Distribution of the Energy Industry in Vietnam – Innovations in the Energy Sector in 2023

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Energy industry distribution is the distribution and development of industries that produce and provide energy sources for human living, production and business needs. Strong socio-economic development has led to a change in the distribution of this industry. However, this is also a testament to the new progress of Vietnam’s economy. Let’s find out with VREnergy with the information below! 

What is the energy industry?

The energy industry is the business and production of energy-related products and services. This is a vast industry, covering many different areas such as energy exploitation, electricity generation, energy transportation, storage and distribution, as well as research and development of new energy-related technologies. quantity.

Vietnam's labor industry analysis 1 min

The energy industry plays a very important role in providing energy for human needs and ensuring economic and social development. However, the energy industry also faces many challenges, including negative impacts on the environment and human health. 

In addition, the fierce competition and fluctuations of the energy market are also a big challenge. Therefore, it is important to come up with effective solutions to decentralize the energy industry and ensure future sustainability.

Characteristics of the energy industry

The energy industry in Vietnam is developing strongly in recent years with many characteristics as follows:

Diverse energy sources

Vietnam has abundant energy resources including solar power , wind power, hydropower, thermal power, gas and biomass. This is a strong point that helps Vietnam take advantage of these energy sources to meet the country’s electricity needs.

Large investment in wind power and solar power 

Wind power and solar power projects are being heavily invested in Vietnam to replace traditional energy sources such as coal, oil or gas. These projects have the ability to provide clean energy and reduce emissions that cause environmental pollution.

Diverse production structure

In addition to hydroelectric and thermal power plants, Vietnam is also developing new types of energy production such as solar power and wind power. This shows the diversification of energy production structure in the energy industry in Vietnam.

Policies to support energy development

In order to encourage investment in the energy industry, the Vietnamese Government has many supportive policies such as import tax exemption, value added tax reduction, financial support and development investment.

However, the energy industry in Vietnam still has many challenges such as old power transmission systems, limited energy storage capacity and long payback periods in new energy investment projects.

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Overview of the development of the energy industry

In recent years, the distribution of the energy industry in Vietnam has demonstrated the emphasis on using renewable energy sources to replace energy from fossil sources. This is a common global trend, aiming to minimize negative impacts on the environment and ensure the sustainability of the energy industry.

Vietnam's labor industry analysis 2 min

Specifically, in the field of solar power, as of June 2021, Vietnam has installed a total capacity of more than 10 GW, with most of them being rooftop and ground-mounted solar power projects. In addition, the Government of Vietnam has also had many policies to support solar power development, including policies to encourage investment and reduce taxes. Along with that, the reduction in production costs of solar power equipment, especially solar batteries, has helped reduce investment costs for solar power projects.

In the field of wind power, Vietnam has also made significant progress in recent years. As of June 2021, the total capacity of wind power projects has reached more than 12 GW, accounting for about 10% of Vietnam’s total electrical energy capacity. Wind power projects in Vietnam are mostly concentrated in regions with strong winds such as the Central and Southern regions. 

The role of the energy industry in Vietnam’s economy

The distribution of the energy industry plays an extremely important role in the Vietnamese economy. In recent years, the energy industry has actively contributed to the country’s economic development, helping to grow GDP and improve people’s quality of life.

First, the energy industry is an advanced industry, applying high technology, so it has the ability to attract many domestic and foreign investors. Putting energy projects into operation creates new job opportunities for workers, contributing to reducing unemployment rates and increasing people’s income.

In addition, the energy industry also plays a significant role in ensuring the country’s energy security. Vietnam is one of the countries with great potential for wind power, solar power, hydropower and coal. The development of these energy sources helps ensure electricity supply for the entire production and consumption system, helps reduce dependence on imported energy.

Finally, the energy industry also actively contributes to the country’s goals of environmental protection and sustainable development. The use of renewable energy sources helps reduce gas emissions into the environment, reduces the impact of the greenhouse effect, and minimizes air and land pollution.

The problem of energy industry distribution

In Vietnam, the distribution of energy industries is not uniform and there are many difficulties in meeting the country’s energy needs. This is due to many factors, such as geography, climate, land, resources, investment, techniques and management that all affect the deployment and development of the energy industry.

According to statistics, the distribution of the energy industry in Vietnam is concentrated mainly in the Central and Central Highlands provinces, especially Ninh Thuan and Binh Thuan provinces with solar power and the provinces of Dak Lak, Gia Lai, and Ninh. Thuan, Binh Thuan, Binh Phuoc, Nghe An with wind power. However, these areas have the common characteristic of low energy efficiency due to lack of experience and modern equipment, along with the failure to ensure adequate transmission lines and infrastructure to connect with the areas. other area.

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Meanwhile, the Northern and Southern provinces are facing electricity shortages and rising electricity prices due to difficulties in putting renewable energy projects into operation, especially when the Large wind power plants like the wind power plant on Bach Long Vi island or the solar power project in Ninh Thuan province are having difficulty implementing.

Therefore, the distribution of the energy industry in Vietnam needs to be reviewed and adjusted regularly to meet the nation’s energy needs, while focusing on investment and conversion to renewable energy sources such as solar power, wind power, hydropower and biomass to minimize impact on the environment and enhance protection of our country’s resources.


The development of clean and renewable energy sources has a great impact on the development of our country. However, the distribution of the energy industry in Vietnam is still facing many difficulties, especially in rural and mountainous areas. This requires the state to have policies to overcome difficulties. Please follow VREnergy to update more new articles!