Why Vietnam is leaning on Russia to weather energy turmoil
Drivers wait to pump petrol into their vehicles in Hanoi on March 9.
The cost of fuel in Vietnam has soared since the Iran war broke out late last month.
Photo: AFP Vietnam is among Southeast Asian countries most hard-hit by the global energy crisis, with Hanoi’s bid to forge deals with Russia this week laying bare its urgency to stem the bleed that may threaten its objective of double-digit economic growth.
Observers also say the fallout in fuel supply caused by the Iran war could even chip away at the legitimacy of Hanoi’s new leadership.
Vietnamese Prime Minister Pham Minh Chinh’s official visit to Russia this week reportedly saw the signing of several agreements, including on oil and gas cooperation.
His trip – which ends on Wednesday – to the major oil-producing nation comes as Vietnam seeks to shore up its fuel reserves amid global supply disruptions from the Middle East conflict.
The visit is focused on deepening ties with Russia and expanding cooperation in trade, investment and energy, according to a Vietnamese government statement on Sunday. “Cooperation in oil and gas energy will be reinforced in all fields of trade, exploration, extraction and human resource training,” it added.
Vietnamese Prime Minister Pham Minh Chinh (left) and his Russian counterpart Mikhail Mishustin in Moscow on Monday, during which they agreed to expand cooperation in various areas.
Photo: EPA During talks in Moscow on Monday, both sides agreed to expand cooperation in new, clean and renewable energy, and signed an agreement to build two nuclear power plants in Vietnam.
They also reached a deal to help PetroVietnam and VietNamElectricity construct port infrastructure for the import and storage of liquefied natural gas, and LNG power plants.
The cost of 95-octane petrol and diesel in Vietnam has soared by 50 per cent and 70 per cent respectively since the US-Israel war against Iran in late February sparked fuel price increases and fears of shortages around the world.
That prompted Chinh to hold phone talks requesting fuel support from countries including Qatar, Kuwait, Algeria and Japan, according to Hanoi.
Ha Hoang Hop, chairman of VietKnow, a Hanoi-based think tank focusing on political risks, said given severe uncertainties over Middle East supplies and shipping routes, Vietnam was “moving early” to secure fuel and power. “Energy is clearly the strategic anchor of this visit,” he said, noting that the request for fuel support reflected a “planned diversific
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