Vietnam Advances Energy Security for Sustainable Growth Amid Rising Electricity Demand
Hanoi, The Gulf Observer: Vietnam is making bold strides to ensure national energy security as it prepares for a new era of economic expansion, with a focus on green and clean energy—including the early resumption of a nuclear power project. The country’s ambitious net-zero emissions target by 2050 and increasing electricity demand have intensified efforts to accelerate the development of sustainable energy solutions.
Rising Demand and Policy Challenges
With economic growth targets exceeding 7% for 2025 and aspirations for double-digit growth from 2026 to 2030, Vietnam faces the pressing challenge of power shortages. Government data reveals that since 2021, only 56.7% of planned power generation projects have been developed due to policy obstacles. The country needs to increase its power supply by 1.5 times, requiring an additional 10,000MW annually.
Prime Minister Phạm Minh Chính, in a directive issued on January 3, 2025, warned that if timely solutions are not implemented to develop baseload power and green energy, serious power shortages could emerge, particularly between 2026 and 2028.
Investment and Green Transition
Vietnam is ramping up efforts to attract foreign direct investment (FDI) in high-tech industries, such as semiconductors, which require a stable and abundant electricity supply. In 2024, FDI disbursement reached a record $25.35 billion, marking a 9.4% increase from the previous year. The recently introduced investment support fund aims to further attract global technology giants to Vietnam.
At the 2021 UN Climate Change Conference (COP26), Vietnam reaffirmed its commitment to net-zero carbon emissions by 2050. Central to this transition is the $67 billion North-South high-speed railway project, expected to operate entirely on electricity, alongside urban metro systems and the adoption of electric vehicles (EVs).
A World Bank report published in November 2024 highlighted that to meet rising EV charging demands, Vietnam must increase its electricity generation by 5% and network capacity by 4% by 2035. By 2050, these figures must rise to 30% and 15%, respectively, if EV adoption targets are fully achieved.
Future Energy Strategy
Vietnam’s leadership acknowledges that energy security is a critical factor in sustaining its economic ambitions and ensuring long-term socio-economic stability. As the country embraces green energy, infrastructure modernization, and high-tech investments, decisive policies and strategic energy planning will be essential to meeting the growing power demand while fulfilling environmental commitments.
