Vietnam Petroleum Law Draft: Impact on GAS, PVS, PVD, PVB, PVC

Overview

The Ministry of Industry and Trade has published a draft revision to Vietnam’s Petroleum Law, aiming to streamline administrative procedures, decentralize approval authority, and improve project economics for oil and gas exploration and production. The draft, open for comments since April 2026, could benefit listed companies in the sector, including GAS, PVS, PVD, PVB, and PVC, by accelerating development cycles and attracting investment.

Key Facts

• The draft was published for comments in April 2026, following Government Resolution 81/NQ-CP dated April 3, 2026.
• The draft proposes decentralizing approval of resource reports to Petrovietnam for fields with total in-place oil/gas below 30 million cubic meters of oil or 30 billion cubic meters of gas.
• Approval and adjustment of certain field development plans would be delegated to the Ministry of Industry and Trade and Petrovietnam.
• The draft extends legal framework to new areas: carbon capture and storage (CCS), high-tech petroleum services, and offshore energy.
• Financial mechanisms would allow some obligations and fund provisions in USD, reducing FX risk for investors.
• Exploration well Hải Sư Vàng-2X (HSV-2X) in the Cuu Long basin raised resource estimates above 430 million barrels of oil equivalent (previous estimate: 170–430 million).
• Well Rồng Đôi Mới-1X (RDM-1X) in Nam Con Son basin recorded ~242.5 billion cubic feet of gas in place (~6.9 billion cubic meters).

What Happened

The draft revision to the Petroleum Law, initiated by the Ministry of Industry and Trade, seeks to address bottlenecks in implementing the 2022 Petroleum Law. Key changes include increasing decentralization, simplifying procedures, and improving investment mechanisms, with a focus on supporting the upstream investment cycle in the medium and long term. The draft also expands the legal framework to cover new areas such as carbon capture and storage (CCS), high-tech petroleum services, and offshore energy.

Notably, the draft shifts from a centralized approval mechanism to greater autonomy for specialized management agencies and Petrovietnam. For instance, Petrovietnam may be granted authority to approve resource reports for fields with total in-place oil/gas below 30 million cubic meters of oil or 30 billion cubic meters of gas, as well as to approve or adjust certain field development plans under specified conditions. The draft also introduces mechanisms to improve the economics of hard-to-develop resources, particularly marginal fields, enhanced recovery, and tail-end production.

Market Context

As of August 19, 2026, GAS closed at VND 83,700 on HOSE, PVS at VND 36,000 on HNX, PVD at VND 18,400 on HOSE, and PVB at VND 21,900 on HNX. The sector has been supported by recent positive exploration results in the Cuu Long and Nam Con Son basins, which bolster reserve addition prospects. The draft law revision is seen as a catalyst to convert these discoveries into production more efficiently, potentially improving earnings visibility for listed upstream and service companies.

Strategic Significance

For long-term investors, the draft law revision signals a policy shift toward facilitating upstream investment, which is critical as Vietnam needs new reserves to offset declining output from mature fields. The decentralization of approvals to Petrovietnam and the Ministry of Industry and Trade could shorten project development timelines, reducing capital lock-up and improving returns. The inclusion of CCS and high-tech services also opens new revenue streams for service companies like PVS and PVD. However, the final law’s passage and implementation details remain key uncertainties.

What to Watch

• Finalization and passage of the revised Petroleum Law by the National Assembly, expected in late 2026 or 2027.
• Implementation decrees detailing the delegated approval thresholds and procedures.
• Progress of appraisal wells and reserve certification for HSV-2X and RDM-1X discoveries.
• Quarterly earnings reports from GAS, PVS, PVD, PVB, and PVC for signs of accelerated contract awards or development spending.
• Foreign investor response to improved legal clarity, potentially affecting foreign ownership limits in oil and gas companies.