Vietnam’s recently approved National Power Development Plan 8 (PDP8) has substantial financial needs, with the Ministry of Planning and Investment (MPI) highlighting the vital role of attracting private investment, including green financing from foreign institutions. Under PDP8, the capital requirement for the development of power sources and transmission grids is estimated at nearly US$135 billion. For the 2031-50 period, these estimates skyrocket, ranging from US$399.2 billion to $532.1 billion.

Given the enormity of these capital requirements, the MPI has stressed the need for diverse funding sources, with the participation of private investors, both domestic and foreign, deemed essential for the plan’s success. In a public statement, the MPI candidly acknowledges that “securing the necessary financial sources remains a challenging issue, which may pose various obstacles to the successful implementation of the country’s power plan.”

Currently, there is no established mechanism to encourage and select private investors in Vietnam’s power sector—a significant gap that, if not addressed, may contribute to delays and other roadblocks in the implementation of PDP8. The MPI has noted existing issues where projects were approved but not yet implemented or were being executed at an exceptionally slow pace, urging the government to seek and encourage private investors’ participation to ensure smooth progress.

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Tim Burrill
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