What is Japan's specific support for Vietnam's Nghi Son refinery amid Middle East tensions, and how does it fit into the broader POWERR Asia scheme?

Japan has pledged direct support to procure crude oil for Vietnam’s Nghi Son integrated refinery and petrochemical complex as the first project under its $10 billion Partnership On Wide Energy and Resources Resilience (POWERR) Asia scheme, launched on 15 April at the AZEC Expanded Online Summit. This initiative provides financial backing through the Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI) to help companies procure fuel and other supplies, alongside emergency yen-denominated loans to Asian governments via the Japan International Cooperation Agency (JICA). The support aims to ensure stable petroleum supply essential for economic activity and healthcare, reinforcing regional supply chain resilience amid Middle East conflict–driven disruptions, particularly the effective closure of the Strait of Hormuz.

How significant is the Nghi Son refinery to Vietnam’s energy security, and what scale of crude oil procurement has been arranged so far?

The Nghi Son refinery, with a capacity of 200,000 barrels per day, supplies between 30% and 40% of Vietnam’s fuel consumption needs. As of 28 April, Japanese petroleum firm Idemitsu Kosan — holding a 35.1% stake in Nghi Son — has procured 4 million barrels of crude oil to sustain Japanese-linked manufacturing supply chains; this volume is equivalent to approximately 10 days of Vietnam’s total fuel consumption. The crude is being transported via a route avoiding the Strait of Hormuz and sourced from the Middle East, directly addressing supply chain vulnerabilities caused by the strait’s effective closure — through which about one-fifth of global oil and gas flows.

Japan to help Vietnam’s Nghi Son complex buy crude oil amid Middle East conflict

May 4, 2026

Japan pledged support via the POWERR Asia scheme to help Vietnam’s Nghi Son refinery procure crude oil amid Middle East conflicts disrupting supply chains. The initiative secures petroleum products for economic activity alongside broader Asian energy infrastructure investments.

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Japan to help Vietnam’s Nghi Son complex buy crude oil amid Middle East conflict

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