Home / Economy / Industry
Vietnam needs US$15 billion a year to ensure energy security: Official
Linh Pham 11:45, 2020/05/11
Vietnam prioritizes private investment in energy sector but keeps the crucial role of state-owned enterprises.

Vietnam needs approximately US$150 billion for the energy industry from now through 2030 to ensure the country’s energy security, a senior Partcy official has said.

Nguyen Van Binh, head of the Communist Party of Vietnam’s Central Committee Economic Commission at the meeting on May 8. Photo: Vietnam News Agency 

The money greatly enables the country to keep an average energy growth of 10% per year, the rate that’s enough for the economic development, Nguyen Van Binh, head of the Communist Party of Vietnam’s Central Committee Economic Commission, said at a virtual meeting last weekend.

Energy must be one step ahead of economic growth, Binh said, adding that Vietnam needs to obtain an annual economic growth rate of 6.5-7% by 2030 if the country strives to reach the given target of per capita income of US$6,000-US$8,000/year (to be an upper middle income country).

The Party official said the funding required for the energy sector is so huge that the state budget alone can not afford it.

Therefore, it’s necessary to have new policies to facilitate the sector if Vietnam wants to achieve the goal, he emphasized, noting that the Politburo’s Resolution 55 has helped promote the process.

 Vietnam attempts to develop all kinds of energy, mainly renewables

Encouraging all economic sectors, prioritizing private

The resolution gives importance to the fair participation of all economic players in the energy industry with the priority given to the private sector.

Accordingly, Vietnam attempts to abolish monopoly, non-transparency, and unfair competition in the energy sector, Binh said.

However, as Vietnam needs to ensure energy security and social equality, it’s necessary to keep the crucial role of the state sector. State-owned enterprises assume responsibility for essential stages but not all the sectors, the official said.

Under the resolution, Vietnam lays stress on the development of renewable energy like solar and wind power while reducing the coal-fired ratio to meet the requirements on environmental protection, according to the official.

RELATED NEWS
TAG: energy security energy sector private sector growth prioritize state-owned Nguyen Van Binh
Other news
11:30, 2020/30/25
Vietnam cancels 400 small hydropower projects
Vietnam’s environmental ministry is not encouraging development at all costs of small hydropower projects.
12:50, 2020/50/23
Vietnam well-positioned for IT firms globally: Experts
By 2025, Vietnam targets to be among the leading 70 countries in e-government development, while the digital economy would account for 20% of total GDP.
11:07, 2020/07/21
PM urges Samsung to invest in semi-conductor manufacturing plant in Vietnam
With over 3,000 engineers, Samsung’s R&D center in Hanoi, scheduled for completion in late 2022, would be one of the company’s main R&D hubs globally.
18:33, 2020/33/20
Vietnam growth may slow to 3% in 2020, likely to rebound to 7.8% in 2021: StanChart
Vietnam is one of the few Asian economies to have registered positive growth so far this year, despite the second wave of infections.
18:03, 2020/03/20
Vietnam fails to realize 5-year economic target on Covid-19
This comes as Vietnam’s GDP growth in 2020 is set to expand by 2 – 3%, much lower than the 6.8% target initially set for the year, Prime Minister Nguyen Xuan Phuc has said.
15:01, 2020/01/20
PM approves issuance of aviation license to Vietravel Airlines
Given the prime ministerial decision, Vietnam would have a sixth operational airline.