Vietnam Solar Energy Market Outlook
The Vietnam solar energy market reached an estimated value of 25.43 TWh in 2024. Aided by supportive government policies, rising environmental consciousness, and increased investment in renewable infrastructure, the Vietnam solar energy market size is projected to grow at a CAGR of 3.10% between 2025 and 2034 to reach approximately 34.51 TWh by 2034.
Vietnam has emerged as one of Southeast Asia’s most dynamic renewable energy markets, with solar power playing a critical role in the nation’s energy transition. With abundant solar irradiance and a growing electricity demand, Vietnam has positioned itself as a frontrunner in harnessing solar energy to ensure energy security, reduce carbon emissions, and meet its sustainable development goals.
Vietnam Solar Energy Market Size
The rapid development of the Vietnam solar energy market can be traced back to aggressive policy support, such as attractive feed-in tariffs and power purchase agreements (PPAs) issued in the past few years. These incentives attracted both local and international investors, leading to a surge in installed solar capacity.
In 2024, the market reached a production level of 25.43 TWh, making solar energy a key contributor to the national grid. Residential, commercial, and utility-scale solar projects have all expanded rapidly. Provinces with high solar potential such as Ninh Thuan, Binh Thuan, and Dak Lak have witnessed a concentration of solar farms and rooftop installations, significantly boosting the market's size.
Vietnam Solar Energy Market Share
The majority of Vietnam’s solar energy production currently stems from utility-scale solar farms, which account for the largest share of the market. However, the residential and commercial rooftop segments are rapidly gaining traction due to rising electricity prices and grid instability in certain regions.
The private sector, especially large industrial players, is becoming a major stakeholder in the solar energy landscape. Businesses are adopting rooftop solar installations to reduce energy costs and meet environmental, social, and governance (ESG) goals. Furthermore, foreign direct investment (FDI) in renewable energy has brought major international players into Vietnam’s solar sector, increasing competition and improving technological standards.
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Vietnam Solar Energy Market Trends
Several emerging trends are shaping the Vietnam solar energy market. One significant trend is the shift from subsidy-based growth to market-driven development. While previous feed-in tariffs successfully catalysed the sector’s growth, current strategies focus more on competitive auctions, private PPAs, and grid parity projects.
The rise of solar-plus-storage solutions is also notable. With grid congestion and intermittent power supply challenges, hybrid systems combining solar with battery energy storage are being explored to improve reliability and efficiency.
Another key trend is digitalisation. Advanced monitoring systems, remote operation technologies, and artificial intelligence (AI)-driven performance analytics are enhancing project efficiency and maintenance in both large-scale and small-scale solar installations.
Additionally, green finance and climate funds are becoming critical to driving future investment. Vietnam’s participation in international environmental agreements has opened up funding from climate-focused institutions to support solar infrastructure projects.
Drivers of Growth
Multiple factors are driving the expansion of the Vietnam solar energy market. Foremost among these is the nation’s rising electricity demand, fuelled by industrial growth, urbanisation, and population increase. The government has been seeking sustainable alternatives to fossil fuels, and solar energy is central to Vietnam’s strategy to diversify its energy mix.
Environmental concerns and Vietnam’s commitment to net-zero emissions by 2050 have also driven solar development. Solar energy is increasingly seen as a viable solution to reduce greenhouse gas emissions and meet renewable energy targets outlined in the national power development plans (PDP VIII).
Supportive government initiatives continue to play a pivotal role. Past policies like feed-in tariffs and exemptions on land-use fees created an investment-friendly climate. Although these schemes are evolving, newer regulatory frameworks are being designed to ensure long-term stability and transparency.
Furthermore, declining technology costs, especially in photovoltaic (PV) modules and inverters, have improved the economic viability of solar energy. Technological improvements have lowered the levelised cost of electricity (LCOE) from solar power, making it competitive with conventional energy sources.
Technology and Advancement
Technology remains at the forefront of Vietnam’s solar energy transformation. The adoption of high-efficiency PV modules, including bifacial and monocrystalline technologies, has increased energy yields and reduced the space required for installation.
Battery storage integration is becoming a focal point for enhancing energy reliability, especially in regions experiencing peak load challenges. Large-scale pilot projects are underway to assess the feasibility of grid-scale energy storage, which could complement intermittent solar generation.
The use of smart inverters and real-time energy management systems has enabled better grid synchronisation, remote diagnostics, and preventive maintenance. Internet of Things (IoT)-enabled solar installations allow for detailed performance tracking and predictive fault detection.
R&D efforts are increasingly directed towards floating solar farms, particularly in the Mekong Delta and other water-rich regions, to overcome land-use limitations and reduce evaporation from water bodies.
Vietnam Solar Energy Market Segmentation
The market can be divided based on technology, solar module, application and region.
Market Breakup by Technology
- Solar Photovoltaic
- Concentrated Solar Power
Market Breakup by Solar Module
- Monocrystalline
- Polycrystalline
- Thin-Film Solar Modules
- Others
Market Breakup by Application
- Residential
- Commercial and Industrial
- Utility
Market Breakup by Region
- Southeast
- Red River Delta
- Mekong River Delta
- South Central Coast
- Others
Competitive Landscape
Some of the major players explored in the report by Expert Market Research are as follows:
- SOLARBK
- GCL (Group) Holdings Co., Ltd.
- BIMGroup
- TRUNGNAM GROUP
- TTC Group
- Red Solar Energy Joint Stock Company.
- Others
Challenges and Opportunities
Despite its impressive growth, the Vietnam solar energy market faces several challenges. One major hurdle is grid congestion, particularly in areas with high solar generation and limited transmission capacity. This has led to curtailment of solar power and financial losses for investors.
Policy uncertainty is another challenge. Changes in government incentives and delays in the issuance of new regulatory guidelines have created hesitation among investors and developers. A lack of long-term visibility into tariff mechanisms and grid access rules remains a concern.
Financing for small-scale projects, especially in rural areas, is limited due to perceived risks and lack of credit history among consumers. Additionally, the absence of net metering frameworks and tax incentives for residential users restricts the growth of rooftop solar.
Nonetheless, the market is ripe with opportunities. Vietnam’s untapped solar potential, especially in the central and southern regions, provides significant room for expansion. The growing focus on energy self-sufficiency among industrial parks, hospitals, and schools offers lucrative business models for distributed solar providers.
Government plans to upgrade grid infrastructure, introduce competitive bidding mechanisms, and facilitate direct PPA arrangements between generators and consumers are likely to reduce market entry barriers and enhance transparency.
Furthermore, solar integration with agriculture (agrivoltaics), transport (solar-powered EV charging), and tourism (eco-resorts) offers novel application areas that could attract diversified investments.
Vietnam Solar Energy Market Forecast
Looking ahead, the Vietnam solar energy market is projected to grow steadily, reaching a generation volume of around 34.51 TWh by 2034. The transition from subsidies to competitive markets is expected to build a more resilient and cost-effective solar sector.
With its strategic location, favourable solar conditions, and rising power demand, Vietnam is well-positioned to become a regional solar energy leader. Continued investment in infrastructure, policy reform, and capacity development will be critical to achieving this potential.
Stakeholders who align their strategies with emerging trends—such as hybrid systems, energy storage, and digital platforms—will be best placed to capture growth opportunities. As Vietnam intensifies its climate ambitions, the solar energy sector will remain central to its green transformation.
The Vietnam solar energy market represents a compelling story of transformation, opportunity, and resilience. From rapid capacity additions to innovative technological adoption, the sector has become a vital part of Vietnam’s energy future. As the market progresses towards 2034, it will play a crucial role in shaping a low-carbon, energy-secure, and economically inclusive Vietnam.
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