The role of VEA in the energy development of Vietnam

General situation

In 2019, the energy industry had to face many difficulties and challenges as power demand grew rapidly while waters on hydropower reservoirs were very low, the situation of fuel supply, especially coal supply to thermal power plants, was difficult. Many key power projects were behind schedule, the energy infrastructure could not keep pace with development needs.

Besides, the situation in the East Sea complicatedly ulforded, directly affecting oil and gas searcing and explorating activities; the oil and gas reserves and potential in shallow water areas are not much yet; many major oil and gas fields are in the weakened period, and their output has sharply decreased.

In particular, the domestic coal demand was strongly increased, while the coal production capacity of existing mines has reached the limit; mining conditions are more and more difficult due to the operation in deeper layers.

However, with the efforts of the groups: EVN, PVN, Vinacomin and other enterprises, Vietnam's energy industry basically guaranteed sufficient supply for energy demand of the socio-economic development in the country.

By the end of 2019, the total power capacity in Vietnam reached nearly 55,000 MW, increasing 40% compared to 2015, with a highlight that in 2019, there were over 5,000 MW of wind and solar power projects put into operation. In 2019, the power system of Vietnam had become the second system by scale (after Indonesian system) and the first one by renewable development in ASEAN.

In 2019, all the key groups of Vietnamese energy sector had completed exceeding the assigned plans such as: EVN produced electricity of about 230 billion kWh, increasing 8.85 % compared to 2018, Vinacomin mined coal of about 44 million tons, increasing 10% compared to 2018 and PVN exploited nearly 25 million tons of equivalent oil including 15 million tons of crude oil (with 2 million tons oversea) and 10 billion cubic meters of the gas.

Major activities of VEA in 2019

Firstly, the membership development was paied attention to in direction to attach special importance to the quality to admid the entrprises with a full enthusiasm and volunteering to contribute to activities of VEA. In 2019 VEA had admided 10 new members, increasing the total number to 330 members including 290 enterprises (with a number of FDI enterprises) and 40 pertionals.

VEA implemented well the representive mission for the members. VEA suggested the state competence agencies to solve the difficulties and obstacts of the members and these suggests were considred and solved.

Secondly: The activities on consultancy, reviews and social assessments are always the key work of the Association. In 2019, VEA was assigned to prside over reviewing the Project "Suming up 10 years for implementing the Resolution 18-NQ/TW dated October 25, 2007 of the Politburo on the orientation of Vietnam's National Energy Development Strategy to 2020 with a vision to 2050” including a general report and 6 main special subjects implemented by the ministries and agencies, implemented by the Central Economic Commission.The comments of VEA were accepted by the editorial group for finalizing the project and reporting it to the Politburo.

VEA conducted researching the project and sent a written proposal on solutions to ensure sustainable development of energy industry in Vietnam to the Party and State leaders. In the report, VEA experts updated the progress of implementating the development planning plans of the Coal, Power and Petroleum and Renewable Energy approved by the competence levels; identified the difficulties and challenges in ensuring sustainable development of energy industry and proposed the solutions for: ensuring national energy security; creating investment capital for energy development; defining energy prices; protecting environment and developing the sciences – technologies…  

During the year, VEA participated in the review for many important draft legal documents, such as the decisions of the Prime Minister on: the mechanism to support solar power projects; the pilot program of direct electricity trading mechanism between renewable energy generating units and electricity customers; participated in reviewing and commenting drafts of decrees and circulars prepared by the Ministry of Industry and Trade. VEA sent many experts to attend and contribute the ideas at the energy seminars organized by the Central Economic Commission, Ministry of Industry and Trade ...

Besides, through the mass media, especially through Vietnam Energy Magazine/NangluongVietnam Online, VEA organized the seminars for reviewing the issues in the energy sector, especially issues with different opinions. , such as: electricity price, coal thermal power and renewable energy development ... In general, in the seminars, the opinions and comments of VEA were high assessed by the relevant agencies and public opinionsd.

Thirdly: Information - communication activities.

VEA strengthened the propagation and dissemination of policies of the Party and State in energy industry, especially on renewable energy development contributing to reducing fosill fuels and ensuring national energy security.

This task is expresseded through the following activities:

1. VEA timely propogates the legal documents, guidelines of the Party and State in the energy field to its members.

2. The Vietnam Energy Magazine (printing and electronic papers), the official organ of VEA regularly updates the information from the energy sectors; proposes and suggests the competent state agencies to release difficulties and obstacles for the energy sector. With the abudent topics and regularly updated newes, the Magazine is high assessed by many domestic and international organizations.

Fourthly: In 2019, the Association chaired and coordinated with related agencies to organize many workshops as follows:

1. Coordinating with the British Embassy to organize the International Conference with a subject "Vietnam: Towards Low Carbon Energy in the Future" in Hanoi on March 12, 2019. The conference highlighted the core issues posed to Vietnam's energy sector in the context of regional and global integration. At the conference, the presentations focused on clearing many theoretical and practical aspects, towards a low carbon economy by  developing renewable energy projects, and using energy saving and efficient energy using.

2. Coordinating with VTV24 to organize an International Conference with a subject "Renewable energy in Vietnam - from policy to practice" in Hanoi on November 27, 2019. The seminar was an opportunity for the leaders of the ministries, sectors, localities and businesses to look back at difficulties and bottlenecks in renewable energy and propose solutions for the renewable energy development strategy in Vietnam. At the same time, the leaders had an opportunity to refer to lessons and recommendations from international experts in the process of developing Vietnam's energy resources

3. Coordinating with the Enterpize Energy Group

(the United Kingdom) to organize the International Conference with subject "Thang Long Offshore Wind Power Project - Necessity for Vietnamese Economy" on December 6, 2019, in Hanoi. The Conference put forward benefits of Thang Long offshore wind power project in ensuring national energy security and economic development of Binh Thuan province, particularly and of Vietnam, generally.

Fifthly: Building and developing relationships with State management agencies, and acting as a bridge between enterprises and State management agencies.

VEA leaders actively participate in meetings at the Ministry of Industry and Trade and the Vietnam Chamber of Commerce and Industry to comment on draft legal regulations for minimizing in issued provisions the difficulties and obstacles to the operation of enterprises.

Sixthly: Building and developing cooperative relationships with international and domestic organizations.

In 2019, VEA signed a MOU with South Korea's Gwangju Technopark, on June 17, 2019, in Ho Chi Minh City, coordinated with Kyushu Power Group to implement the project on the integrated information system to operate reservoir in real time for the Vu Gia - Thu Bon river basin and project on applying the Japanese technology for weather forecasting and hydropower reservoir operating in Song Tranh 2 and A Vuong hydropower plants.

According to the assessments of the investors and relevant agencies, these projects brought efficiency to the hydropower plants in developing operation plans, regulating floods suitable with each rain in the basin, and ensuring safety for the project and downstream areas, and increasing electricity generation.

At present, VEA is researching and preparing a report to the competent state agencies of Vietnam on the proposal of Kyushu Power Group to deploy Japanese technology in other hydropower plants with the joint credit mechanism (JCM) managed by the Ministry of Environment of Japan and may be supported up to 50% of the initial investment.

VEA line of tasks in 2020

2020 is the last year of the 2016-2020 5-year plan, the year of organizing the Party Congress at all levels, towards the 13th National Party Congress in 2021. To contribute in ensuring energy supply, VEA proposes a number of the key tasks as follows:

1.Developing new members and branchs

To consider developing VEA branchs in localities, especially in localities with many members of the VEA.

2. Interesting in benefits of the members:

- To join forces with member enterprises to work with competent State agencies to solve difficulties and problems and propose mechanisms and policies to help members overcome difficulties and stabilize production.

- To well perform the representative duties for members, proposing to the Government, functional ministries and agencies on new promulgating, or supplementing or amending guidelines, policies and measures to encourage and support developing energy industry. To protect the legitimate rights and interests of members and request competent authorities to deal with the cases which damage the legitimate interests of the members.

3. The activities on consultancy, criticism and social assessments.

This is a key activity throughout the year. VEA will be the focal point for relevant ministries and agencies to receive requests for advice on critical issues of energy policy and direction and great energy issues. The social assessment must be concretized into specific activities, in order to support the criticism of policies by more correct way. Proactively propose critics on urgent issues in society related to investment, construction and development of the energy sector.

4. The scientific and technological activities, seminars and knowledge dissemination:

The VEA member units will propose researching issues to timely apply or participate in bidding in the Scientific Councils of the relevant Ministries and Agencies.

VEA will regularly organize domestic and international conferences and seminars to enhance exchanging experience in activities of energy sector  thereby to propose and suggest to the leading levels urgent solutions to guarantee power supply.

5. Strengthening activities on actual inspection:

VEA will coordinate with agencies, units under the Ministry of Industry and Trade and groups as EVN, PVN, Vinacomin to carry out field trips for learning about the production and business situation of the member units, especially in key projects, renewable energy projects having been put into operation and  being invested for construction, the units facing difficulties and obstacles to timely propose to leaders of the competent state agencies tocompetent to resolve the problems.

6.Strengthening relationships with State management agencies:

VEA will be proactive to communicate aspirations of the enterprises to State management agencies; to participate in contributing ideas for improving policies and mechanisms, creating an increasingly favorable environment for the production, business and enterprise development.

VEA will work with relevant ministries and agencies to implement policies for supporting member enterprises in finance, credit, interest rates, tax exemptions and other special mechanisms and incentives to help members overcome difficulties and stabilize production.

7. Building and developing cooperative relationships with international organizations:

VEA will assist members in cooperating with international organizations with which VEA has signed MOU on cooperation. VEA will coordinate with Electricity of Vietnam and Kyushu Power Group to evaluate pilot results of the HNT Program in reservoir operation and flood control at A Vuong and Song Tranh 2 hydropower plants and report to the competent authority for mass applying the program in hydropower and irrigation projects in Vietnam.

8. Information – communication activities:

The Vietnam Energy Magazine continues to be monthly published and the NangluongVietNam Online website continues to regularly update information on the activities of the domestic and international energy industry.

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