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“UAE Eyes Vietnam as Strategic Hub for Oil Stockpiling and Transit”

8 November, 2024

Prime Minister Pham Minh Chinh and Mr. Saltan Bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNsection CEO of ADNOC – Photo: VGP/Nhat Bac

Welcoming Prime Minister Pham Minh Chinh’s visit to the UAE, Minister Saltan Bin Ahmed Al Jaber and his colleagues stated that President Sheikh Mohammed bin Zayed Al Nahyan was very pleased and appreciated the substantive talks with the Prime Minister, emphasizing the importance of Vietnam-UAE relations for the prosperity of each country and the region.

Recalling the efforts of both sides leading up to the signing of the Vietnam-UAE Comprehensive Economic Partnership Agreement (CEPA), the Minister expressed his desire to promote cooperation with Vietnam in various fields, especially in energy development, including oil refining and LNG liquefaction projects, as well as renewable energy projects such as wind and solar power. He also hoped to establish a crude oil and refined petroleum products hub in Vietnam to meet regional product demands.

The UAE Minister of Industry and Advanced Technology shared that the UAE has the capability to develop high-tech industries and artificial intelligence, enhance productivity, and optimize technology. He expressed his hope for both sides to establish a point of contact to promote cooperation in the proposed fields.

Congratulating the establishment and achievements of the Ministry of Industry and Advanced Technology, which aligns with the development trends of the UAE and the world, Prime Minister Pham Minh Chinh was delighted to see the interest, cooperation, and investment of UAE ministries, sectors, and businesses in Vietnam. He believed that these actions would concretize the recently signed CEPA.

Emphasizing the limitless potential for scientific and technological cooperation between Vietnam and the UAE, Prime Minister Pham Minh Chinh highlighted the mutual strengths in energy and high technology, including artificial intelligence. He expressed his desire for the UAE’s Ministry of Industry and Advanced Technology, businesses, and the Minister himself to actively promote cooperation between the two countries.

Prime Minister Pham Minh Chinh shared that Vietnam has the potential to develop its oil and gas industry, including exploration, refining, and trade. Currently, Vietnam has three oil refineries but needs additional ones to not only meet domestic demands but also supply foreign markets. He invited UAE corporations to collaborate with Vietnam through specific projects, including the establishment of a crude oil and refined petroleum products hub.

Sharinging Vietnam’s energy potential and strategy, especially in wind and solar energy, which not only serves domestic needs but also exports to neighboring countries, the Prime Minister proposed that UAE corporations partner with Vietnam through concrete projects.

Minister Saltan Bin Ahmed Al Jaber expressed his desire to promote cooperation with Vietnam in various fields – Photo: VGP/Nhat Bac

In the field of digital technology and artificial intelligence, Prime Minister Pham Minh Chinh stated that Vietnam aims to develop its economy based on science, technology, and innovation. The country is strongly promoting digital transformation, especially in emerging sectors like artificial intelligence, cloud computing, and the Internet of Things. Accompanying this transformation are thriving technology corporations with a global reach, such as FPT and Viettel. Vietnam has also established the National Innovation Center and is particularly focused on developing the semiconductor industry, aiming to train 50,000 engineers for this sector.

The Prime Minister informed that Vietnam is in the process of完善ing its legal framework and investment conditions to attract foreign investors, including legal provisions related to the electricity sector. He invited UAE corporations to connect and discuss potential collaboration with their Vietnamese counterparts to implement specific cooperative projects.

The UAE is the second-largest economy in the Gulf region, a leading financial and commercial hub in the Middle East, and the fourth-largest oil producer in the Organization of the Petroleum Exporting Countries (OPEC). Its key industries include oil and gas exploration and processing, contributing to 30% of its GDP. The country’s daily oil production reaches approximately 3.046 million barrels.

The UAE’s primary natural resources are petroleum and natural gas, with oil reserves of 98 billion barrels (accounting for about 10% of the world’s total proven reserves) and natural gas reserves of 5,892 billion cubic meters, ranking fourth globally.

The Abu Dhabi National Oil Company (ADNOC), established in 1971, operates in the oil, gas, and energy sectors in the UAE. It is one of the largest oil companies in the world.

Moving forward, alongside traditional fields, ADNOC is focusing on new areas to ensure sustainable growth and energy transition. The company plans to invest $150 billion over the next five years to build a global infrastructure footprint. ADNOC values the potential of the Asian market and is seeking investment opportunities through partnerships, with Vietnam being a key target market.

In 2022, ADNOC, together with its partners, launched the ADNOC Voyager lubricant brand in Vietnam. The company is also working with Hyosung Corporation (South Korea) to co-invest in projects in Vietnam, with a total expected investment of $2 billion in sustainable aviation fuel, clean energy, data centers, and petrochemicals.

Nhat Quang