Preface
As international action against climate change intensifies and global value chains are reshaped as a result, effective clean energy policies will increasingly be a source of competitive advantage. Viet Nam, Asia’s major regional manufacturing hub and one of South-East-Asia’s fastest growing economies, must act consistently with these trends to maintain its position as a leading destination for foreign direct investment. This will require ever-greater levels of investment in clean energy infrastructure with sector strategies indicating a more than trebling of generation capacity by 2040 and an increasing role for solar and wind generation. Viet Nam’s economy also remains highly energy intensive with abundant economic potential for demand-side efficiency. The scale of investment required goes beyond the capacity of public finances. A strong enabling framework to attract private capital is critical to reap the economic benefits of a clean energy transition.
In recent years, Viet Nam has made impressive progress in this regard, with market liberalisation creating opportunities for independent power producers and favourable renewable support mechanisms facilitating high levels of investment, particularly into the solar market. Maintaining sustainable market growth while integrating higher shares of variable generation and securing cost reductions will be a key challenge for Viet Nam’s policy makers over the next decade. This OECD Clean Energy Finance and Investment Policy Review of Viet Nam aims to support the effort to achieve the country’s clean energy targets.
The Review provides a comprehensive overview of the current policy framework in Viet Nam, highlighting successes and identifying areas that can be strengthened. It also contains a number of tailored recommendations for the Government of Viet Nam and development partners to mobilise private finance and investment for clean energy development.
The Review is the result of a constructive dialogue between Viet Nam and OECD member countries alongside other clean energy stakeholders. The OECD will continue to support Viet Nam in implementing the report’s recommendations as the country builds a stronger, cleaner and more resilient economy. I am confident that this collaborative effort will help in mobilising private finance and investment to support climate action and sustainable development.
