After a rapid buildout to capture short-lived feed-in tariffs, Vietnam’s renewable energy sector is entering a new phase marked by consolidation and foreign acquisitions. In mid-2024, Singapore’s Sembcorp Solar Vietnam and the Philippines’ ACEN each acquired major local projects, underscoring renewed interest from regional investors.
Analysts say many domestic developers are exiting due to policy uncertainty, high borrowing costs, and expiring incentives, while foreign players with stronger capital and long-term experience are stepping in. Vietnam’s Power Development Plan VIII projects total installed capacity to reach 150 GW by 2030, with renewable energy accounting for more than 20%.
Despite stalled new projects, global energy groups such as AES and EDP Renewables continue expanding in Vietnam, citing strong demand growth and new direct power purchase mechanisms. The market is now shifting from a speculative rush to a more disciplined, investment-driven stage.
This article is a condensed and translated summary (original in Vietnamese, VN) of a feature published in the August 2024 issue of Bloomberg Businessweek Vietnam.
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