Vietnam braces for flight cuts after China, Thailand halt jet fuel exports

Vietnamese authorities have warned the country’s aviation industry to prepare for possible flight reductions from April after China and Thailand suspended exports of jet fuel because of the Iran war, increasing the risk of shortages.

Vietnam imports more than two-thirds of its jet fuel requirements, with 60% coming from China and Thailand, according to documents from the aviation regulator and importers seen by Reuters. 

“There are risks of jet fuel shortages for Vietnamese airlines from the beginning of April and the ​following months,” the Civil Aviation Authority of Vietnam said in a document dated March 9 and sent to the ministry in charge of transport.

The document said airlines should review their plans, particularly domestic routes, and instructed airport operators to prepare additional parking space for Vietnamese carriers. 

The document also showed that Vietnam had seen reduced supplies from Singapore.

In separate documents reviewed by Reuters, major importers Petrolimex and Skypec said they could guarantee jet fuel supplies only for March. Skypec also urged the regulator to restrict air transport to essential domestic routes only if the conflict drags on. 

All of the documents were issued after China told its refiners earlier this month not to agree to new export deals, and before it imposed a strict ban on refined fuel exports from March 11. Thailand, meanwhile, banned exports of refined oil products, including jet fuel, on March 6 to all countries except Myanmar and Laos. 

The regulator, the ministry and the two importers did not respond to Reuters requests for comment. Vietnam’s leading airlines, Vietnam Airlines and VietJet, declined to comment.