Vietnam needs to invest an additional 8-10 billion USD/year in renewable energy to achieve Net Zero 2050

VTV.vn - To achieve the goals of energy security and green growth, a system of synchronous and interdisciplinary solutions is needed between the State - Enterprises - Institutes, schools - Society.

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Speaking at the seminar "Promoting green energy transition in Vietnam towards the Net Zero 2050 target", Associate Professor, Dr. Dang Tran Tho, Director of the Institute of Energy Technology, Hanoi University of Science and Technology, said that over the past three decades, Vietnam's energy sector has played a pivotal role in socio- economic development. However, Vietnam's primary energy structure is still biased: Coal accounts for about 49.7%, Petroleum and petroleum products account for 24.7%, Natural gas 6.4%, Hydropower 6.8%, Renewable energy about 3.3%.

Citing data from Vietnam Energy Outlook 2024, Mr. Tho said that to achieve the Net Zero 2050 target, Vietnam needs to invest an additional 8-10 billion USD/year in renewable energy, infrastructure and storage technology - a figure that represents a huge financial challenge.

Associate Professor, Dr. Dang Tran Tho, Director of the Institute of Energy Technology, Hanoi University of Science and Technology

According to Resolution 70, Vietnam's goal by 2030 is to increase the proportion of renewable energy to about 30% of total energy supply by 2030, towards 40-50% by 2045; reduce greenhouse gas emissions by 10% by 2030 and 20% by 2045, towards carbon neutrality by 2050.

Mr. Tho said that to achieve the strategic goals of energy security, emission reduction, and green growth, a synchronous, interdisciplinary solution system is needed, linking the State - Enterprises - Institutes, schools - Society. Here, it is necessary to increase the role of the private sector and FDI, encourage blended finance, in which private corporations play a co-investing role with the State in energy infrastructure projects.

From a business perspective, Mr. Nguyen Tai Anh, Deputy General Director of Vietnam Electricity Group (EVN), said that EVN is playing a pivotal role in energy transition and achieving the target of reducing emissions by 15-35% by 2030.

"With a total investment of 3-4 billion USD/year, mobilizing social capital is necessary. Resolution 70 allows the participation of many economic sectors, helping to share the financial burden and promote the green transition process," said an EVN representative.

Representative of the State Bank, Ms. Pham Thi Thanh Tung, Deputy Director of the Department of Credit for Economic Sectors, informed: By June 2025, the outstanding loans for renewable energy reached nearly VND 290,000 billion, increasing by an average of 150%/year - much higher than green credit in general. In the total outstanding green credit, renewable energy accounts for 39%, showing that banks are actively accompanying the goals of Resolution 70.

"However, there is still a lack of a legal framework for green bonds and carbon credit transactions. It is necessary to clearly guide the criteria for "green projects" so that banks can reduce lending risks," Ms. Pham Thi Thanh Tung noted.

Institutionalizing Resolution 70 - a strategic step for energy security

Speaking at the seminar, Mr. Tran Hoai Trang, Deputy Director of the Electricity Department ( Ministry of Industry and Trade ) said that the Ministry of Industry and Trade is completing the draft Resolution of the National Assembly on mechanisms and policies to remove difficulties in national energy development.

The draft focuses on groups of solutions to remove bottlenecks in planning, investing and developing power sources, ensuring to meet the rapidly increasing demand for electricity in the coming period. The Ministry also emphasizes the importance of balancing coal power, LNG power and renewable energy, especially in the Northern region - where the risk of power shortages still exists.

Mr. Tran Hoai Trang, Deputy Director of Electricity Department (Ministry of Industry and Trade)

Regarding power planning, allow flexible adjustments to suit the actual development needs of each locality. Regarding investment in power project construction, streamline administrative procedures, cut compliance costs, speed up project commencement and operation. Regarding BOT investment mechanism, supplement regulations to encourage foreign investors, creating favorable conditions to attract international capital.

For LNG thermal power projects, it is expected to apply a long-term minimum electricity output mechanism to increase attractiveness and reduce financial risks for investors.

Source: https://vtv.vn/viet-nam-can-dau-tu-them-8-10-ty-usd-nam-cho-nang-luong-tai-tao-de-dat-net-zero-2050-10025103108580819.htm