VINACHEM

According to Vu Quang Nam, the deputy director general of the Vietnam Oil and Gas Corporation (PVN), in 2011, Vietnam exploited 15 million tonnes of crude oil, an increase of 0.2 percent from 2010. Production of natural gas reached 8.9 billion cubic meters. In 2012, to meet domestic demand, production of crude oil must be 15.81 million tonnes (1.1 million tonnes of which are exploited from foreign fields) and production of natural gas must be nine billion cubic meters.

Vu Manh Hung, the deputy director general of the Vietnam National Coal, Mineral Industries Holding Corporation Limited (Vinacomin), said that in 2011, coal production reached 47.8 million tonnes, an increase of four percent from 2010. It is estimated that by 2015, coal production must be 55 million tonnes, in addition, we have to import coal from foreign countries to fully meet domestic demand.

To the electricity sector, Pham Le Thanh, the director general of the Electricity of Vietnam (EVN), said that in 2011 Vietnam produced and imported 108.751 billion of kWh totally which fully met demand of production and daily life. EVN has had methods to ensure electricity demand in 2012. However, because PVN can only provide about 5.7 billion cubic meters of gas for electricity production (while 6.6 billion cubic meters is needed). We will lack 800 million cubic meters. This amount of insufficient gas will be replaced with oil.

When assessing ability of energy supply, Deputy Prime Minister Hoang Trung Hai said, "In the coming time, we have to exploit crude oil in foreign fields. Gas and oil produced within the country can meet just 30 percent of domestic demand. The rest is imported. We also have to import coal. Gas used to produce electricity is also lack. Thus, the largest challenge for the country is energy shortage."

Energy plays an essential role in economic development. Thus, it is very important to help the energy sector overcome difficulties. According to Deputy Prime Minister Hoang Trung Hai, in 2012 and 2011-2015 in general, those corporations should enhance cooperation with each other to fully meet demand of energy. PVN must prioritize giving gas for electricity production. The electricity should make detail plans on gas demand to avoid the situation of real demand exceeding estimated amount.

In 2011, amount of electricity consumption increased 9.34 percent from 2010. This increase is lower than that in previous years (12-14 percent). Coefficient between electricity demand increase and the Gross Domestic Product (GDP) growth was 1.62, a decrease from previous years (2.1). This is an encouraging result. However, according to statistics, the country has great potential of electricity conservation in all economic sectors (10-40 percent). Therefore, improving energy efficiency is paid special attention by Deputy Prime Minister. He said," Coefficient between electricity demand increase and the Gross Domestic Product (GDP) growth reduced to 1.62 is a significant achievement. However, the coefficient is still high compared to other countries. Therefore, all production sectors should enhance technological renovation to continue reducing this coefficient and help the energy sector reduce burden."

Investments in energy projects are engaged special attention. The country will invest a huge amount of money in energy projects. In the electricity sector alone, money invested in this sector will be US$50 billion in next 10-20 years. Thus, it is necessary to gradually adjust energy tariff to attract investments and promote energy development.

To help the energy sector reduce difficulties, Minister of Industry and Trade Vu Huy Hoang said that in 2015, Vietnam will have to import coal. However, in reality, although we have enough monty, it is very difficult to import coal. To deal with this problem, the Ministry of Industry and Trade established a steering committee for coal import which is led by a deputy minister. Related departments, EVN and Vinacomin also take part in the steering committee. The steering committee have done surveys on coal demand and contacted with some suppliers in Australia and Indonesia. We are well prepared for importing coal. In terms of gas for electricity production, the Ministry of Industry and Trade will urge PVN to prioritize the electricity sector./.