Call for Enhanced Green Transition in Power and Chemical Industries by National Assembly
**Green Energy Transition in Vietnam: Addressing Environmental Concerns and Encouraging Sustainable Practices**
Vietnam, driven by increasing energy demand, international climate commitments, and domestic industrial growth, is embarking on a significant green energy transition. Key state-owned enterprises, such as Electricity of Vietnam (EVN) and Vietnam National Chemical Group (Vinachem), are playing pivotal roles in this transformation, albeit with varying focuses and challenges.
**Electricity of Vietnam (EVN)**
- **Renewable Energy Expansion**: Vietnam's renewable energy capacity, particularly solar and wind, has grown rapidly, with targets to reach 16 GW of solar capacity by 2025. The Power Development Plan VIII (Amended PDP8) emphasises renewables, aiming for 28–36% of the national energy mix from non-hydro renewables by 2030, rising to 74–75% by 2050. - **Natural Gas as Transition Fuel**: EVN is scaling up gas-fired power and LNG infrastructure to meet immediate demand and reduce coal dependence. Natural gas production is set to rise from 8.0 bcm in 2025 to 20.1 bcm by 2034, with a major expansion in gas-fired power plants. - **Investment Needs**: The sector requires substantial capital, estimated at USD 118.2 billion for 2025–2030, highlighting the need for both domestic and international financing. - **Policy and International Support**: Vietnam has secured USD 15.5 billion in international funding through the Just Energy Transition Partnership (JETP), targeting emissions peaking by 2030 and limiting coal-fired power to 30.2 GW (down from 37 GW). New regulations are being introduced to accelerate reforms and attract private investment, especially in renewables.
**Vietnam National Chemical Group (Vinachem)**
- **Green Energy Integration**: While Vinachem is not explicitly detailed in the available information, as a major state-owned enterprise in chemicals and fertilizers, it is subject to broader national mandates for reducing carbon intensity and increasing energy efficiency across heavy industry. - **Circular Economy and Environmental Commitments**: Both EVN and Vinachem are expected to align with Vietnam’s COP26 commitments, including advancing a circular economy and environmental protection.
## Key Challenges
**EVN’s Challenges**
- **Grid Infrastructure and Storage**: Rapid renewable growth has outpaced grid development, causing curtailment and reliability issues, particularly due to a lack of energy storage solutions. - **Financing and Debt Servicing**: A large share of international climate finance is in the form of non-concessional loans, raising concerns about debt sustainability and the pace of actual fund disbursement. - **Regulatory and Implementation Hurdles**: Delays in project implementation, regulatory uncertainty, and bureaucracy slow progress. Accelerating reforms, especially in carbon markets and private sector participation, is critical to attracting investment. - **Integration of Gas and Renewables**: While natural gas is seen as a transitional fuel, over-reliance risks locking in fossil infrastructure, potentially conflicting with long-term decarbonization goals.
**Vinachem’s Challenges**
- **Sector-Specific Transition**: There is limited public information on Vinachem’s direct initiatives, but as a heavy industry player, it faces pressure to decarbonize operations, adopt cleaner production technologies, and reduce reliance on fossil-based feedstocks. - **Economic and Social Considerations**: The transition must address potential job losses in traditional sectors, particularly coal and heavy industry, and ensure just transition measures for affected workers. - **Technology and Investment Gaps**: Upgrading industrial processes to low-carbon alternatives requires significant technology transfer and investment, which may be hindered by current financing structures and domestic capacity.
## Summary Table
| Area | EVN Efforts & Challenges | Vinachem Effort & Challenges (inferred) | |------------------------------|--------------------------------------------------------------|-------------------------------------------------------| | **Renewable Energy** | Rapid solar/wind growth; grid/storage bottlenecks[4][5] | Subject to national mandates; limited public detail | | **Gas Transition** | Major LNG/gas infrastructure; risk of fossil lock-in[1] | Not directly cited; likely reliant on cleaner inputs | | **Financing** | Large capital needs; debt concerns[2][4] | Similar challenges in green tech investment | | **Policy/Regulation** | JETP, PDP8, regulatory reforms needed[2][4] | Must comply with broader industrial decarbonization | | **Social Impact** | Just transition for coal workers[2] | Potential job impacts in heavy industry |
## Conclusion
Vietnam’s green energy transition is ambitious, with EVN leading the charge in electricity sector decarbonization through renewables and gas, supported by significant policy and international financing—yet challenged by grid infrastructure, financing models, and regulatory complexity. Vinachem, while less visibly detailed, is part of a broader industrial shift toward lower-carbon operations, facing sector-specific technology and economic hurdles. Both entities must navigate the tension between rapid growth, energy security, and decarbonization, all while addressing social and financial sustainability.
The National Assembly's supervisory delegation has urged both EVN and Vinachem to increase efforts in their green energy transition and tighten controls over hazardous waste and chemical management. The delegation called on EVN to tackle remaining issues, such as unresolved ash and slag disposal at the Vĩnh Tân Power Centre and prepare for the new emission standards that will come into force on July 1, 2025. Many relevant technical standards and regulations have yet to be issued by ministries, creating regulatory gaps for Vinachem.
- The science of environmental-science plays a crucial role in Vietnam's green energy transition, guiding the effective implementation of renewable energy expansion and addressing concerns about climate-change.
- Health-and-wellness is a significant aspect of the green energy transition, as reducing fossil fuel usage contributes to improved air quality and decreased health risks associated with pollution.
- Artificial intelligence and technology are essential tools for optimizing energy distribution and minimizing energy waste during the green energy transition.
- A healthy economy is necessary for Vietnam to invest in the large-scale infrastructure and technologies required for the green energy transition.
- At the heart of the green energy transition is the law, as new regulations are introduced to accelerate reforms, increase private investment, and comply with international climate commitments.
- The business sector, particularly in finance, research, and development, has a role in supporting and funding Vietnam's green energy transition.
- Lifestyle choices and consumer behavior can influence the success of Vietnam's green energy transition, as the demand for products and services with low environmental impact increases.
- Education and self-development are essential for understanding the implications of the green energy transition and adapting to the changing economic landscape.
- General-news media outlets can help raise awareness about the progress and challenges of Vietnam's green energy transition, gathering public support and fostering an informed, active community.
- Sports, often associated with health and wellness, can provide platforms to showcase the benefits of green energy and promote environmentally-friendly practices.
- Medical-conditions, particularly those exacerbated by air pollution, further emphasize the importance of Vietnam's green energy transition in ensuring public health and wellness.
