High-voltage electricity transmission lines in Vietnam

Vietnam Energy and Power Market

Power Generation and Renewable Energy Transition in Vietnam

Vietnam’s energy and power sector is undergoing a major transition, driven by industrial growth, urbanization, electrification and the country’s commitment to a lower-carbon energy mix.

The Government’s Power Development Plan VIII (PDP8), approved under Decision No. 500/QĐ-TTg dated May 15, 2023, sets the direction for power-source development, transmission and the energy transition through 2030, with a vision to 2050. Under PDP8, Vietnam plans to expand renewable generation while reducing reliance on coal-fired power. By 2030, the plan provides for approximately 4,100 MW of additional solar capacity, including rooftop solar, and 17,890 MW of wind power.

The implementation plan for PDP8, approved in April 2024, further identifies project pipelines and capacity targets by technology and region. For international suppliers and investors, opportunities extend beyond power generation to transmission and distribution equipment, substations, smart-grid systems, energy management, storage, operations and maintenance, and project-development support.

Vietnam’s electricity market is also evolving. The development of direct power purchase agreements (DPPA) and electricity-tariff reforms are expected to support greater private-sector participation and improve the commercial framework for renewable and conventional power projects. Foreign companies should assess licensing, grid-connection requirements, procurement routes, local partnership needs and technical-service capability before committing to the market.