Insights from Stuart Livesey, CEO of COP Vietnam and Representative of Copenhagen Infrastructure Partners (CIP) –
Vietnam is at a turning point in its energy transition, balancing growth with sustainability. At the Nordic Business Briefing: Forecasting 2025 – Balancing Risks and Rewards in Vietnam’s Growth Story, NordCham Vietnam speakers and local experts explored the challenges and opportunities ahead. As part of the session, Stuart Livesey highlighted Vietnam’s net-zero commitments, power shortages, and the massive investment needed for a greener future. His key message: progress has been made, but bold action and strategic investment are essential to turn ambition into reality.
The Renewable Energy Surge and Setbacks
Vietnam’s rapid renewable energy expansion in 2019 positioned it as a leader in Southeast Asia. However, this momentum was met with unforeseen challenges, particularly in electricity transmission and regulatory roadblocks. Over the past five years, the country has struggled to maintain the same pace, leading to an energy deficit. The Power Development Plan 8 (PDP8) was introduced to address these issues, but only about half of its objectives have been met so far.
“We had a period of incredible growth in renewables, but without the right infrastructure and policies to support it, the system couldn’t cope,” Livesey explained. “Now, the challenge is ensuring that Vietnam’s next phase of renewable expansion is sustainable and reliable.”
Commitments Driving Change
Vietnam’s pledge at COP26 to achieve net-zero emissions by 2050 has strengthened its commitment to renewable energy. The establishment of the Just Energy Transition Partnership (JETP) in 2022 unlocked $15.5 billion in funding for green energy projects, signaling increased interest from both domestic and foreign investors. However, Livesey cautioned that this funding is only a fraction of the $2.4 trillion Vietnam needs to meet its net-zero target (Net-Zero Transition: Opportunities for Vietnam, Bloomberg NEF December 2024) .
“Vietnam’s commitment to net zero is clear, but the financing gap remains a major hurdle,” Livesey noted. “We need more than just pledges—we need action, investment, and policy certainty to attract long-term capital.”
Energy Shortages: A Wake-Up Call
The power shortages of 2023, particularly in northern Vietnam, served as a stark reminder of the urgency to diversify energy sources. Delayed rainfall, rising summer temperatures, and over-reliance on hydro reserves led to an estimated 4-4.5% reduction in GDP. Additionally, Typhoon Yagi exposed vulnerabilities in the electricity transmission system. These events underscored the need for greater grid resilience and energy storage solutions.
“We cannot afford to have another year like 2023,” Livesey emphasized. “Businesses and communities were hit hard by power cuts. This is not just about sustainability—it’s about energy security and economic stability.”
Navigating the Path Forward
To avoid future crises, Vietnam must adopt a multi-pronged approach:
- Short-term: Increased coal and LNG usage to stabilize energy supply.
- Medium-term: Transitioning existing coal plants to cleaner technologies such as ammonia blending and carbon capture.
- Long-term: Expanding wind and solar energy while investing in smart grid infrastructure.
The intermittent nature of renewables presents another challenge—balancing baseload power. Livesey emphasized the importance of integrating energy storage solutions and regional power imports to ensure stability.
“Renewables are the future, but without storage and smarter grid management, we risk instability,” he said. “It’s about finding the right mix—wind, solar, and a reliable backup system.”
The Road Ahead
Vietnam is at a pivotal moment. With the right policies, investment, and infrastructure, the country can solidify its position as a regional leader in sustainable energy. The momentum is there—now, it’s about execution.
“If we get this right, Vietnam can be a leader in the energy transition, attracting investment and creating a more resilient economy,” Livesey concluded. “But time is of the essence. The world is watching, and action is needed now.”
For the full Nordic Business Briefing webinar on 𝗙𝗼𝗿𝗲𝗰𝗮𝘀𝘁𝗶𝗻𝗴 𝟮𝟬𝟮𝟱: 𝗕𝗮𝗹𝗮𝗻𝗰𝗶𝗻𝗴 𝗥𝗶𝘀𝗸𝘀 𝗮𝗻𝗱 𝗥𝗲𝘄𝗮𝗿𝗱𝘀 𝗶𝗻 𝗩𝗶𝗲𝘁𝗻𝗮𝗺’𝘀 𝗚𝗿𝗼𝘄𝘁𝗵𝗦𝘁𝗼𝗿𝘆 hosted by NordCham Vietnam – go to LINK.
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