CHAPTER 7: ATTAINING ENERGY SECURITY IN VIET NAM: IMPEDIMENTS AND POLICY IMPLICATIONS

This chapter attempts to explore the weak points in the energy system that prevent Viet Nam from achieving energy security. Fundamental impediments are the lack of energy inefficiency in major industries, especially in export-oriented manufacturing and transport. Moreover, the insecurity is also derived from the growing reliance on fossil fuel import for thermal power generation that threatens local environment, thus having an adverse impact on climate change process. Extreme reliance on fossil fuel import created a significant risk in the energy supply security for the country. In addition, with the phasing out of all nuclear power stations and still negligible contribution of renewables (except hydropower) in the electricity grid, primary energy supply is less diversified, and it is forecast that half of electricity generation will be derived from coal by 2030. The implication is that improving energy efficiency in energy-intensive sectors must be the top priority for achieving energy security in the country, in which transport leaves a huge room for energy-use enhancement. In addition, reducing the barriers in renewable energy financing to attract more private investment is essential to unlock the potential of renewables deployment that brings multiple benefits for securing national energy and reducing carbon emissions.