Page 58 - Ebook HTKH 2024

PROMOTING RENEWABLE ENERGY SOURCES IN VIETNAM’S

SUSTAINABLE ECONOMIC DEVELOPMENT STRATEGY:
SITUATION AND POLICY IMPLICATIONS FOR ATTRACTING
INTERNATIONAL INVESTMENT

18
Nguyen Thi Thu Huong , Truong Quang Hoan , Pham Viet Linh
19
20

Abstract: Renewable energy is crucial in Vietnam's pursuit of sustainable economic growth,
owing to its environmentally friendly characteristics, cleanliness, and unlimited availability. Among
Southeast Asian nations, Vietnam is a productive power that leverages cost-effective resources. The
country has successfully achieved near-universal access to electricity at a relatively low cost. To obtain
energy security and meet expanding power needs, Vietnam has actively encouraged renewable energy
resource development, including the Power Development Plan 8 (PDP8). Annually, the PDP 8
anticipates a funding requirement valuing over US$10 billion, including a large part of spending on
renewable resources. Yet, attaining the net-zero emissions goal in 2050 demands a substantial increase
in Vietnam's renewable energy capacity, particularly in the solar and wind sectors. This will require a
considerable investment value. To maintain the growth in clean renewable energy, Vietnam needs to
attract more foreign direct investment (FDI). This research begins by highlighting the significance of
renewable energy in Vietnam's strategy for sustainable economic development, followed by evaluating
the progress of developing renewable energy sources in the country. The paper also generalizes
government policies to enhance the development of this sector. Subsequently, this current paper explores
opportunities for drawing international investment into Vietnam's renewable energy industry and
concludes by offering relevant policy suggestions.
Keyword: Vietnam, renewable energy, development, international investment

1. Role of renewable energy sources in Vietnam’s sustainable economic
development
Renewable energy, also referred to as renewable energy sources, comprises energy

derived from continuous sources that are considered infinite on human timescales.
Various forms of renewable energy include solar, hydroelectric, tidal, wind, biomass,
and geothermal energy (bioenergy). Meanwhile, sustainable economic development is
an economic development approach that emphasizes economic growth and prioritizes
environmental protection and societal well-being, ensuring equitable distribution of
benefits. This aims to satisfy the current generation’s needs without affecting the next

generation’s interests. Consequently, increasing the production of renewable energy has
been a focus of interest for the Vietnamese Government in recent times to reduce
dependence on fossil energy sources and mitigate environmental pollution. In addition
to hydropower, which is considered a traditional energy source that has been invested
in and developed by the Vietnamese government to near-maximum capacity, wind
and solar energy sources are being encouraged for widespread development.

18 Hanoi Open University, Email: huongntt.kt@hou.edu.vn
19 Institute for Southeast Asian Studies, Vietnam Academy of Social Sciences
20 International School, Vietnam National University

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