The Energy Oil and Gas Sector at a Historical Crossroads: Overcoming 7 Major Challenges for Breakthrough Development
At the 2026 Annual Energy Oil and Gas Forum, Mr. Tran Thanh Tung - Deputy Head of the Oil and Gas and Coal Department of the Ministry of Industry and Trade - identified 7 challenges in the process of implementing the resolutions of the Party, National Assembly, and Government for the energy oil and gas sector. These are considered key bottlenecks that need to be removed for the industry to develop sustainably and contribute more effectively to the national economy.
The 2026 Annual Energy Oil and Gas Forum brought together experts, business leaders, and policymakers to discuss development directions for the sector in the new context. Mr. Tran Thanh Tung emphasized: "The energy oil and gas sector is at a historical crossroads with intertwined opportunities and challenges. Clearly identifying these challenges will be an important basis to propose effective solutions."
Seven Major Challenges of the Energy Oil and Gas Sector
According to Mr. Tran Thanh Tung, the 7 major challenges that need to be addressed include:
- Resource depletion: Domestic oil and gas resources are rapidly declining, while energy demand continues to increase.
- Energy transition pressure: The global trend of reducing dependence on fossil fuels requires the oil and gas sector to adapt and transform its business model.
- Technology challenges: The need to apply high technology in exploration, processing, and efficient energy use.
- Energy security issues: Ensuring national energy security in the context of increasing dependence on imports.
- Environmental challenges: Pressure to reduce greenhouse gas emissions and environmental impacts from oil and gas activities.
- Energy infrastructure not yet synchronized: The energy transmission and distribution system has not met development needs.
- Policies and institutions: Need to improve the legal framework to create favorable conditions for investment and sustainable development.
Detailed Analysis of the Challenges
1. Resource Depletion
Domestic oil and gas resources are rapidly declining. Crude oil production in the country has decreased from a peak of about 550,000 barrels/day in 2013 to approximately 280,000 barrels/day in 2026. Meanwhile, energy demand continues to increase due to economic development and improved living standards of the people.
| Year | Crude Oil Production (thousand barrels/day) | Domestic Demand Satisfaction Rate |
|---|---|---|
| 2013 | 550 | 65% |
| 2018 | 380 | 45% |
| 2023 | 320 | 35% |
| 2026 | 280 | 30% |
2. Energy Transition Pressure
The global trend of reducing dependence on fossil fuels is strongly impacting the oil and gas sector. Commitments to reduce emissions at COP26 and COP28 require Vietnam to have a strong emission reduction roadmap. This poses a major challenge for the traditional oil and gas sector in transforming its business model.
3. Technology Challenges
The application of high technology in exploration, processing, and efficient energy use is an urgent requirement. However, investment costs for high technology are significant, while domestic research and development capabilities remain limited. The oil and gas sector needs to strengthen international cooperation to access advanced technology.
4. Energy Security Issues
National energy security faces numerous challenges as dependence on imports increases. By 2026, Vietnam imports about 70% of its energy needs. This dependence poses risks to energy security and economic security.
5. Environmental Challenges
Oil and gas activities significantly impact the environment, from greenhouse gas emissions to water and land pollution. The increasing pressure to reduce emissions and develop sustainably forces the oil and gas sector to find solutions to minimize environmental impacts.
6. Energy Infrastructure Not Yet Synchronized
The energy transmission and distribution system has not met development needs. In particular, the electricity and gas pipeline systems are not yet synchronized between regions, causing waste and inefficiency in energy use.
7. Policies and Institutions
Despite many reforms, the legal framework for the oil and gas sector still has some shortcomings. Improving policies and institutions is a prerequisite to attract investment and create favorable conditions for sector development.
Solutions and Development Directions
To address the above challenges, Mr. Tran Thanh Tung proposed key solutions:
- Diversify energy supply sources: Strengthen efficient oil and gas exploitation, while developing renewable energy sources such as wind power, solar power, and LNG gas.
- Digital transformation in the oil and gas sector: Apply digital technology to all stages from exploration, exploitation to operation and management.
- Develop the gas market: Accelerate the development of the domestic gas market to reduce dependence on coal and oil.
- International cooperation: Strengthen cooperation with countries and international organizations to access advanced technology and capital sources.
- Develop high-quality human resources: Invest in training human resources to meet the requirements of the modern oil and gas sector.
- Improve the legal framework: Reform institutions, create a transparent and transparent investment environment.
Vision for 2030 and 2050
According to the government's orientation, by 2030, the oil and gas sector will focus on ensuring national energy security and gradually reducing dependence on fossil fuels. By 2050, Vietnam aims for sustainable development with a large proportion of renewable energy in the energy structure.
Mr. Tran Thanh Tung emphasized: "Transformation in the oil and gas sector does not mean abandoning, but changing the development model. The sector needs to develop sustainably, contribute to national energy security and adapt to global trends."
Conclusion
The Vietnamese energy oil and gas sector is at a historical crossroads with significant opportunities and challenges. Clearly identifying the 7 challenges and proposing appropriate solutions will be the key for the sector to develop sustainably, contributing to the country's socio-economic development. Digital transformation, renewable energy development, and institutional improvement are important pillars in the development orientation of the oil and gas sector in the coming time.