{"id":26221,"date":"2026-10-27T15:35:40","date_gmt":"2026-10-27T08:35:40","guid":{"rendered":"https:\/\/b-company.jp\/?p=26221"},"modified":"2026-11-03T15:36:24","modified_gmt":"2026-11-03T08:36:24","slug":"understanding-vietnams-energy-landscape-basic-statistics-and-promising-opportunities","status":"publish","type":"post","link":"https:\/\/b-company.jp\/vi\/understanding-vietnams-energy-landscape-basic-statistics-and-promising-opportunities\/","title":{"rendered":"T\u00ecm hi\u1ec3u b\u1ee9c tranh n\u0103ng l\u01b0\u1ee3ng Vi\u1ec7t Nam: Th\u1ed1ng k\u00ea c\u01a1 b\u1ea3n v\u00e0 c\u01a1 h\u1ed9i \u0111\u1ea7u t\u01b0"},"content":{"rendered":"

\"B&Company-Vietnam<\/a><\/p>\n

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B&Company is the first Japanese company specializing in market research and investment consulting in Vietnam since 2008.<\/em><\/p>\n

This article was originally written in English. To make our insights accessible to a wider audience, translated versions are provided using AI translation technology. For the latest updates or more detailed information, please also refer to the original English version.<\/em><\/p>\n

Although we strive to ensure the accuracy of the original information, please check separately for each information. Interpretations and future prospects are the personal opinions of each researcher. <\/p>\n<\/div>\n\t

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Driven by expanding demand, the transition to a more balanced power system is advancing, with the revised PDP8 serving as the framework. Wind, solar, and gas will play larger roles, while transmission reinforcement, energy storage, and LNG infrastructure development will support stable operations. Private capital is re-entering the market through power purchase agreements (PPAs) and platform transactions, but success hinges on credible scheme design, clear licensing, and flexible grid access.<\/p>\n

Basic Statistics<\/strong><\/h2>\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0Indicators<\/strong><\/td>\nUnit<\/strong><\/td>\n\u00a02020<\/strong><\/td>\n\u00a02021<\/strong><\/td>\n\u00a02022<\/strong><\/td>\n\u00a02023<\/strong><\/td>\n\u00a02024<\/strong><\/td>\n<\/tr>\n
\u00a0Generation Capacity<\/td>\nGW<\/td>\n\u00a069.1<\/td>\n\u00a076.6<\/td>\n\u00a077.8<\/td>\n\u00a080.6<\/td>\n\u00a082.4<\/td>\n<\/tr>\n
\u00a0Power Generation<\/td>\nBillion kWh<\/td>\n\u00a0247<\/td>\n\u00a0268<\/td>\n\u00a0271<\/td>\n\u00a0281<\/td>\n\u00a0309<\/td>\n<\/tr>\n
\u00a0Coal-fired power<\/td>\n%<\/td>\n\u00a050<\/td>\n\u00a044<\/td>\n\u00a039<\/td>\n\u00a046<\/td>\n\u00a050<\/td>\n<\/tr>\n
\u00a0Hydroelectric<\/td>\n%<\/td>\n\u00a030<\/td>\n\u00a029<\/td>\n\u00a035<\/td>\n\u00a029<\/td>\n\u00a029<\/td>\n<\/tr>\n
\u00a0Renewable Energy<\/td>\n%<\/td>\n\u00a05<\/td>\n\u00a011<\/td>\n\u00a013<\/td>\n\u00a014<\/td>\n\u00a013<\/td>\n<\/tr>\n
\u00a0Other<\/td>\n%<\/td>\n\u00a016<\/td>\n\u00a015<\/td>\n\u00a013<\/td>\n\u00a011<\/td>\n\u00a09<\/td>\n<\/tr>\n
\u00a0Average Retail Electricity Price (excluding VAT)<\/td>\nVND\/kWh<\/td>\n\u00a01,864<\/td>\n\u00a01,864<\/td>\n\u00a01,864<\/td>\n\u00a02,007<\/td>\n\u00a02,103<\/td>\n<\/tr>\n
\u00a0Electric Power Sector FDI Inflows<\/td>\nBillion USD<\/td>\n\u00a05.2<\/td>\n\u00a08.0<\/td>\n\u00a02.3<\/td>\n\u00a02.4<\/td>\n\u00a01.4<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Source: General Statistics Office<\/p>\n

Regulation<\/strong><\/h2>\n

The electricity sector is centrally managed through Power Development Plans (PDPs). The latest version is the revised PDP8 through Decision 768\/Q\u0110-TTg dated April 15, 2025. This revision maintains the 2050 net-zero target while raising wind power targets (onshore\/coastal 26-38 GW by 2030, offshore approximately 17GW), revising LNG introduction timelines, restricting new coal-fired power plants, and prioritizing grid expansion and energy storage.<\/p>\n

Overall, the regulatory environment is in transition. The government balances investment incentives (opening ownership, public-private partnerships (PPP model), clear planning via PDP8) with state oversight (maintaining control over critical infrastructure and pricing). Recent legislation has strengthened alignment with international practices (e.g., grid access, wholesale electricity markets) and expanded private sector participation. Furthermore, the 2020 and 2021 amendments to the Investment Law and Enterprise Law have advanced procedural simplification and regulatory easing, benefiting energy investors.<\/p>\n

However, overall, investors remain confused by unclear and frequently changing policies. Progress in separating the roles of generation, purchase, and distribution at the Electricity Corporation (EVN) has been slow, and regulations concerning Direct Power Purchase Agreements (DPPA) and electricity pricing mechanisms remain in the pilot phase. The lack of transparent mechanisms for transmission grid connection approvals and output curtailment compensation, coupled with overlapping authorities among the Ministry of Industry and Trade, EVN, and local governments, creates uncertainty in project development and financial planning.<\/p>\n

While bureaucratic barriers and challenges regarding PPA bankability remain, the overall direction aims to foster a more investor-friendly environment to meet the country’s massive energy development needs. As Vietnam pursues its 2050 net-zero target, further regulatory updates are planned, including the enactment of a Renewable Energy Law and the pilot launch of a carbon pricing mechanism in 2025. These are expected to provide investors with clearer guidance and incentives aligned with market mechanisms.<\/p>\n

Market Overview<\/strong><\/h2>\n

The energy market has grown rapidly in terms of generation capacity, rising from 49 GW in 2018 to 82 GW in 2024 (an annual growth rate of 9%). This growth was driven by significant expansions in renewable energy (solar and wind) and new gas-fired power plants. Notably, the renewable energy boom succeeded, increasing from 3.4 GW in 2018 to 21.4 GW in 2024, accounting for approximately 26% of total capacity.<\/p>\n

Meanwhile, electricity demand is growing at an annual rate of 10%[1]<\/a>. Reflecting this robust production expansion, the government forecasts electricity consumption will continue double-digit growth through 2030.<\/p>\n

Installed Generation Capacity – Vietnam Energy sector
\n\"Vietnam<\/p>\n

Electricity demand is primarily driven by manufacturing, which consumes over 50% of power (households approx. 31%, commercial approx. 12%)[2]<\/a>. With nationwide electrification essentially complete, current demand growth stems from new manufacturing facilities and urbanization. However, as living standards rise, supply occasionally struggles to keep pace. In 2023, record demand growth in the north and reduced hydroelectric output led to power shortages and planned blackouts. Ensuring energy security and stable electricity supply has become a top priority for both planners and investors.<\/p>\n

Solar Energy<\/strong><\/h3>\n

Vietnam’s solar power capacity ranks among the highest globally. By the end of 2023, solar power capacity reached approximately 18.6 GW, making it one of the largest in Southeast Asia. Solar power generation amounted to about 26 TWh, accounting for approximately 68% of renewable energy.<\/p>\n

Policies continue to support its expansion. The revised PDP8 reaffirms the 2050 net-zero target, positions solar power as central to the 2030 power mix and aims to strengthen transmission grids and storage. The government requires EVN to purchase surplus rooftop electricity at the previous year’s average power market price.<\/p>\n

Foreign investment remains active, particularly through M&A.<\/p>\n

– ACEN (Philippines) acquired up to 49% of Super Energy’s solar power network (approx. 837 MWp: megawatts peak). This includes the Loc Ninh 1\u20133 Cluster (550 MWp, Binh Phuoc) and the An Giang-Ninh Thuan facility, among others.<\/p>\n

– SP Group (Singapore) established a joint venture with BCG Energy. Initially acquired 61 MWp of rooftop installations in (former) 14 provinces, targeting 500 MWp by 2025.<\/p>\n

– SkyX Solar (VinaCapital) and EDF Renewables (France) are expanding commercial and industrial rooftop facilities, including acquiring 30 MWp from Sungrow’s operational assets. They provide services to corporate customers in multiple provinces.<\/p>\n

Sinenergy’s Ninh Thuan 1 Power Plant (one of Super Energy’s 9 solar projects)<\/strong><\/p>\n

\"Sinenergy's<\/p>\n

Source: Super Energy<\/p>\n

Wind Power<\/strong><\/h3>\n

Onshore\/nearshore wind power expanded rapidly from nearly zero in 2018 to approximately 5GW by the end of 2023. Wind power generated about 12TWh, accounting for approximately 31% of renewable electricity.<\/p>\n

The revised PDP8 raises the target for onshore and nearshore wind toward 2030, while aiming for a phased build-out of offshore wind (6-17GW between 2030 and 2035). During the formulation process up to early 2025, reflecting cost and feasibility, offshore wind and LNG were reduced in the short term, while solar, onshore wind, and energy storage were accelerated. Although the long-term vision for offshore wind remains, multiple international developers suspended their entry into Vietnam’s offshore wind market in 2024.<\/p>\n

Recent major investments include:<\/p>\n

– B&T Quang Binh Onshore Cluster (252 MW, Quang Binh): Commercial operation commenced in October 2021. A joint venture between AMI Renewables (Vietnam) and ACEN (Philippines).<\/p>\n

– BIM Wind (88 MW, Ninh Thuan): Secured approximately $107 million in financing from ADB and JICA in December 2022<\/p>\n

– Van Canh Onshore (143 MW, Binh Dinh): Approval expected in 2025. Led by Nexif Ratch Energy (Singapore\/Thailand)<\/p>\n

– PNE AG offshore proposal (approx. 2,000 MW, Binh Dinh): Under provincial review since 2024. PNE AG (Germany), estimated investment approx. 4.6 billion USD<\/p>\n

Major Players<\/strong><\/h2>\n

The power sector is dominated by the state-owned enterprise EVN. They manage power transmission and distribution and is the sole wholesale purchaser of electricity. Meanwhile, private and foreign-funded IPPs have gained significant market share in power generation. The market structure is gradually becoming more competitive at the generation level, but competition in wholesale and retail remains limited.<\/p>\n

\u00a0Key players in the energy sector<\/strong><\/p>\n\n\n\n\n\n\n\n\n
No<\/strong><\/td>\nCompany<\/strong><\/td>\nCountry<\/strong><\/td>\nEstablished<\/strong><\/td>\nHeadquarters<\/strong><\/td>\nOverview<\/strong><\/td>\n<\/tr>\n
\u00a01<\/td>\nVietnam Electricity Corporation (EVN)<\/td>\nVietnam<\/td>\n\u00a01995<\/td>\n\u00a0Hanoi<\/td>\n100% state-owned, vertically integrated management of power generation and distribution nationwide. Operates the national transmission grid and is the sole purchaser of electricity from all power plants.<\/td>\n<\/tr>\n
\u00a02<\/td>\nVietnam Oil and Gas Group (PetroVietnam)<\/td>\nVietnam<\/td>\n1977<\/td>\nHanoi<\/td>\nState-owned conglomerate responsible for oil and gas production and processing. Subsidiaries: PVEP (upstream exploration), PV Gas (gas pipelines and LNG), PV Power (power generation), BSR (refining)<\/td>\n<\/tr>\n
\u00a03<\/td>\nVietnam Coal and Mineral Industries Group (Vinacomin)<\/td>\nVietnam<\/td>\n\u00a02005<\/td>\nHanoi<\/td>\nState-owned enterprise overseeing coal and mineral mining, and coal-fired power plants. Manages major coal mines (primarily anthracite in Quang Ninh Province) and supplies coal fuel to power plants and industries<\/td>\n<\/tr>\n
\u00a04<\/td>\nVietnam Petroleum Group (Petrolimex)<\/td>\n\u00a0Vietnam<\/td>\n\u00a01956<\/td>\nHanoi<\/td>\nLargest petroleum distributor, dominating the downstream petroleum products market (gasoline, diesel, etc.). Not a power producer. Operates approximately 2,700 service stations nationwide.<\/td>\n<\/tr>\n
\u00a05<\/td>\nTrungnam<\/td>\n\u00a0Vietnam<\/td>\n\u00a02004<\/td>\nHo Chi Minh City<\/td>\nExpanded operations from construction and infrastructure into the energy sector, becoming a pioneer in solar and wind power generation from 2018 to 2021. Invested in large-scale projects including Southeast Asia’s largest solar power plant, Trung Nam Thuan Nam Solar Farm (450MW), and the Ea Nam Wind Power Plant (Dak Lak Province, 400MW).<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Source: B&Company Analysis<\/p>\n

Market Trends<\/strong><\/h2>\n

Rapid Progress in the Renewable and Clean Energy Transition: From 2019 to 2021, feed-in tariffs spurred tens of billions of dollars in private investment, leading to the rapid construction of solar and wind power plants. In 2022, Vietnam became Southeast Asia’s top solar power capacity holder, with renewable energy reaching 50% of electricity generation under favorable conditions[3]<\/a>. This rapid shift aligns with the government’s PDP8 policy to phase out coal by 2050 and transition to renewable energy and gas. For investors, opportunities lie in solar, wind (offshore wind has estimated technical potential of 600GW[4]<\/a>), battery storage, and related supply chain businesses. However, the rapid expansion of renewable capacity has outpaced grid development, leading to curtailment of solar and wind output due to insufficient transmission capacity. In 2023, many completed solar and wind projects struggled to secure power purchase agreements (PPAs) and grid connections, leading the industry into a stagnation period. In response, authorities plan to expand the grid and introduce new pricing mechanisms to facilitate the operation of stalled projects.<\/p>\n

Infrastructure Investment: Investment is being strengthened to address shortages in power grids and fuel infrastructure. The government estimates that 15 billion USD is needed for power grid expansion by 2030. A priority is the construction of a new 500kV transmission line connecting regions rich in renewable energy (Central and Southern Vietnam) with high-demand areas in the North and Ho Chi Minh City. For energy import and overseas trade infrastructure, Thi Vai LNG (Ba Ria-Vung Tau) began operations in July 2023 after Vietnam’s first LNG import and was officially inaugurated in October of the same year. Meanwhile, Son My LNG (Binh Duong) aims to commence commercial operations in 2027. Additionally, Vietnam is expanding electricity imports from Laos, targeting approximately 3,000 MW by 2025. Regarding energy cooperation between Vietnam and Singapore, renewable energy exports to Singapore have progressed from a Memorandum of Understanding (MoU) to the technical working stage. The PDP8 projects exports of 5-10 GW by 2035. This infrastructure expansion is creating new business opportunities in transmission facilities, power grid technology, LNG supply, and project finance.<\/p>\n

Read more<\/strong><\/h3>\n

Can factories buy green power directly? Vietnam\u2019s DPPA framework and manufacturing investment<\/a><\/p><\/blockquote>\n