DECISION

APPROVING VIETNAM’S NATIONAL ENERGY DEVELOPMENT STRATEGY BY 2030 WITH A VISION TOWARDS 2045

THE PRIME MINISTER OF VIETNAM

Pursuant to the Law on Government Organization dated June 19, 2015; the Law on Amendments to the Law on Government Organization and the Law on Local Government Organization dated November 22, 2019;

Pursuant to the Resolution No. 55/NQ-TW DATED February 11, 2020 of the Politburo introducing orientations of Vietnam’s National energy development strategy by 2030 with a vision towards 2045;

At the request of the Ministry of Industry and Trade of Vietnam at the Statement No. 7069/TTr-BCT dated November 08, 2022 and the Documents No. 1643/BCT-DKT dated March 22, 2023, No. 3872/BCT-DKT dated June 21, 2023, No. 6137/BCT-DKT dated September 06, 2023 and No. 9266/BCT-DKT dated December 28, 2023 of the Ministry of Industry and Trade of Vietnam regarding approval of the National energy development strategy by 2030 with a vision towards 2045; based on opinions given by relevant ministries, central-government authorities and local governments about the National energy development strategy by 2030 with a vision towards 2045;

HEREIN DECIDES:

Article 1. Vietnam’s National energy development strategy by 2030 with a vision towards 2045 (hereinafter referred to as the “Energy Development Strategy”) is hereby given approval. The Strategy includes the following primary contents:

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1. National energy security is both a foundation and an important premise for socio-economic development. Energy development should be fast, sustainable and one jump ahead, ensure protection of ecological environment and climate change adaptation, and be associated with the “net-zero emissions by 2050” goal as well as national defense and security, and considered as one major mission of industrialization and modernization.

2. National energy development must be in line with the socialist-oriented market economy and international integration; facilitate rapid establishment of a consistent, competitive and transparent energy market with diverse types of ownership and businesses; and apply market-based pricing to all types of energy. Encourage and enable all types of ownership, especially private ownership, to participate in energy development; and effectively eliminate subsidization, monopoly, unfair competition and lack of transparency in the energy sector.

3. Generate synchronized and suitable growth, and diversify types of energy; prioritize full and efficient use of renewable energy, new energy and clean energy; extract and use domestic fossil fuels reasonably, focusing on stabilization, regulation and required national energy reserves; prioritize development of gas-fired power, formulate a roadmap to suitable reduction of coal-fired power; and actively import fuels to serve operations of power plants. Optimize distribution from the national power system to all areas based on the comparative advantages of each region or locality.

4. Speed up accurate and reliable baseline surveys, exploration and assessment of resources with the aim of ensuring primary energy resource reserves for the national economy; make investment in sustainable development of Vietnam's energy industry, ensuring national energy security. Prioritize use of state budget-derived funding in combination with mobilization and efficient use of social resources and other funding sources for carrying out geological baseline surveys and exploration of resources according to approved plans or plannings. Information and data on geology and fossil fuels must be adequately and comprehensively consolidated and managed in a centralized, consistent and transparent manner on digital platforms.

5. Conduct study on outward investment in extraction of primary energy resources (especially types of energy which must be imported and transported to Vietnam for use, with a view to gradually reducing energy imports) which should be made effectively in conformity with the Politburo’s Resolution No. 55/NQ-TW dated February 11, 2020.

6. Focus on studying and applying achievements from the fourth industrial revolution to development of all energy subsectors and areas; boost digital transformation in the energy sector; and gradually grasp modern technology and strive for self-production of most energy equipment.

7. Economical and efficient use of energy and environmental protection are the important national policy and responsibility of the whole society. Enhance energy audit; formulate consistent policies and mechanisms and strict and feasible sanctions to encourage investment in and use of energy-efficient and eco-friendly technologies and equipment, contributing to productivity improvement and renovation of growth models.

II. OBJECTIVES

1. General objectives

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2. Specific objectives

- Meet domestic energy demands and objectives of the 10-year socio-economic development strategy (for 2021 - 2030 period), in which, primary energy is expected to reach around 150 - 170 million toe (tonne of oil equivalent) by 2030 and 260 - 280 million toe by 2045;

- Share of renewable energy in total primary energy supply is expected to reach 15 - 20% in 2030 and 65 - 70% in 2045.

- Total end use energy consumption is expected to reach 105 - 115 million toe by 2030 and 160 - 180 million toe by 2045. Primary energy intensity reaches 400 - 420 kgOE/USD 1.000 GDP by 2030 and 250 - 280 kgOE/USD 1.000 GDP by 2045.

- Build smart and efficient electric power systems which are capable of safely connecting with regional electrical grids; ensure safe electrical supply, and satisfaction of the N-1 criterion in important load zones and of the N-2 criterion in extremely important load zones. By 2030, Vietnam is expected to become one of top-4 ASEAN countries in grid reliability and top-3 ASEAN countries in access to electricity.

- Oil refineries are expected to meet at least 70% of total domestic oil and petrol demand; strategic petroleum reserve covers at least 75 - 80 days of net imports after 2030. Be capable of importing approximately 15 - 20 billion m³ of LNG by 2030 and 10 - 15 billion m³ of LNG by 2045.

- Ratio of energy savings to total end use energy consumption gains approximately 7 - 10% by 2030 and 14 - 20% by 2045 compared to normal development scenario.

- Reduce energy-related greenhouse gas emission by 15 - 35% by 2030 and 70 - 80% by 2045 compared to normal development scenario.

- Vision towards 2045: Ensure national energy security; establish the competitive and transparent energy market in line with the socialist-oriented market economy and in a synchronized manner; ensure sustainable development of energy subsectors, efficient use of resources, environmental protection and adaptation to climate change; develop a synchronized and modern energy infrastructure system with enhanced regional and international connectivity; and achieve the workforce quality, science and technology capacity, and energy sector management capacity of a newly industrialized country.

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1. Petroleum

a) Petroleum exploration and extraction

- Petroleum exploration

+ Boost baseline surveys and exploration to increase petroleum reserves and throughput in potential and offshore areas, which must be associated with protection of sovereignty at sea; increase recovery factor and full extraction of small and marginal fields.

+ Review and proactively and effectively implement overseas petroleum exploration and extraction projects.

+ Focus on boosting exploration at shallow-water and conventional areas, including Cuu Long basin, Nam Con Son basin, Malay-Tho Chu basin, Red River basin, especially these 03 areas: Cuu Long basin, Malay-Tho Chu basin, the southern area of Red River basin and central area of Nam Con Son basin, which should be concurrent with extensive or expanded exploration of conventional objects to increase their reserves and develop existing fundamental infrastructure system-aided extraction, gradually shifting to exploration of new objects, new sediment basins and unconventional hydrocarbons (including tight gas, coal bed methane, shale gas and gas hydrate, etc.) to increase their reserves serving long-term extraction.

+ Continue carrying out exploration at deep-water and offshore areas such as Phu Khanh basin, Tu Chinh - Vung May basin, etc.; conduct surveys and collection of seismic and geophysical data to conduct study into geological characteristics and assessment of petroleum potential in deep-water and offshore areas whenever possible.

+ Regarding shale gas and gas hydrate (methane hydrate): actively conduct geological assessment and study at a deeper degree, and apply scientific and technological advancements to expand scale of surveys; and promptly perform overall assessment and accelerate pilot extraction whenever possible.

- Petroleum extraction

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+ Develop and carry out reasonable and effective extraction of fields where petroleum deposits are discovered to enable long-term and concentrated use of petroleum resources in potential areas such as deep-water and offshore areas, and unconventional petroleum products. Study cooperation plans or mechanisms for joint extraction in overlapping areas.

+ Continue conducting study into solutions for enhancing recovery of oil from oil fields.

+ Promote development and extraction of small/marginal fields that employ new technologies and should be carried out in a manner that optimizes the use of existing infrastructure facilities and application of State incentive policies.

+ Continue performing development and commercial operation concurrent with extensive exploration of Block B gas project, Ca Voi Xanh (Blue Whale) gas field, fields of Southwest Vietnam gas project, and Bao Vang, Bao Trang gas fields. Focus on speeding up the progress of these two large-scale gas projects: Block B gas project (Lot B&48/95 and Lot. 52/97) and Ca Voi Xanh (Blue Whale) gas project.

+ Conduct study on use of natural gas with high CO2 content which should be effective in order to concurrently benefit from (i) use of hydrocarbons, (ii) use of CO2 and (iii) certified emission reductions (when the market for certified emission reductions develops).

+ Apply solutions for reducing gas flaring and leaks, and study the integration of renewable energy.

b) Gas industry

- Promote the growth of the gas industry which should be complete and synchronized in terms of extraction, collection, transportation, processing, storage, distribution and import of gas products.

- Promote implementation of natural gas transport projects (especially those associated with extraction of Block B gas field, Ca Voi Xanh (Blue Whale) gas field, etc.), and economical, efficient and reasonable use of domestic natural gas sources.

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- Make investment in construction of LNG terminals and import of natural gas (LNG, import via pipelines) to serve development of power, industrial and civil plants. Prioritize search for sources of gas imports using existing infrastructure facilities, and promote international relations to find out sources of gas imports (LNG, import via pipelines) from countries that have available sources of gas supply and favorable commercial and transport conditions, getting ready for LNG import from 2023.

- Maintain safe and efficient operation of existing gas gathering, transport, treatment and processing pipelines. Continue extracting and maximizing collection of gas from large gas fields, while enhancing collection of gas from small and marginal gas fields in order to ensure maximum collection of gas through existing pipelines at Red River basin, Cuu Long basin, Nam Con Son basin and Malay-Tho Chu basin.

- Increase investment in infrastructure facilities, boost and encourage investment in offshore gas gathering systems which are expected to be connected with existing pipelines. Conduct study on construction of pipelines for importing gas from gas fields of neighboring countries into existing pipelines and other pipelines which will be constructed in the near future.

- Accelerate implementation of projects on field development, extraction and collection of gas using pipelines at gas fields where gas gather systems are not available, expand the scope of collection of gas (CNG, LNG...) from gas fields where it is unable to collect gas using pipelines (small or marginal gas fields, gas with high CO2 content, etc., especially associated gas fields).

- Invest in construction of gas processing plants, and pipelines for transporting gas to gas processing plants that shall then supply gas to thermal power centers, gas deep-processing plants, and industrial consumers.

- Establish a complete and synchronized system for supply of natural gas, LNG, CNG, and LPG nationwide to meet fuel demands for energy, fertilizer, industrial, transport and civil activities. Continue developing low-pressure natural gas pipeline systems to distribute gas to industrial consumers along gas pipelines and residential areas in big cities.

- Take full advantage of gas transportation infrastructure systems to transport mixtures of natural gas and hydrogen, ammonia or use gas for producing hydrogen at points of end use.

- Invest in study on and application of reasonable technological solutions for recovering flare gas at oil production platforms, and separating high-value products such as ethane, propane/butane (LPG) and condensate at gas processing plants to enhance the value of petroleum resources.

c) Petroleum processing

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- Focus on integration of oil refining and petrochemistry, and use of modern oil refining technologies to flexibly change the product structure in the future towards reducing oil refining products and increasing petrochemicals/chemicals for the purposes of following energy transition trends, enhancing the value added of petroleum materials, and producing raw materials/materials and fuels to serve development of domestic industrial production, aiming for export and reducing trade deficit.

- Maintain safe, stable and efficient operation of existing oil refinery and petrochemical plants and condensate processing plants; diversify products of these plants.

- Focus on maintaining stable production and supply of petrol and oil, fertilizer and other raw materials and fuels to serve socio-economic development, and improve competitiveness, innovation and development.

- Proactively study solutions for dealing shortage of raw materials faced by petroleum processing plants by using alternative or other new stable sources of materials/energy.

- Frequently study investment in innovations/upgrades to be in line with product market trends and increasingly stringent environmental standards (such as oil refineries, etc.). Study investment in and development of new petrochemical/specialized chemical products of high value added.

- Take advantage of geographical location and existing infrastructure facilities to develop plants in the chain of deep processing, plants and service providers. Study and invest in establishment of crude oil/oil and petrol transport - storage - production and trading chains. Accelerate implementation of the project on upgrading and expansion of Dung Quat Oil Refinery, and establishment of the national oil refinery, petrochemistry and energy center at Dung Quoc Economic Zone.

- Study, propose and make investment in construction of new oil refining and petrochemical/chemical projects associated with petroleum processing centers in potential areas.

- Study production of hydrogen and renewable energy: integrated with oil refining, petrochemical, chemical and fertilizer plants, and used as fuels for fuel cells with orientations for completing the next stages of hydrogen value chain.

d) Transport, storage and distribution of petroleum products

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- Adopt enhanced solutions for increasing strategic crude oil and petroleum product reserves.

- Encourage the use of biofuels and new fuels to reduce dependence on fossil fuels and protect the environment.

2. Coal industry

a) Coal exploration and mining

- Focus on exploring and upgrading existing coal resources; intensify exploration of new coal mines, and ensure that exploration works are always one jump ahead. Strive to complete the basic exploration to the bottom of the coal bed of Dong Bac coal basin, and complete the exploration to the bottom of the coal bed of An Chau coal basin in order to verify and upgrade coal reserves of required sufficient reliability to be included in mining design.

- Innovate and apply advanced coal exploration and mining technologies, especially in very deep pits or areas with complex geological conditions. Improve quality of assessment of coal reserves and resources.

- Actively find domestic and foreign partners to study, invest in and select appropriate exploration technologies/methods for exploring Red River coal basin for the period up to 2030. Strive to complete exploration of a part of the basin area and complete investigation and assessment of resources of Red River coal basin in the 2031 - 2045 period.

- Focus on developing and maintaining underground mines with high coal reserves according to the “green, modern, high-yield, and safe mine” criteria. Increase sustainable mining throughput; maintain safe, economical and efficient mining of coal resources. Enhance automation and modernization in mining; cleaned coal; improve the recovery rate of clean coal in underground mining.

- Invest in some topics/schemes/projects on pilot mining of Red River coal basin as the basis for selecting appropriate mining technologies.

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- Make enhanced search for opportunities to make outward investment in exploration and mining of coal (of categories which Vietnam must import) in a manner that ensures efficiency and compliance with laws.

- Strive to achieve the commercial coal throughput (excluding peat) of approximately 45 - 50 million tones/year in the period up to 2030. This throughput will gradually fall in the 2031 - 2045 period (to approximately 38 - 40 million tonnes in 2045).

- Strive to start pilot mining of the Red River coal basin by 2040 with the aim of achieving industrial mining scale by 2050 (in case of successful pilot mining).

b) Coal preparation and processing

- Develop coal preparation and processing sectors in the direction of increasing the centralized coal preparation and processing rate throughout the coal industry; and diversifying coal products to meet market demands in each period.

- Maintain and renovate existing coal preparation plants and coal processing centers in combination with reasonable maintenance of ore screening clusters; invest in construction of new centralized coal preparation plants in each region to meet coal processing requirements.

- Carry out processing of domestically produced coal combined with blending of imported coal with the aim of diversifying types of coal supplied for electricity production; make enhanced study on and application of science and technology to carry out market-based product diversification, meet environmental protection requirements, and reduce greenhouse gas emissions.

- Carry out coal preparation and processing works at local mines in a manner that meets consumption demands and is appropriate to capacity of mining projects; build centralized peat processing plants that employ advanced technologies in the direction of processing high-quality products used in agricultural and forestry sectors and meeting environmental protection requirements.

c) Coal markets

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- Complete study and pilot application of international coal price indexes which are appropriate to benchmark prices of imported coal, in conformity with specific conditions of Vietnam according to the roadmap for development of a competitive energy market approved by the Prime Minister of Vietnam.

- Carry out coal import and export to meet market demands according to the Government’s direction in order to fully meet domestic coal demands, especially coal used for electricity production, while taking into consideration of coal reserves.

d) Environmental protection and safety

- Follow the “safe - modern - eco-friendly mine” criteria; intensify application of scientific and technological advancements to efficient control of risks in coal production.

- Develop the coal industry into a circular economy sector that is adaptable to climate change; adopt a development model that is sustainable, harmonious and friendly with the environment, communities and other business sectors; prevent and control pollution, deterioration and depletion of water sources; ensure the flow circulation; protect groundwater; prevent and control land subsidence, etc. Study on extraction and efficient use of waste rock and soil from mining to promote the development of circular economy and environmental protection.

- Perform environmental protection tasks which should be associated with reduction of greenhouse gas emissions, towards achievement of the net-zero emissions by 2050.

dd) Development of infrastructure facilities serving coal production and trading

- Build and finish structures on premises to meet demands of each coal mining, preparation and processing project and other requirements regarding landscape, environment, disaster preparedness, efficiency in coal production, and flexibly meet demands for land area development in the future.

- Organize a transport system that is appropriate to coal production capacity of each region and uses modern, eco-friendly and efficient technologies.

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- Renovate and expand existing specialized ports of consumers to directly import or transit coal for ships of appropriate deadweight tonnage when centralized ports are not yet established in regions.

- Attach special importance to construction of infrastructure facilities for coal import and export; accelerate construction of a system of regional large-scale coal bins and transshipment ports with reasonable port model, synchronized technical infrastructure and logistics services, and advanced, modern and eco-friendly technologies to serve import, export and blending of coal for domestic use, especially for electricity production.

3. Electricity

a) Sources of electricity

- Promote synchronized and diversified development of various sources of electricity with a reasonable structure to ensure energy security, enhance energy autonomy and reduce dependence on imported fuels.

- Continue promoting development of sources of renewable energy (hydroelectricity, onshore and offshore wind power, solar power, biomass, etc.), new energy, and clean energy (green hydrogen and ammonia, etc.) in a manner that is appropriate to system safety capacity with reasonable prices, especially self-production and self-consumption of electricity, and rooftop solar power.

- Efficiently extract and use domestic fossil fuels in combination with import in the direction of gradually reducing coal-fired power, prioritizing development of domestic gas-fired power, and developing imported LNG-fired power with an appropriate scale. Carry out energy transition which must closely follow technological trends and prime costs in the world.

- Ensure balanced development of electricity among regions or areas, towards achieving intraregional supply and demand balance. Reasonably arrange electricity sources in localities of each region in order to efficiently use electricity sources, ensure the reliability of on-site electricity supply, reduce technical losses, and minimize long-distance electricity transmission.

- Develop new electricity sources with modern technologies in line with innovation of existing technologies of operating plants. Gradually shut down plants that do not meet environmental standards.

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b) Electrical grids

- Develop transmission systems at the same pace as electricity sources to meet load demands of localities, and employ modern technologies to ensure that these systems satisfy international standards and are ready for regional interconnections. Develop smart electrical grids to integrate renewable energy at a large scale, and ensure safe, stable and economical operation of electrical grids.

- Develop transmission grids of 500 kV and 220 kV in order to meet uncurtailed output of power plants, improve electricity supply reliability, reduce power losses, and meet N-1 criterion in important load zones and N-2 criterion in extremely important load zones. Develop transmission grids with long-term reserve capacity, and intensify use of poles carrying multiple circuits or cables for different voltage levels of electricity in order to reduce areas of land used. Encourage construction of transmission substations which are capable of supplying electricity to adjacent loads.

- Consider 500 kV transmission lines as the backbone in regional electrical grid interconnections and electricity exchanges made with other countries in the region. Impose reasonable interregional transmission limits, reduce long-distance transmission, and minimize construction of new interregional transmission lines before 2030.

- Build 220 kV electrical grids with sufficient reliability and electrical substations in the region with high load density using diagram-based designs to ensure flexible operation. Build 220 kV electrical substations capable of unmanned, automated operation. Promote construction of GIS substations, 220/22 kV substations, and underground substations near load centers.

- Conduct study on application of back-to-back system and flexible transmission equipment in order to improve transmission capability and minimize areas of land used. Organize study on electric power transmission technologies that use direct current and alternating current with a voltage higher than 500 kV.

- After 2030, develop ultra-high-voltage direct current transmission lines connecting the Mid-Central Vietnam, South Central Coast and Northern Vietnam to maximize offshore wind power generation. Conduct study on electricity connectivity across the Asia - Pacific region.

c) Regional power electrical connectivity

- Continue conducting study on cooperation with countries in Mekong Subregion and ASEAN countries in interconnecting electrical grids of 500 kV and 220 kV voltage levels in order to improve system connection capacity, facilitate power exchange and take advantage of resource strengths of such countries.

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- Maintain existing 220 kV, 110 kV and medium-voltage electrical grid interconnections with neighboring countries; study solutions for asynchronous electrical grid connections using direct and alternating current transformers at 500 kV and 220 kV voltage levels.

- Build connection structures for highly efficient electricity export projects on the basis of ensured energy security and national defense.

4. New energy and renewable energy

- Encourage and promote robust development of renewable energy sources which will provide alternatives to fossil fuels. Prioritize use of wind and solar energy for electricity generation.

- Encourage investment in construction of power plants converting urban waste, biomass and solid waste into power in connection with environmental protection and development of the circular economy.

- Establish and develop a number of renewable energy centers in suitable regions and localities. Promptly study and perform overall assessment of the potential for geothermal energy and energy from waves, tides and sea currents, and formulate orientations of development of these types of energy; implement a number of application models and perform pilot extraction to evaluate the efficiency.

- Conduct technological research, develop a number of pilot production projects and encourage use of hydrogen energy following the global trend.

- Promote development of types of renewable energy, including biofuels, hydrogen, ammonia and hydrogen-based synthetic fuels used in electricity production, transportation (road transport, railway, waterway and airway), industrial sector (green steel, chemicals and oil refining and petrochemical products), civil and commercial buildings ( with the aims of strongly promoting energy transition and gradually decarbonizing the economy. Develop a technological roadmap for production and use of hydrogen fuel and hydrogen-based fuels, and fuel cells used for transportation and other purposes.

- Conduct study on types of new energy such as wave energy, geothermal energy, etc.

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- Review and revise a system of technical - economic norms for construction of energy-saving buildings; establish an assessment and certification system for energy-efficient buildings; formulate standards for, and carry out assessment and energy labeling for building materials subject to thermal insulation requirements.

- Study, formulate and promulgate mechanisms, policies and regulations for the energy service company (ESCO) model.

- Review, amend and revise technical regulations and standards for economical and efficient use of energy.

- Provide relevant entities with training and instructions for inspection and assessment of implementation of regulations of law on economical and efficient use of energy.

- Intensify inspection and assessment of compliance with regulations of law on economical and efficient use of energy by individuals and organizations subject to the scope of application of the Law on economical and efficient use of energy and sublaw documents.

- Develop instruction manual for inspection and assessment of implementation of regulations of law on economical and efficient use of energy.

- Intensify receipt of technical assistance, technology transfer and human resource training in economical and efficient use of energy.

- Search for, mobilize and implement technical assistance projects and investment support projects relating to economical and efficient use of energy;

- Conduct study on establishment of a fund for promotion of economical and efficient use of energy on the basis of mobilized domestic and foreign resources to promote economical and efficient use of energy in Vietnam.

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IV. TASKS AND SOLUTIONS

1. Mechanisms and policies

- Develop the energy market in a manner that ensures synchronization and interconnection between electricity, coal, petroleum and renewable energy in order to connect with regional and global markets. Remove all barriers to ensure that energy prices are transparent and decided by the market; the State shall regulate as appropriate via market instruments (taxes, fees, funds, etc.) and suitable social security policies. Complete market instruments, policies and mechanisms to facilitate economical and efficient use of energy.

- Review, amend and revise policies on land, compensation for land clearance, use of water surface, etc. Renovate financial policies in a manner that encourages and attracts private investment; encourage implementation of energy PPP projects.

Implement credit policies in a flexible and efficient manner to enable energy enterprises to access funding sources, especially enterprises with green energy projects.

Complete tax policies that encourage production and use of clean and renewable energy. 

- Formulate legal grounds for establishment and efficient use of funds for sustainable energy development and promotion of economical and efficient use of energy in a manner that encourages private sector involvement, ensures financial independence from revenues and expenditures of state budget and reduces operating expenses of enterprises and business establishments. Complete and implement mechanisms and policies on standards for renewable energy share in energy investment and supply.

- Amend specialized laws on petroleum, electricity and economical and efficient use of energy, and other legislative documents on energy in conformity with international practices and in appropriate response to Vietnam’s development situation in the context of intensive and extensive international integration to provide the basis for better implementation of the market mechanism. Study and initiate legislation on regulation of electricity prices and a number of incentives for investment in energy sector. Complete a legal framework for electricity control and regulation. Study on formulation and addition of regulations on renewable energy to the Law on Electricity (as amended) to establish a firm and transparent legal basis that will enable the sustainable development of new energy and renewable energy.

- Improve quality of formulation of energy development strategies and plannings, especially for electricity, ensuring stability, synchronization, flexibility and connection with local and sectoral socio-economic strategies and plans. Review, amend and promptly promulgate energy development plannings in accordance with the Law on Planning.

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- Promote assignment and delegation of authority to perform state management tasks from central to local government in a manner that ensures effectiveness and efficiency and facilitates energy enterprises of different types of ownership; and promptly deal with policies and laws-related difficulties and barriers.

- Start establishment of a synchronized, competitive and transparent energy market. Promote the leading role of State-owned enterprises as a State tool for regulating the energy market, ensuring energy security and safety, as well as national security.

- Promulgate regulations on authority to make decisions on investment guidelines for offshore wind power projects, projects on production of hydrogen/ammonia using offshore wind power, and projects on export of offshore wind power.

- Promulgate mechanisms for pilot application, with a view to official application, of direct power purchase agreements between renewable energy producers and consumers in line with the Law on Electricity and the roadmap to a competitive electricity market. Conduct study on formulation of regulations on charging fees on direct power purchase agreements (DPPA).

- Conduct study and assessment of potential of unconventional energy sources.

2. Restructuring and investment promotion

- Restructure state-owned energy enterprises in a comprehensive manner, with a focus on key and strong areas; apply advanced management models and practices, improve Vietnam’s international credit rating and ensure complete operational transparency and openness; and focus on increase of efficiency in use of national energy infrastructure. Complete regulations on resource and asset assessment in consistent with international practices and actual circumstances; thoroughly handle and restructure state-owned energy enterprises and projects that perform poorly or suffer loss. Study and pilot mechanisms for fixed-term selling or long-term leasing of power plants, fuel warehouses, oil refineries, etc. of state-owned enterprises.

- Review and amend specific policies and mechanisms for a number of important energy projects, especially urgent electricity projects; ensure adequate capital for state-owned energy enterprises to accomplish strategic objectives and missions connected with national defense and security.

- Create a favorable and transparent environment; publish plannings for and lists of investment projects, remove barriers to attract and encourage private sector investment in domestic and foreign energy projects, and focus on electricity generation projects and electricity wholesale and retail in accordance with the market mechanism. Continue encouraging and attracting large-scale, quality and efficient foreign investment in the energy sector. Accelerate equitization of state-owned electricity enterprises; formulate flexible investment mechanisms and carry out administrative reform to ensure electrical works stay on schedule.

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- Appropriately accelerate the roadmap to the competitive electricity market, and application of direct power purchase agreements between producers and consumers and energy auction/bidding mechanisms, especially for new and renewable energy projects; and ensure transparency of electricity prices. Draw up incentive mechanisms to attract private investment to the national power transmission system. Operate the national power transmission system independently under the control of the State.

- Provide priority policies for sustainable energy infrastructure development; focus on construction of infrastructure for energy import and export and regional interconnection. Draw up list of shared energy infrastructure and formulate mechanisms for such sharing as appropriate to the market mechanism. Remove all unreasonable barriers and monopolies in use of energy infrastructure facilities and services; adopt policies and mechanisms for investment in construction of non-state power transmission systems. Maximize privatization of investment in and operation and use of energy facilities and services, including the national power transmission system, while ensuring national defense and security.

- Intensify attraction of FDI funds and funds derived from other domestic types of ownership by means of diversified investment forms and enhanced investment promotion which aim at attracting interest from foreign investors; prioritize FDI projects that use local currency or barter and do not require Government’s guarantee; carry out administrative reform to increase investment efficiency and accelerate the progress of investment projects.

- Diversify capital sources and capital mobilization forms, and effectively attract domestic and foreign capital sources to energy sector in such a way to ensure national defense and security, and competition in the energy market. Strengthen appeal to and effective application of international support commitments such as JETP, AZEC, etc., green credit sources, climate lines of credit, green bonds, etc.

- Intensify risk management during investment in and operation of projects, and ensure State capital preservation and growth.

- Diversify lending forms to attract investment to energy projects, including: bank credit, issuance of domestic and international bonds, financial lease, all-inclusive lease contract, and bidding for some mine activities.

- Intensify attraction of foreign investments, including: concessional and non-concessional ODA, and foreign commercial loans.

- Gradually increase energy groups, corporations and enterprises’ capacity to mobilize internal finances by enhancing the efficiency and performance of energy enterprises and ensuring accumulations and equity for development investment as required by domestic and international financial organizations with the aim of making their accumulated capital as the main source of finances for investment projects.

3. Human resource training and development

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- Promulgate appropriate preferential policies to attract domestic and foreign experts, scientists and highly-skilled human resources to the energy sector; establish science and technology teams that are qualified enough to perform important energy missions.

- Strengthen cooperation and association with reputable domestic and international training institutions for developing human resources.

- Consider approving investment projects to provide training courses and receive new and modern technologies.

- Focus on vocational training in order to have technical workers and skilled staff that are capable of grasping and proficiently using modern technical means and technologies.

4. Environmental protection and response to climate change, science and technology

- Establish mechanisms for association between scientific - technological developers and researchers, innovators and energy enterprises and training institutions. Draw up incentive mechanisms for energy enterprises to further invest in research and development; establish regional and local energy startup support centers, and expand the national startup network. Continue implementing the national science and technology program in energy sector for the 2021 - 2030 period, with a focus on research on and application of technologies of the fourth industrial revolution and digital transformation to management, extraction, production, distribution, and economical and efficient use of energy; research on and application of advanced technologies to use of solar energy, wind energy, biomass, and green hydrogen; grasp technologies for manufacturing of green and renewable energy equipment, and advanced and eco-friendly energy storage equipment which are appropriate to Vietnam’s conditions, etc.

- Carry out energy transition, with a focus on transition from fossil fuels to renewable energy and new energy; increase capacity of carbon sinks and promote application of carbon capture technologies.

- Develop financial regulations concerning the environment and ensure sufficient calculation of all socio-environmental costs in investment and prime costs. Enhance prevention and control of entities posing high risks of environmental pollution; strictly handle violations against regulations on environmental safety in accordance with regulations of law. Promptly provide adequate information on environmental protection in the energy sector. 

- Complete the policy framework, review and amend national regulations and standards for energy in line with international standards and regulations while taking into account the national standards and regulations related to recycling and use of waste generated from energy production. Gradually implement incentive and mandatory measures for innovation of energy technology and equipment as well as energy-intensive industries and sectors.

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- Review and amend contents related to the energy sector in the national climate change strategy, national green growth strategy, Vietnam's sustainable development strategy, Vietnam's marine strategy and other relevant strategies.

- Restructure energy-intensive industries, especially foreign investments, to minimize energy intensity. Adopt incentive policies to facilitate growth of less energy-intensive industries that have socio-economic efficiency.

- Review and adjust energy distribution in a flexible and dispersed manner, avoid excessive distribution to certain localities in closed connection with redistributing industrial and urban space throughout the country and in each region and locality.

- Review and complete the national program for economical and efficient use of energy for the 2020 - 2030 period. Apply mandatory standards and regulations in combination with sanctions concerning efficient use of energy for energy-intensive industries and products. Provide incentive policies for consumers of clean and renewable energy, especially for industrial and transport activities; promote development and use of electric vehicles following the global trend.

- Strengthen technological research, application and transfer; develop a leading and high-quality scientific and technological staff that is capable of leading and providing orientations for a group/collective of scientists dedicated to key science and technology fields (extraction of small/marginal fields, CO2 treatment/processing/storage, digital transformation, and artificial intelligence); intensify implementation of measures for a closer connection between scientific research and training and application.

- Promote scientific research and international cooperation in environmental protection and response to climate change with the aim of gradually applying new technologies to increase efficiency in environmental protection and reduce costs thereof.

- Intensify and strengthen management of environmental affairs by environmental authorities and energy enterprises.

- Fully carry out monitoring, surveys, measurement and management of environmental indicators; inspect energy enterprises’ compliance with regulations on environmental protection.

- Boost research on types of new energy such as wave energy, geothermal energy, green hydrogen, green ammonia, etc.; formulate strategies for other new energy types.

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- Adopt flexible, efficient, fair and mutually beneficial foreign energy policies. Enhance international relations in terms of energy in all subsectors as appropriate to integration trends, and seize opportunities arising from political - foreign relations and trade agreements for energy development.

- Diversify and ensure long-term energy import sources by means of signed import promotion and trade agreements/treaties while encouraging outward investment and extraction of foreign energy resources to ensure national energy security; provide support mechanisms for outward energy investment for Vietnam’s enterprises, which shall first begin with electricity projects in neighboring countries to facilitate electricity import. Promote partnerships with advanced energy technology/energy investing companies.

- Actively participate in energy cooperation with the Greater Mekong Subregion (GMS) and ASEAN; carry out electrical grid interconnections, and complete mechanisms for electricity trading with China, Laos and Cambodia. Continue conducting study on a regional gas connection system and adopt this system when possible.

- Increase the people’s awareness and understanding of, and promote international cooperation in application and compliance with international laws, especially the Law of the Sea and international laws governing offshore petroleum exploration and extraction.

- Promote international cooperation and integration, encourage and attract domestic partners of all types of ownership and foreign investors to the energy sector.

- Increase participation in international and regional forums, conferences and organizations to improve capacity, stay updated on latest technologies, make the best use of international aids and knowledge, and focus on strengthening cooperation channels with leading authorities/organizations of foreign countries.

- Promote international cooperation in scientific research and technological development, diversify cooperation modes to take advantage of technology transfer and funding sources of foreign partners, and establish a domestic supply chain for energy equipment.

- Court international cooperation regarding support for Vietnam when accessing and using “climate finance” sources in conformity with the Prime Minister’s “international cooperation and support for Vietnam in energy transition” statement announced at the COP26 Summit.

Article 2. Implementation organization

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Play the leading role and cooperate with relevant Ministries, regulatory authorities and provincial governments in performing the following tasks:

- Study and propose mechanisms and policies for implementation of the Energy Development Strategy within its jurisdiction in accordance with the Government's regulations.

- Closely monitor the energy supply and demand balance, and the progress of key energy programs/projects.

- Study and propose incentive policies and mechanisms for investment in renewable energy projects.

- Organize negotiations on energy cooperation and exchange with neighboring countries, and Vietnam’s participation in regional integrated energy system.

- Study and propose incentive policies and mechanisms to attract resources of reputable and experienced foreign investors to domestic petroleum development in deep-water and offshore areas.

- Speed up formulation and completion of necessary conditions (regarding legislation, technical infrastructure, etc.) for development of perfectly competitive electricity, gas and coal markets.

- Direct research and domestic production of equipment for coal-fired thermal power plants, hydroelectricity, solar and wind power plants, etc., and equipment used for extraction and transport of petroleum, gas and coal.

- Play the leading role in studying and proposing amendments to legislative documents, mechanisms and policies to facilitate the execution of energy projects on schedule.

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Fully perform their functions, tasks and powers to keep the projects defined in the National energy planning on schedule; propose mechanisms, policies and solutions for dealing with difficulties or barriers to achieve objectives of the planning in a manner that ensures consistency and synchronization with the 10-year socio-economic development strategy (for 2021 - 2030 period), and sectoral and local socio-economic development plans.

3. People’s Committees of provinces or central-affiliated cities shall:

Play the leading role and cooperate with relevant Ministries, regulatory authorities and provincial governments in performing the following tasks:

- Formulate mechanisms and facilitate investors’ execution of energy projects in their provinces; engage in formulation, provide opinions, or devise breakthrough mechanisms and policies to encourage and promote robust development of new and renewable energy.

- Organize the implementation of the Strategy, update and amend their local plannings to ensure that they will not overlap with plannings for development of energy subsectors in force and those to be developed in the future, and enable maximum use of resources to ensure national energy security and development of domestic industries.

- Play the leading role and cooperate with project owners in performing land clearance, compensation, relocation and resettlement tasks to serve the execution of energy projects as prescribed.

- Allocate land areas for execution of approved energy works; intensify land management, and prioritize allocation of land to energy projects.

4. Energy enterprises shall:

Proactively formulate and amend development strategies and plans of energy groups in conformity with the Energy Development Strategy; intensify mobilization of capital from domestic and foreign organizations to execute investment projects, especially key energy projects.

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- Hold the leading role in maintaining stable and safe supply of power for socio-economic development. Make investments in power source and electrical grid projects in a synchronous manner within the ambit of its assigned tasks. Assume responsibility to make investments in transmission grid works as prescribed by the Law on Electricity and relevant laws.

- Adopt solutions to continue reducing power loss; implement programs on economical use of power in production and daily activities.

- Continue enhancing labour productivity, apply advanced and modern technologies, and minimize environmental pollution in electricity generation, transmission, distribution and trading.

- Boost implementation of programs for increasing social and consumer awareness about economical and efficient use of electricity.

- Conduct study on tasks and solutions for implementing the Strategy set forth in this Decision, and perform specific tasks within the ambit of its assigned tasks and functions to achieve the objectives of the Strategy.

b) Vietnam Oil and Gas Group (Petrovietnam) shall:

- Cooperate with bidding consortiums to develop plans for optimal extraction of gas from Block B and Blue Whale gas fields, etc., and optimal operation of gas sector-related infrastructure projects under approved plannings, including imported LNG terminal projects.

- Intensify exploration and extraction of domestic gas sources to supply for industries.

- Cooperate with international organizations that have appropriate competencies and technologies for execution of new/clean energy projects in a manner that takes the best use of existing industrial infrastructure.

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- Promote investment in power source projects within the ambit of its assigned tasks.

c) Vietnam National Coal and Mineral Industries Holding Group (Vinacomin), Dong Bac Corporation shall:

- Hold the leading role in assuring sustainable development of coal industry; fulfill their role as the primary suppliers of domestically produced coal for economic sectors, especially for electricity production; proactively and actively search for foreign reputable coal suppliers that are capable of ensuring stable and long-term supply of coal to diversify sources of imported coal.

- Extract, process and supply coal following approved orientations for development of coal subsectors; ensure sufficient supply of coal for consumers under signed coal trading/supply contracts, especially supply of coal for electricity production under long-term, medium-term and short-term coal trading/supply contracts signed with coal-fired thermal power plant owners.

- Proactively and actively search for and cooperate with domestic and foreign organizations and individuals that have appropriate competencies and technologies to conduct study on and invest in appropriate exploration technologies/methods for executing topics/schemes/projects on pilot mining, with a view to achieving industrial mining scale, of the Red River coal basin.

- Do research on and apply science and technology to processing of coal into clean energy types and other products (used in metallurgy, gasification of coal to produce gas products suitable for energy and industrial sectors, etc.) in order to diversify processed coal products; propose and receive technical assistance programs/projects to transition to sustainable coal business models in the new situation. Develop specific roadmaps and plans/programs to promote scientific and technology research/application as appropriate to each coal mining/processing type or technology to ensure achievement of objectives of the Strategy.

- Cooperate with domestic and foreign investors that have appropriate competencies to conduct study on and invest in construction of coal transshipment hubs.

- Promote investment in energy projects within the ambit of their assigned tasks.

- Conduct study on tasks and solutions for implementing the Strategy set forth in this Decision, and perform specific tasks within the ambit of their assigned tasks and functions to achieve the objectives of the Strategy.

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- Organize performance of specific tasks and solutions set out in this Strategy within the ambit of their functions and powers defined in their corporate charters and relevant regulations of laws.

- Conduct study on tasks and solutions for implementing the Strategy set forth in this Decision, and perform specific tasks within the ambit of their assigned tasks and functions to achieve the objectives of the Strategy.

Article 3. This Decision comes into force from the date on which it is signed.

Article 4. Ministers, heads of ministerial agencies, heads of Governmental agencies, Chairpersons of People’s Committees of provinces or central-affiliated cities, Chairpersons of Boards of Members and General Directors of EVN, Petrovietnam, Petrolimex, Vinacomin, Dong Bac Corporation and relevant authorities are responsible for the implementation of this Decision.

PP. PRIME MINISTER
DEPUTY PRIME MINISTER




Tran Hong Ha