Contrastingly, solar and wind power’s lower capital requirements and faster development timelines are well-suited to meeting Vietnam’s near-term energy needs. These projects can be implemented within months and with high certainty, unlike gas projects, which typically take four to five years to complete once financed.
Vietnam has orchestrated the first stage of its solar and wind power development using FITs and a supportive overall investment environment. Government incentives and enabling policies that have boosted energy availability while avoiding upward pressure on electricity prices have gained public support.
3. 4. 5. 6. 7. Source: Compiled by the authors from Vietnamese government documents. According to our interviewees, decision-making processes for solar and wind power have been fairly open and adaptive in Vietnam.
By 2023, Vietnam had become Southeast Asia’s largest solar power producer, proving that the energy transition could occur rapidly. However, the very success of this boom has sowed the seeds of a policy reckoning.
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