"360 Trillion Won Vietnam Power Market Opens... Our Companies Must Actively Enter"

Korea International Trade Association Institute for International Trade and Commerce
Suggestions Through the Report 'Current Status and Future of Vietnam's Power Industry'

[Asia Economy Reporter Kim Heung-soon] As Vietnam accelerates its transition to clean energy, the demand in the electricity market is increasing, prompting calls for related Korean companies to actively enter the local market.

The Korea International Trade Association's International Trade and Commerce Research Institute stated this in its report titled "The Present and Future of Vietnam's Power Industry: Capture the 360 Trillion Won Vietnam Power Market!" published on the 4th. According to the report, Vietnam recently announced plans to invest $320 billion (approximately 360 trillion won) in clean energy such as wind power, liquefied natural gas (LNG), solar power, and power transmission and distribution by 2045.

If Vietnam's economy grows at an average annual rate of around 6% until 2045, electricity consumption is expected to increase from 217 TWh (terawatt-hours) last year to 877 TWh in 2045. The report analyzed that power generation capacity will also expand about fourfold during the same period, from 69 GW (gigawatts) to 277 GW, in line with the increase in electricity consumption.

In particular, the expansion of Vietnam's power generation capacity is expected to focus on eco-friendly energy sources such as wind, LNG, and solar power. Wind power capacity is projected to increase from 0.6 GW last year to 61 GW in 2045, LNG from 4 GW in 2025 to 59 GW in 2045, and solar power from 17 GW last year to 55 GW in 2045.

Data provided by Korea International Trade Association International Trade and Commerce Research Institute

Vietnam's Power Generation Capacity to Quadruple by 2045
Promising Opportunities in Clean Energy and Power Grid Sectors

Along with changes in power sources, the construction of power grids capable of efficiently transmitting and distributing electricity is also expected to expand. The report forecasted, "Vietnam will build a 500 kV transmission network spanning 18,742 km and a 220 kV transmission network spanning 25,260 km by 2045 to enhance interregional transmission capacity."

The acceleration of Vietnam's energy transition is largely influenced by global carbon neutrality demands and the international campaign 'RE100,' which aims to convert 100% of electricity usage to renewable energy by 2050.

As the US-China trade dispute prolongs, manufacturing companies are increasingly relocating to Vietnam. Major global companies are demanding carbon neutrality in their supply chains, so the Vietnamese government must expand the adoption of renewable energy to maintain its status as a production hub.

Vietnam possesses favorable conditions for transitioning to renewable energy. There are many economically viable wind development areas with wind speeds of 7 to 9 m/s, and the southern region has abundant sunlight hours and solar radiation, offering great potential for solar power development. The potential generation capacity for wind and solar power reaches 377 GW and 1,646 GW, respectively.

Jeong Gwi-il, a research fellow at the Korea International Trade Association, said, "Vietnam's power market is expected to grow at an average annual rate of 8.5% over the next decade, providing significant opportunities for Korean companies to enter." He added, "The private sector should strengthen joint entry based on cooperation between large and small-to-medium enterprises, and the government should make efforts such as official development assistance (ODA), attracting development bank investments, and enhancing corporate support systems."

This content was produced with the assistance of AI translation services.