Over the course of two decades Vietnam emerged as an important oil and natural gas producer in Southeast Asia. Vietnam has boosted exploration activities, allowed for greater foreign company investment and cooperation in the oil and gas sectors, and introduced market reforms to support the energy industry. These measures have helped to increase oil and gas production, but the country’s rapid economic growth, industrialization, and export market expansion have spurred domestic energy consumption. The country’s real gross domestic product (GDP) grew by an average of 7.2 percent per year in the last decade.
EIA estimates that about a third of Vietnam’s energy consumption is from traditional biomass and waste. About 70 percent of the country’s population lives in rural areas, and agriculture accounts for a sizeable portion of the country’s GDP. Nearly 60 percent of the biomass is consumed by households, and Vietnam is currently promoting greater use of biofuels to replace some of the fossil fuel consumption. Nearly one-quarter of Vietnam’s domestic energy consumption comes from oil, with hydropower (10 percent), coal (20 percent), and natural gas (11 percent) supplying the remainder. As the country continues industrializing and installing greater power capacity, Vietnam is seeking to develop all its natural resources.
Over the course of two decades Vietnam emerged as an important oil and natural gas producer in Southeast Asia. Vietnam has boosted exploration activities, allowed for greater foreign company investment and cooperation in the oil and gas sectors, and introduced market reforms to support the energy industry. These measures have helped to increase oil and gas production, but the country’s rapid economic growth, industrialization, and export market expansion have spurred domestic energy consumption. The country’s real gross domestic product (GDP) grew by an average of 7.2 percent per year in the last decade.
EIA estimates that about a third of Vietnam’s energy consumption is from traditional biomass and waste. About 70 percent of the country’s population lives in rural areas, and agriculture accounts for a sizeable portion of the country’s GDP. Nearly 60 percent of the biomass is consumed by households, and Vietnam is currently promoting greater use of biofuels to replace some of the fossil fuel consumption. Nearly one-quarter of Vietnam’s domestic energy consumption comes from oil, with hydropower (10 percent), coal (20 percent), and natural gas (11 percent) supplying the remainder. As the country continues industrializing and installing greater power capacity, Vietnam is seeking to develop all its natural resources.
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