In an interview with the Vietnam News Agency (VNA)'s reporter, Keiju Mitsuhashi, Director for Energy Sector for Southeast Asia and the Pacific at the ADB, underscored this strategic position, describing Vietnam as a “truly important” part of the broader Pan-Asia Power Grid Initiative (PAGI).

The initiative was launched on May 3 at the ADB’s Annual Meeting in Samarkand, Uzbekistan, and is expected to catalyse regional energy security.

According to Mitsuhashi, Vietnam is facing a major opportunity not only to strengthen technical connectivity but also to take a leading role in building an integrated regional energy market, moving from a national to a regional scale.

He noted that Vietnam’s pivotal role is first reflected in its ability to promote groundbreaking multilateral connectivity. As an active member of both ASEAN Power Grid and Greater Mekong Subregion (GMS) Economic Cooperation Programme, Vietnam is spearheading what the ADB describes as “game-changing” initiatives. A notable example is last year’s memorandum of understanding between Vietnam, Malaysia and Singapore on exporting clean electricity from Vietnam via subsea cables connected to Peninsular Malaysia’s national grid.

Vietnam’s internal capacity and operational experience are also key factors behind the ADB’s high assessment. Mitsuhashi said the country has demonstrated strong technical capability through stable power grid connections with neighbouring countries such as Cambodia, Laos and China. This experience, combined with recent adjustments to the National Power Development Plan VIII, which emphasises increased imports and exchanges of renewable energy, positions Vietnam as a model for the “bottom-up” approach advocated by the ADB.

Importantly, Vietnam’s vision extends beyond infrastructure to the development of electricity market mechanisms. The ADB highly values the country’s efforts to refine its legal framework and develop a competitive domestic power market, laying the groundwork for deeper regional integration.

The PAGI forms part of a broader US$70 billion infrastructure plan unveiled by ADB President Masato Kanda to reshape the region’s energy and digital future. It comes amid mounting geopolitical uncertainty, particularly tensions in the Middle East, which have exposed vulnerabilities stemming from reliance on limited strategic corridors.

At the same time, the region faces pressing internal energy challenges. As of 2023, fossil fuels still accounted for about 72% of the total energy supply, while CO2 emissions from fuel combustion surged 147% between 2000 and 2022, posing serious risks to climate commitments.

At a press briefing on May 5, Mitsuhashi emphasised that coal is a thing of the past and urged a comprehensive, long-term approach to shift toward a clean energy ecosystem.

Despite rapid economic growth, more than 150 million people in the region still lack reliable access to electricity. With demand set to surge, pressure on national grids will increase, while renewable resources remain unevenly distributed. Experts emphasised that cross-border transmission is essential to unlock this potential.

With a target of mobilising US$50 billion by 2035, including US$25 billion from ADB, PAGI marks a shift from bilateral energy links to a fully regional approach. The initiative aims to integrate about 20 GW of renewable energy across borders, connect 22,000 circuit-kilometres of transmission lines, improve energy access for 200 million people, create 840,000 jobs, and cut regional power sector emissions by 15%.

Vietnam’s economy stays resilient despite global challenges, says ADB

VOV.VN - Vietnam’s economy is forecast to maintain strong growth in the coming years despite rising global uncertainties, according to a report released by the Asian Development Bank (ADB) on April 10.