Gas: market

The demand for gas rose from 300,000 tonnes in 1999 to 900,000 tonnes in 2005.

The only gas processing factory, Dinh Co runs at full capacity, but it can provide only 320,000 tonnes of gas a year. Vietnam has to import the remaining 600,000 tonnes.
Once the Dung Quat oil refinery becomes operational, the country will have an additional 250,000 tonnes of gas by 2009.

However, at the current growth of gas demand, 10-15% per year, the volume of imported gas as of 2009 will still account for between 700,000-800,000 tonnes per year and Vietnam will still largely depend on imports. That’s why the local gas market fluctuates in time to the world gas market.

After ten years of development, Vietnam has up to 60 gas trading companies, but less than 10% of them have gas warehouses.

Economic indicators: High growth forecasted

Vice Minister of Planning and Investment (MPI) Cao Viet Sinh expects a GDP growth of 8.4 - 8.5%, exceeding target of 8.1 - 8.2% for 2006. This growth is mainly driven by increased exports of the most strategic commodities, including coal, pepper, rubber latex, garments and textile, wooden furniture, footwear and aquatic products. However, crude oil, rice and coffee exports declined.

On the other hand, an increase of consumers prices by 5.4% can be observed in the first 9monthes.

WTO: Before the storm

Expecting an entry to WTO by end of this year many potential foreign investor come to visit Vietnam. Tran Dac Sinh, director of the HCM City Securities Trading Centre [the stock market], said some 20 groups of international investors came to visit his centre every month.

But as the Trade Minister Truong Dinh Tuyen said last week, there is no hurry to join the organisation and not at all costs. He implies that the APEC summit, hold in Hanoi in November 2006 is not considered as a deadline.