Vietnam’s electricity generation, transmission, and distribution increased by 100.9 percent in January compared to the 2019 baseline, according to Vietnam’s Industrial Production Index. However, this was lower than December 2024, when output stood at 110.0 percent above 2019 levels.
Month-on-month, production fell by 3.1 percent in January compared to December. Despite this, the sector recorded a slight 0.4 percent year-on-year increase from January 2024, indicating stable demand and production levels.
Electricity generation, transmission, and distribution in Vietnam are crucial to the country’s energy sector, supporting its growing economy and increasing power demand. The country has made significant progress in developing its electricity infrastructure, aiming to meet domestic needs, expand rural access, and diversify energy sources.
Vietnam’s electricity generation relies heavily on hydropower, which remains the dominant source. However, thermal power plants using coal and natural gas have grown in importance to meet rising demand. Recently, there has been a focus on renewable energy, particularly wind and solar, as the country aims to reduce greenhouse gas emissions and promote sustainability.
Transmission infrastructure is expanding to keep pace with rising electricity demand. The National Power Transmission Corporation manages the high-voltage network, ensuring that electricity from power plants reaches all regions. Efforts to modernize the grid aim to improve reliability, especially in remote areas, and reduce transmission losses.
Electricity distribution is handled by regional companies under the Vietnam Electricity Group. EVN is responsible for delivering power to residential, commercial, and industrial customers. While coverage in rural areas is improving, challenges remain in ensuring consistent access to electricity, particularly in remote locations.
The sector faces challenges, including increasing demand driven by industrial growth, urbanization, and population growth. There are concerns over the environmental impact of coal-fired plants and the need to transition to cleaner energy. Vietnam’s electricity pricing also poses a challenge, as the government balances affordability with the need for continued investment in infrastructure.