Vietnam’s energy landscape is characterized by rapid economic growth driving energy demand, rich
natural resources supporting diversed energy supply mix, and strong commitment to achieving net
zero by 2050. Ranked No. 56 in the 2023 World Energy Trilemma Index, Vietnam scored relatively
moderate on Energy Security (61.9 – B) and Energy Equity (70.5 – C) , but needed further
improvements on Environmental Sustainability where its score was only 57.7 – D.
Together with its economic success in the past two decades, Vietnam has made significant efforts in
enhancing energy security, with a focus on diversifying energy mix and ensuring sufficient power
supply development to support economic growth. In May 2023, the Government of Vietnam
announced the latest National Power Development Plan No. 8 (“PDP 8”), with an ambitious target to
increase total installed capacity from approximately 80 GW in 2023 to approximately 150 GW by
energy (solar, wind, hydro) accounts for approximately half of total installed capacity, followed by
coal (approximately 20%), and gas (approximately 20%). This will ensure Vietnam’s energy supply to
remain largely self-sufficient and thus independent from imports.
In addressing energy equity, Vietnam has made significant progress in expanding access to electricity,
especially in rural and remote areas. government has implemented programs that promote
affordable energy access, such as the Rural Electrification Program, which helped over 99% of rural
households connect to electricity. Additionally, subsidies for low-income households help to keep
energy costs manageable. Despite these advancements, challenges persist, particularly concerning
the rising costs associated with the transition to renewable energy as well as imported LNG. Ensuring
that energy remains affordable for all, particularly during this transition, will be crucial for Vietnam’s
sustainable economic development.
Vietnam’s commitment to environmental sustainability is reflected in its Nationally Determined
Contributions (NDCs) under the Paris Agreement, where the country aims to achieve net zero
greenhouse gas emissions by 2050. Recent initiatives include favorable Feed-in-Tariffs for renewable
energy to attract private investments, resulting in over 22 GW of wind and solar capacity being
developed by 2024, as well as increasing public investments in transmission capacity (such as the
500kV Circuit 3 transmission line) to evacuate power from new renewable sources. Despite current
success in renewable energy development, Vietnam is still heavily dependent on fossil fuels, including
both coal and gas, to support rapidly growing demand. Further efforts are needed to ensure the
country is ready for net zero emissions by 2050, such as incentive policies for development and
adoption of new energy technologies like energy storage, green hydrogen/ammonia, and carbon
capture/storage.
