Vietnam Focuses on Green Energy to Support Economic Growth and Achieve Net-Zero Emissions by 2050

Vietnam is making strategic moves to secure its energy future as the country strives for significant economic growth and a transition to clean energy. With a focus on green energy, including the resumption of nuclear power projects, Vietnam is addressing increasing electricity demands that could jeopardize its socio-economic development.

The country is targeting 7 percent economic growth for 2025, with further aspirations of achieving even higher growth rates from 2026 to 2030. However, the growing demand for power, coupled with obstacles faced in the development of power generation projects, has raised concerns about potential power shortages. Government statistics reveal that since 2021, only 56.7 percent of planned power generation projects have been completed, putting additional strain on the country’s energy infrastructure.

Prime Minister Phạm Minh Chính recently emphasized the urgency of finding quick solutions to develop power sources, particularly green and sustainable energy, to meet the energy needs required to support robust economic development. He noted that without timely action, Vietnam could face significant power shortages, especially between 2026 and 2028.

As the nation seeks to accelerate its digital and green economy, foreign direct investment (FDI) in high-tech sectors such as semiconductors is growing rapidly. In 2024, Vietnam recorded a record $25.35 billion in disbursed FDI, marking a 9.4 percent increase from the previous year. The country’s efforts to attract global technology giants, through new incentives and policies, further amplify the need for a reliable and robust energy supply.

In addition to economic growth, Vietnam is also committed to achieving net-zero emissions by 2050. At the COP26 summit in 2021, the country pledged to reduce carbon emissions and accelerate its transition to green transport. Projects like the $67 billion North-South high-speed railway, powered entirely by electricity, and widespread adoption of electric vehicles (EVs) will further challenge the nation’s energy infrastructure. A World Bank report highlighted that to meet EV charging demands, Vietnam will need to increase its electricity generation by 5 percent and network capacity by 4 percent by 2035, with more substantial increases required by 2050.

To support the green energy transition and EV growth, Vietnam will need to invest up to $9 billion in additional power sector projects by 2030, with annual investments of $14 billion between 2031 and 2050. These investments are crucial for ensuring energy security and achieving the country’s sustainability goals.