Vietnam has received its first direct diesel shipment from India in eight years, marking a new development in fuel trade between the two countries after Vietnam removed import duties on fuels earlier this year.
Around 70,000 metric tonnes of diesel were loaded onto the Panamax tanker Magic Victoria at Reliance Industries’ refinery in Jamnagar. The shipment was later delivered to the Van Phong Terminal in Khanh Hoa province between August 14 and 16, according to ship-tracking data and trade sources.
The shipment follows Vietnam’s decision in March to eliminate import duties on all fuels as the country sought to diversify its supply sources amid shipping and geopolitical risks in the Middle East.
Vietnam reduced its most-favoured-nation import duty on diesel from 7% to zero on March 9. The zero-duty policy has been extended until September 30, 2026, allowing Vietnamese fuel buyers to source diesel from a wider range of countries.
The latest cargo is the first direct diesel shipment from India to Vietnam in eight years. Earlier this year, Indian diesel had reached Vietnam through ship-to-ship transfers near the Singapore and Malacca straits, according to shipping data from Kpler and Vortexa.
The identity of the seller to Vietnam National Petroleum Group, or Petrolimex, was not immediately known. Petrolimex declined to comment, while Reliance Industries had not responded to requests for comment.
The policy change has created new opportunities for Indian refiners to expand fuel exports to Vietnam. India is well positioned to supply markets on both sides of the Suez Canal, although trade sources said Indian diesel shipments may still be more commercially attractive for markets west of Suez than Southeast Asia.
Indian diesel exports have also helped support Asian prices for 10-ppm gasoil, with cash premiums remaining around $5 to $6 per barrel despite concerns over tighter supplies in markets west of Suez.
Vietnam sourced most of its diesel imports last year from South Korea and other Southeast Asian countries. The new zero-duty policy could give Indian refiners greater access to the Vietnamese market and diversify the country’s fuel supply network.
The shipment was carried by the Marshall Islands-flagged tanker Magic Victoria, which is registered to MOL (India) Private Limited and managed by Synergy Maritime Private Limited.
Reliance Industries’ Jamnagar refining complex, one of the world’s largest refining facilities, has a crude-processing capacity of 1.4 million barrels per day.
The Van Phong Terminal, where the shipment was unloaded, is majority-owned by Petrolimex, which holds an 85% stake. The terminal has storage capacity of 505,000 cubic metres and can handle up to 6 million tonnes of imports and exports annually.
