Vietnam Business Channel

Vietnam works on its first national energy master plan

A platform for oil drilling in Vung Tau, southern Vietnam .

Vietnam’s Ministry of Industry and Trade (MIT) has been tasked to create a national energy master plan as the country shifts from being an energy exporter to a net energy importer. The MIT held a workshop recently to discuss the plan, for the ten-year period of 2021 ~ 2030, the first time the government has worked on a plan such as this.

In previous years, energy planning has been contained in individual sector strategy plans, but this is the first time the MIT is creating a comprehensive and integrated energy master plan that will cover all sectors and regions of the country.

A report earlier this year by the MIT’s department of oil, gas and coal said that global energy trends are for each country to focus on three key components: adopting policies to combat climate change with a focus on renewable energy projects, the promotion on energy policies that combat climate change and policies that enhance energy security.

The MIT says that since Vietnam is a country that is increasingly dependent on importing energy, products, the country will be affected by global trends, and that as a responsible member of the international community, Vietnam must implement its commitments to combat climate change.

Ngo Thuy Quynh, an MIT Deputy Director said: "With our increasingly deep participation in the global supply chain, Vietnam will have to face both advantages and disadvantages in developing its energy system to meet the demands of socio-economic development."

At the MIT workshop, Dang Hoang An, Deputy Minister of Industry and Trade discussed some of the difficulties his ministry is facing in creating a national energy plan and said that a key consideration is that, “there must be enough energy for socio-economic development, but the price must be reasonable to ensure economic competitiveness.”

Dang also noted that global trends in renewable energy sources and technologies, are causing energy usage habits to change significantly and that: "The accompanying logistics infrastructure, mechanisms and policies for sustainable energy development will be very important in ensuring energy supply for development."

Tran Manh Hung, head of the Institute of Energy’s, Department of Energy Economics, said that the government’s plan would forecast the demand for all energy-consuming sectors of the economy, including agriculture, commerce, industry and transport.

Tran added that the government’s plan would provide infrastructure planning options for the four main energy sub-sectors of: coal, oil and gas, electricity, and renewables.

Nguyen Anh Duc of the Vietnam Petroleum Institute said many targets in the gas industry however have yet to be met: production of liquefied petroleum gas is less than 50%, while petrochemical production only meets 25% of demand.

Five of its planned 14 chapters in the government’s master plan have now been completed, and the MIT said that it is expected to finalize the other chapters in the plan by October and would then submit it to the national government by the end of the year.

 

 

 

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