Vietnam’s oil consumption is growing fastest in the region, overtaking China and rising by 7.5% per annum over the last 20 years, according to New Zealand’s ANZ Bank.
“In light of the surge in electronics production over the last three years, we expect oil consumption to continue rising as total energy needs keep pace with the demands of manufacturing growth,” the bank said in a recent report.
This development has contributed to Vietnam becoming a net oil consumer since 2010, from a net oil producer. During this period, Vietnam’s gross domestic product (GDP) has grown an average of 5.83% per year over this five-year period, peaking at 6.4% in 2010. Last year, Vietnam’s GDP grew 5.98%, beating the government’s 5.8% target.
Vietnam’s growth story, while still weaker than when it peaked in 2010 at 6.4%, is being supported by exports, mainly from foreign companies. Exports grew 13.6% last year as manufacturers, including Samsung Electronics Co. and LG Electronics Inc. boosted investments. Shipments from FDI companies, including crude oil, reached USD101.6 billion, or 68% of the total, according to the Foreign Investment Agency.