New oil and gas development is expanding rapidly off Vietnam. Instability in the Middle East is driving resource development, while investment and cooperation are growing, centred on the Sao Vang–Dai Hung gas field operated by Idemitsu Kosan.
New oil and gas projects are surging off Vietnam, with international companies actively entering Southeast Asia's resource development sector. Growing domestic demand and concerns over global energy supplies are driving the development boom. According to Nikkei reports, tensions in the Middle East have given this trend further momentum. The Sao Vang–Dai Hung gas field, operated by Idemitsu Kosan, is a key project, with total investment reportedly exceeding ¥100 billion.
The gas field is located approximately 350 kilometres off the coast of southern Vietnam and has extracted approximately 4 million cubic metres of gas per day since production began in 2020. 7 wellheads are currently operating, and the field is designed to accommodate 5 additional wellheads for future drilling. Multiple international companies are involved in the sector, including Idemitsu Kosan, Murphy Oil, SK Group, ExxonMobil, MODEC,INC., Mitsui & Co., Marubeni and Russia's state-owned oil company Zarubezhneft.
Businesses in this sector are highly susceptible to geopolitical conditions. The Sao Vang–Dai Hung gas field is located near China's nine-dash line in the South China Sea, and the head of production operations frequently points to the passage of suspicious vessels. It has also been noted that reliance on imported liquefied natural gas increases vulnerability to price volatility and geopolitical shocks. This makes the development of domestic gas resources essential to maintaining a stable electricity supply.
For the Vietnamese government, the sector is becoming increasingly important from an energy security perspective, as it offsets declining domestic coal-fired and hydropower generation. Competition for skilled workers is intensifying alongside the rapid expansion, with U.S. companies also attracting talent with high salaries. The government plans to expand gas-fired power generation capacity to 37 GW by 2030, but new reserves are moving into deeper and more remote waters, and capital expenditure is expected to rise, potentially making profitability a challenge.