5 the drilling, extraction and processing of fuels Therefore, future water scarcity poses fundamental long term challenges for food and energy sectors and, by implication, the country’s socio economic[.]
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the drilling, extraction and processing of fuels Therefore, future water scarcity poses fundamental long-term challenges for food and energy sectors and, by implication, the country’s socio-economic development
Energy security to support rapid economic growth and fast urbanisation
Vietnam’s economy has been transformed in recent decades due to market-oriented reforms, which have occurred since 1986, and rapid economic development The average annual economic growth rate for the period 1990 - 2010 was 7.4%, with total GDP increasing from US$ 60 billion in 1990 to US$ 171 billion in 2013 (MGI, 2012; World Bank, 2017) The rapid economic growth in the future will require huge increase in energy demand, estimated to be 3.6% p.a until 2030, equivalent to 130 million tonnes of oil equivalent (APEC, 2013) Historical trends of energy supply, as illustrated in Figure 1-1, indicate that energy generation has heavily relied on fossil fuels (coal, oil and gas) and hydro, which collectively accounted for more than 70% of the total primary energy supply These trends should establish the criticality of energy-economy-environmental linkages, and would challenge the country’s development, both economically and environmentally
These increasing trends in energy demand are equivalent to an energy/GDP elasticity of the 1.4 on average during 1990-2000 (Nguyen, 2013) Historically, domestic energy resources have been sufficient to meet the economic development requirement; they have also greatly contributed to the country’s export income For example, crude oil and coal accounted for more than 35% of total exports until the late 1990s; this has slightly reduced to