Table of Contents

  • As international action against climate change intensifies and global value chains are reshaped as a result, effective clean energy policies will increasingly be a source of competitive advantage. Viet Nam, Asia’s major regional manufacturing hub and one of South-East-Asia’s fastest growing economies, must act consistently with these trends to maintain its position as a leading destination for foreign direct investment. This will require ever-greater levels of investment in clean energy infrastructure with sector strategies indicating a more than trebling of generation capacity by 2040 and an increasing role for solar and wind generation. Viet Nam’s economy also remains highly energy intensive with abundant economic potential for demand-side efficiency. The scale of investment required goes beyond the capacity of public finances. A strong enabling framework to attract private capital is critical to reap the economic benefits of a clean energy transition.

  • The Clean Energy Finance and Investment Policy Review of Viet Nam is one of the key outputs of the OECD Clean Energy Finance and Investment Mobilisation (CEFIM) Programme. The CEFIM Programme aims to support governments in emerging economies in South and Southeast Asia as well as Latin America to unlock finance and investment in renewable electricity and energy efficiency (“clean energy”).

  • The Clean Energy Finance and Investment Policy Review of Viet Nam supports Viet Nam’s efforts to realise a clean energy transition. It provides a comprehensive overview of the current policy environment, highlighting progress and identifying opportunities for strengthening policy interventions that can help to scale up clean energy finance and investment. The following is a summary of the assessment and key recommendations from six policy areas that form the framework for the Review and that are elaborated in chapters 2 through 7.

  • This chapter examines key trends related to clean energy finance and investment in Viet Nam. It provides a brief overview of key macroeconomic, investment and social developments in Viet Nam over recent decades. It analyses key trends in energy demand and energy efficiency, as well as in the power sector, highlighting progress against clean energy and climate targets. The chapter also provides a snapshot of Viet Nam’s clean energy market, looking at recent trends in the cost of clean energy technologies, as well as finance and investment flows.

  • This chapter examines governance for clean energy finance and investment and power planning in Viet Nam. It provides an overview of Viet Nam’s institutional framework for clean energy and electricity market structure, and identifies areas to improve coordination across institutions, at all levels of government, to ensure effective and consistent goals and policies. The chapter also highlights progress and opportunities to improve the country’s clean energy finance and investment-related targets, strategies and power planning mechanisms with a view to sending credible, ambitious and long-term signals to investors.

  • This chapter examines clean energy policies and regulations in Viet Nam. It analyses Viet Nam’s evolving clean energy policy environment and how regulatory developments have been shaping the market landscape for clean energy investment. The chapter reviews the role of expanding energy performance standards and labelling schemes, energy management obligations, and regulatory conditions for energy service companies. It also considers the impact of regulations on renewable electricity generation and identifies opportunities to align with international best practice.

  • This chapter reviews Viet Nam’s investment and competition framework in the context of clean energy. It examines the country’s efforts to level the playing field between the national power utility and independent power producers, as well as to create a fair, efficient and transparent procurement process for renewables. It assesses Viet Nam’s foreign direct investment regime and other areas to improve the framework for clean energy investment, including how to facilitate land access.

  • This chapter analyses the use of targeted incentives for energy efficiency and renewable energy development, and provides insights into good practices in other countries. It highlights key measures implemented by the government to improve the business environment for clean energy projects, as well as areas of untapped opportunity to attract further investment. It also examines the role that public procurement of energy efficiency services and corporate sourcing of renewables can further support clean energy market development.

  • This chapter examines the current status and future requirements of clean energy finance in Viet Nam. It reviews the current state of financial markets and highlights the need to deepen capital market development. It highlights financial market regulation, including the role of sustainable finance policies and targeted green finance instruments in mobilising finance for clean energy projects. The chapter also examines the role of development finance in mobilising private capital and opportunities for institutional innovation to catalyse private sector finance and investment.

  • This chapter examines cross-cutting issues that can improve Viet Nam’s clean energy finance and investment framework. It reviews efforts to improve regional grid integration with a view to facilitating the expansion of renewable electricity, as well as to promote innovation, research and development for clean energy, which can help bring down the cost of clean energy technologies and support the domestic clean energy industry’s development. The chapter also examines training and education programmes that are essential to develop skills for clean energy finance and investment as well as efforts to promote gender equality in the clean energy sector.