US, Vietnam energy firms sign agreements worth over $4 bln

U.S and Vietnamese energy companies on Thursday signed agreements worth $4.15 billion during a working trip of Vietnamese Special Envoy of the Prime Minister and Minister of Industry and Trade Nguyen Hong Dien to the United States.

State-run Petrovietnam's subsidiary PV Gas signed MoUs with ConocoPhillips and Excelerate Energy on long-term LNG purchase agreements.

Binh Son Refining and Petrochemical Joint Stock Company (BSR), which operates Vietnam's Dung Quat oil refinery, inked a contract with Kellogg Brown & Root Services, Inc. (KBR) for pre-feasibility studies on sustainable aviation fuel.

Another PetroVietnam unit PV Power and GE Vernova signed an MoU on procurement of equipment and services for gas-fired power plants developed by PV Power.

Vietnam's top gasoline retailer Petrolimex inked MoUs with three leading US ethanol associations, namely US Grains Council, Renewable Fuels Association, and Growth Energy, on ethanol supply. It also secured another MoU with Marquis Energy to facilitate biofuel transactions and imports.

These economic agreements have raised the total value of deals expected to be implemented between Vietnam and the U.S. from 2025 to approximately $90.3 billion, creating hundreds of thousands of jobs for workers in both countries.

Among these, contracts and agreements already signed or set to be implemented from 2025 are valued at $50.15 billion, focusing on aircraft procurement, aviation services, oil and gas exploration, and the import of petrochemical refining products. Additionally, agreements under negotiation between both sides are estimated at around $36 billion.

At the signing ceremony, Minister Dien affirmed that after 30 years of diplomatic relations, 10 years of comprehensive partnership, and two years of comprehensive strategic partnership, the Vietnam-U.S. relationship has developed steadily in all areas. He highlighted that the trade-investment pillar plays a key role in driving the overall relationship.

Bilateral trade reached nearly $150 billion in 2024, up 20.5% year-on-year. The U.S. has become Vietnam’s second-largest trading partner and one of its most important export markets, gradually emerging as a key source of machinery, equipment, technology, and energy products for Vietnam.

The U.S. is also one of the top investors in Vietnam, with most major American corporations making a presence in the country, while an increasing number of Vietnamese businesses are investing in the U.S.

According to the minister, many Vietnamese companies are eager to invest in the U.S. Over 100 Vietnamese firms have registered to attend the SelectUSA Investment Summit 2025, scheduled for May 11-14 in Maryland, to explore business opportunities.

Sharing the outcomes of his meetings with U.S. agencies, Dien emphasized the immense potential for bilateral cooperation, particularly in such areas as science and technology, innovation, research and development; semiconductor and artificial intelligence industries; the Internet of Things; new and renewable energy; finance and financial center development; and biotechnology and health care.

Earlier, in a meeting with U.S. Trade Representative Jamieson Greer, Dien said that a consistent policy of Vietnam is to develop "a sustainable, stable, harmonious trade with the United States for win-win outcomes. Vietnam does not have any intentions of making any challenges to unilaterally hurt American economy and laborers."

He noted that import-export activities of Vietnam and the United States complement each other so the two-way trade turnover has been growing fast and streadily.

Vietnam posted a trade surplus of $1.47 billion in the first two months of the year, the General Statistics Office (GSO) reported. The United States was Vietnam's biggest export market in the period with an export revenue of $19.6 billion, up 16.5% year-on-year, while China was the biggest import source with $23.3 billion, up 20.7%. Vietnam's trade surplus with the U.S. in the two months was $17 billion.