tailieunhanh - Policy suggestions for the initial development of VietNam’s gas industry

Policy suggestions for the initial development of VietNam’s gas industry aims to discuss policy choices for the development of Vietnam’s gas industry. These policies must meet a number of criteria to be suitable for Vietnam, an emerging market which seeks to attract investment. | THE BROOKINGS INSTITUTION CENTER FOR NORTHEAST ASIAN POLICY STUDIES POLICY SUGGESTIONS FOR THE INITIAL DEVELOPMENT OF VIETNAM S GAS INDUSTRY Hai Tien Le CNAPS Visiting Fellow Vietnam Spring 2010 Director Research Centre for Petroleum Economics and Management Vietnam Petroleum Institute September 2012 THE BROOKINGS INSTITUTION 1775 Massachusetts Avenue NW Washington . 20036-2188 Tel 202 797-6000 Fax 202 797-2485 http Abbreviations BCM Billion cubic meters BTU British thermal unit Government Government of Vietnam LNG Liquefied natural gas LPG Liquefied petroleum gas MOIT Ministry of Industry and Trade Mtoe Million tons oil equivalent MW Mega watt MBBTU Thousand billion BTUs MMBTU Million BTUs MMCM Million cubic meters PVN PetroVietnam formally the Vietnam Oil and Gas Group PVEP PetroVietnam Exploration and Production Corporation PVGas PetroVietnam Gas Corporation SCM Standard cubic meters USD US United States dollar TCM Trillion cubic meters VND Vietnam Dong Vietnamese currency Policy Suggestions for Vietnam s Gas Industry Hai Tien Le CNAPS Visiting Fellow Working Paper 2 I. Introduction 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 percent for 2009. Although the country will face difficulties due to inflation GDP growth is still expected to hit percent percent and 8 percent in the next three years according to a forecast by Business Monitor Economic development has resulted in dramatically increasing energy consumption in Vietnam. In order to meet this rising demand on which continued .