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especially wind and solar power. Obtaining this target demands significant financial
investment. As Vietnam has modest domestic resources, its continued progress in

developing renewable power depends heavily on its ability to secure inward FDI flows.
4. Potential for international investment in renewable energy development
in Vietnam
In recent years, Vietnam has seen substantial expansion in its renewable energy

capacity. The country's energy transition is expected to become increasingly swift,
capital-intensive, and technically sophisticated, particularly in sectors such as liquefied
natural gas (LNG), wind power, and integrated storage, due to increasingly supportive
policies.
Investors have two options for investing in Vietnamese power projects: a fully
private investment, or a PPP investment project involving a concession contract with the
government to distribute project risks. Currently, all renewable energy investment
projects have been authorized under the investment law framework. Electricity sector

investment projects must adhere to various laws and regulations. 58% of Vietnam's
renewable energy projects were developed solely by Vietnamese companies, 27%
involved collaborations between Vietnamese and international partners, and only 12%
(13 projects) were developed without Vietnamese involvement. The number of
renewable power projects in Vietnam increased from 1,500 to 2,500 between 2016 and
27
2020.
Vietnam attracted two FDI projects in the energy sector in 2009, with a combined
registered value of more than US$90 million. The FDI value in the energy sector
experienced a decline in 2013 but began to rise again in the following year. In 2015, this
value was more than US$350 million. During the 2017-2022 period, 40 solar power
projects and 41 wind power projects were established. These projects accounted for
26.6% and 73.1% of the registered capital from foreign investors in the renewable power
industry, respectively, and 6% and 17% of the overall registered capital in the power

sector. The majority of investment projects in the renewable energy sector were either
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wholly foreign-owned (49 projects) or joint ventures (29 projects) . The amount of FDI
invested in Vietnam in the renewable energy sector in the period 2015 - 2022 reached
US$106.8 billion, which shows that Vietnam is receiving more attention from investors
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in renewable energy .
Thanks to promoting the transition to more sustainable forms of energy, Vietnam

has become one of the countries attracting large amounts of investment capital in clean
power. In particular, data statistics from the World Investment Report indicate that
Vietnam ranked 2nd among 10 developing economies with large foreign investment

27 Data collected from the Mekong Infrastructure Tracker. Https://www.stimson.org/project/mekong-infrastructure/
28 Tran Thi Thu Ha (2023). Attracting foreign direct investment to develop the renewable energy sector in
Vietnam and some policy proposals. Vietnam Financial Economics Magazine, No. 1, pp. 57-71.
29 Cao Thi Hong Vinh, Le Duc Duy (2024). Foreign direct investment in renewable energy in Vietnam: current
situation and some policy implications.
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