Vietnam’s base oils imports surged in December, reaching the highest level in more than two years and underscoring the country’s growing importance as a key outlet amid a global surge in base oils production capacity.

Total base oils imports exceeded 40,000 tonnes in December, up by more than 80% year on year and the largest volume since mid-2023, provisional customs data showed.

The jump in shipments added to a surge in the country’s base oils and lube imports in 2025, fuelled by strong domestic economic growth and expanding local lube blending capacity.

Key Highlights

·         Fourth-quarter base oils and lube imports rose to 124,000 tonnes, surging by 39% year on year to a record high.

·         Total base oils and lube imports rose to a record-high of more than 410,000 tonnes in 2025, up by 15% year on year and marking a fourth straight year of growth.

·         South Korea accounted for the largest share of Vietnam’s fourth-quarter base oils imports, surpassing Singapore for the fifth time in six quarters.

Market Repercussions

Vietnam’s sustained economic growth and rising lube blending capacity are likely to continue to support higher base oils and lube imports into 2026.

Rising demand increases the importance of markets like Vietnam as the start-up of new base oils production capacity in southeast Asia, India and the Middle East boosts supply globally.

The rising volumes increase the competition to secure stable outlets like Vietnam for the new volumes.

Growing supply and competition for outlets also increases the importance for South Korean refiners to maintain or increase their share of Vietnam’s imports.