The Socio-economic Implications of Coal Transition in ASEAN

Alloysius Joko Purwanto and Alloysius Joko Purwanto
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Alloysius Joko Purwanto: Economic Research Institute for ASEAN and East Asia (ERIA)

No 2026-RPR-03 in Books from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: This report examines the prospects for coal transition in Viet Nam. Despite its commitment to achieving net-zero emissions by 2050, coal continues to play a central role in the country’s energy mix. The Just Energy Transition Partnership (JETP), launched in 2022, aims to reduce coal dependency and accelerate renewable energy development, although implementation challenges remain. The analysis explores three key socio-economic dimensions. First, while coal phase-out is likely to result in job losses, the expansion of renewable energy presents longer-term employment opportunities. Second, although the transition may entail short-term economic costs, it also offers potential gains in sectors such as manufacturing, electricity, and tourism. Third, the environmental and public health benefits of reducing coal use are significant, though issues such as land subsidence require further examination. The report finds that coal mining companies are currently better prepared for transition than power plant operators. Based on these insights, it recommends prioritising worker reskilling programmes, developing gradual retirement pathways for coal assets, and strengthening institutional co-ordination. Viet Nam’s experience could provide a useful model for managing just energy transitions in other developing economies.

Date: 2026
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