Vietnam's green energy transition is entering a new phase, as demand for clean electricity is no longer driven mainly by policy but increasingly by real market need. To capture this growth opportunity, however, Vietnam must clear bottlenecks in power infrastructure, capital, and the regulatory framework.
That was the shared assessment of experts and businesses at the seminar "Green Transition: What Does It Take to Accelerate?", organized by Thanh Nien Newspaper on June 26.
The renewable energy market holds strong growth potential
At the seminar, Mr. Dang Quoc Bao, Deputy General Director of Trungnam Construction Investment Joint Stock Company, said the renewable energy market is opening up significant opportunities: "For renewable energy companies, the hardest part used to be finding customers — but today, demand for renewable and clean energy is very large."
Businesses need clean power to cut production costs, meet ESG standards, and stay competitive in global supply chains. Households, meanwhile, want more control over how they consume clean energy, while the power sector needs distributed generation to ease pressure on investment in centralized power sources and grid infrastructure.
According to Mr. Quoc Bao, Vietnam has strong geographic advantages for renewable energy projects such as wind and solar power. Investment in this sector generates economic value not only through stable assets and long-term cash flow, but also through rising market demand — especially now, when "demand exceeds supply." This, he noted, is part of why an increasing number of companies from unrelated industries have moved to invest in wind and solar power in recent years.
Three bottlenecks are emerging in the green energy transition
According to Dr. Pham Viet Thuan, Director of the Ho Chi Minh City Institute of Resource and Environmental Economics, the green energy transition currently faces three major bottlenecks: power infrastructure, capital, and the regulatory framework. He said the first challenge lies in the transmission and dispatch capacity of the power grid, which must keep pace with rapidly rising electricity demand. At the same time, the green transition requires very large capital resources for infrastructure development.
Beyond infrastructure and financing, completing planning, mechanisms, and the legal framework is also seen as a prerequisite for creating a stable investment environment — one that gives businesses the confidence to roll out clean energy projects.
Having worked in renewable energy since 2004, Mr. Quoc Bao said these are unavoidable growing pains of an economy in transition — as Vietnam shifts from a model with a single dominant player, EVN, to a market open to participation from multiple economic sectors. He noted that Vietnam's energy market has now entered its second stage of development, with policy frameworks being gradually completed and businesses better prepared than before. Mechanisms such as Direct Power Purchase Agreements (DPPA) are expected to expand room for private-sector growth, helping build a competitive power market that can meet the economy's rising energy needs.
On infrastructure, Mr. Quoc Bao argued that developing renewable energy is not just about investing in generation capacity — it must go hand in hand with synchronized infrastructure planning. Experts agreed that infrastructure needs to be built ahead of demand and developed according to a master plan, to ensure power supply capability, system safety, and reliable service. Accelerating the green energy transition must go hand in hand with accelerating investment in energy infrastructure.
Mr. Ha Huy Cuong, Deputy General Director of Nam A Commercial Joint Stock Bank, said that to meet growth demand through 2030, Vietnam needs to mobilize roughly VND 48.4 quadrillion, with Ho Chi Minh City alone requiring about VND 6.4 quadrillion — a figure that exceeds what the banking system alone can supply. Additional capital must therefore be mobilized from investment funds, financial institutions, and international capital flows. Developing green projects, green enterprises, and green industrial parks will be a critical foundation for attracting investment capital and unlocking resources for the energy transition.
Mr. Nguyen Duc Lenh, Deputy Director of the State Bank of Vietnam's Region II branch, said the banking sector is rolling out multiple measures to promote green credit. The focus is on maintaining macroeconomic and monetary market stability; encouraging credit institutions to prioritize funding for green projects; and refining supporting mechanisms — such as adjusting the ratio of short-term capital used for medium- and long-term lending — to help expand green credit.
He added that businesses should proactively diversify their capital-raising channels through instruments such as green bonds, while also stepping up efforts to access government and local green programs and projects. Alongside policy and financial measures, communication efforts also need to be strengthened to raise awareness among businesses and the public about the opportunities and benefits of green growth.
Trungnam is one of Vietnam's largest renewable energy investors, with a portfolio of large-scale wind, solar, hydropower, and gas-fired power projects — including the Ea Nam Wind Power Plant and the Trung Nam Thuan Nam Solar Power Plant — totaling approximately 1.63 GW in capacity (2021 figure). It is also the only private enterprise in Vietnam directly involved in power transmission, operating a 500kV substation and 500kV/220kV transmission lines connected to the national grid (the Thuan Nam – Ninh Thuan 500kV Substation).