The EU’s energy policies aim to ensure that EU citizens can access secure, affordable and sustainable energy supplies, as well as an environmentally friendly economy, putting the EU at the forefront of renewable energy production, clean and efficient energy technologies, and the efforts to counter global warming. In order to ensure that these goals are achieved, the EU Commission has been working on a number of areas, not only through packages for internal (EU Single Market) strategy, but also through initiatives and agreements beyond the EU to build modern, interconnected and sustainable energy systems. One of these initiatives is the EU – Vietnam Energy Facility which was launched in February 2018 to implement the European Union's Energy Sector Policy Support Programme worth €108 million.
Energy trade relations between Vietnam and the EU will greatly intensify and develop, especially with the signing of the EU-Vietnam Trade Agreement (EVFTA) on 02 December 2015. A chapter in this agreement is titled Non-Tariff Barriers to Trade and Investment in Renewable Energy Generation which is dedicated to sustainable development. Within this provision, there is an expectation from the EU firms to transfer new technologies and techniques to Vietnam whereby Vietnam’s energy strategy can be developed. This initiative is in line with the National Energy Development Strategy of Vietnam, with an outlook to 2050, that sets out several ambitious goals, including improving efficiency in the exploitation and preservation of energy resources and increasing the ratio of consumption of renewable and clean sources.
In the coming few years we are destined to witness whether the EU’s energy policies will positively influence the sustainable energy development in Vietnam, through the energy trade and investment, particularly pursuant to the EVFTA which is envisaged to come into force in 2019. Against this contemporary background, this paper aims to provide the current state of affairs of EU’s Energy Strategy and its external dimension. It then critically assesses the impact of EVFTA’s provisions on energy trade and investment flows from the EU to Vietnam, particularly in relation to renewable energy. As a result, both the prospects and constraints which the EU investors may face in Vietnam are highlighted and based on this analysis, suggestions for reform are provided.
Reference: Nguyen, T.H. & Turksen, U. (2019).The External Effects of the Energy Union Strategy on Trade and Investment in Renewable Energy from the EU to Vietnam: An Initial Assessment. Oil, Gas & Energy Law, 3. www.ogel.orgURL: www.ogel.org/article.asp?key=3834
About authors:
- Prof Dr. Umut Turksen is interested in the practical application of the law in innovation, societal security and development. He has published several articles and books on energy, financial crime and international trade and economic law. He has provided consultancy and training to prestigious international businesses and government projects. These include technical assistance programmes to multinational corporations (e.g. France Telecom, Orange, Equas Ltd, Wilmington Plc.) and international organisations (e.g. Commonwealth, NATO, EUROPOL), professional development training to practitioners and to the EU funded projects (e.g. CEPOL, SecuCities, MUTRAP III, COFFERS, PROTAX, VIRTEU). Prof Turksen is currently leading an EU H2020 project, PROTAX (www.protax-project.eu), which aims to co-create solutions - in collaboration with ministries and law enforcement agencies across Europe - for the prevention and prosecution of tax crimes. Prof Turksen is also a member of the Innovation Caucus (https://innovationcaucus.co.uk).
- Ha Nguyen (LLB, LLM), a partner of Huy&Partners LLC., is interested in cross-border trade and investment, energy, infrastructure construction, competition and State-owned enterprises. He has participated in energy megastructure projects in Vietnam and other ASEAN countries (Nghi Son Refinery & Petrochemicals Plant, Song Hau 1 coal-fired power plant, petroleum production platforms in Vietnam offshore, Petronas RAPID project, Southern Johor, Malaysia) and airport projects in Vietnam (T3 Terminal – Tan Son Nhat Airport, Long Thanh international airport (phase 1)). He has also published a few articles on Vietnam oil and gas sector, renewable energy, State-owned enterprises privitisation and competition.
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