Key opportunities for Canadian energy companies in Vietnam
- CCUS for the Oil and Gas sector
- Hydrogen production technology
- Development of offshore wind power
- Battery Energy Storage System for utility scale
- Consulting service on carbon offset for climate projects
- Strong presence and competition from other Western and Asian countries: US, Germany, Japan, China and others.
- Bureaucracy: Vietnam's regulatory regimes and commercial law, and the overlapping jurisdictions of some government ministries can result in a lack of consistency in government policies.
Notable challenges for Canadian energy companies in Vietnam
- Strong presence and competition from other Western and Asian countries: US, Germany, Japan, China and others.
- Bureaucracy: Vietnam's regulatory regimes and commercial law, and the overlapping jurisdictions of some government ministries can result in a lack of consistency in government policies.
Vietnam business landscape
Prior to PDP8, in late 2022, Vietnam signed the Just Energy Transition Partnership (JETP) with a group of donor countries known as the International Partners Group (IPG). IPG consists of G7 nations, plus the EU, Norway and Denmark. The JETP agreement aims to help Vietnam peak its emissions by 2030 and enable the country to source close to half of its power from renewable energy.
IPG countries pledged to raise $15.5bn to support Vietnam to pursue the energy transition. The funding is due to be mobilized over the next three to five years. Half of the money will come from governments, the Asian Development Bank and the International Finance Corporation and the World Bank's private sector arm. The rest will come from private investment coordinated by the Glasgow Financial Alliance for Net Zero.
Upcoming projects and events
- PetroVietnam - PVN is a national Oil and Gas Group that has various affiliates with dedicated business in upstream, midstream and downstream. PVN is under pressure to decarbonize their activities and they are studying to apply CCUS in offshore oil and gas production.
- Electricity of Vietnam – EVN is an SOE, the largest power generation corporation in Vietnam. It is planning to install 2 pilot BESS systems, each of 40MW.
Summary
Vietnamese economy is heavily reliant on exports and therefore is under pressure to pursue an energy transition as soon as possible. In the first stage of this transition, during the next 5 years, Vietnam will enjoy financial support under the JETP agreement. This is a good opportunity for Canadian companies who have required expertise and technologies to access the market.
For more information on Energy in the Vietnamese market, please contact:
Ms. Ngan Hoang
Trade Commissioner, Cleantech and Oil and Gas sector
Email: ngan.hoang@international.gc.ca
