Vietnam Emerges as Southeast Asia's Renewable Energy Hub, Drawing Global Investment

Vietnam is rapidly emerging as a leading renewable energy hub in Southeast Asia, driven by its vast development potential and ambitious green economy growth targets, according to Kitty Bu, vice-president for Southeast Asia at the Global Energy Alliance for People and Planet (GEAPP). Bu emphasized the country’s rich renewable energy resources, particularly in wind and solar power, coupled with advancements in battery energy storage systems (BESS).

Vietnam’s renewable energy leadership is highlighted by its installed solar power capacity, which reached 17GW in 2023—nearly double that of all other ASEAN nations combined, according to the International Renewable Energy Agency (IRENA). Bu also pointed to Vietnam’s bold goal to increase the green economy’s GDP contribution to US$300 billion by 2050, up from $6.7 billion in 2020.

To capitalize on its renewable energy potential, Bu noted that Vietnam will require significant investments, estimating $135 billion by 2030 and up to $511 billion by 2050. These funds will be vital for modernizing infrastructure, upgrading the national grid, expanding energy storage solutions, and fostering sustainable livelihoods.

The country has adopted a proactive approach to attracting investments, launching initiatives such as the National Green Growth Strategy for 2021-30, Power Plan 8, and participation in the Just Energy Transition Partnership (JETP). These policies aim to foster clean energy development and demonstrate Vietnam’s commitment to green growth.

The role of international collaboration is crucial, Bu said, with countries like the UK and the Netherlands supporting Vietnam’s energy transition. British Consul General in Ho Chi Minh City, Alexandra Smith, emphasized the UK’s partnership with Vietnam, including its participation in the JETP agreement with the U.S. and the EU. Together, they have pledged up to $15.5 billion in funding for renewable energy projects to help Vietnam reduce its reliance on coal and achieve its net-zero emissions target by 2050.

Dutch Consul General in Ho Chi Minh City, Daniel Stork, reaffirmed the Netherlands’ continued support, particularly in wind and solar energy projects. The Netherlands has been involved in projects like the Tra Vinh wind farm in southern Vietnam, valued at €17 million ($17.7 million).

France has also contributed to Vietnam’s green energy market. Green Yellow Vietnam, a French company, has installed over 1.2 million square meters of photovoltaic panels, reducing emissions by 147,000 tonnes of CO2 annually. The EU continues to back key projects like the Bac Ai pumped storage hydropower project in Ninh Thuan Province, funded by the French Development Agency and other international bodies.

As Vietnam continues to build its renewable energy infrastructure, international partnerships and investments will remain pivotal to its energy transition and sustainable development goals.