In the framework of the “Energy Summit 2020” held on July 22, 2020 in Hanoi, many conference sessions on energy were held, notably the conference session “Energy transition associated with the development of sustainable energy infrastructure in the national energy development strategy to 2030, vision to 2045” co-funded by the EU – Vietnam Energy Facility (EVEF).
Speaking at the plenary session of the Forum, Mr. Nguyen Duc Hien, Deputy Head of the Central Economic Committee, said that the energy transition was a part of the national energy development strategy to 2030, vision to 2045, signed by the Politburo on February 11, 2020. The Government is putting together many solutions to transform the energy structure and develop the energy infrastructure. The current situation shows that since the energy demand for socio-economic development is increasingly high, it has put pressure on the infrastructure of the energy sector.
Participants also pointed out that Vietnam had many opportunities and potentials to transform the energy structure such as the focus of the Party and the State on the energy sector through a wide range of policies, institutions and resources. In addition, Vietnam’s natural resources are rich with great potential for exploitation, especially the renewable energy and others.
Photo: Energy Summit 2020
In the transition of Vietnam’s energy structure, the international support is substantially important, in which the European Union (EU) is one of the most crucial partners of Vietnam. The EU has committed a 320 million EUR grant to Vietnam in the period 2014-2020, to assist the country in building a sustainable energy sector and enhancing the governance and rule by law in the energy sector. This is the largest grant ever funded by the EU to a non-EU country with the aim of supporting the sustainable energy sector.
Since 2017, the EU and Vietnam have launched the Energy Sector Policy Support Program (ESPSP) which is 108 million EUR worth. Under the framework of the program, the EVEF is co-funded by the EU and the German Federal Ministry for Economic Cooperation and Development (BMZ) and implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH in cooperation with the Vietnamese side from 2018 till the end of 2021. The initial results of the project are remarkable, especially in helping Vietnam improve its policy framework, enhance capacity for Vietnamese agencies and share experience with Vietnam in the field of sustainable energy.
Currently, the EU is negotiating with the Ministry of Industry and Trade (MOIT) the next 142 million EUR support package with the aim of improving the energy efficiency; increasing the share of renewable energy in the energy structure; and improving the quality and operation of the Vietnam Energy Information System. This is a meaningful and important support package in the context of Vietnam’s energy transition.
The path from orientations to real-world situation has never been simple. However, if we utilize the available potential, external support and most importantly, self-reform to overcome difficulties, it will be an opportunity for Vietnam to ensure the energy security and achieve a socio-economic breakthrough in the future.