Vietnam sharply increased imports of refined fuel products in March and April after the Iran war disrupted crude oil supplies to its domestic refineries, according to customs data analysed by Reuters.
The Southeast Asian manufacturing hub raised imports of refined oil products by nearly 17% year-on-year by volume and 144% by value, sourcing more fuel from South Korea and Malaysia to offset reduced shipments from Singapore and China.
South Korea nearly matched Singapore as Vietnam’s top refined fuel supplier during the period, increasing exports by more than 60% to about 610,000 metric tons, equivalent to one-third of Vietnam’s total oil product imports.
Malaysia also doubled its shipments to 403,000 tons, overtaking China as Vietnam’s third-largest supplier of refined fuels. Meanwhile, fuel imports from China fell around 17%, affecting sectors such as aviation that previously relied heavily on Chinese jet fuel supplies.
Vietnam secured exemptions from China’s export restrictions introduced after the Iran conflict began on Feb. 28, allowing limited fuel deliveries, although shipments declined sharply between March and April.
The country’s crude oil imports also dropped 5% over the two-month period as supplies from Kuwait, Vietnam’s main crude provider, were disrupted by the closure of the Strait of Hormuz. No Kuwaiti cargoes arrived in April, forcing Vietnam to seek alternative supplies.
Vietnam’s Nghi Son refinery said it sourced crude from the United States and Africa, while ship-tracking data showed additional imports from the United Arab Emirates, Nigeria, Oman and Angola.
Analysts said the shift in supply helped Vietnam avoid major fuel shortages but contributed to a rare trade deficit and rising inflation, with consumer prices climbing 5.46% in April, above the government’s 4.5% target.
Energy analyst Nguyen Thanh Son warned Vietnam’s energy outlook could become increasingly difficult if the Iran war continues, despite local refineries securing crude supplies for the coming weeks.
Industry officials added that higher domestic crude production has eased some pressure, although output cannot be increased rapidly enough to fully offset prolonged disruptions in global oil flows.