Energy Shocks and Energy Security: Lessons for Vietnam

By Thang Do

Recent geopolitical tensions, particularly in the Middle East, are once again exposing the vulnerability of global energy systems. For Vietnam—an increasingly energy-importing economy—these developments highlight a deeper issue: energy security is no longer just about ensuring supply, but about managing exposure to volatility.

Short-term emergency measures can help stabilise the situation. These include releasing fuel reserves, allowing regulatory flexibility, and improving market coordination. However, such measures mainly buy time—they do not address underlying structural risks.

The more pressing challenge lies in the design of the energy system itself. Countries that rely heavily on imported fuels, with limited reserves and infrastructure constraints, are more exposed to price shocks and supply disruptions. At the same time, strong links to international energy markets can transmit volatility directly into domestic economies, affecting both industrial competitiveness and macroeconomic stability.

For Vietnam, three priorities stand out.

First, strengthen short-term resilience.

This includes diversifying fuel supply sources, building strategic reserves, and reducing exposure to sudden external shocks through long-term contracts and improved supply management.

Second, build a more flexible and reliable power system.

As renewable energy expands, system stability increasingly depends on transmission networks, storage capacity, and market design—not just generation. Without these supporting elements, rapid renewable growth may not translate into a stable or efficient system.

Third, align energy policy with industrial strategy.

Globally, countries are shifting from cost optimisation to risk management—seeking to reduce dependence on external supply chains while strengthening domestic capabilities in key energy technologies. Vietnam can benefit by identifying strategic segments where it can play a stronger role in emerging energy value chains.

Ultimately, the most critical factor is institutional. Energy security in a volatile world requires effective coordination across energy, industry, trade, and national security domains. The challenge is not only to expand supply, but to build a system that is resilient, adaptable, and less exposed to external shocks.

The original Vietnamese article featuring an interview with a VPS expert can be accessed here.can be accessed here.