Prime Minister Pham Minh Chinh urged the Ministry of Industry and Trade (MoIT) to speed up the review of the Power Development Plan (PDP) VIII, prioritizing the shift from coal to gas power and boosting domestic production to achieve 12-15% annual electricity growth.

Ca Mau Gas – Electricity – Fertilizer Plant Expansion. Photo: Hoang Anh/The Hanoi Times

The conclusion was announced following a meeting between the head of government leaders and relevant agencies to address regulatory bottlenecks for gas and off-shore wind power projects.

“The move is aimed at ensuring national energy security, providing sufficient electricity for business operations and people's daily needs, and honoring commitments to foreign investors, with a firm resolve to keep promises,” noted the announcement.

This is especially significant as global economic forecasts suggest that if the Federal Reserve (FED) lowers interest rates, Vietnam's economy could grow by more than 7% in the near future.

In light of this, the Government has requested the MoIT to study the development of nuclear power in other countries and propose the development of nuclear energy in Vietnam. This would serve as a stable power source and minimize environmental risks. A report will be submitted to the Politburo for review and decision-making.

The MoIT is urged to work closely with relevant ministries, sectors, and localities, especially with Vietnam Electricity (EVN) and Vietnam Oil and Gas Group (PVN), to address legal barriers to energy power projects.

Additionally, the Ministry is tasked with finalizing the draft amendments to the Electricity Law by incorporating proven and effective elements from previous regulations, as well as newly updated provisions based on practical experience. For unclear issues with many variables, the law should provide guiding principles, with the Government empowered to define specific regulations, such as pricing and technical standards.

The Ministry should also review legal challenges in developing power projects and propose solutions to the Ministry of Planning and Investment for inclusion in a multi-law amendment project, covering laws such as the Investment Law, Bidding Law, Law on Natural Resources, Marine Environment and Islands, Vietnam Sea Law, and Construction Law.

The Prime Minister has tasked the Government Office with drafting a decision to set up a working group, led by Minister of Industry and Trade Nguyen Hong Dien. The group will include EVN Chairman Dang Hoang An and PVN Chairman Le Manh Hung as deputies.

Its role is to review the legal obstacles to power project implementation. The group is responsible for collecting and proposing amendments to improve the draft Electricity Law, ensuring high-quality legislation that can be completed by September 20, 2024, and submitted to the National Assembly during its 8th session for approval through a single-session process.

Deputy Prime Minister Bui Thanh Son will oversee this task, and report to the Prime Minister on any issues outside his authority. The working group will mobilize resources as necessary to ensure the Electricity Law amendments and the project to amend several laws are of the highest quality and practical. Once these laws are enacted, they will facilitate the implementation of power projects in line with the Prime Minister's approved planning and strategy.

The Government emphasizes the need to revise laws to strengthen decentralization, ensuring that decisions are made by the appropriate levels of authority, with appropriate accountability and oversight mechanisms. Ministries and localities will be empowered to make decisions and be held accountable, while the Government ensures oversight, monitoring, and compliance with the approved plans.

For already licensed projects, investors must adhere to their commitments. If they fail to do so, the relevant authorities are urged to revoke licenses in accordance with the law.

Regarding the offshore wind power pilot project, the Politburo has already approved the pilot production and export of offshore wind power as outlined in Conclusion No. 76-KL/TW on April 24, 2024. This conclusion was made in response to the implementation of Resolution No. 41-NQ/TW, which sets the strategic direction for Vietnam's oil and gas industry development until 2025, with a vision to 2035, and provides guidelines for the new phase.

The Prime Minister has asked Deputy Prime Minister Bui Thanh Son to assign units to implement this project. The government recommends that legal issues such as production capacity and transfer pricing be incorporated into future law amendments.