Foreign Direct Investment in the Renewable Energy Industry to Meet New Requirements in Vietnam
Abstract:
This article provides a comprehensive, multi-dimensional analysis of foreign direct investment (FDI) flows into Vietnam's renewable energy industry during the historic transition period from 2016 to 2025. Based on primary data from legal documents, statistical reports from state management agencies, and secondary data from international organizations, the study reconstructs the comprehensive picture of the national energy structure transformation process. According to data from the Ministry of Planning and Investment, by the end of 2024, the total registered FDI in this sector had reached approximately US$41.9 billion, accounting for 8.3% of the total FDI nationwide. The study identifies and analyzes the key development stages, while also highlighting the role of trade agreements (EVFTA, CPTPP) and JETP commitments in driving these capital flows. However, the report also clearly identifies serious bottlenecks regarding transmission infrastructure (causing 15-20% capacity reduction), legal dispute risks, and the low rate of technology transfer (only about 20%). From that, the report proposes a system of strategic solutions, including the enactment of a Renewable Energy Law and a set of green FDI criteria to unblock resources.
KeyWords:
DPPA Mechanism, Foreign Direct Investment (FDI), Renewable Energy Law, Power Development Plan VIII, Carbon Credits
References:
MSc. Vu Hong Nhung
Academy of Finance
ID ORCID: 0009-0002-3104-4682