Leverage for sustainable economic growth

The Government's recent adjustment of the National Power Development Plan (Power Plan VIII) clearly demonstrates its determination to accelerate energy transition, increase clean power sources and modernize transmission infrastructure.

With a total investment of more than 136 billion USD by 2030, along with a roadmap to bring nuclear power to the national grid, the Electricity industry not only serves domestic needs but also creates a "green passport" to help Vietnamese goods overcome new international trade barriers. To grow quickly and sustainably, the Electricity industry must be one step ahead - as directed by General Secretary To Lam - to lay the foundation for an independent, self-reliant, proactively adaptable and far-reaching economy in the global value chain.

This is realized by the Government’s determination to make a fair energy transition, implementing the commitment to net zero emissions by 2050 - an important factor to maintain a sustainable export position. This is not only a large investment plan, but also a strategic commitment of the State to ensure national energy security. At the same time, it creates a clear and stable legal corridor for domestic and foreign investors - an extremely important factor to achieve the goal of high and sustainable economic growth.

GDP growth of 8% cannot be achieved without electricity. Economic sectors such as manufacturing, electronics, supporting industries, logistics services, smart cities, artificial intelligence (AI) - electric cars all consume large amounts of electricity, are stable and have high requirements for the quality of the supply. Delays or interruptions in power supply will cause a chain reaction, affecting labor productivity, national prestige and the confidence of international investors.

In particular, in the context of the US and developed countries increasing tariff and non-tariff barriers related to climate change, such as the European Union's (EU) carbon border adjustment mechanism (CBAM) or clean energy origin regulations for imported goods into the US, green electricity is not only an internal development need but also a "passport" for Vietnamese goods to the world.

For the first time, Vietnam has put into its roadmap the development of nuclear power with a capacity of 4-6.4GW in the 2030-2035 period, opening up a breakthrough direction to ensure a stable supply, low emissions and large capacity.

The Electricity Industry is facing a “golden” opportunity to transform itself, but that will only become a reality if ministries, sectors and localities take strong, drastic, synchronous and transparent actions. Not only does it need good planning, Vietnam must quickly modernize energy management, apply digital transformation, a competitive electricity market, and monitor operational and investment efficiency. The future electricity system must be a smart ecosystem: Stable - distributed - optimized in real time.

The demand for investment in electricity is huge, while the state budget is limited. Vietnam needs to remove barriers in investment procedures, site clearance, and grid connection; at the same time, issue an attractive, stable, and transparent electricity price mechanism to create confidence for private investors, especially in the fields of renewable energy and LNG electricity.

Along with that, the national power grid needs to be invested in a systematic way, with high transmission technology, flexibility and enough capacity to integrate distributed power sources (such as household solar power, offshore wind power, etc.). In addition, connecting the power grid with Laos, China, and ASEAN is also a strategic direction to improve energy security and regulatory capacity.

A strong, smart, green national power system is a shield for energy security and a lever for sustainable economic growth. With the right policies and a clear roadmap, Vietnam has the basis to ensure sufficient electricity, promote green exports, and enhance national competitiveness in the context of the world entering a period of profound energy transition.

Source: https://hanoimoi.vn/don-bay-cho-tang-truong-kinh-te-ben-vung-700137.html