Vietnam will likely face a power shortage during 2020-2030 if electricity generation is not increased and there is not enough fuel (coal and gas) for generation. It is forecast that the demand for electricity will continue to grow at a high level until 2030. The power sector will need to ensure 265-278 billion kWh of output by 2020 and around 572-632 billion kWh by 2030. The growth rate in the 2016-2020 period will be 10.3-11.3 per cent per year and about 8-8.5 per cent between 2021 and 2030. Insufficient power supply could lead to a heavier reliance on imported fuel, especially in power generation, while the higher demand would also place greater pressure on power infrastructure, which might not be improved quickly enough due to lack of funding. In addition to these challenges, Vietnam could face greater environmental impacts from an increased demand and a higher proportion of fossil fuels, especially coal in the energy mix. With the country’s energy demand projected to increase by more than 10 per cent annually in the next five years, the government is moving forward to develop renewable energy sources to ensure energy security and address the growing power demand.