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.