With Vietnam’s economy projected to grow by over 8% in 2025 and at double-digits in 2026-2030, national power demand is forecast to rise 12-14% annually.

This requires the country to diversify its energy mix with a strong push toward renewable sources such as wind and solar power. Renewable energy is not only an environmental solution but also a vital economic growth driver.

Vietnam possesses vast renewable energy potential with more than 300 sunny days a year, offering a theoretical solar capacity of 400 GW, and a 3,200-km coastline with strong winds capable of generating up to 600 GW of offshore wind power, according to the National Power Development Plan VIII (PDP8).

However, after a boom period between 2019 and 2021, when solar capacity reached 16 GW and wind power 4 GW, growth has since stalled due to legal and infrastructure bottlenecks.

The renewable energy sector now faces numerous challenges, leaving many projects “on hold” and wasting valuable social resources.

The first challenge is legal barriers and cumbersome administrative procedures. According to Ha Dang Son, director of the Center for Energy and Green Growth Research, over 170 renewable energy projects are currently entangled in procedural hurdles.

“Resolution 70 provides a policy direction to address these issues, but concrete follow-up measures from the Government and National Assembly are needed. Without timely action, Vietnam could face supply-demand imbalances by 2026,” he warned.

A 2023 conclusion (No. 1027/KL-TTCP) from the Government Inspectorate found that over 40 solar and wind projects in provinces such as Dong Nai, Lam Dong and Khanh Hoa are stalled due to land-use disputes, overlapping mineral or irrigation zoning, and missing land-use certificates. In Gia Lai province, 10 projects (five wind, five solar) face similar problems, delaying local investment and development.

Huynh Bich Ngoc, executive vice chairwoman and CEO of TTC Group, emphasized that the legal framework is improving, but close, decisive, and timely guidance from the government, ministries, and localities is still essential during implementation. She proposed streamlining legal procedures to cut production costs and enhance business competitiveness.

Second, since the Feed-in Tariff (FIT) mechanism expired in 2021, many investors have hesitated. Several completed projects remain idle due to the lack of a new pricing framework. State utility Vietnam Electricity (EVN) also faces difficulties in negotiating power purchase prices for large-scale rooftop solar projects on agricultural and forestry land.

According to Dinh Tuan Minh, director of the Market-based Solutions Center for Social and Economic Issues (MASSEI), one of the major obstacles lies in the lack of consistency, stability, and transparency in the legal and policy framework.

“Cumbersome administrative procedures, inadequate technical infrastructure, and the limited size of the domestic capital market have reduced Vietnam’s attractiveness in the eyes of strategic investors,” Minh said.

He proposed building a stable legal framework, unlocking foreign investment, and providing initial financial assistance for offshore wind projects, while developing local supporting industries.

Third, Vietnam’s transmission infrastructure is still considered the “Achilles’ heel” for the sector. The national grid has not kept pace with the rapid growth of renewables, leading to curtailments of 20-30% in the central and southern regions - home to most projects.

The Ministry of Industry and Trade (MoIT) noted that delays in issuing a plan for implementing PDP8 have disrupted capacity allocation among provinces, especially affecting offshore wind development, which requires massive FDI and a 2-3 year licensing process.

Nguyen Hai Nam, standing member of the National Assembly's Committee for Economic Affairs, held that large-scale renewable projects, particularly offshore wind and solar, require substantial capital and long payback periods. Yet, domestic firms struggle to access long-term financing due to Vietnam’s small capital market.

He recommended diversifying funding sources, balancing the interests of the state, investors, and businesses, and simplifying legal procedures.

These challenges not only slowed sectoral growth to 10% in 2024 (below the 15% target) but also increased dependence on coal and LNG imports, which rose 20% to offset shortages. Major LNG projects, such as Nhon Trach 3 and 4 in Dong Nai province, also face infrastructure and pricing volatility issues, driving up electricity production costs.

Resolution 70 unlocks green energy path

The outlook for removing legal barriers is now brighter than ever, thanks to new strategic directions from the Party and State.

Resolution No. 70-NQ/TW on ensuring national energy security through 2030 with a vision to 2045, marks a pivotal turning point. It targets renewable energy to account for 25-30% of primary energy supply by 2030, with total generation capacity reaching 183-236 GW and output of 560-624 billion kWh.

The resolution also calls for institutional and market reforms: establishing a competitive, transparent electricity market, phasing out outdated subsidy mechanisms, and promoting direct power purchase agreements (DPPA) between producers and distributors. It further emphasizes energy diversification (including LNG, green hydrogen, and small nuclear power), technology localization, and reduced import dependence.

The Government’s Action Program No. 328/NQ-CP (October 15, 2025) to implement Resolution 70 directs ministries to finalize national planning, mobilize private investment in transmission and distribution, and maintain a minimum reserve capacity of 15%.

Earlier, the Government’s Resolution No. 233/NQ-CP dated December 10, 2024 assigned the MoIT to review 154 renewable projects, while the Prime Minister’s Directive No. 118/CĐ-TTg (July 22, 2025) required local authorities to resolve land-use issues for 40 projects by July 25, 2025, handling overlaps in planning and applying the FIT mechanism for legacy projects.

According to director of the Center for Energy and Green Growth Research Ha Dang Son, Resolution 70 is a major breakthrough, offering a clearer, more market-oriented approach to pricing. It was carefully crafted based on practical lessons, unlocking mechanisms for special projects under special policies.

Huynh Bich Ngoc from TTC Group added that the State should facilitate access to domestic and international green finance for enterprises investing in high-tech, ESG-compliant renewable and agricultural projects, with simpler procedures and reasonable interest rates. It is also crucial to advance the green transition, develop carbon credit markets, and expand international cooperation to mobilize resources for emissions reduction.

These policy shifts are expected to open a new path for Vietnam’s renewable energy industry. Offshore wind capacity could reach 6,000 MW by 2030 if the licensing period is shortened to one year, attracting $10-15 billion in FDI.

Recent discussions have also highlighted international cooperation models such as the UK-Vietnam partnership on green hydrogen development as a way to accelerate technology transfer.

With close coordination between the Government, enterprises, and local authorities, Vietnam is poised to untangle current bottlenecks and make renewable energy a pillar of the green economy in the coming decade.

To help promote the orientations for green and sustainable energy transition set out in the Politburo’s Resolution No. 70 and Vietnam’s Net Zero 2050 goal, The Investor will organize a seminar entitled “Green Energy Transition from Perspective of Politburo’s Resolution No. 70” in Hanoi on Thursday.

The event will serve as a forum for businesses, commercial banks, and investors to share strategies for green energy development and transition, as well as propose policies for sustainable development in this field.

The seminar will be attended by leaders of ministries and government agencies, economic and financial experts, leaders of commercial banks, securities companies, investment funds, along with investors and enterprises in the energy sector.