Full Breakdown
Vietnam Faces Potential Flight Reductions Due to Jet Fuel Shortages
3/17/2026, 8:26:13 PM
Aviation Industry on Alert
Vietnamese authorities have issued warnings to the aviation sector regarding potential flight reductions starting in April 2023. This situation arises from China and Thailand halting exports of jet fuel, a consequence of the ongoing conflict in Iran, which has led to increased risks of fuel shortages. Vietnam relies heavily on imports for its jet fuel, with over two-thirds of its supply sourced from abroad, primarily from China and Thailand, which together account for approximately 60% of its needs.
The Civil Aviation Authority of Vietnam (CAAV) highlighted in a March 9 document that airlines should prepare for possible shortages beginning in early April. The authority has advised airlines to reassess their operational plans, particularly for domestic routes, and instructed airport operators to create additional parking space for aircraft in anticipation of reduced operations.
Diplomatic Efforts for Energy Security
In response to the fuel supply crisis, Vietnam has engaged in diplomatic discussions with both China and Thailand. On March 15, Foreign Minister Le Hoai Trung met with Chinese Foreign Minister Wang Yi, emphasizing the need for close coordination to ensure energy security. Additionally, Prime Minister Pham Minh Chinh has sought assistance from Thailand in addressing the jet fuel shortage during a meeting with the Thai ambassador.
Despite these efforts, the CAAV has noted that finding alternative suppliers is challenging. The authority has suggested potential sources such as South Korea, Japan, Brunei, and India, but acknowledged that the current market conditions make it difficult to secure new suppliers. Domestic refineries are also under pressure to prioritize other petroleum products, limiting their capacity to increase jet fuel production.
Impact of Rising Fuel Prices
The situation is further complicated by soaring jet fuel prices, which have surged to around $157 per barrel, more than one-and-a-half times higher than pre-conflict levels. Major fuel importers, Petrolimex and Skypec, have indicated that they can only guarantee jet fuel supplies through March and have urged banks to provide more flexible financing options to navigate the rising costs. The CAAV has warned that even if fuel supplies stabilize, the high prices could render many routes unprofitable, prompting airlines like Sun PhuQuoc Airways to consider adjusting flight schedules in the coming months.
Criticism and Concerns
Critics have raised concerns about the potential operational crisis facing Vietnam's aviation industry. The CAAV's recommendations to limit air transport to essential domestic routes, if the fuel restrictions persist, underscore the severity of the situation. The lack of immediate responses from the foreign ministries of China and Thailand regarding energy security further complicates Vietnam's efforts to secure its fuel supply.
Conclusion
As Vietnam navigates this fuel supply crisis, the aviation industry remains on high alert. The combination of halted exports from key suppliers and rising fuel prices poses significant challenges, prompting the government to seek diplomatic solutions while preparing for potential operational disruptions in the months ahead.
