[9 March 2023] —  The Southeast Asia Energy Transition Partnership (ETP) brings together governments and philanthropies to work with partner countries in the region. ETP is initially focusing on Indonesia, the Philippines and Vietnam. The Commission for State Capital Management (CMSC) plays an important role in managing the Vietnam government’s capital in back-bone state-owned enterprises (SOEs). Three energy SOEs (Electricity of Vietnam - EVN, PetroVietnam - PVN and Vietnam National Coal - Mineral Industries Holding Corporation Limited - VINACOMIN) are managed directly by the CMSC’s Department of Energy.

The three State-owned Enterprises are playing a vital role in ensuring national energy security. They also own the majority of the coal power capacity (67% of ~25 GW of existing coal power installed capacity in 2021). Therefore, they are the key factors participating in the energy transition toward Vietnam’s net-zero target.

The consortium including Vietnam Initiative for Energy Transition - VIETSE, Economica Vietnam, NHQuang&Associate and Carbon Trust have been entrusted by CMSC and the Southeast Asian Energy Transition Partnership (ETP)  to formulate the “Roadmap for the Commission for Management of State Capital toward net-zero emission in energy State-owned Enterprises in Vietnam”.

Under the project, the consortium: (i) Study and propose a suitable Roadmap for CMSC supporting SOEs in energy transition to meet Net-Zero emission target while ensuring the energy security of the power supply; (ii) Identify the legal, financial and social conditions for SOEs to realise the roadmap; (iii) Evaluate the impact of roadmap implementation, including the associated costs to realise the roadmap; and (iv)Propose recommendations to CMSC and SOEs (as well as key stakeholders in the decision-making process) to accelerate the roadmap implementation.

As the key stakeholders in Vietnam’s energy sector, the three SOEs will be an important factor for the country in fulfilling the NZE commitment. The assignment is also to contribute to an evidence-based recommendations which will support the Commission for Management of State Capital in developing a roadmap for energy SOEs in Vietnam to contribute to the country’s net-zero emission target.