Economic Overview

Since the opening up of Vietnam and the country's accession to the Wold Trade Organisation (WTO) in 2007, Vietnam has been developing continously into one of the most important growth markets of Southeast Asia. In the last three years alone, its economy has grown by an average of 7.8% per year. In 2007 exports reached a new record at US$ 48.4 billion (+18%), and imports rose by 26% to US$ 60.8 billion. Foreign direct investment, which in the same year was US$ 20 billion - over five times higher than 2005 - also speaks for Vietnam as a new successful location for business.

Energy Sector

Global warming, limited fossil-fuel resources and raw materials, and rising prices for both, have focused attention in Vietnam, too, on sustainable energy, such as solar energy, biofuels, and energy from wind, water and geothermal sources. The Vietnamese government is pursuing ambitious goals to increase the proportion of renewable and decentralised energy in the overall consumption of energy in the country. In 1999/2000 the Ministry of Industry and Trade (MOIT), together with Electricity of Vietnam (EVN) - the country's largest energy company - and the World Bank put together the 'Renewable Energy Action Plan' (REAP) which serves as the basis for the use of renewble energy in the electricity sector.

Status quo

• Excellent ecological conditions nationwide for the use of renewable energy sources
• Annual increase in energy demand of 17%
• High requirement for technology to expand capacities
• Dependency on energy imports from abroad
• 20% of energy requirements to be met with hydroelectric power 
• Current supply of 150,000 households with electricity from micro hydroelectric power plants
• State subsidies for renewable energy of US$ 500 million since 2001
• State preference for private operator models (BOT, BOO)
• State intention to buy electricity from renewable energy sources
• Special oportunities for wind energy projects e.g. Phuong Mai 3 Windproject, Con Dao Windproject

Governmental plans for long-term investments in renewable energy

Supply of 750,000 households with electricity from renewable sources, investment total: US$ 180 million Government aim to cover 5% of primary energy needs by 2020 with renewble energy (excl. hydroelectric power) Expansion of wind-energy capacities from 0.2 MW to 400 MW Installation of 150,000 domestic biogas plants for decentralised energy supply By 2020, expansion of geothermal capacities to 400 MW Construction of 16 hydrolectric plants Expansion of micro hydroelectric capacities by 3 GW Completed and planned hydroelectric power projects to a value of US$ 1.58 billion Energy supply to the islands off Vietnam by decentralised renewable energy Support according to Decree No. 04/2009/ND-CP of January 14, 2009, providing for incentives and supports for environmental protection activities incoluding the generation of energy from wind, solar, tide or geothermal sources.