At a recent forum, energy experts underscored the critical role of energy in economic development and the urgent need to accelerate the energy transition process. Ta Dinh Thi, Vice Chairman of the National Assembly’s Committee on Science, Technology, and Environment, emphasised that energy is the backbone of economic activity, national security, and social life. He stressed that the energy sector must grow at a rate 1.5 times higher than GDP to ensure sustainable development, with a target of 10-11% growth to meet production, consumption, and innovation needs.
Vietnam’s commitment to net-zero emissions by 2050 is driving a significant restructuring of its energy system. The country has made remarkable progress in renewable energy, with capacity growing from virtually zero to nearly half of the nation’s total installed power capacity in just a decade. The recently approved Power Development Plan VIII outlines ambitious targets for various energy sources, aiming for a total installed capacity of 183,000 MW by 2030. However, achieving this will require substantial investment, estimated at $136 billion during 2026-2030, presenting both opportunities and challenges for the energy sector.
The energy transition faces several barriers, including inconsistent policies, cumbersome administrative procedures, and financial, technological, and governance risks. Experts at the forum discussed feasible solutions, such as mobilising capital, improving the legal framework, advancing science and technology, promoting digital transformation, and building competitive electricity and carbon credit markets. Thi stressed the need for strong political will, constant innovation, and the participation of the political system, business community, and the entire population to succeed in this transition.
Economist Tran Dinh Thien highlighted Vietnam’s significant progress in renewable energy over the past decade, driven by attractive and stable pricing policies. However, he noted that the rapid development of renewable energy projects has also revealed downsides, such as operational bottlenecks due to inadequate policies and inflexible administration. Thien emphasised the need for a comprehensive package of solutions, long-term strategic thinking, a market-centred approach, and technology as the core to drive sustainable energy development.
Nguyen Quoc Thap, chairman of the Vietnam Oil and Gas Association, pointed out that developing new and renewable energy is a “golden window” for Vietnam. However, challenges remain, such as rapid energy demand growth, lagging transmission and grid connection infrastructure, and inconsistent policies. Thap suggested reforming the electricity pricing mechanism towards greater market orientation and prioritising energy infrastructure investment.
Ha Dang Son, director of the Centre for Energy and Green Growth Research, echoed the importance of prioritising energy infrastructure. He noted that no single electricity technology is optimal and suggested building a balanced power mix with synchronised policies for generation, storage, transmission, and consumption.
The implications for markets are significant. The energy transition presents both opportunities and challenges for state-owned and private enterprises, large corporations, and small- and medium-sized businesses. The need for substantial investment and the development of new technologies and infrastructure will drive market growth and innovation. However, inconsistent policies and regulatory barriers could hinder market development and slow the energy transition process.
The forum highlighted the need for a comprehensive and coordinated approach to the energy transition, involving all stakeholders and addressing the challenges and opportunities presented by this critical process. The energy sector’s development will play a pivotal role in shaping Vietnam’s economic future and its ability to meet the demands of a rapidly changing global energy landscape.