Vietnam Renewable Energy Industry: Powering a Cleaner Future

Summary

The Vietnam renewable energy sector is emerging as one of the fastest-growing markets in Asia. Once dependent on coal and hydropower, Vietnam now ranks 2nd in ASEAN and 23rd globally for renewable-energy generation. Renewable sources such as solar and wind accounted for 27 % of the nation’s total installed capacity at the end of 2021.

The country produced over 3 billion kWh per month from clean energy. It proves that clean and renewable energy in Vietnam is no longer a niche but a key driver of national growth. Moreover, supportive government policies, strong investor interest, and abundant natural resources are making Vietnam a magnet for international renewable energy companies.

Vietnam Renewable Energy Market Overview

By 2021, Vietnam’s total electricity generation capacity reached 76,620 MW, of which wind and solar represented 27 %. The country’s long coastline, over 3,200 km, provides a potential 311 GW in wind-power resources. Therefore, it makes Vietnam one of the most promising renewable energy sources in Vietnam.

Solar energy has also expanded rapidly. From only 86 MW in 2018, installed capacity soared to 16,500 MW in 2020, an increase of 18,600 %. This rapid growth turned Vietnam into the 10th-largest solar-power producer in the world by 2021. Meanwhile, solar farms concentrated in southern provinces like Ninh Thuan and Binh Thuan now contribute heavily to national output.

In addition, wind-power development is accelerating. Over 4,880 MW were approved and installed by 2020, with large offshore projects awaiting new grid capacity and regulatory clearance. Therefore, Vietnam is becoming a regional hub for both onshore and offshore renewable energy projects.

Wind Resources of Vietnam Renewable Energy Industry

Growth Drivers and Investment Environment

Energy demand in Vietnam has grown 6 % per year for the past two decades, making it Southeast Asia’s second-largest electricity consumer. To meet this demand sustainably, the government has issued ambitious Vietnam renewable energy policy frameworks that attract foreign capital.

Key growth factors include:

• Favorable policies: feed-in tariffs (FiT), tax incentives, and land-lease exemptions.
• Full foreign ownership: investors can own up to 100 % of equity in renewable projects.
• Strong partnerships: collaboration with GE Renewable Energy Vietnam, Siemens Gamesa, and regional developers.
• Public-Private Partnerships (PPP) and Build-Operate-Transfer (BOT) models supporting investing in renewable energy in Vietnam.

Moreover, the country hosts specialized consulting firms offering Vietnam renewable energy consulting services to help investors navigate permits, Power Purchase Agreements (PPAs), and environmental approvals.

Challenges and Opportunities

Despite the progress, challenges remain. The renewable energy company in Vietnam must address high project costs, limited transmission capacity, and lengthy approval processes. However, policy reform, digital energy management, and workforce training are improving project bankability.

In addition, the government’s upcoming Renewable Energy Development Plan 2030 aims to raise renewables to 50 % of total capacity by 2045. With such momentum, Vietnam offers abundant opportunities for foreign investors, project developers, and renewable energy companies in Vietnam.

Why Vietnam Matters in Asia’s Energy Transition

Vietnam’s progress sets a benchmark for the Asia-Pacific renewable-energy market. Moreover, the country’s stability, incentives, and diverse resource base make it a preferred destination for investors seeking sustainable returns.

In addition, local and global players, from GE Renewable Energy Vietnam to independent solar developers, are shaping the country into a clean-energy innovation hub.

Therefore, Vietnam is no longer just catching up; it is leading Southeast Asia’s clean-energy transition, combining policy, technology, and investment to power a greener future.