High Oil Prices Help Vietnam, Hurt Its Fuel Buyers

 

An increase in world oil prices is helping¹ Vietnam speed economic growth and build new roads and bridges. But it also means higher fuel prices for its own people.

Vietnam is not a major oil-producing nation like some Middle Eastern nations. However, it does sell more than $3 billion worth yearly, making oil exports the fifth highest source of revenue for the country.

Ralf Matthaes is with Infocus Mekong Research in Ho Chi Minh City.

“Vietnam has got a huge level of natural gas reserves and a level of oil, so if the prices go up that would definitely be a boon² for Vietnam.”

Crude, or unprocessed, oil prices last year averaged $60 a barrel. If they rise to an average of $65 a barrel this year, Vietnam’s economy will grow above the 6.7 percent target set by its legislature. That information comes from the Communist Party of Vietnam’s website.

Matthaes said it would show that Vietnam’s economic growth is, in his words, “not just about coffee and rice.”

World oil price hikes

The Vietnamese Ministry³ of Finance says that revenue from crude oil exports will reach $3.13 billion in the first nine months of 2018. That is an increase of 42.5 percent over the same period last year.

Vietnam will export around 11.23 million tons of crude oil this year. Australia, China, Japan, Malaysia, Singapore and Thailand are the main buyers.

The crude oil exports add to an economy that has grown by around 6 percent every year since 2012.

What to do with the money

Matthaes said oil revenue would give the government more funding for infrastructure⁴. New roads and improved transportation systems make it easier for manufacturers to move goods from factories to ports to overseas markets. Ease of shipping⁵ products will also help producers in Vietnam compete with China and other Southeast Asian nations.

Although it exports crude oil, Vietnam is an importer of processed, or refined, oil products. The country’s refineries⁶ cannot meet the demands of its 95 million citizens. So, Vietnam imports about 70 percent of its fuel. The imports come mostly from China, Malaysia, Singapore, South Korea and Thailand.

Frederick Burke is with the law firm Baker⁷ McKenzie in Ho Chi Minh City. He suggests that state-owned enterprises like PetroVietnam might build more oil refineries in the future.

Inflation threat

Dependence⁸ on imports will raise the price that Vietnamese people pay for fuel, a threat to inflation. Gasoline prices will rise 5 to 15 percent and may increase inflation by up to 0.64 percent over the year, the government says.

The fuel-buying public can "feel the heat,” said Trung Nguyen, director of the Center for International Studies at Ho Chi Minh University of Social Sciences and Humanities.

“They are used to the oil price rise, so I think that they still can withstand it, but I don’t know how far they can.”

I’m Caty Weaver⁹.

Words in This Story

revenue - n. money that is collected by government or paid to a business

reserve - n. a supply of something

boon - n. a benefit or advantage

infrastructure - n. basic equipment and structures (such as roads and bridges) that are needed for a country or region

1 helping   

n.食物的一份&adj.帮助人的，辅助的

参考例句：

• The poor children regularly pony up for a second helping of my hamburger. 那些可怜的孩子们总是要求我把我的汉堡包再给他们一份。
• By doing this, they may at times be helping to restore competition. 这样一来, 他在某些时候,有助于竞争的加强。

2 boon   

n.恩赐，恩物，恩惠

参考例句：

• A car is a real boon when you live in the country.在郊外居住，有辆汽车确实极为方便。
• These machines have proved a real boon to disabled people.事实证明这些机器让残疾人受益匪浅。

3 ministry   

n.(政府的)部；牧师

参考例句：

• They sent a deputation to the ministry to complain.他们派了一个代表团到部里投诉。
• We probed the Air Ministry statements.我们调查了空军部的记录。

4 infrastructure   

n.下部构造，下部组织，基础结构，基础设施

参考例句：

• We should step up the development of infrastructure for research.加强科学基础设施建设。
• We should strengthen cultural infrastructure and boost various types of popular culture.加强文化基础设施建设，发展各类群众文化。

5 shipping   

n.船运（发货，运输，乘船）

参考例句：

• We struck a bargain with an American shipping firm.我们和一家美国船运公司谈成了一笔生意。
• There's a shipping charge of ￡5 added to the price.价格之外另加五英镑运输费。

6 refineries   

精炼厂( refinery的名词复数 )

参考例句：

• The efforts on closedown and suspension of small sugar refineries, small saccharin refineries and small paper mills are also being carried out in steps. 关停小糖厂、小糖精厂、小造纸厂的工作也已逐步展开。
• Hence the sitting of refineries is at a distance from population centres. 所以，炼油厂的厂址总在远离人口集中的地方。

7 baker   

n.面包师

参考例句：

• The baker bakes his bread in the bakery.面包师在面包房内烤面包。
• The baker frosted the cake with a mixture of sugar and whites of eggs.面包师在蛋糕上撒了一层白糖和蛋清的混合料。

8 dependence   

n.依靠，依赖；信任，信赖；隶属

参考例句：

• Doctors keep trying to break her dependence of the drug.医生们尽力使她戒除毒瘾。
• He was freed from financial dependence on his parents.他在经济上摆脱了对父母的依赖。

9 weaver   

n.织布工；编织者

参考例句：

• She was a fast weaver and the cloth was very good.她织布织得很快，而且布的质量很好。
• The eager weaver did not notice my confusion.热心的纺织工人没有注意到我的狼狈相。