Vietnam passes amended Petroleum Law to boost energy investment

The Vietnam National Assembly has passed the amended Petroleum Law, which is set to take effect on March 1, 2027. The new legislation focuses on five key policy areas: simplifying administrative procedures through increased decentralization, refining the legal framework for oil and gas contracts, enhancing investment incentives, promoting high-tech technical services and offshore energy, and establishing a legal framework for greenhouse gas emission reduction and carbon capture and storage (CCS).

To attract international capital and technology, the law provides incentives for exploration and development in challenging areas, such as deep-water, offshore, and geologically complex locations. Notably, the State will not collect sea area usage fees for basic petroleum investigations, petroleum activities, or the transport of petroleum resources via pipelines. The law also encourages the sharing and use of existing petroleum infrastructure.

Financial analysts at Vietcap suggest the law provides a legal basis for specific mechanisms for PetroVietnam by late 2026. Projections indicate a significant rise in exploration and production (E&P) investment, with Vietcap forecasting a 40% year-on-year increase to $2.8 billion by 2027. Additionally, Rystad Energy predicts that investment spending for Vietnam’s offshore oil and gas projects could reach $11.5 billion during the 2026-2030 period.