Vietnam Solar Energy Market Size (2024 - 2029)

The Vietnam solar energy market is anticipated to experience growth in its installed base over the forecast period, driven by increased investments in renewable energy and rising electricity demand in key provinces. The country's efforts to shift from fossil fuel-based power generation further support this expansion. However, the market's growth may face challenges due to the adoption of other clean energy sources and the high initial costs associated with solar projects. Despite these challenges, Vietnam's Power Development Plan VII aims to significantly enhance the proportion of renewable energy, presenting a substantial opportunity for the solar energy sector.

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Market Size of Vietnam Solar Energy Industry

Vietnam Solar Energy Market - Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR (2024 - 2029) 2.44 %
Market Concentration Medium

Major Players

Vietnam Solar Energy Market Major Players

*Disclaimer: Major Players sorted in no particular order

Vietnam Solar Energy Market Analysis

The Vietnam Solar Energy Market size in terms of installed base is expected to grow from 18.80 gigawatt in 2024 to 20.76 gigawatt by 2029, at a CAGR of 2.44% during the forecast period (2024-2029).

  • Over the medium period, the increasing investments in the renewable energy industry, increasing electricity demand in major provinces, and the country's growing efforts to transition from fossil fuel-based power generation are among the factors expected to drive the market during the forecast period.
  • On the other hand, market growth is also expected to be hindered by the increasing adoption of alternative clean energy sources and high initial investment costs of solar projects during the study period.
  • Nevertheless, Vietnam's Power Development Plan VII intends to boost the share of renewable energy to 10% in eight years. The country also plans to reduce the use of imported coal-fired electricity, culminating in a major opportunity for its solar energy market.

Vietnam Solar Energy Industry Segmentation

Solar energy comprises heat and radiant light from the sun that can be harnessed by leveraging technologies such as solar power (used to generate electricity) and solar thermal energy (used for applications such as water heating).

The Vietnamese solar energy market is segmented by technology. By technology, the market is segmented into solar photovoltaic (PV) and concentrated solar power (CSP). For each segment, the market sizing and forecasts have been done based on installed capacity (GW).

Technology
Solar Photovoltaic (PV)
Concentrated Solar Power (CSP)
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Vietnam Solar Energy Market Size Summary

The Vietnam solar energy market is poised for significant growth over the forecast period, driven by increasing investments in renewable energy and a shift away from fossil fuels. The country's Power Development Plan VII aims to enhance the share of renewable energy, including solar, to meet rising electricity demand fueled by industrialization and economic modernization. Despite challenges such as high initial investment costs and competition from alternative clean energy sources, the solar photovoltaic (PV) segment is expected to dominate the market due to declining module costs and versatile applications. The government's strategic initiatives, including a substantial energy strategy and net-metering schemes, are set to bolster solar energy production, positioning Vietnam as a potential power exporter in the coming years.

The Vietnamese solar energy market is characterized by a semi-consolidated structure, with key players like Song Giang Solar Power JSC and Vietnam Sunergy Joint Stock Company actively contributing to market expansion. Recent developments, such as the launch of new solar panel production facilities and strategic investments in solar farm assets, underscore the growing commitment to renewable energy. The government's supportive policies and incentives have facilitated substantial growth in solar PV projects, helping to diversify the energy mix and reduce reliance on fossil fuels. As Vietnam continues to focus on renewable energy to meet future electricity demands, the solar energy market is expected to experience robust growth, supported by significant investments and infrastructure developments.

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Vietnam Solar Energy Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Renewable Energy Mix, Vietnam, 2023

    3. 1.3 Solar Energy Installed Capacity and Forecast, in GW, till 2029

    4. 1.4 Government Policies and Regulations

    5. 1.5 Recent Trends and Developments

    6. 1.6 Market Dynamics

      1. 1.6.1 Drivers

        1. 1.6.1.1 Increasing Investments in the Renewable Energy Industry

        2. 1.6.1.2 Increasing Electricity Demand in Major Provinces

      2. 1.6.2 Restraints

        1. 1.6.2.1 Increasing Adoption of Alternative Clean Energy Sources

    7. 1.7 Supply Chain Analysis

    8. 1.8 PESTLE Analysis

  2. 2. MARKET SEGMENTATION

    1. 2.1 Technology

      1. 2.1.1 Solar Photovoltaic (PV)

      2. 2.1.2 Concentrated Solar Power (CSP)

Vietnam Solar Energy Market Size FAQs

The Vietnam Solar Energy Market size is expected to reach 18.80 gigawatt in 2024 and grow at a CAGR of 2.44% to reach 20.76 gigawatt by 2029.

In 2024, the Vietnam Solar Energy Market size is expected to reach 18.80 gigawatt.

Vietnam Solar Energy Market Report Snapshots

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