Vietnam’s renewable capacity to reach 112 GW in 2035

The country’s power sector presents significant opportunities for clean energy.

Vietnam’s total renewable power capacity is forecast to reach 112.1 gigawatts in 2035, reflecting a compound annual growth rate (CAGR) of 14.3% from 2024 to 2035.

“The Vietnamese power sector presents significant opportunities for renewable energy, with wind, solar power, and biopower holding large potential for development,” GlobalData sai din its new report “Vietnam Power Market Outlook to 2035, Update 2025 – Market Trends, Regulations, and Competitive Landscape.”

From 2020 to 2024, the company said that Vietnam’s renewable power generation increased to 38.5 terawatt-hours (TWh) in 2024 from 21.1 TWh in 2020, registering a CAGR of 16%. This is expected to further increase to 179.6TWh in 2035, growing at a CAGR of 15%.

Vietnam has implemented various policies, such as feed-in tariffs (FiTs), and revised Power Development Plan 8 (PDP 8), for the development of renewable energy in the country. Specifically, the PDP 8 aims for a diversified energy portfolio that includes natural gas, coal, hydroelectric, solar, and wind power, with the long-term goal of attaining net-zero emissions by 2050.

Attaurrahman Ojindaram Saibasan, senior power analyst at GlobalData, said that these plans are designed to triple the installed power capacity by 2030, bolster the growth of renewable energy, and uphold national energy security.

Hydropower is nearly fullly exploited in Vietnam, but wind, solar and biomass remains high and largely untapped, the expert said.

“Large-scale energy projects in Vietnam, particularly those involving renewables and liquefied natural gas (LNG) terminals, necessitate substantial capital investment,” Saibasan said.

“Nonetheless, persistent financing constraints arise from regulatory uncertainty, the absence of bankable power purchase agreements (PPAs), and restricted access to long-term financing at advantageous rates. The government is looking to address this by implementing favourable policies for investors,” he added.