1) Vietnam will have the strongest average GDP growth until 2050, exceeding 5.1% a year; and 2) Vietnam will move from the 32nd largest economy to the 20th by 2050.

Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.

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Asia - South East

Countries

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