Economic development is the first priority of national policy in Vietnam, and the availability of sufficient energy resources is one of the keys to achieving this objective.

Thanks to the transition from a planned to a market-oriented economic system, Vietnam’s economy has achieved significant development over the last several years with an average GDP growth of 8 percent per year from 2005 to 2007. The recent slowdown due to the global recession contributed to GDP growth of only 4.5 percent for 2009. Although the country will face difficulties due to inflation, GDP growth is still expected to hit 6.8 percent, 7.7 percent, and 8 percent in the next three years, according to a forecast by Business Monitor International. Economic development has resulted in dramatically increasing energy consumption in Vietnam. In order to meet this rising demand, on which continued economic development is contingent, Vietnamese policy makers envision that the nation’s energy sectors will be developed according to a market mechanism. This includes market solutions based on competition rather than monopolies, subsidized prices, and encouragement of private sector investment.