Energy Subsidies in Vietnam
The GSI’s projects work in Vietnam have focused on research and policy engagement on fossil-fuel subsidies for consumers, with the intention of contributing to the following policy objectives:
- Reduce overall fossil fuel subsidy expenditure
- Improve the fair social distribution of subsidy expenditure
- Ensure adequate energy supply for foreign investment and economic growth
- Increase clean energy access and use, particularly among poorer households
Foreign Direct Investment (FDI) has made a major contribution to Viet Nam’s impressive structural transformation and economic growth since the 1990s. As the country continues to pursue an ambitious development agenda, with FDI likely to play a central role in this process, it is important for policymakers to better understand the needs and concerns of foreign businesses regarding energy supply and energy pricing. The satisfaction of businesses with domestic energy market conditions may be one factor in determining the ease with which Viet Nam can attract the high-quality FDI that can help deliver key developmental goals. This report discusses the issues of energy supply and pricing issues and provides recommendations for the design of energy policy that addresses, in particular, the concerns and interests of FDI investors in Viet Nam in this sphere.