Vietnam is emerging as a regional winner as a tempestuous 2020 becomes history and the world looks ahead to 2021.
On December 14, the United States and Japan issued a joint statement in support of Vietnam’s energy transition through LNG utilization. The statement made it clear that liquified natural gas (LNG) was key to ensuring Vietnam’s energy security, while reducing air pollution and assisting in transitioning to a low-carbon future.
While energy demand is down globally – by approximately 5% in 2020, according to the International Renewable Energy Agency (IRENA) – renewable energy rollout will continue to grow this year, and nowhere is that more true than in Vietnam, which is undergoing an offshore-wind bonanza.
COVID-19 has slowed global trade and disrupted supply chains, starting in China – the “factory of the world” – and resulting in a ripple effect as businesses struggle to source raw inputs. This has had short-term impacts on Vietnam, like everywhere else, but the country is strongly positioned for a rebound as economies restart.
After years of strong growth, the renewable energy sector is set to take a breather – and likely into next year. Immediate demand for energy has collapsed, oil prices have fallen in tandem and capital markets are in turmoil and therefore unlikely to support capital intensive projects.
As world-wide business activity comes to a standstill and Covid-19 dominates global headlines, it is easy to overlook other developments and business deals that are still ongoing.
As Covid-19 dominates global headlines, it is easy to lose track of other news and developments. Here are some of the issues that Access Asia Group has been following in Southeast Asia under the shadow of Covid-19.
It is too soon to say whether Vietnam – or indeed anywhere – has dodged the covid-19 bullet. But, in terms of infection caseloads, the nation of some 90 million is containing numbers better than anywhere in the region on a per-capita basis.