Vietnam is an easy nation to enjoy. From the energy of its cities to the warmth of its people and, yes, the exceptional coffee and food, there is a lot to like.
But beyond these experiences, what stayed with me from my visit in October was the genuine commitment in Vietnam to energy transition.
Balancing energy security, economic growth and progress on climate targets is no easy task, but Vietnam is tackling it head on. It is very evident that natural gas will play a critical role in supporting both economic growth and decarbonisation of the power sector.
Alongside Asia Natural Gas and Energy Association Senior Advisor, Neil Theobald, I participated in LNG seminars in Ho Chi Minh and Hanoi that were organised in partnership with Frasers Law Company, Poten & Partners, and HSF Kramer. Bringing together more than 170 representatives from governments and industry, the seminars explored Vietnam’s energy transformation.
The seminars provided an ideal platform to highlight key findings from a recent S&P Global Commodity Insights study that found LNG used in power generation in Asia had 45-50% lower average lifecycle carbon intensity than coal. Vietnam was one of the study focus countries and S&P Global’s analysis demonstrated how increased use of LNG in combination with expansion of renewables could cut power sector emissions by more than 33% over the next decade.
The highlight of each seminar was a panel discussion that generated robust dialogue about practical barriers to expansion of Vietnam’s still-young LNG industry and realistic strategies to overcome this.
This was also a theme that emerged from meetings we had with the Ministry of Industry and Trade (MOIT), PetroVietnam, the Vietnam Petroleum Institute, and other key stakeholders. There is strong recognition that natural gas is essential to Vietnam’s energy future, but also acknowledgement that significant impediments remain to unlocking LNG’s full potential.
Neil and I very much appreciated the openness and pragmatism of these conversations. This willingness to discuss challenges ahead and learn from regional experiences will put Vietnam in good stead.
Vietnam’s revised Power Development Plan VIII (PDP8) sets out ambitious targets: over 30GW of gas-fired power capacity by 2030 and nearly 80% renewables by 2050. While these goals are achievable, the pathway to realising them requires supportive policy framework, sustained investment, and international collaboration.
Ensuring greater cost-competitiveness with coal-fired generation remains one of the key challenges for LNG-to-power in Vietnam – and coal’s share of generation has increased significantly over the past 15 years because it has been available and affordable. Moving towards longer-term LNG supply arrangements is one tool for “narrowing the gap” on price.
While all the country’s LNG cargoes to date have been procured via the spot market, significant new global supply coming online through the second half of this decade will provide a window for Vietnam to secure competitively priced long-term contracts.
Throughout our discussions, there was broad agreement that natural gas is not merely a “transition fuel” in Vietnam. It’s a critical enabler of the country’s broader decarbonisation strategy – gas-fired generation will provide the flexible, reliable capacity needed to integrate ambitious renewable energy targets set out in PDP8, particularly as solar and wind deployment accelerates.
Stakeholders also emphasised the importance of Vietnam preparing for other future low-carbon technologies, such as carbon capture and storage. Vietnam has significant CCS potential, with recent studies estimating hundreds of gigatonnes of subsurface storage capacity – but currently has plans to store only 6 million tonnes by 2050.
There is clear scope to raise these ambitions and integrate CCS into LNG power plant decarbonisation strategies. Stakeholders were very interested to hear more about ANGEA’s Accelerating Cross-Border CCS in Asia Pacific study and the long-term role Vietnam could potentially play in transboundary CO2 value chains.
The big question around Vietnam’s energy transition is not whether natural gas will play a role, but how quickly and effectively the necessary infrastructure, policies, and commercial frameworks can be put in place to fully unlock that role. ANGEA is ready to support Vietnam on this journey. Our members bring decades of experience in LNG project development, supply chain optimisation, and decarbonisation technologies. We recognise that Vietnam’s energy decisions will impact not only the country’s economic trajectory, but also the region’s broader climate goals.
As Neil and I left Ho Chi Minh City, we reflected on our busy week, and I was struck by the determination of Vietnam’s policymakers and industry leaders.
The challenges of the energy transition are real, but they are accompanied by a commitment to finding pragmatic, affordable, effective and innovative solutions. There was genuine interest in ANGEA’s research and regional expertise and learnings, particularly our power market modelling studies and insights from comparable markets – such as Thailand and the Philippines, where hybrid contracting models have contributed to more stable LNG-to-power development.
I was especially grateful for the hospitality extended by our hosts. From the Vietnam Petroleum Institute’s warm welcome in both Hanoi and Ho Chi Minh City, to the constructive dialogue with MOIT officials, and the collaborative spirit shown by PVGas and the Ho Chi Minh City Department of Industry and Trade. Special thanks to BowerGroupAsia for their excellent coordination throughout the week. Despite a typhoon making our Hanoi visit rather more adventurous than planned, the dedication of everyone involved in maintaining the meeting schedule demonstrated the high level of investment in the energy transition.
With a long list of action items, I look forward to returning to Vietnam in 2026 and deepening our partnerships, contributing to an energy future that balances growth, affordability, and sustainability.
Laila Nowell is Chief of Staff at the Asia Natural Gas & Energy Association (ANGEA). ANGEA works with governments, industries and communities in Asia, providing affordable solutions that promote energy security, economic growth and decarbonisation.
