Vietnam Renewable Energy Development has accelerated rapidly over the past decade. In 2023, the country reached a renewable power generation capacity of 46,012 megawatts (MW), making it one of the regional leaders in clean energy growth. Among the highlights, solar photovoltaic (PV) capacity reached 18.6 GW, contributing to 1.2% of the global total. That year, solar energy generated 25.7 million kWh, supplying 9.2% of Vietnam’s total electricity production and imports. When combined with hydropower and wind, clean energy sources supplied 42% of the nation’s electricity. This figure is well above the global average of 39%.
Government Strategy and Future Plans of Vietnam Renewable Energy Development
Vietnam’s commitment to clean energy is guided by the Power Development Plan VIII (PDP8). This roadmap sets ambitious goals for a green future. By 2030, solar capacity is expected to hit 20,591 MW, and by 2050, it will soar to 189,000 MW, making it the largest electricity source in the country.
Under PDP8, 50% of Vietnam’s installed power capacity will come from solar and wind by 2050, more than double today’s share. Solar alone is projected to make up 34.4% of total power capacity by that time.
Investing in the Transition
To meet its net-zero target by 2050, Vietnam will need massive investments, or an estimated $2.4 trillion between 2024 and 2050. Of this, about $1 trillion will go to demand-side infrastructure, with significant funds also required for carbon capture and storage (CCS) technologies.
Backing this vision is the government’s $135 billion energy strategy, launched in May 2023. It includes major reforms, such as a net-metering scheme to bring solar PV to 50% of residential rooftops. The plan also positions Vietnam to become a power exporter within the next eight years.
Policy Reforms That Deliver Results in Vietnam Renewable Energy Development
Vietnam’s clean energy transformation has been fueled by proactive policy reforms. Since 2017, the government has introduced competitive and incentive-based policies that have attracted a surge of foreign and domestic investment into utility-scale solar projects. Today, Vietnam boasts more than double the utility-scale solar capacity of all other Southeast Asian nations combined, cementing its place as a regional leader.
Read Also: The Revolution of Vietnam Renewable Energy in Construction
Market Momentum and Future Outlook
While solar dominates the conversation, Vietnam is also expanding its wind and hydro power capacity. The overall clean energy sector is expected to maintain strong momentum. Solar installations alone are forecasted to rise from 18.8 GW in 2024 to 20.76 GW by 2029, reflecting a steady CAGR of 2.44%.
This growth opens the door for global investors. With clear policy direction, massive infrastructure needs, and rising energy demand, Vietnam is emerging as a major clean energy investment hub in Asia.
Read Also: Navigating the Expanding Bioenergy Sector in Vietnam: Strategic Insights and Market Trends
Vietnam Renewable Energy Development: The Big Picture
The Vietnam Renewable Energy Development journey is well underway, even though it's still in its early phases. In 2023, Vietnam set records and outpaced global averages in clean energy usage. Now, the challenge is to scale that progress into long-term, sustainable success. With solid government backing, rising investor interest, and a population increasingly demanding cleaner energy, Vietnam is poised to become one of the most dynamic clean energy markets in the world.
