The Vietnam power market was valued at US$17.97 billion in 2024 and is forecast to grow to US$26.76 billion by 2032, with a CAGR of 5.1 percent from 2026 to 2032, according to Verified Market Research.
The report also notes that:
- Electricity demand is projected to rise by 10.5–14.3 percent in 2025, reaching up to 354 billion kWh. To meet this, Vietnam plans to add nearly 6.8 GW of new capacity, mainly from hydropower and thermal plants, despite delays and gas supply risks.
Under Power Development Plan VIII, the government aims to expand total capacity to 183–236 GW by 2030, including major investments in solar, wind, and a reintroduction of nuclear energy by 2035. However, retroactive feed-in tariff cuts have shaken investor confidence, threatening more than US$13 billion in renewable projects.
Vietnam’s rapidly expanding power market offers strong opportunities for foreign firms, particularly in renewables, grid infrastructure, and energy technology.
With demand projected to rise over 10 percent in 2025 and the government targeting up to 236 GW of installed capacity by 2030, foreign players can benefit from large-scale investment needs in solar, wind, LNG, and potentially nuclear.
Regulatory reforms like Decree 80/2024, which enables direct power purchase agreements (DPPAs), also open new channels for participation outside of traditional state utility models.
However, risks remain.
Reported retroactive feed-in tariff cuts have shaken investor confidence, highlighting the need for regulatory stability.
Despite reform efforts, Vietnam Electricity (EVN) continues to dominate the market, limiting competition and influencing pricing. Foreign firms will need to navigate policy uncertainty and high capital requirements carefully, with a strong focus on due diligence and project bankability. Those with long-term strategies and technological advantages stand to gain the most from Vietnam’s power sector transition.