Vietnam LNG Sector Update

Overview of the liquefied natural gas (LNG) market in Vietnam

Vietnam's need for LNG projects is greater than ever due to instability of the power system, power shortages caused by delayed investment of other power projects and energy security requirements. This report provides an overview of the liquefied natural gas (LNG) market in Vietnam, as well as a discussion of the opportunities, main investment steps and key challenges for foreign investment in LNG.

Covered in the report

• Market overview and opportunities - The master plan for the gas industry until 2035 was issued in 2017 and the scale of Vietnam's gas market and imported LNG is estimated to grow steadily for the period from 2016 to 2035. 
• LNG Project - Pursuant to the Gas Master Plan, around 70-80% of the country's total gas consumption will be used for gas-fired power plants, stimulating potential investment considerations. 
• Key issues for LNG investment in Vietnam - A lack of legal framework and implementing regulations, foreign ownership caps, a lengthy regulatory approval process and government events are some issues to consider. 
• What's next? Governmental authorities are preparing different master plans as contemplated under the new Law on Planning and Resolution 140. Potential investors would be wise to pay close attention to the development of these master plans as they are set to impact the LNG industry.