Rising energy prices require a long-term strategy for energy security

Rising energy prices are creating new pressures for Vietnam amid geopolitical tensions. Experts at a Hanoi conference on April 9 said the country needs to move from reactive responses to proactive planning to strengthen energy security over the medium and long term.

Geopolitical risks and the need for a more proactive energy strategy

Geopolitical developments in the Middle East are putting pressure on global energy markets, experts said. At the conference titled “Geopolitical shifts and strategies to ensure energy security,” speakers argued that Vietnam should redefine its energy strategy to be more proactive.

Dr. Nguyen Quoc Thap, president of the Vietnam Oil and Gas Association, said recent developments highlight how many countries depend on concentrated supply chains. When risks emerge in key regions, the impact can extend beyond oil prices to the broader energy supply chain.

Thap said Vietnam should address obstacles that prevent completed renewable energy projects from entering operation. He also called for improvements to infrastructure—including ports, storage, and logistics—to enhance the system’s adaptability.

Three-phase roadmap for energy security

Experts outlined a three-phase approach:

• Short term: operate flexibly and diversify import sources.
• Medium term: build energy reserves and complete the LNG chain.
• Long term: review planning to reduce import dependence and increase the share of renewable energy.

One emphasized solution is building crude oil and gasoline storage. Speakers also pointed to expanding cooperation and diversifying import partners through energy diplomacy.

Market sensitivity and Vietnam’s exposure

Dr. Ha Huy Ngoc of the Vietnam and World Economy Institute said the energy market is increasingly sensitive to geopolitical fluctuations. He noted that a single disruption at transport chokepoints can trigger ripple effects on energy prices, exchange rates, and financing costs.

Ngoc said Vietnam is particularly exposed because it has an open economy and relies heavily on imported energy. He argued that the challenge is not only having sufficient supply, but also having the capacity to manage the energy system.

According to Ngoc, this includes increasing storage, diversifying sources, and enhancing system flexibility. He also said market controls should be strengthened to curb speculation and price volatility.

On the current energy mix, Ngoc said limitations remain, with energy volatility affecting sectors including transport, aviation, logistics, electricity generation, chemicals, steel, and plastics.

Impact on businesses and corporate adaptation

From a corporate perspective, Than Duc Viet, CEO of May 10 Corporation, said the company is focusing on cost control and productivity improvements. Measures include energy saving, material optimization, and reducing production time to ease cost pressures.

Viet said that over the last three years, the company has invested in rooftop solar, which accounts for about 20% to 30% of electricity consumption. He said using renewable energy helps reduce costs and meet supply-chain requirements.

Ha Dang Son, director of the Energy Research Center for Growth and Green Growth, said recent policies have encouraged rooftop solar under the self-production/self-consumption model, combined with energy storage. He noted this can help businesses secure electricity in the face of potential shortages due to weather.

However, Son said storage batteries are not a comprehensive solution because of cost and limits in power capacity. He added that renewable energy development must therefore go hand in hand with base-load power sources.

Long-term direction: transition and system balance

Experts said Vietnam’s energy challenge requires multiple solutions, building a balanced ecosystem among sources to ensure stability and efficiency. They also reiterated that the energy transition remains a long-term trend, with Vietnam developing wind and solar power while upgrading transmission infrastructure and storage systems.