Vietnam’s solar strategy for trade-tense times

By Dr Nguyen Vinh Khuong
Mon, May 12, 2025 | 2:36 pm GMT+7

Prime Minister Pham Minh Chinh on April 15 issued Decision 768 approving Vietnam's Amended National Power Development Plan VIII for 2021-2030, with vision to 2050. The decision reaffirms the government's commitment to renewable energy and positions the country as a regional frontrunner in the global energy transition, writes Dr Nguyen Vinh Khuong, a lecturer in electronic and computer systems engineering at RMIT Vietnam.

Dr Nguyen Vinh Khuong, a lecturer in electronic and computer systems engineering at RMIT Vietnam. Photo courtesy of RMIT.

Dr Nguyen Vinh Khuong, a lecturer in electronic and computer systems engineering at RMIT Vietnam. Photo courtesy of RMIT.

The numbers tell a compelling story. Vietnam possesses an estimated solar potential of 963,000 MW - a staggering figure that dwarfs its current capacity of 16,600 MW. With 72 GW of potential offshore wind projects along its 3,260-kilometre coastline, Vietnam's renewables future seems blindingly bright.

From ambition to implementation

Decision 768 establishes an ambitious roadmap: renewable energy will constitute from 28% to 36% of Vietnam's energy mix by 2030, scaling dramatically to 74% to 75% by 2050. This transition isn't aspirational; it's backed by $15.5 billion secured through the Just Energy Transition Partnership with the EU and UK in late 2022.

Vietnam's renewable success story is unfolding. According to Global Energy Monitor, the country currently operates 19.5 GW of utility-scale solar and wind capacity, more than double the combined capacity of all other ASEAN nations. Renewables now account for 25% of Vietnam's energy mix, significantly outpacing the regional average of 9%.

A wind power farm project in Vietnam. Photo courtesy of the government's news portal.

A wind power farm project in Vietnam. Photo courtesy of the government's news portal.

The China dependency dilemma

Despite this remarkable progress, Vietnam faces a critical vulnerability. Approximately 90% of equipment for renewable energy projects is imported, with a reliance on Chinese manufacturers. This exposes Vietnam to geopolitical and supply chain risks as global trade tensions intensify.

The impact is already evident. Chinese businesses in Vietnam, such as Jinko Solar and Trina Solar, face the U.S. tariffs of nearly 245% and 202%, respectively, following the U.S. Administration’s announcement in April 2025. Some Vietnamese solar exports to the U.S. now face tariffs as high as 813.92%, dramatically increasing project costs and potentially slowing industry momentum.

Infrastructure challenges: the grid bottleneck

Vietnam's renewable energy ambitions face another formidable obstacle: grid infrastructure that cannot keep pace with generation capacity. While a 50-100 MW solar project can be developed in six months, transmission infrastructure requires two to three years to implement.

This mismatch has created a bottleneck that threatens to undermine investor confidence. Of the 86 GW of prospective utility-scale solar and wind capacity identified in Vietnam, 2% is currently under construction - a stark indicator of the challenges ahead.

Turning trade tensions into strategic advantage

Paradoxically, global trade disputes may offer Vietnam a unique opportunity to strengthen its renewable energy sector. As companies worldwide seek alternatives to Chinese manufacturing, Vietnam could position itself as a strategic hub for renewable energy manufacturing.

By developing domestic production capacity for solar panels, batteries, and related technologies, Vietnam could reduce import dependence while creating high-value jobs and fostering technological innovation.

Existing trade agreements, including the EU-Vietnam Free Trade Agreement and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, provide competitive access to diverse markets, attracting international investment and technology transfer.

The path forward: building resilience

For Vietnam to maintain its leadership in renewable energy, several priorities emerge. Fostering domestic manufacturing through financial support, tax breaks, and streamlined regulatory processes. Strengthening international partnerships will facilitate technology transfers, workforce training, and joint ventures, reducing import dependency.

Another critical focus is accelerating investments in research, innovation, and technical solutions. Prioritizing research and development (R&D) in renewable technologies and energy storage systems can position Vietnam as a technology leader, enhancing competitiveness and resilience. Universities, research institutions, and the private sector should collaborate to develop innovative solutions tailored to local conditions.

Investments in grid modernization and advanced energy storage solutions are also important. Upgrading infrastructure will enable more efficient integration and stabilization of intermittent renewable energy sources, mitigate curtailment issues, and enhance reliability. Promoting public-private partnerships (PPPs) can mobilize additional resources and technical expertise, expediting infrastructure enhancements.

Establishing stable, transparent, and long-term renewable energy policies is another priority. Predictable regulatory frameworks, supported by clear and consistent incentives, will attract sustained international funding and strengthen investor confidence. Clear policy communication will position Vietnam as a dependable, attractive global renewable energy investment destination.

Although trade tensions and reciprocal tariffs pose risks, they offer Vietnam a unique opportunity to build an innovative and resilient renewable energy industry. By leveraging its resources, addressing vulnerabilities through research and technical solutions, and adopting comprehensive policies, Vietnam can transform these challenges into a sustainable growth trajectory.

Comments (0)
  • Read More
Vietnam Airlines secures $1.5 bln funding from ING Bank for strategic expansion

Vietnam Airlines secures $1.5 bln funding from ING Bank for strategic expansion

Vietnam Airlines and ING Bank have signed an MoU for bilateral financial cooperation, securing capital funding of up to $1.5 billion.

Companies - Fri, June 13, 2025 | 10:56 pm GMT+7

Lawmakers scrutinize dual-city international financial center plan

Lawmakers scrutinize dual-city international financial center plan

Discussing a draft resolution on establishing an international financial center in Vietnam, some parliament members have proposed careful consideration of a dual-city model based on regional development strategies and investment efficiency.

Finance - Fri, June 13, 2025 | 10:49 pm GMT+7

Vietnam among world’s most food-self-sufficient nations: study

Vietnam among world’s most food-self-sufficient nations: study

As concerns mount over the potential for disruptions to global trade, a new study published in the journal Nature Food has identified Vietnam as one of the few countries with a high level of food self-sufficiency, capable of withstanding major interruptions to food imports and exports worldwide.

Southeast Asia - Fri, June 13, 2025 | 10:41 pm GMT+7

Bad debts at Vietnamese commercial banks remain a concern

Bad debts at Vietnamese commercial banks remain a concern

While the most challenging period for bad debts in Vietnam appears to have passed, potentially irrecoverable debts have reached a record high, accounting for 1.25% of total outstanding customer loans, or more than VND176 trillion ($6.74 billion), according to a new report by research firm Vietnam Report JSC.

Banking - Fri, June 13, 2025 | 7:58 pm GMT+7

Vietnam's galvanized steel major Ton Dong A to focus on domestic sales amid export market woes

Vietnam's galvanized steel major Ton Dong A to focus on domestic sales amid export market woes

Ton Dong A, a leading galvanized steel manufacturer in Vietnam, will focus more on the domestic market due to export difficulties, raising the ratio of domestic sales to 75%.

Companies - Fri, June 13, 2025 | 4:56 pm GMT+7

Vietnam's leading construction materials maker Viglacera appoints new chairman

Vietnam's leading construction materials maker Viglacera appoints new chairman

The board of directors of Viglacera, Vietnam's leading construction materials maker, has appointed Tran Manh Huu as new chairman, succeeding Nguyen Van Tuan.

Companies - Fri, June 13, 2025 | 3:08 pm GMT+7

Vietnam urges Exxon Mobil to accelerate long-delayed Blue Whale gas field project

Vietnam urges Exxon Mobil to accelerate long-delayed Blue Whale gas field project

Vietnam expects the U.S.'s Exxon Mobil to speed up the long-delayed Blue Whale gas field project in line with the contract.

Energy - Fri, June 13, 2025 | 2:06 pm GMT+7

Prime Minister invites Swedish firms to invest in Vietnam's technology infrastructure, renewable energy

Prime Minister invites Swedish firms to invest in Vietnam's technology infrastructure, renewable energy

Prime Minister Pham Minh Chinh says he hopes Swedish companies will continue to expand their investment in Vietnam's information technology infrastructure, especially in remote areas.

Economy - Fri, June 13, 2025 | 11:28 am GMT+7

Singapore’s Keppel earns $76 mln from partial sale of property complex in southern Vietnam

Singapore’s Keppel earns $76 mln from partial sale of property complex in southern Vietnam

Singapore-based Keppel Corporation brought in SGD98 million ($76.54 million) from selling a 22.6% stake in a property complex in Vietnam’s southern metropolis of Ho Chi Minh City.

Real Estate - Fri, June 13, 2025 | 8:28 am GMT+7

Thailand tightens e-commerce rules

Thailand tightens e-commerce rules

Thailand is preparing to increase oversight of digital marketplaces, adding rules for certain types of platforms to strengthen consumer protection and ensure responsible e-commerce, Bangkok Post quoted the Electronic Transactions Development Agency (ETDA) as saying.

Southeast Asia - Thu, June 12, 2025 | 10:56 pm GMT+7

Malaysia attracts nearly $21 bln investment in Q1

Malaysia attracts nearly $21 bln investment in Q1

Malaysia has secured MYR89.8 billion (nearly $21 billion) in approved investments for Q1, a 3.7% year-on-year increase amid a challenging global economic backdrop, according to the Malaysian Investment Development Authority (MIDA).

Southeast Asia - Thu, June 12, 2025 | 10:53 pm GMT+7

Thailand targets faster EV growth

Thailand targets faster EV growth

Thailand’s Board of Investment (BoI) is stepping up efforts to promote the electric vehicle (EV) industry by offering more investment incentive packages aimed at supporting the emerging sector and creating additional EV-related jobs.

Southeast Asia - Thu, June 12, 2025 | 10:46 pm GMT+7

Malaysia to hold second round of trade talks with US

Malaysia to hold second round of trade talks with US

Malaysia’s Ministry of Investment, Trade and Industry (MITI) said Minister Tengku Zafrul Aziz is scheduled to travel to Washington D.C. on June 18 for a new round of discussions focused on tariffs.

Southeast Asia - Thu, June 12, 2025 | 10:40 pm GMT+7

Vietnamese banks' bond issuance sees three-fold rise in first 5 months

Vietnamese banks' bond issuance sees three-fold rise in first 5 months

Vietnamese banks have significantly increased their bond issuance in 2025, with a reported total issuance of VND81 trillion ($3.1 billion) in the first five months of the year.

Finance - Thu, June 12, 2025 | 10:17 pm GMT+7

PVFCCo - Phu My, PVOIL sign strategic cooperation agreement in services, trade, and chemicals

PVFCCo - Phu My, PVOIL sign strategic cooperation agreement in services, trade, and chemicals

Petrovietnam Fertilizer and Chemicals Corporation (PVFCCo - Phu My) and Petrovietnam Oil Corporation (PVOIL) on Wednesday signed a strategic cooperation agreement, marking the beginning of a comprehensive, multi-sector collaboration between the two members of state-owned Petrovietnam.

Companies - Thu, June 12, 2025 | 7:56 pm GMT+7

Vietnam's Minister of Trade suggests Walmart build 'strategic purchasing center'

Vietnam's Minister of Trade suggests Walmart build 'strategic purchasing center'

Vietnam's Minister of Industry and Trade Nguyen Hong Dien has suggested the world's biggest retailer Walmart "research and build a strategic purchasing center" in the Southeast Asian country.

Economy - Thu, June 12, 2025 | 5:48 pm GMT+7