In the context of Vietnam setting a double-digit economic growth target, the requirements set for the energy industry are not only to ensure sufficient electricity and fuel for production and life, but also to build a modern, competitive energy market capable of adapting to the global energy transition process.
Speaking at the Forum "Perfecting policies to create competitive advantages to promote energy development", Mr. Dao Quang Binh - General Secretary of the Vietnam Economic Science Association said that for the energy sector, the amendment and completion of the Oil and Gas Law and many related mechanisms and policies show the determination to create a more open, transparent and suitable investment environment for development requirements in the new period.
However, we also need to recognize that the Oil and Gas Law is only a starting point. What Vietnam needs to aim for is not only to amend a law, but to continue building a modern, synchronous and internationally competitive institutional system for the entire energy industry," Mr. Dao Quang Binh emphasized.
According to Dr. Nguyen Hung Dung, Vice Chairman cum General Secretary of the Vietnam Oil and Gas Association, the energy industry still faces many bottlenecks. The first bottleneck is the unsynchronized policy system. An energy project today may have to simultaneously be subject to the adjustment of the Electricity Law, Oil and Gas Law, Investment Law, Land Law, Environmental Protection Law, Law on Marine Resources and many other guiding decrees.
For example, offshore wind power projects, although the Government has issued Decree No. 272/2026/ND-CP regulating offshore wind power survey and development, there is still a lack of fundamental mechanisms such as electricity price determination methods, power purchase and sale contracts (PPAs), risk sharing mechanisms or payment guarantees. These are decisive factors for international credit institutions to consider financing capital.
The second bottleneck is that the energy market is not fully developed. Vietnam's competitive electricity market has only stopped at a certain level, while the gas and LNG markets have almost not formed. Electricity prices have not fully reflected market signals, and the price adjustment mechanism is still slow, making it difficult for investors to build long-term financial plans.
The third bottleneck is that the development of power sources is not synchronized with the transmission infrastructure. During the solar and wind power boom period, many projects have been completed but cannot generate full capacity due to overload of the power grid. This not only causes damage to investors but also reduces the efficiency of using social resources.
The adjusted Power Plan VIII has set the goal of strongly developing the transmission, storage and smart grid system, but the mechanism to mobilize the private sector to participate in grid investment is still limited.
The fourth bottleneck is the lack of policies for new energy industries. While many countries have issued national strategies on hydrogen, CCUS, sustainable aviation fuel (SAF), energy storage or carbon credit, in Vietnam, many fields still do not have technical standards, investment incentive mechanisms, pricing mechanisms or consumption markets. This makes it difficult for businesses to boldly invest, and financial institutions also do not have a basis to assess the effectiveness of projects.
Dr. Nguyen Hung Dung said that it is necessary to improve policies to create a competitive advantage for the energy industry. First, improve institutions in a synchronous, stable and highly predictable direction. It is necessary to review all regulations related to energy investment, ensure consistency between the Electricity Law, the Oil and Gas Law, the Investment Law, the Land Law and specialized laws; and at the same time simplify investment procedures, shorten project preparation time.
Second, fully build a competitive energy market according to the market mechanism with state regulation. Soon complete the electricity price mechanism, gas and LNG market, long-term electricity purchase and sale contracts, risk sharing mechanism, carbon credits and green financial instruments to attract private and international capital.
Third, develop a synchronous energy industry ecosystem. Not only investing in power sources but also simultaneously investing in transmission infrastructure, storage systems, equipment supply chains, manufacturing industry, technical services and high-quality human resources. In particular, there needs to be policies to encourage domestic enterprises to participate more deeply in the value chain of offshore wind power, LNG, hydrogen and new energy industries, thereby improving the localization rate and competitiveness of the economy.
