Vietnam Economic News: 21 - 28.3.2026
Summary of Vietnam Economic News: 21 - 28.3.2026
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Summary of Vietnam Economic News: 21 - 28.3.2026 ---
VIETNAMESE AIRLINES TO CUT FLIGHTS DUE TO FUEL SUPPLY CONSTRAINTS
Reuters News– 27 March 2026
Vietnamese airlines plan to cancel flights on domestic and international routes from next month due to fuel supply constraints caused by the Middle East conflict, state media reported citing a report from the regulator. Flag carrier Vietnam Airlines will suspend seven domestic routes from April 1 and reduce flight volumes by 10% to 20% per month in the next quarter if jet fuel prices rise to $160-$200 per barrel, state-run Nhan Dan newspaper reported. The airline could cut up to 18% of its international flights and as much as 26% of its domestic operations, the paper said citing the report. Low-cost carrier Vietjet Air plans to cut 18% of its total flight capacity in April, which includes reducing domestic flights by 22% and international operations by 11%, according to the document. Bamboo Airways aims to halve its daily flights to around 17 from the current 36. Sun PhuQuoc Airways intends to maintain its existing schedule for now as it has sufficient fuel stock until the end of April, but may reassess its position if fuel disruptions persist, the report added. To stabilize the domestic market, Vietnam's finance ministry has suspended environmental protection and special consumption taxes on fuels, including jet fuel, until April 15.
VIETNAM ASKS RUSSIA'S ZARUBEZHNEFT FOR LONG-TERM OIL SUPPLIES, MORE INVESTMENT
Reuters News – 25 March 2026
Vietnam's prime minister has asked Russian oil and gas firm Zarubezhneft to boost its investment in Vietnam and to supply crude oil to the country on a long-term basis, the Vietnamese government said on Wednesday. Prime Minister Pham Minh Chinh, who met Zarubezhneft executives during a visit to Moscow, urged the company to expand its investment in oil exploration and production in Vietnam. He also called on Zarubezhneft to provide long-term supplies of crude oil, natural gas and petroleum products, and to coordinate with state oil firm Petrovietnam on a project to build crude oil storage facilities in Vietnam. Vietsovpetro, a joint venture between Zarubezhneft and Petrovietnam, is Vietnam's largest crude oil producer, with most output coming from the offshore Bach Ho field. Zarubezhneft is also planning offshore wind power projects in Vietnam with a combined capacity of 1 gigawatt.
VIETNAM'S FINANCE MINISTRY PROPOSES FUEL TAX CUT THROUGH JUNE TO CURB INFLATION AND HELP BUSINESS
Reuters News – 24 March 2026
Vietnam's Finance Ministry on Tuesday proposed cutting an environmental protection tax on gasoline, jet fuel and diesel until the end of June, in a bid to ease cost pressures on businesses and curb inflation. The tax on gasoline, excluding ethanol, would be halved to 1,000 dong ($0.04) per litre from the 2,000 dong currently set for 2026. The tax on jet fuel would fall to 1,000 dong per litre from 1,500 dong, while diesel would be reduced to 500 dong per litre from 1,000 dong. The ministry said the fuels are widely used in production, business activity and transport, and that high prices have weighed heavily on companies, especially transport operators. The proposal follows a recommendation from the industry ministry, which said the environmental tax accounts for about 6.7% of the base fuel price structure. The draft resolution is pending approval from the National Assembly and would be in place until the end of June, with the possibility of an extension if required. Fuel prices in Vietnam have surged since the Iran war began, with gasoline prices up 50% and diesel prices rising 70%, according to data from top fuel trader Petrolimex.
VIETNAM SECURES ENERGY AND TRANSPORT FUNDING AT EU-VIETNAM BUSINESS FORUM
Reuters News – 24 March 2026
Financing deals and grants worth 560 million euros ($650 million) to support sustainable transport and clean energy projects in Vietnam were announced at an EU-Vietnam business forum in Hanoi on Tuesday. The agreements include a 200 million euro financing deal between the European Investment Bank and Vietnamese lender Techcombank to support projects in solar and wind power, energy efficiency and electric mobility. French development agency AFD and its private-sector arm Proparco signed loan agreements worth 230 million euros with Vietnamese state utility EVN to help develop the Bac Ai pumped-storage hydropower plant. The European Union also launched a 40 million euro grant to support Vietnam's public transport investment plans, while Germany and France announced additional grants for technical and vocational training and the country's energy transition.
RUSSIA, VIETNAM AGREE DEAL ON NUCLEAR POWER PLANT CONSTRUCTION
Reuters News – 23 March 2026
Russia and Vietnam signed an inter-governmental agreement on cooperation in construction of the Ninh Thuan 1 nuclear power plant in Vietnam. Vietnam needs to secure more electric power as it has faced major power blackouts because demand from its huge industrial sector and expanding middle class often outpaces supplies, strained by more frequent extreme weather, including droughts and typhoons. The project is part of Vietnam's strategy to boost power generation capacity. Vietnam has traditionally maintained close ties with Russia. Rosatom, the world's leading nuclear power plant builder, said the agreement outlines the terms and main areas of cooperation between the parties in implementing the construction project. No detail on cost was specified. It foresees construction of two Russian-designed power units with a combined capacity of 2,400 megawatts (MW). Work on nuclear plants in central Vietnam started in the early 2010s but was halted in 2016 when Hanoi suspended its nuclear power programme over safety and budget concerns. Russia had already been awarded the Ninh Thuan 1 project and was expected to sign the deal. After it resumed its nuclear energy programme in 2024, Vietnam asked Japan and Russia to implement the projects, while in December, Tokyo decided to drop out of the plans to build a nuclear power plant in the country.