Reshaping the Energy Supply Chain: Expecting increased investment flows in green energy

Vietnam is greatly impacted by the global energy transition, according to Mr. Hoang Quang Phong, Vice President of the Vietnam Chamber of Commerce and Industry (VCCI), who was speaking at the opening ceremony of the Forum on Reshaping the Global Value Energy Supply Chain: Identifying Trends, Challenges and Solutions for Vietnam organized by the Business Forum Magazine in collaboration with relevant agencies.

Vietnam enjoys a long coastline and a tropical monsoon climate, which make it the perfect place to produce renewable energy because it receives a lot of wind and sun radiation. These prerequisites must be met in order to ensure energy security for Vietnam's economy to grow in the future.

The importance of a developed and sustainable future in the energy transition has grown in recent years. In order to ensure national energy security, the Party and the State have released a number of policies promoting energy development and transition. Because of the State's incentives, Vietnam's renewable energy sector has advanced significantly.

The Politburo's Resolution No. 55-NQ/TW, dated February 11, 2020, on the strategic orientation for Vietnam's national energy development to 2030, with a vision to 2045, outlines the perspectives, objectives, assignments, and solutions for the country's anticipated energy transition.

Goals for creating a green economy by 2030 and 2050 are also outlined in Decision No. 1658/QD-TTg, dated October 1, 2021, from the Prime Minister approving the National Strategy on Green Growth for the 2021–2030 term, with a vision to 2050.

The Vice President of VCCI highlighted that Vietnam has assigned certain duties in the National Energy Master Plan for the 2021–2030 period, with a vision to 2050, released by the Government on July 26, 2023 (referred to as Power Plan VIII), in recognition of the significance of green energy for the economy.

Following COP26, there has been a noticeable surge in the number of governmental and corporate pledges towards decarbonization and environmental sustainability, particularly concerning supply chain energy consumption. As the main pillar of the global low-carbon energy economy, this movement is speeding up investment in energy storage, renewable energy technology, and other assets to establish a decarbonized power system, according to Mr. Hoang Quang Phong.

Furthermore, Prime Minister Pham Minh Chinh reaffirmed Vietnam's determination to carry out the commitment to achieve net zero emissions by 2050 at the COP28. In addition, he highlighted Vietnam's endeavors and the outcomes attained subsequent to the pledge made at COP26.

According to Mr. Hoang Quang Phong, these are very clear and direct steps to assure foreign investors that Vietnam is committed and determined to implement, create all favorable conditions, reduce risks for investors to attract even larger and better investment flows in green development and energy transition.

Vietnam intends to transition its energy structure from coal and fuel to renewable energy and other low-emission energy sources concurrently, as per the Power Plan VIII. Creating a blueprint for LNG power plants to secure hydrogen power within Vietnam's power system is the strategy's long-term objective.

According to Mr. Hoang Quang Phong, Vietnam has been developing an energy development policy that is predictable, long-term, and clear—a requirement for a sustainable energy transition. Still, there are some legal roadblocks that will need to be cleared in the near future. If effectively carried out, the energy transition process linked to the development of energy infrastructure will help Vietnam realize its long-term vision by advancing the country's synchronized development goals in the areas of social, economic, and environmental aspects.

“Vietnam must align the implementation of a long-term strategy for reducing carbon emissions with global trends in order to realize that long-term aim and become carbon neutral by 2050. This plan can benefit Vietnam economically and financially in addition to the environment, as opposed to a high-carbon roadmap. In order to adopt a strategy to significantly reduce carbon emissions, it is necessary to remove policy impediments, increase resources, and support science and technology,” said VCCI Vice President.

To identify and find solutions in building the energy supply chain, VCCI directed the Business Forum Magazine to organize the Forum on Reshaping the Global Energy Supply Chain: Identifying Trends, Challenges and Solutions for Vietnam". VCCI President Hoang Quang Phong requested businesses to provide their comments for the Organizing Committee to synthesize and submit to the Government and relevant agencies to complete policies related to renewable energy, new energy, ensuring energy security, providing enough electricity for the Vietnam economy.