According to the adjusted National Power Development Plan for 2021-2030, with a vision to 2050 (PDP8 adjustment), Vietnam's total power capacity is expected to exceed 236,000 MW by 2030, more than three times the current capacity, with renewable energy accounting for about 36 per cent. In recent times, many Vietnamese enterprises have gradually affirmed their capacity in the energy supply chain.
At the seminar "Opening new directions for energy support industry" on November 3, experts believe that the renewable energy sector alone could create a billion-dollar market for Vietnam's support industry over the next decade.
However, the industry has not met expectations. Vietnam's localization rate remains much lower than other countries in the region, such as Thailand (60-65%) or Malaysia (55-60%) in renewable energy. The Department of Industry (Ministry of Industry and Trade) attributes this to financial, technological, and modern equipment limitations. Notably, the industry lacks high-quality human resources. Another limitation is technical barriers preventing energy support industry companies from participating in the global supply chain.
Experts identify three challenges that need to be removed for the development of the energy support industry. First, the market size is small. Second, the internal capacity of businesses is limited. Third, the mindset of EPC contractors is a barrier.
Experts suggest a strong policy requiring mandatory localization timelines for each field, allowing time for absorption. High localization demands without sufficient capacity or readiness will not be absorbed. Therefore, state management agencies must set mandatory localization rates to create market volume.
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