Shifting Green Investment Toward Low-Carbon Sectors in Vietnam

Vietnam has emerged as one of the leading renewable energy markets in Southeast Asia.

Vietnam aims to maintain an annual GDP growth rate of 5–7% over the next three decades. The basic energy demand required to sustain such growth is expected to rise exponentially year after year. At the same time, the government remains firmly committed to steering the country toward its Net Zero carbon emissions target by 2050.
When these two seemingly conflicting goals are placed side by side, it becomes clear that Vietnam’s low-carbon sectors must grow at a significantly faster pace in order to achieve both objectives simultaneously.

It is estimated that the renewable energy sector alone has grown at an impressive rate of more than 20% per year over the past decade. Investments in solar and wind power projects have surged, positioning Vietnam as one of the leading renewable energy markets in Southeast Asia. Solar and wind capacity expanded dramatically—from virtually zero in 2014 to nearly 30 GW by 2022. No other country in the world has achieved such rapid growth in renewable energy installations within the same timeframe.

Green-building initiatives and Vietnam’s efforts to promote sustainable urban planning have also seen steady development, accompanied by growing pressure from investors and consumers who increasingly demand cleaner, more sustainable solutions and products.

Funding Needs in the Years Ahead

The scale of investment required for Vietnam to fully realize its transition to a low-carbon energy system is enormous. According to Power Development Plan VIII, the energy transition alone will require around 650 billion USD in investment between 2021 and 2050.