The Vietnam Energy Association Has Proposed A Financial Framework

Vietnam Energy Association Proposes Financial Framework to Drive Clean Energy and Energy Storage Development with $94 Billion in Private Capital

 

At a seminar on promoting private sector participation in energy investment organized by the Vietnamese Ministry of Finance, Nguyen Anh Tuan, Vice Chairman of the Vietnam Energy Association, pointed out that activating private capital is crucial to driving clean energy development and helping Vietnam achieve its net-zero target by 2050 on time. By 2030, the total investment required in the power generation sector alone is enormous, with the private sector expected to mobilize approximately $94 billion, while the public sector can only provide $24 billion. The share of renewable energy is bound to increase, potentially reaching 70% by 2050.

 

 

Nguyen Anh Tuan outlined a phased implementation roadmap. The short-term focus is on addressing legal bottlenecks and standardizing contracts, particularly the need for model contracts and pricing frameworks for energy storage batteries and pumped-storage hydropower. He noted that the cost of energy storage batteries fluctuates significantly at current price levels, but they are crucial for grid stability, especially when combined with renewable energy. The medium-term focus is on activating capital markets and piloting new instruments, while the long-term goal is to establish a fully competitive electricity market.

 

Dr. Bui Thanh Minh, Deputy Director of the Office of the Vietnam Private Sector Economic Development Research Committee, emphasized that the green transition requires a coordinated roadmap. Vietnam needs to effectively operate and develop a carbon market, pilot and formally launch an emissions trading system as planned, and consider introducing an appropriate level of carbon tax. Simultaneously, green finance must be unlocked, specific guidelines for identifying green projects must be issued, and the assessment and risk management capabilities of financial institutions must be strengthened. Furthermore, establishing a national database of green projects and promoting companies to disclose comprehensive ESG information are also crucial. Only by mobilizing the resources of multiple stakeholders can the net-zero target be transformed from a commitment into reality.