In the past two decades, Vietnam has experienced one of the world’s ́ most rapid economic growth. The GDP per capita has increased nearly 20 times, from USD 94.88 in 1990 to USD 2,343 in 2017. Therefore, energy economy of Vietnam has changed rapidly in the past few decades with the transformation from an agricultural based on traditional fuels, to a modern mixed energy economy. With the increasing energy demand and recent fluctuations in energy import and export, in order to fulfill their domestic demand, Vietnam has become a net energy importer since 2015.
The energy sector plays a significant role in promoting the economy development. Economic growth requires secure and affordable supply of energy to all of the society participants and economic sectors. At the same time, in order to be sustainable, the energy sector must be able to attract the capital required to expand infrastructure, securing the needed supply of energy sources in the long term, and reducing negative environmental impacts as well as controlling green-house gas emissions.
According to National energy development strategy within 2020-2050, that is developed by Ministry of Industry and Trade (MOIT) in 2007, the specific objectives are striving to ensure adequate energy supply to meet the demand for socio-economic, developing generation sources and power grid, developing oil refinery plants, ensuring the national strategic reserve of oil at 45 days of average consumption, completing the rural and mountainous electrification program, developing long-term environmental objectives and standards and strengthening international cooperation in the energy sector.