Major changes in Vietnam’s energy market during 2026-2030 period

Vietnam's national energy development strategy has set the goal of ensuring a secure energy supply, providing sufficient, stable, and high-quality energy at reasonable prices for rapid and sustainable socio- economic development, ensuring national defence and security, improving people’s livelihoods, and contributing to environmental protection.

Critical need for new energy sources

In reality, Vietnam’s energy sector has experienced strong growth, effectively meeting the demands of socio-economic development and improving people's livelihoods. However, as fossil fuel sources such as coal, oil, and natural gas continue to deplete, the urgent need for a rapid transition to new energy sources to meet increasing demand has become more pressing.

The Vietnam Oil and Gas Group (Petrovietnam - PVN) aims to efficiently exploit and utilize domestic energy resources while maintaining a well-balanced approach to energy imports and exports in the coming period.

Tran Quang Dung, Deputy Secretary of the Party Committee of the group, emphasized that to ensure the effective and responsible exploitation of resources while meeting energy transition requirements, PVN strictly adheres to Vietnam’s legal regulations on environmental protection and international conventions to which Vietnam is a signatory. The group continuously enhances its technology, integrating 78 new innovations to minimize environmental emissions and mitigate risks as much as possible.

"PVN and its member units always ensure the implementation of environmental protection measures in strict accordance with legal regulations on safety, health, and the environment. These include plans to prevent and mitigate environmental impacts, such as strict waste management, treatment, and recycling of solid, liquid, and gaseous waste. Additionally, we focus on technological innovation, operational optimization, energy-saving practices, and the development of renewable energy," Dung continued.

Amid global challenges posed by climate change and extreme weather, Pham Hong Diep, Chairman of the Board of Directors of Shinec Joint Stock Company in the northern province of Hai Phong emphasized that transitioning to renewable energy models is not only a critical choice but also an inevitable trend for sustainable energy development.

"Renewable energy is an essential factor in Vietnam’s economic development strategy, particularly in the context of climate change and the rapid growth of industrial zones. This transition not only helps reduce the impacts of climate change but also promotes sustainable economic growth. Shifting to renewable energy sources is key to mitigating climate change impacts while ensuring long-term and sustainable economic development," Diep affirmed.

Identifying the true 'green' value of each energy source

Looking ahead, Associate Professor Dr. Nguyen Thuong Lạng from the Institute of Commerce and International Economics at the National Economics University highlighted that for a genuine green economy, the energy structure must shift towards reducing the share of fossil fuels while increasing the proportion of renewable and new (green) energy.

He asserted that, given Vietnam's goal of developing a green economy, the energy transition must be pursued decisively. However, the shift to green energy requires significant investment in the research and development of new energy sources that meet green standards. Furthermore, energy reserves should be increased to stabilize prices against adverse fluctuations in global energy markets. This requires upgrading infrastructure, refining strategic structures, and strengthening the foundational role of the national energy system across all economic activities.

"In the short term, it is essential to establish classification standards for green energy based on type, nature, and green factor composition, as well as specific evaluation methods to accurately assess the 'green' level of each energy source. This classification will serve as the foundation for implementing effective policies to phase out fossil fuels while optimizing the promotion of green energy alternatives.
The roadmap for the green energy transition should be integrated into the broader framework of synchronized green economic development, alongside other relevant sectors, to avoid inconsistencies or cost imbalances in the adjustment process," Lang stressed.

"In the short term, it is necessary to establish classification standards for green energy based on type, nature, and green factor composition, along with specific evaluation methods to accurately identify the 'green' level of each energy source. This classification will serve as a foundation for implementing effective policies to phase out fossil energy while promoting green energy alternatives optimally.

The roadmap for green energy transition must be placed within the broader framework of synchronized green economic development, alongside other related sectors, to eliminate inconsistencies or cost imbalances in the adjustment process," Lang pointed out.

According to Phạm Hong Diep, Chairman of Shinec Joint Stock Company, achieving a sustainable green energy transition requires strong collaboration between the government, businesses, and communities in developing clean technologies, enhancing energy efficiency, and creating a favorable business environment for renewable energy projects.