Diagram of a hydrogen electrolysis system using offshore wind power

Vietnam’s H2 vision

Building on its commitment to achieve Net Zero emissions by 2050 and reduce deep emissions in heavy industries, Vietnam approved the National Hydrogen Energy Development Strategy under Decision 165/QD-TTg dated February 7, 2024. This policy breakthrough aims to establish a comprehensive H2 ecosystem encompassing production, storage, transportation, utilization, and export, with a focus on “green hydrogen” produced from renewable electricity. The strategy marks the first time hydrogen has been included in the national energy planning framework, closely aligned with Power Development Plan VIII and the National Green Growth Strategy. It represents a new direction for Vietnam’s energy security structure and sustainable industrialization.

Globally, hydrogen is viewed as a “decarbonization key” for sectors that are difficult to electrify directly, such as steel, cement, chemicals, fertilizers, maritime transport, and aviation. Advanced economies including Japan, South Korea, the European Union, and the United States have identified hydrogen as a cornerstone of their energy transition, aiming to build a global clean hydrogen market by the 2030s. With its coastal geography and abundant wind and solar resources, Vietnam has the potential to produce green hydrogen at competitive costs, creating an opportunity to become a clean energy export hub in the region. However, technological barriers, high electrolysis costs, limited transportation infrastructure, and strict safety standards remain major challenges that require international cooperation and flexible policy mechanisms to overcome.

Integrating hydrogen into the national energy strategy not only opens new opportunities for public-private investment but also establishes a framework to attract global green capital sources such as green bonds, the Just Energy Transition Partnership (JETP), and climate funds, while promoting the transformation of industrial value chains toward lower emissions and higher added value.

From vision to action roadmap

Under the national plan, Vietnam aims to produce between 100,000 and 500,000 tons of H2 annually by 2030, prioritizing green hydrogen generated from renewable electricity. By 2050, production is expected to expand to 10-20 million tons per year, with the establishment of clusters for green ammonia production, processing, and export, along with the development of refueling networks for transportation and pilot projects to blend hydrogen into power generation. H2 is defined as a “dual lever” that both reduces dependence on fossil fuels and decarbonizes hard-to-abate industries such as steel, cement, and fertilizers.

The plan is structured around six interconnected pillars: improving institutions and policy frameworks; mobilizing green and international financing; promoting research and development in electrolysis, fuel cells, and storage materials; building transportation and storage infrastructure; developing human resources and ensuring safety; and expanding international cooperation and export markets. These pillars form a unified support system where without infrastructure, production cannot advance, without finance, businesses cannot invest, and without standards, products cannot access global markets.

Notably, the plan outlines the development of “H2 hubs” in regions with strong renewable energy potential and favorable seaport systems such as Central Vietnam, Ho Chi Minh City, and the Central Highlands. Each hydrogen hub will operate as an integrated ecosystem connecting wind and solar power sources, electrolysis plants, green ammonia production, and export ports. Hydrogen will also be integrated into Power Development Plan VIII to ensure a balanced national power supply and avoid conflicts with domestic energy demand. Hydrogen blending in gas turbines, green ammonia logistics, and exports are identified as concrete steps in the 2025-2030 roadmap.

For implementation, the plan encourages public-private partnership (PPP) models, applies regulatory sandbox mechanisms for new technologies, and introduces preferential tax policies, including exemptions for imported electrolysis equipment. Funding will come from green credit, green bonds, climate funds, the Just Energy Transition Partnership (JETP), and official development assistance (ODA), providing a financial foundation for businesses to invest confidently. A key feature is the establishment of certification and traceability mechanisms for green hydrogen, ensuring that Vietnamese products meet the stringent standards of markets such as the European Union, Japan, and South Korea.

However, the plan also identifies major challenges: high hydrogen production costs, large capital requirements for renewable energy and infrastructure, and the need for water resources, environmental safeguards, and highly skilled labor. Therefore, the strategy is divided into three clear phases: pilot (2025-2027), expansion (2028-2030), and commercialization after 2030. Each phase represents a step forward in transforming hydrogen from a strategic vision into a practical driver of Vietnam’s green industry and sustainable growth.

Turning Vietnam’s hydrogen strategy into reality

If the national H2 strategy serves as a “roadmap,” then businesses are the ones steering Vietnam into the hydrogen economy.

State-owned enterprises, particularly major energy corporations such as Vietnam Electricity (EVN), Vietnam National Industry - Energy Group (Petrovietnam), Petrovietnam Gas Joint Stock Corporation (PV GAS), and Vietnam National Chemical Group (VINACHEM), play a leading role in building infrastructure and shaping the market. These corporations possess strong financial capacity, extensive port and storage systems, pipeline networks, and deep experience in operating large-scale industrial chains. Among them, PV GAS is emerging as a key player, developing a pilot project to produce green hydrogen from renewable electricity for industrial and transportation use in southern Vietnam. This project not only serves as a technical trial but also explores ways to integrate hydrogen into the existing gas-power-industrial ecosystem. With its LNG terminals and gas distribution network, PV GAS is one of the few Vietnamese enterprises capable of establishing the country’s first hydrogen hub that connects production, storage, transport, and consumption.

Domestic private companies in renewable energy, logistics, and technology serve as agile innovators. Many wind and solar power producers are exploring hydrogen production from surplus electricity or joining supply chains for electrolyzers, fuel cells, and storage and transport services.

Meanwhile, foreign enterprises and FDI investors help close the technology gap. Leading energy and equipment corporations from Japan, South Korea, and Germany are showing strong interest in hydrogen and green ammonia projects in Ho Chi Minh City, Dak Lak, and Khanh Hoa. Partnerships between Vietnamese companies and FDI investors not only share investment risks but also position Vietnam’s hydrogen industry within global export value chains.

From PV GAS, representing the state-owned sector, to renewable energy companies and international investors, Vietnam’s hydrogen landscape is gradually taking shape through three interconnected layers: leadership, diffusion, and integration. When all three groups operate within a unified policy framework, hydrogen can become a real driver of green growth rather than only a symbol of a clean energy future.

Removing bottlenecks

After nearly two years of implementing the national H2 development plan, Vietnam’s progress shows many positive signs but also reveals significant challenges.

The cost of producing hydrogen from renewable electricity remains high, making it difficult for the product to compete with traditional fuels without price support or a clear carbon pricing mechanism. The system of standards, certification, and market mechanisms is still incomplete, particularly regarding safety regulations, “green hydrogen” labeling, and carbon credit trading rules. Infrastructure for storage, transportation, and export, including ammonia and hydrogen terminals, remains mostly conceptual, while investment demands and technical risks are significant. Moreover, the shortage of skilled technical personnel remains a major limitation.

To address these limitations, Vietnam needs to complete its legal framework, including safety standards and a carbon credit mechanism. The country should adopt flexible financial tools such as tax incentives, credit guarantees, and green bond issuance, while piloting public-private partnership models at key hydrogen hubs to gain practical experience. Strong investment in workforce training and R&D for electrolysis and fuel cell technologies is also essential. Hydrogen planning must be integrated into national power and water planning to ensure sustainable development.