Vietnam
Vietnam’s energy transition enters a new phase of rapid power expansion.
Vietnam is building one of Southeast Asia’s fastest-changing power markets, combining rapid renewable deployment with major investment in grids, storage, nuclear and industrial electrification.
Big Picture
Vietnam's electricity demand is being driven by manufacturing, urbanisation, data centres and broader economic growth. The country is therefore pursuing a major expansion of generation capacity rather than simply replacing existing fossil-fuel assets.
The adjusted PDP8 puts much greater emphasis on solar, wind and storage, while also allowing nuclear power to return to the national energy strategy. By 2030, Vietnam plans to have 183–236 GW of domestic power capacity, excluding capacity dedicated to exports.
The key question is whether generation, transmission and investment can develop at the same pace.
Policy & Targets
Power Development Plan VIII — adjusted 2025
Vietnam's adjusted PDP8, approved in April 2025, is now the key framework for the country's electricity development through 2030 and toward 2050.
Major priorities include:
Accelerating renewable generation
Expanding solar and onshore/offshore wind
Developing battery and pumped-hydro storage
Strengthening transmission infrastructure
Bringing nuclear power back into the generation mix
Reducing long-term dependence on coal
Developing green hydrogen and ammonia
Increasing regional electricity trade.
Vietnam's updated JETP implementation plan also targets 47% renewable energy capacity by 2030 and a power-sector emissions peak of no more than 170 MtCO₂e under the JETP framework.
Power Market
Vietnam remains heavily dependent on coal, alongside significant hydropower, gas and rapidly growing solar and wind generation.
The adjusted PDP8 targets by 2030:
Solar: 46.5–73.4 GW
Onshore/nearshore wind: 26.1–38.0 GW
Offshore wind: 6–17.0 GW
Hydropower: 33.3–34.7 GW
Coal: 31.1 GW
LNG: 22.5 GW
Battery storage: 10–16.3 GW.
This represents a significant shift toward a more diversified and flexible power system.
Grid & Storage
Grid infrastructure is becoming one of Vietnam's biggest energy-transition priorities.
Vietnam's previous renewable boom exposed transmission bottlenecks, particularly in regions with large concentrations of solar and wind projects.
The adjusted PDP8 therefore places greater emphasis on:
500 kV transmission infrastructure
Smart-grid development
Regional power balancing
Battery energy storage
Pumped-storage hydropower
Cross-border electricity connections.
Battery storage is targeted at 10–16.3 GW by 2030, while pumped-storage hydropower is planned at 2.4–6 GW.
Vietnam is also planning increased electricity imports from Laos and China, while exploring electricity exports to Singapore, Malaysia and other regional markets.
Industry & New Energy
Vietnam's energy transition is increasingly connected to its industrial strategy.
Manufacturing growth is creating demand for reliable and increasingly low-carbon electricity, particularly from multinational companies with renewable-energy and supply-chain requirements.
The country is also developing opportunities around:
Green hydrogen
Green ammonia
Offshore wind
Renewable-energy equipment manufacturing
Battery storage
EV manufacturing and supply chains
Industrial decarbonisation.
The adjusted PDP8 envisages around 15 GW of renewable power dedicated to new-energy production, principally associated with offshore wind, by 2035.
What We're Watching
1. Grid expansion
Can Vietnam build transmission capacity quickly enough to absorb its rapidly expanding renewable fleet?
2. Offshore wind
The country has enormous technical potential, but project development, regulation, financing and marine-area approvals remain important considerations.
3. Nuclear comeback
The adjusted PDP8 brings 4–6.4 GW of nuclear capacity into the 2030–2035 timeframe.
4. Industrial power demand
Manufacturing, semiconductors, data centres and other power-intensive industries could significantly increase electricity demand.
5. Regional electricity trade
Vietnam's ambition to export power to Singapore, Malaysia and other markets could create a new ASEAN clean-energy corridor.
Energy Insider View
Vietnam's energy story is shifting from "renewables versus coal" to "how fast can the entire power system scale?"
The country already demonstrated that it can build renewable capacity rapidly. The next test is infrastructure: transmission, storage, market mechanisms, financing and flexible generation.
If Vietnam can solve those constraints, it has the potential to become one of Asia's most important renewable-power and clean-industry markets.
Sources
Vietnam Ministry of Industry and Trade (MOIT) — Adjusted PDP8
Vietnam Government — JETP Updated Implementation Plan
Vietnam Energy Institute; Ember
Climate Action Tracker