Vietnam Renewable Energy Market Size, Share, Trends and Forecasts 2030

Introduction

The Vietnam Renewable Energy Market is experiencing significant momentum as the world transitions toward cleaner, more sustainable sources of energy. Governments, industries, and consumers across Vietnam are embracing renewable energy to reduce greenhouse gas emissions, meet climate goals, and achieve long-term energy security. Renewable energy encompasses various sources including solar, wind, hydroelectric, biomass, and geothermal power.

Driven by favorable policy frameworks, technological advancements, and declining costs, renewable energy is becoming increasingly competitive with conventional fossil fuels in Vietnam. The integration of renewables into national energy grids is transforming the region’s power landscape and promoting decentralization of energy production. Additionally, energy independence and the ability to mitigate fuel price volatility are compelling reasons for governments in Vietnam to accelerate investments in this sector.

As countries pursue net-zero targets and energy diversification, Vietnam is positioning itself as a key player in the global renewable energy shift through domestic manufacturing, international partnerships, and large-scale project developments.

Growth Drivers For The Vietnam Renewable Energy Market

• Government Policy Support and Climate Commitments
  Robust policy frameworks, including feed-in tariffs, renewable purchase obligations (RPOs), and green energy subsidies, are propelling renewable energy investments in Vietnam. Climate accords and net-zero commitments further strengthen the demand for clean energy.
• Declining Costs of Renewable Technologies
  The cost of generating electricity from solar, wind, and other renewables has declined significantly in Vietnam due to economies of scale, technological improvements, and enhanced manufacturing efficiencies. This is making renewables increasingly competitive with fossil fuels.
• Growing Demand for Energy Security and Independence
  The geopolitical and economic risks associated with importing fossil fuels have led Vietnam to prioritize renewable sources as a means to ensure domestic energy resilience and reduce dependency on foreign energy supplies.
• Corporate Sustainability Initiatives
  Large corporations operating in Vietnam are committing to 100% renewable energy sourcing through Power Purchase Agreements (PPAs) and green energy procurement strategies, creating additional demand for renewable projects.
• Grid Modernization and Decentralized Energy Models
  The adoption of smart grids, energy storage solutions, and distributed energy resources is enabling better integration of renewable energy into Vietnam’s power systems, especially in rural and underserved areas.
  
  

Market Trends In The Vietnam Renewable Energy Market

• Rise of Hybrid Renewable Systems
  Hybrid projects combining solar, wind, and storage are gaining traction in Vietnam as they offer greater energy reliability and reduce intermittency challenges associated with individual technologies.
• Offshore Wind Expansion
  Coastal and island regions in Vietnam are exploring offshore wind installations due to their higher capacity factors and less land-use impact. This segment is expected to see major investments and policy support in the near term.
• Decentralized Solar Installations and Rooftop PV Growth
  Residential and commercial rooftop solar projects are on the rise across urban centers in Vietnam. The availability of net metering and financing options is encouraging wider adoption among small-scale consumers.
• Green Hydrogen and Renewable Integration
  Green hydrogen produced from renewable electricity is emerging as a promising vector for decarbonizing industries such as steel, cement, and transportation in Vietnam. Pilot projects and public-private partnerships are already underway.
• Investment in Energy Storage Infrastructure
  As renewable capacity expands, the need for reliable energy storage becomes critical. Vietnam is witnessing increased investment in battery storage systems to balance the grid and ensure uninterrupted supply.
  
  

Challenges In The Vietnam Renewable Energy Market

• Grid Integration and Infrastructure Constraints
  The rapid growth of variable renewable energy sources poses challenges for grid stability and transmission capacity. Vietnam faces the task of upgrading and expanding its grid infrastructure to accommodate new projects.
• Regulatory and Permitting Delays
  Complex approval processes, land acquisition issues, and inconsistent policy enforcement can delay project execution in Vietnam, especially for utility-scale installations.
• Financing Barriers and Investment Risks
  While interest in renewable energy is high, project financing in Vietnam can be hampered by credit risks, high capital costs, and uncertainty in returns, particularly in emerging markets or rural regions.
• Land and Resource Conflicts
  Competition for land and natural resources, particularly in densely populated or ecologically sensitive regions of Vietnam, can lead to opposition and delay in renewable energy projects.
• Intermittency and Reliability Issues
  Solar and wind resources are weather-dependent, and without adequate storage or hybrid solutions, this can create reliability issues in Vietnam’s power supply, especially during peak demand.
  
  

Vietnam Renewable Energy Market Size And Forecast

The Vietnam Renewable Energy Market is projected to grow at a compound annual growth rate (CAGR) of approximately 9% to 12% between 2024 and 2030. Solar and wind power are expected to dominate new capacity additions, followed by emerging segments like green hydrogen and energy storage. By 2030, renewable energy could account for over 50% of Vietnam’s total energy mix, marking a substantial shift from conventional energy dependency.

Future Outlook

The future of renewable energy in Vietnam is bright, driven by aggressive climate targets, rising investor interest, and evolving consumer preferences. National and subnational governments are expected to continue incentivizing large-scale and decentralized renewable projects through policy tools and market-based mechanisms.

Emerging trends such as digitalization of the energy sector, AI-based energy forecasting, and energy-as-a-service (EaaS) models will play a key role in optimizing renewable energy usage. Technological breakthroughs in battery storage, floating solar, and offshore wind will open new frontiers for deployment.

With a strong push toward indigenization and local manufacturing, Vietnam is set to become a leading regional hub for renewable energy innovation, job creation, and sustainable development. Strategic collaborations between public and private stakeholders will be essential to overcome remaining bottlenecks and ensure inclusive energy access across all segments of society.

Vietnam Renewable Energy Market Segmentation

By Type:

• Solar Energy
• Wind Energy
• Hydropower
• Biomass Energy
• Geothermal Energy

By Application:

• Residential
• Commercial
• Industrial
• Utility

By End-Use Industry:

• Power Generation
• Heating and Cooling
• Transportation
• Agriculture

By Technology:

• Photovoltaic Systems (PV)
• Concentrated Solar Power (CSP)
• Onshore Wind
• Offshore Wind
• Hydroelectric Dams
• Anaerobic Digestion

By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa
  
  

Leading Players

• Siemens Gamesa Renewable Energy
• Vestas Wind Systems
• First Solar
• Enel Green Power
• NextEra Energy
• Orsted A/S
• Canadian Solar
• SunPower Corporation
• GE Renewable Energy
• JinkoSolar Holding Co. Ltd.
  
  

Recent Developments

Enel Green Power launched a new 500 MW hybrid solar-wind project in Vietnam, combining battery storage to improve grid stability and reduce peak load pressures.

Vestas Wind Systems announced a joint venture in Vietnam to develop localized wind turbine production to meet domestic demand and support export opportunities.

First Solar secured long-term supply contracts with utility-scale developers in Vietnam, marking a significant expansion of its thin-film module footprint in the region.

Siemens Gamesa signed a strategic MoU with the government of Vietnam to explore offshore wind projects, targeting an initial capacity of 1 GW by 2030.

JinkoSolar unveiled plans to build a new solar panel manufacturing facility in Vietnam, aligning with national goals to increase local content in renewable projects.

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