Vietnam ensures energy security in all scenarios

Encouraging results recorded

According to Dr. Nguyen Thang Long from the Vietnam Energy Conservation and Energy Efficiency Association, the energy sector has seen rapid and synchronous development in all sub-sectors since 2016, sticking to the state’s orientation and basically ensuring the national energy security.

During the 2016-2020 period, the total output of electricity produced and imported was estimated at 1,049 billion kWh with an average annual growth rate of eight percent. One highlight of the period was that the electricity sector paid great attention to the application of IT to technical management and customer service. Power supply to rural, mountainous and island areas exceeded the targets assigned by the Party and the Government, contributing significantly to hunger eradication and poverty reduction and new-style rural area construction.

Notably, the renewable energy sector has developed strongly in the past five years, helping ensure national energy security, in which the Government’s mechanism to encourage the development of solar and wind power has created a driving force to attract investors.

Regarding oil and gas, since 2016, the industry has made significant contribution to the state budget, and ensured national energy security. In the 2016-2021 period, the increase in oil and gas reserves was estimated at about 56.26 to 61.26 million tonnes of oil equivalent, and the total oil and gas production from 2016 to 2020 was estimated at 120.87 million tonnes of oil equivalent, equal to 100 percent of the five-year plan.

The coal industry has made positive contribution to Vietnam’s economy

Meanwhile, the coal industry has also basically completed its goal as an important economic-technical industry. Clean coal production increased from 38.7 million tonnes in 2016 to more than 48 million tonnes in 2020. Particularly in 2022, clean coal production increased by 3.3 million tonnes compared to the year’s plan, ensuring supply for the economy.

A foundation for sustainable development

Over the past 35 years, Vietnam’s economy has achieved an annual GDP growth rate of more than six percent, in which the energy sector plays an important role.

This result is attributed to the role of the MoIT in advising the Party, State and Government on the orientations, mechanisms and policies as well as its appropriate management and administration over the energy sector.

For example, despite a global energy crisis at the start of the 2021-2025 term, the MoIT provided timely, flexible and drastic solutions to dealing with the broken energy chains and high fuel prices. They included the directions to increase production, find coal supplies, and speed up the progress of grid projects for power import from Laos and China; the advisory proposals on policies to reduce taxes and fees, etc. As a result, Vietnam did not suffer an energy crisis, and still met the demand for domestic production and consumption.

Currently, the ministry is actively completing the National Electricity Master Plan for the 2021-2030 period (Electricity Planning VIII) while finalizing the draft strategy for the development of Vietnam’s coal industry till 2030, with a vision to 2045, and speed up the adoption of the Petroleum Law 2022, and more.

Based on the achieved results, and efforts to overcome difficulties for the benefit of the nation, the MoIT is believed to promote its management and administration role over Vietnam’s energy sector for further development, creating a solid foundation for socio-economic development, and also the industrialization and modernization of the country.