The first Vietnam-US Dialogue on energy security

The first Vietnam-US Dialogue on energy security - 

On March 30, 2018, Ministry of Industry and Trade (MoIT) of Vietnam and the US Embassy in Hanoi jointly organize the first Vietnam-US dialogue on Energy Security. Mr. Hoang Quoc Vuong- Vice Minister of MoIT of Vietnam and Mrs. Sandra Oudkirk – US State Secretary Deputy Assistant for Energy were in charge of the Dialogue.

The first Vietnam-US Dialogue on energy security

At the dialogue, Vietnam and US sides exchanged and information, shared viewpoints on securyty for energy infrastructure; strategy to diversify energy sources; energy fees and prices; cooperation in technical and technological assistance for renewable energy development; energy interconnection in the region and energ y trade. Besides, the sides also discussed opportunities for US businesses to be more involved in energy development in Vietnam.

In his opening speech, Mr. Hoang Quoc Vuong informed, the economy of Vietnam has been strongly changed in the last few decades by moving from an agricultural ecconomy based on traditional biomass fuels to an economy using synthetic and modern and modern forms of energy. The gross domestic product (GDP) per capita was grown more than tenfold, from $ 114 1990, to approximately $ 2400 in 2015 - animportant milestone for Vietnam to become a middle- income country.

Vietnam has diversified domestic primary energy sources including crude oil, natural gas, coal (anthracite), hydropower and non-commercial biomass that were exploited at a high level in recent years for economic development and energy security guarantee. There for, to meet more and more increasing demand of primary energy, Vietnam has to import surplus energy become an energy net importing country since 2015.

In 2015, the total primary energy consumption in the country was 70.6 million tons of oil equivalent (TOE), among which commercial energy – 75.5% and non - commercial biomass- 24.5 %. It is to emphasize that the rate of the non-commercial biomass energy in total energy consumption significantly decreased from 44.2% in 2000 to 16.9% in 2015 due to non -commercial biomass energy having gradually been replaced by forms of commercial energy.

The results of a study of Institute of Energy (MoIT) on energy demand forecast shows, the total final energy demand of Vietnam should increase from 40 million TOE by 2015 to 90 million TOE by 2015 to 90 million TOE by 2025 (increase about 5.1% per year in 2016-2025 period). In short, by 2035, the total final energy demand will increase by 2.5 times compared to 2015 with an average growth rate of 4.65%/year that consistent with the gradual increase in GDP growth and the structural change in the economy.

“The above figures show that the demand for energy development in Vietnam is very actual and it is a great cooperation opportunity for domestic and foreign enterprises including US ones" Vice Minister expressed.

Mr. Hoang Quoc Vuong speaking at the Dialogue on energy security

In fact, leading US energy companies such as ExxonMobil, Murphy Oil, Chevron, UOP, GE, AES, etc. have been present in Vietnam with the abundant activities in petroleum exploration, exploitation, exploitation and processing; development of the traditional and renewable energy projects; and energy scientific and technical cooperation …

Vice Minister Hoang Quoc Vuong said, with the available scientific and technical capacbilities of US businesses and the development potential of Vietnam, the two sides may promote cooperation in the following fields:

Firstly, strengthen develop new projects in Vietnam as well as in the third countries.

Secondly, carry out the petrochemical refinery and petroleum products processing projects.

hirdly, invest in infrastructure for LNG import in Vietnam, including import and transit ports, storages pipeline systems, processing bases, human resources, training and technology transfer. .

Fourthly, develop coal fired power projects using clean coal technology with high efficiency, and gas fired thermal power projects.

Fifthly, develop the new transmission grid system, upgrade and modernize the existing grid system, upgrade and modernize the existing grid system, and apply smart grid technology.

Sixthly, develop the new and renewable energy projects grid-on or grid-off to meet demand in isolated areas.

Seventhly, consult, cooperate in modernization and management capacity improvement for management for management and dispatch system of the power system.

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