Key Points

If Vietnam is to continue its success and compete globally for investment in renewable energy, it will need to further develop its investment climate. The competition is heating up in this area, and an increasing number of countries have similar conditions and frameworks for renewable energy investment. Therefore, every improvement may help boost a market’s relative attractiveness.

While Vietnam has received substantial support and assistance in developing and designing its feed-in tariff and auctions policies from international donors, limited attention has been paid to how to build institutions for renewable energy governance. Taking into account these points, we propose six actions that can further enhance the attractiveness of Vietnam’s renewable energy sector for investment from both domestic and international investors. Vietnam could channel more human and institutional resources into renewable energy governance. The Department of New and Renewable Energy and the Electricity and Renewable Energy Authority (EREA) are the main bodies regulating renewable energy projects.

In order to attract investors, the government needs to streamline market entry procedures and provide prioritised and easy access to investors dealing with renewable energy.

Action plan to attract investment in renewable energy in Vietnam

• Prioritise renewable energy in the governance system
• Streamline the regulatory framework
• Facilitate market entry for investors
• Improve transparency and communication about the investment regime
• Improve grid expansion planning
• Join IRENA to further build the capacity for renewable energy governance