Vietnam to establish a special framework for national energy centers

Vietnam will build a distinctive, breakthrough mechanism and form national energy industrial centers, according to the head of the Central Policy and Strategy Department. On the morning of April 13, at the national conference on researching, comprehending and implementing the Resolution of the 2nd Plenum of the 14th Central Committee, Nguyen Thanh Nghi, head of the Central Policy and Strategy Department, presented a topic on the plan for socio-economic development, national finances and debt service, and public investment linked to the goal of double-digit growth. According to Mr. Nguyen Thanh Nghi, energy development is considered one of the solutions to build a synchronized, modern infrastructure system in the next five years. In 2026 alone, Vietnam will build and develop infrastructure for strategic technologies such as nuclear energy applications, space, low-value economy, quantum, and the national energy reserve strategy. The head of the Central Policy and Strategy Department said that this year the operator will build a distinctive, breakthrough mechanism and form national energy industrial centers. Mr. Nguyen Thanh Nghi presented the report at the conference on the morning of April 13. Photo: Ngoc Thanh According to the adjusted National Energy Plan at the end of February, Vietnam aims to develop the energy industry toward becoming clean energy and exporting renewable energy in the region. The renewable energy centers will be formed in regions and localities with advantages. By 2030, several clean energy centers in the Red River Delta, the South Central Coast, the Central Highlands, and Southeast Vietnam are expected to be formed. These centers will produce, use energy, process oil and gas, construct and provide related services. Currently the Ministry of Industry and Trade proposes developing the national oil refining and energy center at the Dung Quat economic zone (Quảng Ngãi). The project is expected to have total investment of 16.1-20.5 billion USD, divided into two phases. In the next phase to 2030, the project will invest 14.1-17.5 billion USD; and add about 2-3 billion USD by 2045. When completed, this center is expected to meet at least 30% of the country’s gasoline and diesel demand, ensure reserves equivalent to 30 days of production and consumption. In addition, the project will create 30,000 jobs, contribute 30% to the GRDP of Quảng Ngãi Province and boost logistics, supporting industries. The formation of national energy centers is expected to help strengthen national energy security, self-reliance of supply, and reduce import dependence. At the same time, these projects will create momentum to attract investment domestically and abroad, develop supporting industries, and contribute to economic growth. During 2026-2030, the operator aims for economic growth of 10% continuously over many years. Accordingly, by 2030, Vietnam will become a developing country with a modern industry, high-middle income, among the top 30 economies in the world. To achieve growth goals, Mr. Nghi says Vietnam needs to promote growth while maintaining macroeconomic stability, controlling inflation and diversifying capital channels. "Fiscal, monetary and other macro policies need to be coordinated flexibly, ensuring capital supply for the economy. We must not let an economic crisis occur in any scenario," Mr. Nghi said. Head of the Central Policy and Strategy Department Nguyen Thanh Nghi notes that the operator should economize on routine spending, allocate resources for social welfare tasks, and key infrastructure projects. Localities should make full use of existing office space, limit new offices and administrative centers. "We must mobilize and use all resources for development," Mr. Nghi said, adding that the target state budget revenue this year is to grow 10%, save 10% and save more than 5% of regular spending. In addition, Vietnam needs to reform the overall financial market, attract diverse investment funds. Superior mechanisms on procedures, business conditions, taxes, and land rental costs should be built for innovative startup companies, shifting support from inputs to outcomes. Mr. Nghi also mentions reducing 50% of the time to resolve administrative procedures this year, reducing at least 30% of conditional business sectors and all unnecessary business conditions. Regarding mid-term public investment, the head of the policy and strategy department said the number of public projects will be reduced by at least 30% compared to five years ago (central and local). Therefore, agencies and localities should allocate capital to key projects, improve the efficiency of public capital use, prevent losses and waste.