An oil crash has dealt a strong bow to Vietnam and Malaysia. (Photo: Internet)
are among Asian countries that bear the major brunt of the ongoing oil plunge while Thailand, Korea and Sri Lanka are the largest beneficiaries, a Fitch
Prices of the benchmark Brent crude have tumbled by 44% year-on-year as of February 11, 2016 and 75% from early 2013.
Vietnam is the only country to experience deterioration in its net oil bill, which rose by about 1% of gross domestic product (GDP) on account of significant export declines, says the report.
Vietnam’s current account deterioration since 2013 (4.7% of GDP) is largely attributable to a significant pick-up in domestic demand and lower oil exports (2.4% of GDP).
Meanwhile, Malaysia’s current account deterioration (1% of GDP) despite higher net oil receipts is in large part due to capital investments from its ongoing Economic Transformation Program, which aims to enhance growth prospects over the longer term.
Net oil bills (L) and current account balance (R) of Fitch-rated Asian countries.
For net oil exporters or countries that rely significantly on oil receipts for fiscal revenues, a lower-oil-price environment has been broadly credit negative, the U.S. credit rating agency warned.
Vietnam reaped $3.72 billion from exporting 9.18 million tons of crude oil in 2015, down 48.5% in value and 1.3% in volume from a year earlier, according to the General Department of Vietnam Customs.