Vietnam's Performance on the Resource Governance Index
Vietnam received a "weak" score of 41, ranking 43rd out of 58 countries. A relatively high Institutional & Legal Setting score was offset by "failing" scores on the other components.
(out of 58)
(out of 100)
|27||Institutional & Legal Setting||63|
|50||Safeguards & Quality Controls||31|
Institutional & Legal Setting (Rank: 27th/58, Score: 63/100) learn more
A comprehensive legal framework contributed to a "partial" score of 63, Vietnam's highest on any component.
The Industry and Trade Ministry regulates the sector and the prime minister has final authority to grant hydrocarbon rights, but PetroVietnam, the national petroleum company, makes most licensing decisions. In recent years, PetroVietnam has signed 60 exploration and production contracts with foreign companies, most of them in the form of production sharing contracts. The company conducts direct negotiations with oil companies or organizes competitive open bidding rounds. Environmental impact assessments are required.
The Finance Ministry collects revenues and deposits them in state treasuries before they are centralized; however, some oil and gas revenues are used to cover PetroVietnam's expenses, never entering the national treasury.
Vietnam has no freedom of information law. Anti-corruption legislation requires disclosure of national finances, but key aspects of the petroleum sector are excluded under a "state secrets" provision.
Reporting Practices (Rank: 40th/58, Score: 39/100) learn more
The government provides only incomplete data on the petroleum industry, earning a "failing" score of 39.
PetroVietnam publishes bidding procedures and reports on licensing decisions. No law requires disclosure of oil and gas contracts, although PetroVietnam voluntarily publishes some contract information. Environmental impact assessments must be made available to the public, but it is not clear that this happens in practice.
The Finance Ministry publishes aggregated information on oil revenues and exports, along with the non-resource fiscal balance. The Industry and Trade Ministry publishes production volumes, prices, export values, and data on investment in the petroleum sector. National law prohibits disclosure of information on reserves, petroleum blocks, projects, contracts, or profits.
Safeguards & Quality Controls (Rank: 50th/58, Score: 31/100) learn more
A lack of conflict-of-interest disclosure requirements and poor audit mechanisms led to a "failing" score of 31.
PetroVietnam has some discretionary power in the licensing process. Contract terms are not strictly defined by legislation, leaving room for PetroVietnam officials to negotiate with foreign companies. It is very difficult to appeal licensing decisions.
The National Assembly rarely investigates allegations of mismanagement in the oil sector, and national accounts are not audited regularly. Although a National Assembly committee scrutinizes reports on resource revenues, lawmakers lack the capacity to oversee the industry effectively.
Enabling Environment (Rank: 35th/58, Score: 30/100) learn more
Vietnam received a "failing" score of 30, with especially low global rankings on government accountability and democracy.
State-Owned Companies (Rank: 28th/45, Score: 41/100) learn more
PetroVietnam is entirely owned by the government and is Vietnam's largest state-owned corporation. It functions under the direct management of the prime minister and the Industry and Trade Ministry. Since 2008, PetroVietnam has made an effort to disclose industry information, publishing brief news releases on its website with historical data on petroleum prices, export values, estimates of investment in exploration and development, and the government's share in production sharing contracts. The company does not provide full reports on its operations or subsidiaries. It is audited at irregular intervals and does not publish the results.
INSTITUTIONAL & LEGAL SETTING
SAFEGUARDS & QUALITY CONTROLS
To explore all data and compare country scores, use the RGI Data Tool.
Key Economic Indicators
|GDP (constant 2011 international $ billion)||39.8||59.9||123.6|
|GDP per capita, PPP (constant 2005 international $)||1,597||2,161||3,013|
|Oil and gas revenues (% total government revenue)||0||13|
|Extractive exports (% total exports)||27||26||12|
|Sources: Oil and gas revenue as share of total government revenue from the Economist Intelligence Unit and the International Monetary Fund. All other data form the World Bank. Oil and gas revenues 2005 data from 2007; 2011 data from 2009; Extractive exports 2011 data from 2010.|