Vietnam is entering the first year of implementing its 2026-2030 socio-economic development plan, with the goal of posting double-digit annual GDP growth, while continuing to realize its commitment to achieving net-zero emissions by 2050. The international landscape, meanwhile, is marked by geopolitical shifts, pressure to ensure energy security, and increasingly stringent emission reduction and green standards in global markets. This underscores the need for Vietnam to build a modern, safe, and resilient energy system capable of supporting rapid and sustainable growth.
Against this backdrop, the Vietnam Chamber of Commerce and Industry (VCCI), through the Vietnam Business Council for Sustainable Development (VBCSD), collaborated with partners to organize the World Energy and Environment Forum - Vietnam 2026 on July 8 in Hanoi, with the theme “Vietnam’s Pathway to Net Zero.”
Shaping green growth
In the face of growing geopolitical uncertainties, inflationary pressures, financial risks, and rapid technological disruption, Vietnam views its green transition not only as an environmental imperative but also as a strategic pathway to strengthening long-term economic competitiveness.
Speaking at the Forum, Mr. Nguyen Ngoc Tuan, Vice Chairman of the Central Commission for Policy and Strategy, said the global economy is entering a period of profound transformation, where scientific and technological breakthroughs, together with deeper international integration, are reshaping development models across countries. At the same time, energy security has become an increasingly critical pillar of economic resilience and political stability, while renewable and low-carbon energy is emerging as a global trend that supports both emission reductions and reduced dependence on fossil fuels.
For Vietnam, these trends are particularly significant. As one of Southeast Asia’s fastest-growing economies and among those most vulnerable to climate change, it recognizes that restructuring its energy system and promoting green growth are essential to sustaining future development.
The country’s commitment to achieving net-zero emissions by 2050, announced at COP26, has since been translated into national development strategies. The 14th National Party Congress identified the energy industry as one of Vietnam’s strategic foundation sectors while emphasizing stronger environmental protection and climate resilience as key drivers of future growth.
According to Mr. Tuan, Vietnam holds significant advantages to accelerate renewable energy development. By 2030, renewable energy is expected to account for 25-30 per cent of primary energy supply, while digital transformation, new energy technologies, green finance, and the green economy will become major priorities. “Vietnam is continuing to improve market institutions, expand private sector participation, and foster a transparent, competitive investment environment where businesses can play a central role in driving the country’s green transition,” he added.
Steering climate action
As the national focal agency on climate change, the Ministry of Agriculture and Environment (MAE) has been acting decisively to implement Party resolutions, the National Strategy on Climate Change, and the National Strategy on Green Growth.
Mr. Le Cong Thanh, Deputy Minister of Agriculture and Environment, said net-zero is no longer simply an environmental issue but is becoming one of the driving forces of a new global development competition. “Countries that grasp the green transition trend will have more opportunities to enhance their competitiveness, attract high-quality investment, and build a new position in the global economy,” he said.
According to Mr. Thanh, the MAE will focus its resources on advising on and improving the institutional framework while developing a comprehensive, forward-looking legal framework. At the same time, it will proactively implement and closely monitor international climate commitments to reinforce Vietnam’s international credibility. The sector is also focusing on establishing effective operational mechanisms and fiscal and financial tools, and mobilizing multilateral resources to deepen the green transition.
Specifically, the MAE is closely coordinating with ministries, sectors, and localities to accelerate the development of a transparent greenhouse gas emissions inventory system in line with international standards and to effectively operate the domestic carbon market. National programs on climate change adaptation, environmental protection, forest restoration, wetlands, and coastal areas are also being accelerated to maximize natural carbon absorption capacity and transform ecological potential into green economic resources.
Recognizing that businesses are central to achieving the country’s net-zero target, Mr. Thanh affirmed that the MAE will continue to stand alongside the business community with concrete action. The Ministry will proactively remove policy barriers, optimize administrative procedures, enhance information sharing, and create a favorable investment environment to promote green investment, technological innovation, and the replication of circular business models.
“Vietnam’s net-zero roadmap is not only a roadmap for reducing greenhouse gas emissions but also one for innovating the growth model, enhancing national competitiveness, and creating new drivers of development,” Mr. Thanh said. “As the global landscape rapidly shifts toward green and low-emission technologies, Vietnam has chosen to proactively adapt, transform, and seize opportunities to develop faster, more sustainably, and more efficiently. With the determination of the Party and the State, the support of the business community, the assistance of international partners, and the innovative spirit of society as a whole, we have a solid foundation to achieve net-zero by 2050.”
Ensuring energy transition
The energy sector has been identified as one of the key areas in achieving Vietnam’s net-zero targets. According to the Ministry of Industry and Trade (MoIT), the sector accounted for 66 per cent of total greenhouse gas emissions in 2020 and this could increase to 73 per cent by 2030 under the business-as-usual scenario without transition measures.
In 2023, Vietnam, together with the International Partners Group (IPG), adopted the Joint Political Declaration establishing the Just Energy Transition Partnership (JETP). “This is a groundbreaking step that helps Vietnam mobilize international resources, improve the investment environment, and promote the decarbonization of its electricity system, while also creating new economic opportunities to support the country’s transition toward net-zero emissions,” Mr. Nguyen Hoang Long, Deputy Minister of Industry and Trade, told the Forum.
For Vietnam, these trends are particularly significant. As one of Southeast Asia’s fastest-growing economies and among those most vulnerable to climate change, it recognizes that restructuring its energy system and promoting green growth are essential to sustaining future development.
Since adopting the JETP Declaration, Vietnam has developed, amended, and supplemented a range of important policy mechanisms to facilitate the mobilization of domestic and foreign capital for energy development. “The refinement of policies has been carried out proactively by Vietnam to meet the country’s development requirements in the new context,” he said. “At the same time, this effort also helps Vietnam fulfill its international commitments under the JETP. However, it must be acknowledged that the mobilization of international resources for energy transition investment projects has not kept pace with Vietnam’s efforts to improve its energy policy.”
To date, Vietnam and its partners have identified 50 projects suitable for the JETP, requiring more than $11 billion in funding. Only three projects have secured $722 million in JETP financing: the Ho Chi Minh City - Binh Duong power transmission line project ($78 million); the expansion of the Tri An hydropower plant ($79 million); and the Bac Ai pumped-storage hydropower project ($565 million). The pace of JETP resource mobilization is expected to accelerate following significant efforts by the MoIT, other Vietnamese ministries and agencies, and especially the IPG, the Glasgow Financial Alliance for Net Zero (GFANZ), and international partners.
“Despite these efforts, investment channeled through the JETP meets only a fraction of Vietnam’s energy development and transition needs,” the Deputy Minister added. “A total of $136.3 billion is needed for power generation and grid development during the 2026-2030 period, as outlined in the revised National Power Development Plan VIII. This includes $118.2 billion for power generation and $18.1 billion for grid development. Mobilizing such a substantial amount will require the collective efforts of government agencies, businesses, international financial institutions, development partners, and investors at home and abroad.”
The MoIT will continue coordinating with other ministries and agencies to improve the institutional framework and create the most favorable conditions for businesses and international partners to invest in the energy transition. “We hope to receive the continued support and cooperation of the international community, financial institutions, businesses, and organizations, both at home and abroad, to jointly ensure energy security, reduce emissions, and achieve net-zero emissions by 2050,” he said.
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