Vietnam’s economic growth has been incredible and along with that the country’s energy demand has sustained a double-digit rate, which is great potential for the United States and Vietnam to boost energy cooperation and a tremendous opportunity for US companies, stated Assistant Secretary of State for Energy Resources Francis R. Fannon.
Assistant Secretary of State for Energy Resources Francis R. Fannon. Photo: Minh Tuan
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During his stay in Vietnam, he met with several Vietnamese government agencies, including the Ministries of Industry and Trade, of Foreign Affairs and state-owned energy giant PetroVietnam.
The US and Vietnam had positive discussions on possible collaboration on activities under the Asia EDGE (Enhancing Development and Growth through Energy) initiative to support the implementation of sound electricity and natural gas resources, including liquefied natural gas (LNG), renewable energy, and energy efficient technologies, as discussed at the US-Vietnam Energy Security Dialogue, the US Embassy in Hanoi said in a statement.
“We advanced broader discussions further to move beyond the discussion to action. We want to see meaningful investment [in Vietnam]. I came to Vietnam because of the criticality that Vietnam plays as a partner. Vietnam has extended its arms to work with us,” Mr. Fannon said, adding that he was “pleased” with the current trajectory.
During his visit to Vietnam, Mr. Fannon and PetroVietnam celebrated the first shipment of US sourced crude oil, which will facilitate Vietnam in diversifying its import sources, thereby improving its energy security.
US capital on standby to flow into Vietnam
Mr. Fannon stressed that one purpose of his trip was to catalyze US investment in Vietnam’s energy sector as a number of American companies have invested and are deploying large-scale projects in Vietnam.
“US capital has been waiting to flow into Vietnam,” he said.
The official tipped that GE in April signed a statement of intent by GE to look into battery storage deployment technology in Vietnam. Meanwhile, AES, which has invested in a coal-fired power plant in Vietnam, is working on a proposal on LNG, about which Mr. Fannon said he was upbeat.
The US stands ready to support Vietnam in perfecting the legal framework for the energy sector as well as building infrastructure for importing LNG, he said.
Advancing energy pillar in Indo-Pacific strategy
According to the head of the State Department’s Bureau of Energy Resources, energy has been playing an increasingly important role in the US’s foreign policy thanks to the country’s energy abundance. The US aims to support its allies and partner to in energy security.
The US has become the largest oil and gas producer and the third largest LNG exporter in the world, jumping from the 15th position in 2016.
Meanwhile, the Indo-Pacific region will account for 60% of the world’s energy demand growth by 2040, said Mr. Fannon, who leads seven different federal agencies involved under Asia EDGE.
As the US is headed for the one-year anniversary of the launch of the Indo-Pacific strategy, and Mr. Fannon came to Vietnam because of the country’s importance.
Vietnam will take over the rotating chairmanship of the ASEAN in 2020 from Thailand, to which Mr. Fannon paid a visit after Vietnam.
“The United States’ growth in oil production is opening opportunities to establish new trading relationships globally. Particularly as the United States emerges as a secure, reliable and competitive source of oil supplies,” the official said in a teleconference on June 21.
“We really leave it to Vietnam to determine the future trajectory of its imports of US supplies. These will be commercial decisions informed by the market conditions and the market participants, but we certainly welcome the important role that U.S. companies play in this regard,” he added.
Mr. Fannon boasted that US companies bring “the best technology, the best innovation, the best health, safety and environmental records. They operate with the utmost, with transparency. And critically important here, they respect the sovereignty of the nations in which they operate.”
