With up to a 50 per cent lower carbon footprint than coal, liquefied natural gas (LNG) can be adjusted to increase greener electricity when available.

Vietnam’s current development highlights the urgent need to accelerate the global energy transition. John Rockhold, head of the Power and Energy Working Group under the Vietnam Business Forum, looks at how events have demonstrated the cost to the global economy of a centralised energy system dependent on fossil fuels.

As one of the world’s most populous countries, Vietnam stands at a turning point that many of its neighbours have faced in their own development lifecycle: embrace rapid economic growth that continues to pull its populace out of poverty while providing the next generation access to economic opportunities never seen – or continue to stagnate and allow the opportunities afforded by economic development to find a home elsewhere.

In the view of most US investors, the most important factor for a favourable US investment climate and maintenance and growth of manufacturing supply chains is a fair, transparent and predictable regulatory environment that values innovation - not only to attract new investment but also to maintain and grow the investment already here.

The government has taken a step-by-step approach that includes comments and discussions with Vietnam Business Forum’s Power and Energy Working Group and other private sector power and energy organisations. Based on the November draft, meetings, and follow-up requests for comments, we have the Power Development Plan VIII (PDP8) that is addressing the country’s economic, environmental, and social needs in line with international climate agreements.

Vietnam has reached new heights in renewable development over the years thanks to feed-in tariffs, however, it now faces challenges in spurring on clean energy for sustainable development.