Vietnam’s demand for energy has increased at the approximate rate of 12% per year between 2006 and 2015, according to the Vietnam Energy Outlook Report 2017 produced by Vietnam’s Ministry of Industry & Trade. Whilst its current installed capacity is only 3.876 million kWh, it will need to produce 245 billion kWh by 2020, according to analysis by the multinational law firm, Clifford Chance in 2017. According to the Vietnam Energy Outlook Report of 2017, Vietnam is looking to renewable energy (RE) sources in order to sustain high electricity generation without incurring higher energy production costs as its energy demands increase. Vietnam curtailed plans to build two nuclear reactors in 2016 due to the high upfront costs of up to several billion dollars per reactor, according to reporting by the Nikkei Asian Review in February this year.
“We will release a plan in 2018 as there are now hundreds of solar energy investment proposals following the policy changes,” Tang The Hung, a senior official in the energy department of Vietnam’s Ministry of Industry and Trade said in September 2017.