Shifting to clean energy
In 2025, Vietnam sets a national economic growth target of over 8% and double-digit growth from 2026. This would require 1.5 times more electricity.
To ensure national energy security, Vietnam has implemented a series of policies and strategic plans, most notably the adjustment of the VIII Power Plan. The adjusted VIII power plan has increased the total power source capacity to about 183-236 GW (Gigawatts) by 2030, in order to meet the increasing demand for electricity of the rapidly developing economy. According to Mr. Hoang Quang.
The Department - Vice President of the Vietnam Federation of Commerce and Industry, as of March 2025, the Government has issued a series of policy mechanisms such as Decree No. 57/2025 - Regulations on the mechanism for direct electricity purchase and sale between renewable energy generation units and large electricity users, Decree No. 58/2025 - detailing the Electricity Law on the development of renewable energy and new energy.
These policies have created a solid legal corridor for the plan to implement greening and shifting to using clean energy of businesses. The above policies have contributed significantly to helping businesses be more proactive and bold in the roadmap to implement green and sustainable development strategies" - Mr. Hoang Quang Phong assessed.
Although many mechanisms and policies have been issued, the implementation of projects, especially related to renewable energy, still faces many difficulties. Policy barriers still cause investors to feel hesitant.
According to Mr. Nguyen Anh Tuan - Vice President and General Secretary of the Vietnam Energy Association, the process of promoting the development of renewable energy in Vietnam still faces many challenges related to investment approval, human resources, technology and market. Currently, the growth of renewable energy sources is slowing down.
Attracting foreign investment and renewable energy sector
Speaking with Lao Dong, Mr. Hong Sun - Honorary President of the Korean Business Association in Vietnam (KoCham) assessed that Vietnam is actively developing renewable energy to meet rapidly increasing electricity demand and the need to solve climate change.
The Government is pursuing a policy of expanding the market share of renewable energy production, focusing on solar and wind power production, while making efforts to attract foreign investment. However, there are still problems that need to be addressed such as institutional shortages, infrastructure shortages and lack of technological capacity.
To successfully develop renewable energy in Vietnam, Mr. Hong Sun recommended that Vietnam needs to set clear, long-term policy goals and maintain consistency. Like Germany's energy transition policy, it is important to set a long-term vision and specific goals.
In particular, it is necessary to create a transparent market and legal environment, so that investors can assess the viability of businesses and make investment decisions from a long-term perspective. It is important to establish clear standards and procedures, such as preferential electricity purchase prices (FIT) and power purchase contracts (PPA), and streamline the business licensing process.
To achieve sustainable growth in the renewable energy industry, it is necessary to enhance our own technology development capacity and develop specialized human resources, Mr. Hong Sun recommended.
To overcome the continuous situation of renewable power sources and ensure stable power supply, Mr. Hong Sun said that Vietnam needs to expand the power grid infrastructure and apply smart grid technology. Expand renewable energy receiving capacity by building energy storage systems and improving power grid management systems.
