Vietnam's Oil and Gas Sector Enters New Investment Cycle Amid Declining Output
The oil and gas sector in Vietnam is entering a new investment cycle as mature fields experience declining output. According to an industry report by Kafi Research, the domestic upstream market is expected to grow at a compound annual growth rate of 5.57% from 2026 to 2031.
The decline in production has increased pressure to accelerate development of new projects. Vietnam's crude oil output fell to 9.64 million tons in 2025 from 18.7 million tons in 2015, a decrease of 48%. Dry gas production dropped nearly 49% to 5.5 billion cubic meters over the same period.
New developments including Block B-O Mon, Lac Da Vang, Su Tu Trang 2B, Khanh My-Dam Doi, and Ca Voi Xanh projects are expected to replenish declining output and generate work across the oil and gas value chain through 2030.
Drilling contractor PetroVietnam Drilling and Well Services (PVD) is poised to benefit from domestic drilling campaigns in 2026. The company's PV DRILLING I rig will drill three wells in the Su Tu field cluster, while its PV DRILLING VIII rig will drill six wells at Kinh Ngu Trang.
Pipeline coating company PVB is expected to execute VND426 billion ($16.27 million) of contracts related to the Block B-O Mon project in 2026, while potential work from other projects could provide additional upside for oilfield engineering contractor PetroVietnam Technical Services Corp (PVS).