Southeast Asia’s Renewable Energy Ambition: The Case of Vietnam - S. Rajaratnam School of International Studies (RSIS)
Published December 21, 2025
Southeast Asia’s Renewable Energy Ambition: The Case of Vietnam
Vietnam is emerging as a significant player in Southeast Asia's renewable energy landscape, driven by the need for sustainable development and energy security. The country's commitment to renewable energy sources is evident in its ambitious targets and policies aimed at enhancing its energy mix, reducing greenhouse gas emissions, and improving energy access for its population. This article explores Vietnam's renewable energy initiatives, the challenges it faces, and the potential for growth in this sector.
Current Energy Landscape
Vietnam's energy consumption has been on a steady rise, fueled by rapid economic growth and an increasing population. In 2020, the country's total electricity generation reached approximately 250 terawatt-hours (TWh), with fossil fuels accounting for about 82% of the energy mix. Coal-fired power plants constitute a significant portion of this figure, raising concerns about environmental sustainability and energy security.
In response to these challenges, the Vietnamese government has set ambitious goals to diversify its energy sources. The Power Development Plan (PDP) VII, which covers the period from 2016 to 2025, aims to increase the share of renewable energy in the national energy mix to 21% by 2030. This target includes a significant expansion of solar and wind energy capacity, which has been identified as key components in achieving the country's renewable energy ambitions.
Solar Energy Initiatives
Vietnam's solar energy sector has witnessed remarkable growth in recent years. As of the end of 2020, the country had installed over 19 gigawatts (GW) of solar power capacity, making it one of the leading nations in Southeast Asia for solar energy development. The government has implemented various incentives, such as feed-in tariffs and tax exemptions, to encourage investment in solar energy projects.
One of the most notable projects is the Binh Thuan Solar Park, which has a capacity of 1.5 GW and is among the largest solar farms in Southeast Asia. Additionally, numerous rooftop solar installations have been developed across the country, contributing to the growing capacity and promoting energy self-sufficiency among households and businesses.
Wind Energy Expansion
In tandem with solar energy, wind energy has also gained traction in Vietnam. The country has significant potential for both onshore and offshore wind projects, with estimates suggesting that the total wind energy potential could reach up to 600 GW. As of 2020, Vietnam had approximately 600 megawatts (MW) of installed wind power capacity, with plans to increase this figure substantially in the coming years.
The government has set a target of achieving 6 GW of wind power capacity by 2025, with further expansion planned for subsequent years. The development of offshore wind farms is particularly promising, given Vietnam's extensive coastline and favorable wind conditions. Several projects are currently in the pipeline, including the 3.4 GW La Gàn Offshore Wind Farm, which is expected to play a crucial role in meeting the country's renewable energy goals.
Regulatory Framework and Policy Support
The Vietnamese government has recognized the importance of a supportive regulatory framework to facilitate the growth of renewable energy. In addition to the PDP VII, the government has introduced various policies and regulations aimed at promoting investment in renewable energy. The feed-in tariff scheme, which guarantees a fixed price for electricity generated from renewable sources, has been a significant driver of solar and wind energy development.
Furthermore, the government has established the Renewable Energy Development Strategy (REDS) to provide a long-term vision for the sector. This strategy outlines key objectives, including increasing the share of renewable energy in the national energy mix, enhancing energy efficiency, and promoting technology transfer and innovation.
Challenges to Renewable Energy Development
Despite the progress made in Vietnam's renewable energy sector, several challenges remain. One of the primary issues is the integration of renewable energy into the national grid. The existing grid infrastructure is often inadequate to accommodate the variable nature of solar and wind energy, leading to concerns about grid stability and reliability.
Additionally, regulatory hurdles and bureaucratic inefficiencies can hinder the timely implementation of renewable energy projects. Investors often face challenges in securing permits and navigating the complex approval processes, which can delay project timelines and increase costs.
Financing is another critical challenge. While there has been a growing interest from domestic and international investors, access to affordable financing remains a barrier for many renewable energy projects. The government has recognized the need for innovative financing solutions and is exploring options such as green bonds and public-private partnerships to attract investment.
Future Prospects
Looking ahead, Vietnam's renewable energy sector holds significant potential for growth. The government's commitment to achieving its renewable energy targets, coupled with the increasing demand for clean energy, creates a favorable environment for investment and development. The country's strategic location, abundant natural resources, and supportive policy framework position it as a leader in the renewable energy transition in Southeast Asia.
As Vietnam continues to expand its renewable energy capacity, collaboration with international partners and stakeholders will be essential. Knowledge sharing, technology transfer, and investment from foreign entities can accelerate the development of renewable energy projects and contribute to achieving the country's sustainability goals.
Conclusion
Vietnam's renewable energy ambition reflects a broader trend in Southeast Asia, where countries are increasingly recognizing the importance of sustainable energy sources. With its ambitious targets, supportive policies, and growing capacity in solar and wind energy, Vietnam is well on its way to becoming a key player in the renewable energy landscape. While challenges remain, the commitment to a greener future presents opportunities for innovation, investment, and collaboration in the region.
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