Vietnam directs BSR to raise fuel output and secure domestic supply

Ministry prioritizes uninterrupted domestic supply

Vietnam’s Ministry of Industry and Trade has directed Vietnam National Industry–Energy Group’s refining company BSR to increase fuel production and maintain a stable domestic supply during the remaining months of 2026. Deputy Minister Nguyen Hoang Long issued the instructions during a July 21 meeting with the company, according to the ministry’s official portal.

BSR must prepare sufficient feedstock and operating plans to keep the Dung Quat refinery running safely, steadily and continuously through the end of 2026. The deputy minister specifically called on the company to maximize diesel oil output and adjust its product mix in line with market demand, with the aim of preventing shortages or supply interruptions.

The instructions place operational reliability at the center of Vietnam’s fuel-security policy. For domestic distributors and industrial fuel consumers, higher refinery utilization could provide a larger locally produced buffer against disruptions in external supply. The ministry did not disclose a new production target or quantify the additional diesel volumes requested.

First-half production exceeds plan

BSR reported production of 4.05 million tonnes in the first six months of 2026. That was equivalent to 101% of its plan and represented an increase of 5.3% from the same period of 2025, chief executive Nguyen Viet Thang told the ministry delegation.

Consolidated revenue reached VND100.9 trillion during the period, while payments to the state budget totaled VND5.9 trillion. BSR attributed its performance to close monitoring of market developments, flexible management of production and commercial operations, and measures designed to respond to volatility in energy markets.

The first half also brought a corporate reorganization. BSR changed its operating model from Binh Son Refining and Petrochemical Joint Stock Company to Vietnam National Refining and Petrochemical Corporation. The company described the change as a step toward greater scale, stronger management capacity and a larger role in Vietnam’s refining and petrochemical sector.

Dung Quat expansion advances

BSR signed an engineering, procurement and construction contract with an international contractor consortium in July 2026 for the upgrade and expansion of the Dung Quat refinery. The contract is expected to run for 37 months, and commissioning is scheduled to begin in late 2028.

The project is intended to raise capacity, diversify feedstock and give the refinery greater flexibility in selecting crude oil. It is also designed to enable production meeting Euro V emissions standards and the government’s environmental requirements. The deputy minister instructed BSR to keep the project safe, on schedule and compliant with quality requirements while strengthening oversight of financing, the EPC contract and project risks.

Separately, the ministry told BSR to study equipment modifications and technology optimization to improve the productivity and production capacity of E100 fuel for biofuel blending under government policy. This adds a second supply objective alongside higher conventional fuel output: maintaining near-term gasoline and diesel availability while adapting Dung Quat’s production system to future fuel and emissions requirements.