Vietnam Power Market Size to Reach 185 Gigawatt by 2030 and 15.76% CAGR, Driven by Rising Electricity Demand and Renewables Expansion

Mordor Intelligence has published a new report on the "Vietnam Power Market" offering a comprehensive analysis of size, share, trends, growth drivers, and future projections.

Vietnam Power Market Overview:

Global Vietnam Power Market is poised for remarkable growth, with the country's installed capacity expected to reach 185 gigawatts by 2030, reflecting a strong CAGR of 15.76% during the forecast period. This expansion is fueled by rising electricity demand from industrial, commercial, and residential sectors, alongside a strategic shift toward renewable energy sources such as solar and wind.

Supported by government policies, foreign investments, and infrastructure development, Vietnam is emerging as one of the fastest-growing power markets in Southeast Asia, balancing its rising consumption needs with long-term sustainability goals.

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Key Trends in the Vietnam Power Market

Growing Electricity Demand

Electricity consumption in Vietnam has been rising consistently due to industrial growth, expanding commercial activities, and higher household usage. The manufacturing sector, in particular, has created a strong demand for uninterrupted power supply, pushing investments in generation and distribution infrastructure.

Renewable Energy Expansion

Vietnam has emerged as a regional leader in renewable energy, particularly solar and wind power. The government has encouraged private and foreign investments in renewable projects through feed-in tariffs and favorable policy frameworks. Solar power installations have seen a notable increase, and wind power capacity is also advancing, aligning with the country's commitment to reduce dependence on imported fossil fuels.

Government Initiatives and Regulatory Support

The Vietnamese government plays a crucial role in shaping the power market. Strategic plans, including the Power Development Plan (PDP), outline targets for renewable capacity, grid expansion, and reduction of carbon emissions. Incentives for renewable energy developers and improvements in regulatory clarity have created an environment conducive to long-term investments.

Shift Toward Gas-Fired Power

Natural gas has been gaining ground as an alternative to coal, owing to its relatively lower emissions. Investments in LNG terminals and gas infrastructure support this shift, ensuring energy diversification while aligning with global sustainability goals.

Transmission and Distribution Challenges

While power generation has expanded, Vietnam continues to face challenges in its transmission and distribution (T&D) networks. Grid congestion and delays in infrastructure upgrades pose risks to efficient electricity delivery, especially as renewable energy projects increase in number. Strengthening the grid remains a priority for Vietnam to ensure reliable power supply across regions.

Read the full report and access market snapshots that include both global views and Japan-specific analysis: https://www.mordorintelligence.com/ja/industry-reports/vietnam-power-market?utm_source=openpr

Market Segmentation of the Vietnam Power Market

The Vietnam Power Market can be segmented based on generation source and end-user application.

By Generation Source

Thermal Power - Includes coal, gas, and oil-based plants that continue to dominate the market due to high base-load demand.

Renewable Power - Solar, wind, biomass, and small hydropower are the fastest-growing segments, supported by government incentives.

Hydropower - Vietnam has traditionally relied on hydropower, which still accounts for a significant share of installed capacity.

Others - Includes emerging technologies and niche energy sources that complement the existing mix.

By End-User Application

Residential - Rising urban household consumption has increased demand for reliable electricity.

Industrial - Manufacturing hubs and export-driven industries represent the largest share of electricity consumption.

Commercial - Offices, retail, and hospitality sectors contribute to steady electricity use in urban centers.

Others - Includes agricultural and public infrastructure needs.

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Key Players in the Vietnam Power Market

Several domestic and international companies are actively shaping the Vietnam Power Market through investments, partnerships, and technology development.

Vietnam Electricity (EVN) - The state-owned utility remains the central player, overseeing generation, transmission, and distribution across the country.
PetroVietnam Power Corporation (PV Power) - A leading operator in gas-fired and thermal power plants, contributing significantly to national capacity.

Vietnam Oil and Gas Group (PetroVietnam) - Active in developing LNG and gas-fired power infrastructure.
Private and International Investors - Companies from Japan, South Korea, and Europe are increasingly investing in renewable projects, particularly solar and wind power.

Regional and Independent Developers - Independent power producers are playing a growing role in expanding Vietnam's renewable portfolio.

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Conclusion on the Vietnam Power Market

The Vietnam Power Market is poised for consistent growth, driven by rising electricity demand and ongoing diversification of energy sources. While coal and hydropower continue to hold a strong share, renewable energy is steadily increasing its presence due to supportive government policies and foreign investment. The transition toward gas-fired power plants and investments in LNG terminals further strengthen the market outlook.

However, challenges in transmission and distribution networks underline the need for continuous infrastructure upgrades. Strategic government planning, combined with the participation of domestic and international stakeholders, positions Vietnam as one of the most promising power markets in Southeast Asia.

With industrial growth and energy diversification at its core, the Vietnam Power Market is expected to expand steadily through 2030, offering opportunities across renewable projects, grid modernization, and energy-efficient technologies.

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This release was published on openPR.