In 2022, Vietnam spends nearly 9 billion USD on petroleum imports, nearly 2.2 times higher than in 2021. Entering 2023, key businesses will have to increase imports of this item, and offset output when the Nghi Son factory fixes problems, and Binh Son performs periodic maintenance.
According to the General Department of Customs in December, petroleum imports reached more than 944,000 m3, equivalent to 822 million USD, up 23% in volume and 11% in value compared to November.
In general, in 2022, petroleum imports of all kinds to Vietnam reached nearly 8.9 million m3, equivalent to nearly 9 billion USD, up 28% in volume and nearly 2.2 times in value compared to 2021.
Particularly in December, the price of imported gasoline was at $871/m3, down nearly 10% from the previous month but up 23% compared to December 2021. On average, in 2022, the price of imported gasoline is about 1,007 USD/m3, an increase of 67% compared to 2021.
Source: Labor Newspaper
Customs data also shows that in 2022, Korea is the main supplier of petroleum to Vietnam, accounting for 36% of Vietnam's total petroleum imports in 2022.
Specifically, in 2022, Vietnam imported nearly 3.2 million m3 of petroleum from South Korea, equivalent to 3.4 billion USD, double in volume and 3.5 times higher in value compared to 2021. Petrol price Imports from South Korea are at $1,050/m3, up 72% compared to 2021.
Entering 2023, some businesses are still concerned about the risk of disorder in the petroleum market, especially when the Nghi Son plant has just encountered a technical problem, Binh Son oil refinery has a maintenance plan in April-May while imported gasoline takes months to arrive in Vietnam.
Accordingly, Nghi Son oil refinery said that there was a technical problem with a catalytic leak at the RFCC workshop's low thermal expansion joint and temporarily stopped the workshop to fix it, expected to be completed before January 15, 2023.
Crude oil processing workshops and other technology workshops are maintained at a lower capacity than planned during this repair period. Therefore, gasoline production in the first 10 days of January 2023 will be reduced by about 20-25% compared to the plan. It is expected that in January 2023, the Nghi Son oil refinery will produce and supply 600,000 m3 of gasoline to the market.
Deputy Minister of Industry and Trade Do Thang Hai said that the agency has assigned the Domestic Market Department to coordinate with the Vietnam National Petroleum Group and key petroleum traders to understand the situation in detail. Petroleum supply of enterprises, the plan to compensate for the shortage of gasoline due to the incident at the Nghi Son refinery and petrochemical plant.
Regarding this issue, Mr. Bui Ngoc Bao, Chairman of the Vietnam Petroleum Association (VINPA) said that any unexpected technical problems at refineries will more or less affect the gasoline market oil.
“As announced, petroleum output in the first 10 days of January 2023 will be reduced by about 20-25% compared to the plan, of course, it will affect the orders of the main enterprises. The market will be short of stock in the short term.
However, imported petroleum orders are on schedule, compensating for the Nghi Son refinery. In addition, the factory is also rushing to repair and return to operation as soon as possible," said Mr. Bui Ngoc Bao.
As for the factory maintenance activities of the Binh Son oil refinery, this enterprise has planned and informed the Ministry of Industry and Trade from 2022, the Ministry has assigned key enterprises to search for markets and increase petroleum imports, meeting the supply for the maintenance plant period and the whole year 2023.
(Enterprise & Business)
Read more: VIETNAM MACRO AND INDUSTRY REPORT
VIETNAM MACRO AND INDUSTRY REPORT - DECEMBER 2022