Prime Minister Pham Minh Chinh has ordered the immediate construction of a national crude oil reserve at the Nghi Son refinery complex in Thanh Hoa, calling it a key step in implementing strategic directives on national reserves.
Chairing a government meeting on April 1, Chinh said the political, legal and practical groundwork is already in place, and the priority now is swift execution.
State-owned energy group Petrovietnam will lead the project, working with ministries, agencies and Thanh Hoa authorities. The scheme will follow an urgent mechanism, with local officials responsible for site clearance to maintain progress.
The Nghi Son facility is expected to directly supply the Nghi Son refinery while forming part of the national strategic reserve system. The Ministry of Industry and Trade will also study additional storage projects in locations such as Dung Quat, Long Son and other suitable areas.
On investment, the government has agreed to initially assign state-owned enterprises to carry out the project while developing policies to attract private sector participation. Options including state buyback and lease-purchase arrangements will be considered.
Chinh stressed that safety and security must be ensured under all circumstances, alongside improvements in operational efficiency, with a long-term aim of positioning Vietnam as a regional energy hub.
Officials said the project is urgent as energy demand rises and Vietnam remains reliant on international supply sources. It aligns with the national plan for petroleum and gas storage and supply infrastructure for 2021–2030, with a vision to 2050.
Beyond energy security, the reserve is expected to improve refinery efficiency, optimise supply chains and support economic development in the north-central region.
Experts and international organisations note that strategic petroleum reserves are vital for open economies dependent on imported energy. The International Energy Agency recommends reserves equivalent to at least 90 days of net imports to ensure stability during disruptions.
Recent global energy crises have underscored the role of such reserves as buffers, enabling governments to stabilise supply and mitigate price shocks. In several cases, coordinated releases of hundreds of millions of barrels have helped ease market tensions.
Domestically, experts say a multi-centre fuel storage system linked to consumption patterns and logistics networks is both a technical necessity and a strategic priority, improving coordination and reducing risks.
With Vietnam still heavily dependent on imported crude oil and holding limited reserves by international standards, the early establishment of a national system is seen as essential to strengthening resilience and maintaining long-term macroeconomic stability.
