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Vietnam Power Market Forecast (2025–203: Rapid Growth Driven by Energy Transition and Infrastructure 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.
Browse Full Report Details Followed by TOC: https://www.mordorintelligence.....com/industry-report flexsocialbox
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.
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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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