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The energy sector in Vietnam is actively promoting structural transformation

Despite the challenges and difficulties brought about by the COVID-19 pandemic, Vietnam has maintained impressive results, with positive economic growth and ambitious achievements in exports and imports. To achieve sustainable development goals, the Vietnamese government is determined to transform the energy sector in a self-reliant direction and enhance cooperation.


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Prominent achievements in the energy sector

Thanks to government encouragement and policies, the renewable energy sector has seen remarkable development in Vietnam, with impressive statistics: the total installed capacity of renewable energy sources reached 20,670 MW by 2021, accounting for 27% of the total system capacity (76,620 MW). The electricity generation from renewable energy sources reached 31,508 billion kWh, making up 12.27% of the total electricity production in the entire system.


Multilateral cooperation mechanisms such as the Vietnam Energy Partnership Group (VEPG) play a crucial role in realizing national goals in the energy sector. The technical working groups in the VEPG will include: Power sector strategic planning; Renewable energy; Grid integration and infrastructure; Energy efficiency, and Energy market.


Transition for Sustainable Development

In the spirit of Resolution 55, the Petroleum Law will be amended in the near future, and specialized laws related to electricity and energy conservation will also be improved. Alongside these efforts, the national energy development strategy and the strategies for various energy sub-sectors, as well as the national energy master plan and the national electricity development plan, will be led by the government in their formulation and implementation


Green Energy Development Potential in Vietnam

Vietnam boasts many natural advantages and potential for the development of clean, green energy. Moreover, with a proactive, long-term direction set by the government, the opportunities for green energy development become even more extensive. The government has been steadfastly directing the restructuring of the electricity and energy sectors, while also promoting increased efficiency among state-owned enterprises. Vietnam is also vigorously implementing the National Program for Energy Efficiency and Conservation in its third phase.


In the context where Vietnam needs to address both the challenges of ensuring energy security and minimizing environmental impacts from electricity generation activities, Resolution 55-NQ/TW, issued by the Politburo on February 11, 2020, represents the correct direction of the Party in shaping the strategic development path of the national energy sector in Vietnam by 2030 with a vision towards 2045.


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Vietnam - A Regional Renewable Energy Hub

According to the World Bank, Vietnam has the most comprehensive solar power capacity installation in Southeast Asia, generating 16,500 megawatts (MW) in 2020. Globally, in 2020, Vietnam ranked among the top 10 countries with the highest solar power capacity installations.


With a vast potential for solar power and the government's commitment to green energy objectives, Vietnam has the opportunity to become a global leader in renewable energy. Additionally, Vietnam possesses the largest wind resource in the region, with a potential of 311 gigawatts (GW).


If Vietnam maintains its rapid development pace in renewable energy, our position could rise significantly in global rankings, potentially surpassing countries like Australia and Italy in renewable energy solutions. Vietnam's wind and solar power potential is vast and is considered excellent, with 8.6% of suitable land area for large-scale wind farms (according to the World Bank). With the World Bank's offshore wind roadmap for Vietnam, the country could increase offshore wind capacity from 1 GW to 5-19 GW and onshore wind capacity from 1.26 GW to 17.34 GW by 2030. From this, Vietnam could generate around $60 billion in total gross value added (GVA) for the nation.


In 2018, Vietnam's solar power capacity increased from 86 MW to approximately 16,500 MW. With this figure, Vietnam surpassed Thailand, becoming the ASEAN country with the largest installed solar power capacity. In 2020, the solar power system provided approximately 10.6 TWh of electricity, accounting for nearly 4% of the total production.


By 2030, rooftop solar power will represent approximately half of Vietnam's total solar power capacity. International investors are likely to find it challenging to ignore the promising prospects of solar power development in Vietnam.


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