Sydney (VNA) — In the wake of escalating Middle East tensions and volatile global energy markets, Vietnam must urgently pivot its development strategy toward four critical priorities that simultaneously drive economic growth and reduce reliance on imported fuels. Associate Professor Duong Thi Hong Lien, Vice President for ESG and Sustainability at the Vietnam-Australia Scholars and Experts Association (VASEA), outlined a roadmap that positions the nation as a regional energy leader while safeguarding its supply chain resilience.
1. Strengthening Strategic Fuel Reserves and Financing Mechanisms
Despite ambitious long-term targets, Vietnam's petroleum reserves currently stand at approximately 9 days of net imports—far below the International Energy Agency (IEA) benchmark of 90 days. To bridge this gap, Lien emphasizes the need for immediate action in three key areas:
- Infrastructure Expansion: Accelerate the construction of underground and above-ground storage facilities.
- Financial Innovation: Establish robust financing mechanisms to support strategic stockpiling.
- Operational Transparency: Implement clear inventory rotation systems and transparent release protocols during market disruptions.
"This should be a priority for Vietnam: not only expanding storage, but also establishing robust financing mechanisms, inventory rotation systems, and transparent release protocols during market disruptions," Lien stated. - afhow
2. Modernizing Grid Infrastructure and Electrification
The second pillar addresses the systemic constraints hindering Vietnam's renewable energy potential. While the country possesses immense resource potential, the challenge lies in transmission bottlenecks, system operation inefficiencies, and pricing signals that deter private investment.
- System Backbone: Prioritize interregional grid upgrades and battery storage integration.
- Market Reform: Develop a more competitive electricity market with stable offtake mechanisms.
- Policy Acceleration: Fast-track the revision of the eighth Power Development Plan (PDP VIII) and Direct Power Purchase Agreement (DPPA) mechanisms.
Electrification represents a strategic shift, moving energy demand from fuel imports to domestically generated electricity, particularly from renewables.
3. Leveraging Vietnam's EV Leadership
Vietnam has already emerged as the global leader in electric vehicle (EV) sales share. In the first half of 2025 alone, EVs accounted for 42% of all new cars sold, the highest ratio worldwide.
This dominance provides a unique opportunity to anchor the third priority: domestic capabilities across strategic value chains. By focusing on EV manufacturing and supporting infrastructure, Vietnam can reduce import dependence in the transportation sector while fostering high-value industrial growth.
4. Developing Next-Generation Energy Industries
Energy security increasingly depends on domestic capabilities in strategic value chains, from grid equipment and batteries to clean fuels for transport and aviation. The fourth priority focuses on industries that drive growth while reducing import dependence:
- Biofuels: Invest in next-generation biofuels to diversify the energy mix.
- Sustainable Aviation Fuel (SAF): Develop SAF capabilities to support the aviation sector.
- Industrial Rooftop Solar: Scale up solar adoption in manufacturing facilities.
- Energy Efficiency: Mandate energy efficiency standards in manufacturing to lower consumption.
"Vietnam should prioritise areas that both drive growth and reduce import dependence, including next-generation biofuels, sustainable aviation fuel, battery and storage industries, industrial rooftop solar, and energy efficiency in manufacturing," Lien concluded, underscoring the dual mandate of economic prosperity and energy sovereignty.
