23 April 2024

Vietnam's PDP8 Implementation Plan

Russin & Vecchi


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In May 2023 the Prime Minister issued the long-awaited Decision 500, approving the national power development plan which is broadly known as
Vietnam Energy and Natural Resources
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In May 2023 the Prime Minister issued the long-awaited Decision 500, approving the national power development plan which is broadly known as ("PDP8"). Decision 500 will take effect on May 15, 2023. It covers a term of 27 years (2023 to 2050). It provides general policies, objectives, plans for development of power generation and transmission lines, land use, list of important projects, and a general road map to implement PDP8.

After PDP 8 was issued, the Ministry of Industry and Trade ("MOIT") was assigned to draft a plan to implement PDP8. Several drafts have been submitted and reviewed since issuance. In late March 2024 the MOIT resubmitted the final Draft PDP8 Implementation Plan to the Prime Minister for approval. On April 1, 2024 the Prime Minister issued Decision 262, approving the PDP8 Implementation Plan ("Plan"). Generally, the Plan is consistent with PDP8, but it provides more detail.

Double capacity of power generation (up to 2030). Vietnam plans to double the current capacity of the power industry, reaching 137,853 MW in 2030. Below is a table that describes the total capacity of the power industry by source of energy:

No. Source of energy 2030
Capacity (MW)
1 Hydropower plants 29,346
2 Coal-fired power plants 30,127
3 Domestic gas-fired power plants 14,930
4 LNG power plants 22,400
5 Onshore wind power projects 21,880
6 Offshore wind power projects 6,000
7 Biomass 1,088
6 Waste-to-energy projects 1,182
9 Heat and power co-generation 2,700
10 Flexible source 300
11 Pumped-storage hydroelectricity 2,400
12 Battery storage 300
13 Imported electricity from Laos 5,000
Total 137,653[1]

The list of particular energy projects can be found in Appendices 1, 2, 3, 4, 5, 6,7,8,9,10, and 11.

Development of Renewable Energy ("RE") under the Plan (up to 2030). Vietnam plans to develop various sources of energy, but will focus on RE and clean energy. It is projected that (i) the RE portion (including hydro-power projects) will contribute about 43% of the generated energy in 2030; (ii) the total capacity of onshore wind projects will be 21,880MW in 2030; (iii) the total capacity of offshore wind projects may reach 6,000 MW2; (iv) the total capacity of biomass and WTE projects will be 2,270MW; and (v) under the Plan, new rooftop solar power projects (with total capacity of 2,600 MW) will be developed for self-consumption.

Under the Plan, Vietnam will develop RE projects (with a total capacity of 5,000 MW) and convert the electricity generated from these RE projects in order to produce new energy (green hydrogen, ammoniac). Vietnam also has a plan to export electricity generated by RE projects. The projected volume is 5,000 MW and it may reach 10,000MW.

Development of Power Transmission Lines. It is planned that US$15 billion will be used to develop the transmission lines. A list of particular transmission line projects can be found in Decision 262. For the purpose of purchasing electricity from Laos and China, Vietnam has a plan to develop the national transmission lines to connect with Laos and China.

Development of Legislation. The current regulations do not deal with several matters of PDP8. Vietnam has a plan to issue new policies and laws during 2023-2025, including:

  • Issuing pricing mechanisms for various types of power sources;
  • Issuing regulations to regulate direct power purchase arrangements;
  • Develop a mechanism to encourage the development of rooftop solar power projects for self-production and self-consumption;
  • Amending the Electricity Law;
  • Amending the Law on Energy Saving and Efficient Use; and
  • Developing a mechanism to develop a carbon credit market.

Reservation of land for power development. Under the Plan, 90,000 ha is reserved to develop power projects (up to 2030).


1. A large volume of solar power projects (with capacity of 12,836MW), as approved in PDP8, is not included in the Plan.

2.In computing the capacity of offshore wind projects, PDP8 does not include the capacity of offshore wind projects for the production of new energy.

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