Vietnams economy has expanded rapidly in recent years, with its real gross domestic product (GDP) growing 7.7% in 2004. Vietnams real gross domestic product grew by 8.4 percent in 2005. Vietnams oil production fell slightly in 2005, after several years of steady increases. Vietnams largest oil producer is Vietsovpetro (VSP), a joint venture (JV) between PetroVietnam and Zarubezhneft of Russia. VSP operates Vietnams largest oil field, Bach Ho. Other foreign partners include ConocoPhillips, BP, Petronas, and Talisman Energy. Exploration in Vietnam continues to yield new discoveries. In 2002, large oil and gas deposits were discovered in the Ca Ngu Vang (Golden Tuna) and Voi Trang (White Elephant) fields. Vietnam is in the process of building its first refinery. The $1.5 billion Dung Quat Refinery, located in Quang Ngai province, will have a crude distillation capacity of approximately 140,000 bbl/d. Natural gas production has been increasing rapidly in Vietnam since the late 1990s. Vietnam has proven gas reserves of 6.8 trillion cubic feet (Tcf), according to Oil and Gas Journal. Only two fields in Vietnam have been developed specifically for their natural gas potential: Tien Hai, with a potential output of 1.76 million cubic feet per day (Mmcf/d); and Lan Tay/Lan Do of Nam Con Son, which began producing over 5 Mmcf/d in 2002. Coal is a modest, but growing, part of Vietnams energy mix. Electricity demand in Vietnam is growing at around 15 percent per year.
Vietnams economy has expanded rapidly in recent years, with its real gross domestic product (GDP) growing 7.7% in 2004 and 8.4% in 2005. Growth is forecast at 8.0% in 2006. Vietnam has had Normal Trade Relations status with the United States since late 2001, with 2002 marking the first time Vietnam shipped more goods to the United States than to Japan. Despite rising exports, Vietnam currently runs a slight trade deficit, but is projected to begin having trade surpluses by 2007. Much of Vietnams large rural population relies heavily on non-commercial biomass energy sources such as wood, dung, and rice husks. As a result, Vietnams per capita commercial energy consumption ranks among the lowest in Asia. The countrys commercial energy consumption is predicted to rise in coming years, primarily due to increases in the use of natural gas. Vietnam claims ownership of a portion of the potentially hydrocarbon rich Spratly Islands, as do the Philippines, Brunei, Malaysia, China, and Taiwan. Vietnam, China, and the Philippines agreed in March 2005 to conduct a joint seismic survey for potential oil and natural gas reserves in a portion of the disputed area. Vietnam also claims the Paracel Islands, which China first occupied in 1974.
Vietnam has 600 million barrels of proven oil reserves, according to data from Oil and Gas Journal, but that total is likely to increase as exploration continues. Crude oil production averaged 370,000 barrels per day (bbl/d) in 2005, down somewhat from the 403,000 bbl/d level achieved in 2004. Bach Ho (White Tiger), Rang Dong (Dawn), Hang Ngoc, Dai Hung (Big Bear), and Su Tu Den (Ruby) are the largest oil producing fields in the country. Although it is a significant oil producer, Vietnam remains reliant on imports of petroleum products due to a lack of refining capacity. Overall, Vietnam had net exports of 111,000 bbl/d of oil in 2005. Most of Vietnams crude oil is exported to refiners in Japan, Singapore, and South Korea.