[HO CHI MINH CITY] Vietnam has emerged as one of the region’s fastest policy responders to the energy shock, moving early to cushion surging fuel costs even as its heavy reliance on Middle Eastern supplies leaves it among the most exposed in South-east Asia to prolonged disruptions.
The country’s government has eliminated more taxes on petrol, diesel and jet fuel from Mar 27 to Apr 15, in an emergency move aimed at easing surging energy costs and supporting households and businesses as geopolitical tensions disrupt supply.
Lavanya Venkateswaran, senior Asean economist at OCBC, said: “The Vietnamese authorities were one of the first to react in the region and have been vigilant of the situation. Their nimble approach to policy ensures that timely adjustments are made, and we expect this will continue to be the case.”
