Vietnam is seen as the next emerging Asian economy and recent oil and gas discoveries are making this formerly isolated country a new center of offshore South China Sea exploration activity.
The focus of most attention regarding the South China Sea resources has been on hydrocarbons in general, and oil in particular. Oil deposits have been found in most of the littoral (adjacent) countries of the South China Sea. The South China Sea region has proven oil reserves estimated at about 7.5 billion barrels, with oil production in the region currently over 1.3 million barrels per day.
Total South China Sea production has increased gradually over the past few years, primarily as additional production from Vietnam came online. A major reserve of oil was discovered in 1997 in Vietnam's Block 46 (southwest of Vietnam).

Though sometimes overlooked, natural gas might be the most abundant hydrocarbon resource in the South China Sea. By the end of 1999, Vietnam had produced over 80 million tons of crude oil from the fields on the Vietnam continental shelf, making an important contribution to the foreign currency revenues of the state budget.

In the area of exploration and production, aimed at the determination of petroleum potential and increase of petroleum reserves, discovery of new fields and meeting the petroleum needs of Vietnam, the State owned Petrovietnam continues to increase the numbers of blocks under exploration by means of Production Sharing Contracts (PSC), Business Cooperation Contracts (BCC) or Joint Ventures (JV) entered into with foreign petroleum companies rapidly, putting discovered fields into production and applying advanced production technologies to raise output, enhancing petroleum recovery factors and protecting the environment and resources, with a view to reaching a production of 25 - 27 million tons of oil equivalent in 2005.

Stepping into the new century with a series of major projects within the framework of the strategic development program for the first years of the century, Vietnam wishes to further expand cooperation with foreign oil companies, diversify investment forms and enhance investment efficiency of domestic and foreign partners.

With the aim of becoming a strong and integrated petroleum producing country Vietnam is welcoming cooperation with foreign junior exploration companies such as Tricoastal Oil & Gas Ltd. to discover further reserves and help in bring those reserves on line quickly, safely and efficiently.