Việtnam Highlights Expanding Role of Private Sector in Accelerating Energy Transition

Hanoi, The Gulf Observer: As Việtnam intensifies efforts to advance its energy transition, mobilising private financial resources has become increasingly vital to meeting rising investment demands, enhancing energy security and supporting sustainable, green growth.

A workshop on promoting private sector participation in energy investment was held on December 3 in Hanoi by the United Nations Office for Project Services (UNOPS) through the Southeast Asia Energy Transition Partnership (ETP), in collaboration with the Department of Finance and Sectoral Economics under the Ministry of Finance.

The event served as a platform for stakeholders to review the initial outcomes of cooperation between the Ministry of Finance and UNOPS/ETP, and to exchange international experiences, emerging financial models, and strategies to attract greater private sector investment in Việt Nam’s energy sector—a field increasingly drawing interest from global corporations, infrastructure funds and domestic enterprises.

Speaking at the opening session, Lê Tuấn Anh, Deputy Head of the Department of Finance and Sectoral Economics, said Việt Nam is undergoing a period of rapid economic transformation supported by strong GDP growth. National energy demand is forecast to expand by 8–10 per cent annually over the next decade.

He underscored that Resolution 55, issued in 2020 on Việtnam’s National Energy Development Strategy to 2030 with a vision to 2045, outlines clear objectives for modernising the national energy system, building a competitive and transparent energy market, and prioritising the mobilisation of all available resources for renewable energy development.

According to Power Development Plan VIII, the electricity sector will require an estimated US$134 billion in investment during 2021–2030, a significant portion of which is expected to come from private sources to support the establishment of a modern, flexible, low-emission power system.

Việt Nam’s commitment to achieving net-zero emissions by 2050, announced at COP26, further highlights the urgency of mobilising substantial domestic and international capital.

“In this context, the role of the private sector becomes critically important, particularly in renewable energy, transmission systems, energy storage, and green and sustainable financial models,” Tuấn Anh emphasised.

He affirmed that the Ministry of Finance will continue improving financial mechanisms, developing capital mobilisation tools, and adjusting tax, fee and credit policies to build a stable and transparent investment environment aligned with international standards.

Also addressing the workshop, John Robert Cotton, Deputy Director of ETP/UNOPS, highlighted the rapid global transformation of the energy landscape. Citing the International Energy Agency, he noted that emerging and developing economies must increase their annual clean energy investment from US$770 billion today to US$2.2 trillion by 2030. This requires private investment alone to surge nearly sevenfold—from US$135 billion to about US$1.1 trillion.

These figures, he said, make clear that countries able to provide a transparent and predictable legal framework will be best positioned to attract the financial resources necessary for their energy transition.

Cotton added that although COP30 delivered progress through commitments to triple global adaptation finance, the gap between needs and actual resources remains substantial.

In Việt Nam, the Politburo’s Resolution 68 on private economic development sets out a vision for a more dynamic and competitive private sector, calling for rapid improvements in the investment climate. Such reforms send positive signals to investors and enhance the private sector’s role across the economy, including in the energy transition.

For Việtnam’s energy system, Cotton noted, this momentum is critical. Achieving the goals of Power Development Plan VIII—from expanding renewable energy and upgrading the national grid to increasing storage capacity and reducing industrial emissions—will require investment far exceeding the capacity of public finance alone.

To support these objectives, ETP has partnered with the Ministry of Finance to explore capital-access tools and identify strategies that enable more effective public–private partnerships, blended finance mechanisms and investment channels capable of attracting large-scale private capital.

During the workshop, experts presented international best practices, analysed Việt Nam’s financial legal framework, assessed key challenges, and proposed innovative financial models to stimulate stronger private participation in the country’s energy transition.

These insights are expected to support the development of new policy mechanisms, remove existing barriers and provide fresh momentum for Việtnam’s energy market at a time when demand for energy infrastructure investment continues to grow.