Vietnam Power Market Size (2024 - 2029)

The Vietnamese power market is experiencing notable growth, driven by government initiatives to enhance electricity access and increase the proportion of renewable energy in the power generation mix. Despite challenges such as the need for substantial investments to upgrade infrastructure and limited private sector participation, the market has rebounded to pre-pandemic levels. The country's abundant wind resources present significant potential for wind energy development, supported by foreign investment and research and development projects, which collectively contribute to the expansion of the market size in Vietnam.

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Market Size of Vietnam Power Industry

Vietnam Power Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 5.00 %
Market Concentration Medium

Major Players

Vietnam Power Market Major Players

*Disclaimer: Major Players sorted in no particular order

Vietnam Power Market Analysis

The Vietnamese power market is expected to record a CAGR of more than 5% during the forecast period.

The market was negatively impacted by COVID-19 in 2020. Presently the market has now reached pre-pandemic levels.

  • Over the medium term, in Vietnam, the power market is undergoing significant transformation owing to the efforts taken by the government to improve electricity access in the country, along with its plans to increase the share of renewables in the country's power generation mix, these factors aid in driving the market growth.
  • On the other hand, huge investments are required to set up and modernize power generation, transmission, or distribution networks, and weak private sector investments are restraining the power market in Vietnam.
  • Nevertheless, Vietnam has some of the most significant wind resources, creating enormous opportunities to exploit wind energy for power generation. The factors above clubbed with foreign investment and extensive R&D projects, offer an opportunity to grow the power market in Vietnam.

Vietnam Power Industry Segmentation

Power generation is generated through various primary sources such as coal, hydro, solar, thermal, etc. In utilities, it's a step before its delivery to end users. The process is followed by transmission and distribution. Under this, the power generated is distributed via high-voltage lines (transmission lines) and low-voltage lines (distribution lines) as per the requirement of the end user.

The Vietnam power market is segmented by power generation and transmission & distribution. By power generation, the market is segmented into thermal, hydro, renewables, and other generation sources. For each segment, the market sizing and forecasts have been done based on revenue (USD billion).

Generation Source
Thermal
Hydro
Renewable
Other Generation Sources
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Vietnam Power Market Size Summary

The Vietnamese power market is experiencing a transformative phase, driven by government initiatives to enhance electricity access and increase the share of renewable energy in the power generation mix. Despite the challenges posed by the COVID-19 pandemic, the market has rebounded to pre-pandemic levels. The country's energy landscape is predominantly dominated by fossil fuels, particularly coal, which constitutes a significant portion of the energy mix due to its cost-effectiveness and domestic availability. However, the heavy reliance on coal has prompted the government to explore renewable energy sources, such as wind and solar, to diversify the energy portfolio and reduce carbon emissions. The potential for wind energy exploitation presents a substantial opportunity for market growth, supported by foreign investments and research and development projects.

The Vietnamese government is actively investing in expanding and modernizing the power transmission network to ensure reliable electricity supply across the country. This includes the construction of new substations and transmission lines as outlined in the national power development plans. Significant financial investments are planned to enhance both power generation and grid infrastructure, with a focus on balancing conventional and renewable energy sources. The government's commitment to developing renewable energy projects, such as floating solar farms, aligns with its goals to achieve net-zero carbon emissions and reduce dependency on coal imports. Key industry players, including Vietnam Electricity and international companies, are involved in various projects to support the country's power market expansion.

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Vietnam Power Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Market Size and Demand in USD billion, till 2028

    3. 1.3 Recent Trends and Developments

    4. 1.4 Government Policies and Regulations

    5. 1.5 Market Dynamics

      1. 1.5.1 Drivers

      2. 1.5.2 Restraints

    6. 1.6 Supply Chain Analysis

    7. 1.7 PESTLE Analysis

  2. 2. MARKET SEGMENTATION

    1. 2.1 Generation Source

      1. 2.1.1 Thermal

      2. 2.1.2 Hydro

      3. 2.1.3 Renewable

      4. 2.1.4 Other Generation Sources

    2. 2.2 Transmission and Distribution

Vietnam Power Market Size FAQs

The Vietnam Power Market is projected to register a CAGR of greater than 5% during the forecast period (2024-2029)

Vietnam Electricity, General Electric, AES Mong Duong Power Company Limited, Mekong Energy Company Ltd and Jera Co Inc. are the major companies operating in the Vietnam Power Market.

Vietnam Power Report Snapshots

Vietnam Power Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)