3.125
%
Neutral
20
mm boe
50
%
While still a bureaucratic regime, the government continues to make significant improvements is making the oil and gas sector more accessible. While our outlook remains Neutral outlook, the improvements support a realistic upgrade in outlook in the near- to medium-term.
November 28, 2024
Asia - South East
mm bbl
bcf
South eastern Asia, bordering the Gulf of Thailand, Gulf of Tonkin, and South China Sea, as well as China, Laos, and Cambodia.
PSC/PSA
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.
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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