Vietnam responses to the recent oil crisis
By Thang Do
Vietnam’s response to the recent oil shock has been notably fast, coordinated, and multi-layered, combining diplomacy, fiscal tools, and structural adjustments to stabilise supply and prices.
Rapid, high-level coordination
Within days of the escalation in the Middle East, the Government moved into crisis mode, with the Prime Minister directly chairing emergency meetings and issuing directives with a clear mandate: no fuel shortages for production and consumption. Ministries were required to monitor global developments in real time and prepare contingency scenarios, including severe disruptions to key shipping routes.
This reflects a shift towards centralised, high-frequency coordination, treating fuel security not only as an economic issue but as a core political priority.
Energy diplomacy as a frontline tool
A distinctive feature of this episode has been the use of “energy diplomacy”. The Prime Minister engaged directly with leaders of major oil-exporting countries to secure stable supply and explore long-term contracts to reduce exposure to volatile spot markets. Diplomatic channels were simultaneously mobilised to identify alternative crude sources and maintain import flows during peak disruption.
This proactive external engagement helped Vietnam access critical shipments during the most constrained period.
Aggressive fiscal and market interventions
Domestically, Vietnam deployed a full suite of price stabilisation tools:
Intensive use of the Price Stabilisation Fund (BOG) and then advance 8,000 billion VND from state budget for this fund
Temporary tax reductions to near-zero levels (import tariffs, environmental tax, and other components)
Advance budget support to fuel importers — an unprecedented move to maintain supply flows
Flexible pricing mechanisms to adjust domestic prices quickly in response to global changes
Strict enforcement against hoarding and market manipulation
These measures were aimed at limiting price pass-through, protecting businesses and households, and ensuring continuous supply across the distribution system.
Accelerating structural adjustments
Beyond immediate stabilisation, the crisis is also accelerating longer-term shifts:
Fast-tracking the nationwide rollout of E10 biofuel to reduce reliance on imported gasoline
Expanding policies to support electric mobility and charging infrastructure
Reinforcing strategic direction toward diversified energy sources, including renewables and nuclear power
Policy takeaway
Vietnam’s response demonstrates a three-tiered approach:
(1) rapid political coordination,
(2) external supply security through diplomacy, and
(3) domestic stabilisation using fiscal and regulatory tools.