Vietnam’s Energy Industry Is Luring Foreign Investment

By Vietnam News, July 23th, 2013

In the past month, Vietnam has experienced an extraordinary raft of investment in major energy projects. In only a few months the government has signed contracts for nuclear reactors, large hydro projects, biomass power stations and solar panel production facilities. Furthermore, Vietnam is said to have significant wind power potential and has already discussed building a liquefied natural gas terminal by 2015. Few countries in the world offer the resource wealth of Vietnam, while fewer still can boast a similarly positive investment climate. The country is well placed for rapid growth and is likely to be the next Asian growth spot. Moreover, investment has not only been forthcoming from large Western companies in the US and the UK; investors from Russia, Japan, and China have also expressed their interest.

This market development can be seen as a case study for two important themes within the current energy environment. Firstly, Vietnam may be the first example of a developing country that has met its growing energy needs with minimal carbon emissions. Few countries have established such a sustainable energy portfolio from scratch. Secondly, resource-hungry companies and nations from around the globe are now fighting for the same reserves, whereas until recently the sources of investment were far less diverse. Investment in the energy sector will be beneficial to the population of Vietnam. Vietnamese electrification has improved by over 40% in 10 years, following major industry reforms in 1995. Finally, it is Vietnam’s appetite for nuclear power which may distinguish it from other developing nations. Nuclear generation is safer and more efficient than it has been in the past. By pushing such a responsible and pragmatic energy policy, the country’s growth may actually be sustainable.

Advertisements

Comments are closed.

%d bloggers like this: