Dr. Nguyen Quan, former Minister of Science and Technology, Chairman of the Vietnam Automation Association

In the context of the rapid development of new energy sources, Vietnam needs a scientific, holistic, and long-term vision in its approach to energy policy-making.

For instance, the previously-cited electricity sector growth rate of around 10 per cent is now outdated. International experience shows that the electricity sector must grow at nearly twice the rate of a country’s GDP growth. When Vietnam’s GDP growth was around 5-6 per cent, 10 per cent growth in electricity may have sufficed. However, now that Vietnam has set a target of double-digit GDP growth in the years to come, the electricity sector cannot merely grow by 10 per cent and still meet development demands.

To formulate effective policy, there must be a harmonious combination of learning from international experience and leveraging domestic strengths. Vietnam should proactively engage with energy regulatory agencies and leading scientists in developed countries. Through this, we could learn from their success stories and receive valuable advice from the “chief architects” of major energy projects.

Domestically, when developing policy mechanisms, we must listen to scientists, experts, and businesses. This represents the linking of the three stakeholders: the State, academia, and enterprises.

Specialized conferences and forums, such as “Energy Technology in the New Era”, organized by Vietnam Economic Times / VnEconomy / Tap chi Kinh te Viet Nam, are practical and useful information channels. The role of the media in disseminating such information to the public and policymakers is crucial. It ensures that decision-makers are well-informed and guided in the right direction during the policy development process.

Regarding the development of nuclear power, based on my experience working with various international partners and the International Atomic Energy Agency, I believe the most critical factor is human resources. We must have a team of experts in technology and safety before embarking on such projects. Only when we have professionals with the necessary qualifications and capabilities to absorb the technology and ensure the safety of nuclear power plants can we begin implementing these projects.

In addition to securing funding and investors, Vietnam must urgently train and build a workforce of scientific and technological personnel, including experts in nuclear technology and safety. We should send personnel to countries with the most experience in nuclear power, such as the US, Japan, Russia, China, and South Korea, for training. Only with such a workforce can we start nuclear power projects and ensure their success.

Dr. Nguyen Dang Toan, Dean of the Faculty of New Energy, Electric Power University

The Faculty of New Energy at the Electric Power University (EPU) is a unique faculty that offers dual training in two disciplines: Nuclear Energy Engineering and Renewable Energy Engineering.

Regarding nuclear energy engineering, since 2010, under Decision No. 1558/QD-TTg dated August 18, 2010, by the Prime Minister approving the “Scheme on the Training and Development of Human Resources in the Field of Atomic Energy”, the EPU was one of five institutions assigned to train personnel in preparation for the Ninh Thuan Nuclear Power Plant project [in what is today Khanh Hoa province].

From that point until 2017, the university trained 188 graduates in the field. However, following the suspension of the nuclear power project, enrollments in the major became increasingly difficult due to declining societal demand. As a result, the number of students fell to almost none, significantly affecting the teaching and research activities of the faculty’s lecturers and technical staff.

Despite this, the university has strived to maintain a dedicated laboratory equipped with 75 radioactive sources and reactor models sponsored by Mitsubishi, while preserving strong international partnerships with leading Japanese universities such as Fukui and Nagasaki.

In 2025, the mission of training human resources for nuclear power was reactivated under Decision No. 1002/QD-TTg dated May 24, 2025, by the Prime Minister. The EPU was once again selected as one of eleven institutions nationwide to provide nuclear power training.

To meet the new requirements, the university has revised its curriculum, updating knowledge in nuclear power and applied radiation technologies. It has also proactively expanded cooperation with the KEPCO International Nuclear Graduate School in South Korea to explore the APR1400 reactor technology in preparation for the future. This year, the EPU plans to admit 60 students into its Nuclear Engineering Technology program, offering two specializations: Applied Radiation Technology and Nuclear Power.

As for renewable energy, the EPU demonstrated its foresight by initiating training in the field as early as 2015 and officially launching the program in 2018. The curriculum covers solar power, wind energy, biomass, and emerging technologies such as hydrogen and fuel cells. The university emphasizes training well-rounded engineers at the undergraduate level and offering advanced specialization at the postgraduate level.

However, both training programs face significant barriers. The most pressing challenge is the lack of modern, high-cost practical facilities. In nuclear power, the shortage of highly-qualified personnel means both lecturers and students must constantly self-study. In renewable energy, the key challenge lies in limited engagement with enterprises. Most companies recruit graduates post-training rather than collaborating on tailored programs or investing in educational infrastructure.

The issue of developing a self-sustaining workforce in the energy sector is a long-term challenge that cannot be resolved overnight. The university earnestly hopes that businesses, especially large corporations with a long-term vision, will partner with the EPU to launch training courses and jointly invest in the sustainable development of Vietnam’s energy sector.

Mr. Chandan Singh, Country Managing Director, Vietnam, Hitachi Energy

Vietnam’s energy transition journey, which began in 2018, has witnessed remarkable growth in renewable energy capacity. However, this rapid development has also put considerable pressure on the national power grid.

In June 2023, unfavorable weather conditions in the northern region led to a sharp decline in power generation. Although the southern region had a surplus of renewable energy, the transmission grid lacked the capacity to deliver this electricity to the north.

To address this transmission challenge, in 2024, Prime Minister Pham Minh Chinh set a target of completing the 500kV Quang Trach - Pho Noi transmission line (Circuit 3) within just 15 months. Bringing the project into operation on schedule was an impressive achievement for Vietnam’s energy sector - a feat that few countries apart from China could accomplish. Vietnam is now setting an even more ambitious goal: to complete the 500kV Lao Cai - Vinh Yen transmission line in just six months.

However, pursuing infrastructure development at such record-breaking pace also entails significant risks. First, in order to meet tight timelines, Vietnam may need to prioritize proven technologies over the most advanced transmission solutions. Second, the accelerated construction pace presents major challenges in terms of quality control and ensuring worker safety.

From a policy perspective, the National Power Development Plan for 2021-2030 with a Vision to 2050 (PDP8), and its subsequent revisions, reflect the strategic foresight of the Vietnamese Government. One of the most notable updates is the ambitious goal of increasing battery storage capacity from the initial 300 MW to 10,000-16,300 MW by 2030. This marks a significant leap forward.

Nonetheless, this ambitious target faces a major barrier: the absence of a flexible electricity pricing mechanism. Vietnam currently lacks a framework that allows electricity prices to vary between peak and off-peak hours. This pricing uncertainty makes investors reluctant to fund energy storage systems, even though global battery storage costs are decreasing. While a few storage projects totaling around 200 MW have been approved, many still question why they should invest in energy storage when there is no clear incentive policy or a truly competitive electricity market.

Dr. Kim Gyeng Chul, General Director of VINA Tech, Enersol

Though only 10 per cent of VINA Tech’s products are consumed in the South Korean market, with the remaining 90 per cent exported to various countries around the world, this is precisely why it is eager to collaborate with Vietnamese enterprises.

With extensive experience in manufacturing products that meet rigorous international standards, and as the only factory in Vietnam producing supercapacitors and hydrogen fuel cells, VINA Tech is always ready and keen to partner with other domestic companies in the field.

The private sector often plays a pioneering role in shaping future trends. Looking at the broader landscape of Vietnam’s energy industry, we can see tremendous potential in the country’s high-quality human resources, which are fully capable of building a long-term strategic vision. This vision begins with reducing dependence on fossil fuels, transitioning to renewable energy, and moving toward advanced technologies such as fuel cells and small modular nuclear reactors (SMRs). This is the inevitable development pathway for the energy sector.

To realize this vision, it is crucial to foster a spirit of innovation and creativity within the private sector, and to strengthen collaboration between businesses. VINA Tech aspires to be deeply involved in this process, to drive technological breakthroughs and contribute to the realization of Vietnam’s future energy development goals.

Mr. Nguyen Quang Vinh, Senior Manager at the Hanoi Office, Lantau Group

I offer two perspectives, both as a representative of a domestic enterprise and from my direct work with foreign investors interested in Vietnam’s electricity and energy sectors.

First, ambitious plans such as developing nuclear power by 2030 or large-scale offshore wind projects are facing significant uncertainty. When examined closely, the challenges around planning, transmission infrastructure, and cost are substantial. These issues require rigorous and ongoing review to ensure the targets remain grounded in reality.

Second, regarding the direct power purchase agreement (DPPA) mechanism, this is not a new policy. It was first initiated back in 2015-2016. It wasn’t until recently, with the issuance of Decree No. 57/2025/ND-CP on March 3, 2025, that the DPPA mechanism was formally applied, creating an opportunity for businesses to engage in direct power purchase transactions between buyers and sellers.

However, the current number of actual transactions is raising concerns. Figures show that there are only around seven DPPA deals in operation, mostly involving rooftop solar systems selling electricity directly to downstream users, and of those, two have already been withdrawn, leaving just five. As for DPPA transactions through the national grid, none have been recorded so far.

The root cause is that current investment risks far outweigh the opportunities. The greatest risk lies in the volatility and unpredictability of pricing indicators, compounded by a lack of reliable data, making the economic case for investors too uncertain. The complexity of the mechanism itself also presents a barrier, requiring businesses to simultaneously evaluate multiple complicated scenarios. As a result, even global corporations in the RE100 group (which are committed to using 100 per cent renewable energy) have not been able to participate as yet.

These realities highlight the urgent need for a period of review, to assess the suitability and effectiveness of the DPPA policy. More importantly, such a review must go hand-in-hand with a broader re-evaluation of how Vietnam’s entire electricity market operates.

The biggest bottleneck at present is that Vietnam’s electricity market does not yet operate under a truly competitive mechanism. Retail electricity prices for end consumers still do not reflect actual market signals. If this fundamental issue is not resolved, even the most attractive policies, like the DPPA, will struggle to attract sustained investor interest. Addressing this structural challenge is a prerequisite for any policy mechanism to function effectively.

Mr. Tran Khanh Viet Dung, Business Development Manager, HDF Energy Vietnam

Vietnam boasts immense potential in renewable energy, from wind and solar power to the more recent emergence of hydrogen, a source widely regarded as an inexorable trend for the future. However, integrating renewable energy sources into the existing power network requires a flexible and robust backup mechanism capable of managing the variability of power generation.

In this context, I believe hydrogen offers the most feasible solution. With its large storage capacity and ability to generate electricity via fuel cells when needed, hydrogen not only helps balance energy supply and demand but also contributes to stabilizing the entire power grid.

That said, hydrogen remains a brand-new field, not only in Vietnam but also globally. As such, supportive mechanisms and policies are still very limited. The saying “All beginnings are difficult” rings especially true for a nascent sector like hydrogen. Therefore, “initial activation” policies are critical if we truly aim to lay the foundation for long-term sustainable development.

Currently, electricity production from hydrogen remains costly. While costs may decline in the future, questions of “when” and “how” will require a coordinated effort between the government, industry players, investors, and the broader ecosystem.

As an investor actively developing hydrogen projects, I find that the greatest challenge lies in the lack of consistent policies and coordination between central and local authorities. This directly impacts the progress and effectiveness of project implementation.

Moreover, as hydrogen is still a new frontier, the business community involved across the value chain, from research, development, and manufacturing to deployment, remains relatively small, particularly when it comes to companies owning core technologies. With our existing experience, we look forward to expanding cooperation with both domestic and international partners to form a unified voice and drive the hydrogen model forward in Vietnam.

I acknowledge that the government and relevant agencies have developed strategic frameworks and long-term visions for new energy development. However, as an investor, I hope to see more concrete policies that can be implemented directly at both central and local levels, especially those related to land use, electricity purchasing mechanisms, and other investment procedures. Above all, a coordinated effort not only from State agencies but also from financial institutions, international organizations, and the private sector will be key to fully unlocking Vietnam’s renewable energy potential, including hydrogen.

Mr. Nguyen Hoang Kien, Deputy General Director of Rang Dong Light Source and the Vacuum Flask Joint Stock Company

Digital transformation, driven by breakthroughs in AI, is now the core strategy enabling Rang Dong to effectively achieve its green goals. This strategy focuses on two key pillars: green products and green solutions.

In terms of products, Rang Dong prioritizes the development of high-efficiency, energy-saving devices, most notably LED lights with a luminous efficacy of 170-190 lumens per watt. The company also develops products powered by renewable energy sources, such as solar-powered lights and rooftop solar systems. Beyond this, Rang Dong has introduced smart home solutions based on the Internet of Things (IoT) and AI technologies. These solutions enable an additional 30-40 per cent reduction in energy consumption while maintaining user comfort, in line with the company’s principle of “saving energy, not light”.

However, this pioneering journey is not without significant challenges.

First, technological barriers. To produce suitable products, a company must master the underlying technology, yet Vietnam currently faces a shortage of experts in emerging fields such as renewable energy and AI. As a result, Rang Dong has had to establish its own research centers and expand collaboration with external experts.

Second, the lack of national standards and regulations. The absence of comprehensive national standards for new energy products, such as solar-powered lights, has led to a chaotic market. Low-quality, cheap products can compete unfairly, making it difficult for consumers to identify and access high-quality alternatives.

Third, financing remains a critical hurdle. Investment in research and the transition to green production requires large amounts of long-term capital. However, current long-term loan interest rates are high, ranging from 8 per cent to 12 per cent. Businesses need preferential loans at rates of around 3 per cent to 5 per cent to create momentum for transition, but accessing these financial sources remains difficult due to various barriers.

In addition, infrastructure poses a significant challenge. Vietnam’s current electricity transmission infrastructure is not yet sufficient to meet the development needs of new energy sources. Alongside physical infrastructure, human capital infrastructure is also lacking. There is still a shortage of qualified experts in renewable energy and AI.

Looking ahead, the issue of recycling batteries from electric vehicles and solar power systems is another complex challenge. This requires advanced technology and early-stage planning for effective waste management and resource recovery.

To address these difficulties, genuine inter-ministerial coordination is essential. Specifically, there needs to be clear guidance from the Ministry of Finance and the State Bank of Vietnam (SBV) on how to access preferential loans. The Ministry of Science and Technology should be involved in evaluating green transition projects, as financial institutions often lack the technical expertise to assess such technologies. At the same time, the SBV should clearly designate commercial banks to participate in these programs, with government-backed guarantees to build investor and lender confidence.

Ms. Nguyen Thi Thanh Binh, Deputy General Director of the T&T Group, Chairwoman of T&T Energy, Vice President of the Vietnam Energy Association

Vietnam is among the countries with the most potential for developing renewable energy. The T&T Group is one of Vietnam’s leading private corporations investing in the energy sector. It is focusing on implementing renewable energy projects, gas-fired power, biomass power, and battery storage manufacturing, contributing to the realization of the nation’s clean energy potential.

T&T has invested in more than ten energy projects to date, with a total cumulative capacity, both operational and under construction, exceeding 3,000 MW. The Group aims to operate around 16,000-20,000 MW by 2035, with strong priority given to renewable energy.

However, a major limitation of renewable energy lies in its instability and dependence on weather conditions, which necessitates effective storage solutions. Recognizing both global trends and domestic policies, particularly Vietnam’s National Power Development Plan VIII (PDP8), which mandates a minimum of 10 per cent battery storage for solar power projects, T&T has decided to invest in battery manufacturing. Rather than relying solely on imports, the Group is moving towards localization to proactively supply the domestic market and, eventually, export. It is actively working to bring the factory into operation by late 2025 or early 2026, with the goal of capturing 30-40 per cent of the Vietnamese market.

Alongside these opportunities, T&T also faces significant challenges related to human resources. The renewable energy boom since the early 2000s has led to a talent shortage, as projects compete fiercely for experienced professionals. As a result, T&T often has to hire EPC (engineering, procurement, and construction) contractors and supervisory consultants instead of recruiting fresh graduates, due to the need for personnel who can work immediately. Recruitment becomes even more problematic when multiple projects, spanning new fields such as wind power, LNG-to-power, and biomass energy, are deployed simultaneously.

To overcome this weakness, T&T is implementing two strategic solutions. In the short term, the Group is strengthening partnerships with leading international organizations to exchange knowledge and gain practical experience.

In the long term, T&T expresses a strong desire to collaborate with educational institutions such as the Electric Power University to prepare a sustainable workforce. The company hopes universities will train real “combatants” - engineers whose skills closely match market needs and are ready to contribute not only to T&T but also to Vietnam’s energy sector as a whole.

Ms. Nguyen Phuong Mai, Energy Consultant, Deputy Director of the Chau Anh Investment and Development JSC

Attracting investment into Vietnam’s energy transition projects faces several key obstacles. The first lies in the policy environment. Vietnam has made breakthroughs in issuing policies with fairly ambitious goals, which provide a solid strategic direction for our development. However, the challenge lies in execution.

Specifically, we already have a vision, a master plan, policy mechanisms, and a legal framework in place. But implementation remains a persistent issue. The enforceability of these policies and mechanisms is still limited. This problem exists across all levels, from central to provincial and local authorities.

Another challenge is the management capacity for project development and investment within State regulatory agencies, especially at the provincial level, where many renewable energy projects are being deployed. Evaluating the development cycle of a project requires deep, cross-disciplinary technical expertise. Yet local management capabilities still fall short. Human resources and the professional competence of provincial-level staff are not yet sufficient to keep up with or effectively manage incoming projects. In particular, many foreign investors coming to invest at the local level encounter communication difficulties, as English proficiency among provincial authorities remains weak.

Additionally, investors remain concerned about exchange rate fluctuations, which they view as a risk that is difficult to control.

Therefore, to build a supportive policy ecosystem for energy development, in my view, we need systemic synchronization. Like a machine, if any part is misaligned, no matter how fast we want to move, we simply won’t be able to go far or go fast.

Dr. Nguyen Anh Tuan, Vice President and Secretary General of the Vietnam Energy Association

The Vietnam Energy Association plays a pivotal role in linking the government, scientists, and businesses to promote the adoption of new technologies amid an increasingly vigorous energy transition. We are effectively fulfilling this role through three core tasks.

First, we act as a bridge that conveys the voice of enterprises to government regulators. We gather challenges and concerns faced by our member companies in the energy sector, and based on these insights we propose and recommend appropriate policies. The energy transition continuously gives rise to new issues, requiring an intermediary voice to help ensure policies are timely adjusted and improved.

Second, we proactively create opportunities for connection. Through meetings, workshops, and industry-specific events, we facilitate the exchange of information between businesses, regulatory agencies, and scientific-technological organizations, enabling them to seek solutions and collaboratively develop effective policies.

Third, we consider communications a key front. Similar to Vietnam Economic Times / VnEconomy / Tap chi Kinh te Viet Nam, under the Vietnam Economic Association, the Vietnam Energy Association publishes the Vietnam Energy magazine, which aims to raise public awareness in a scientific and objective manner. The magazine timely reflects technological trends and highlights major issues in the sector, avoiding ideological or slogan-driven approaches. We regularly publish news, articles, and analyses on the energy transition, from electric vehicles to nuclear power development. Recently, during the amendment process of the Law on Atomic Energy, the magazine also contributed a number of articles offering recommendations to help ensure more effective future investments.

We firmly believe that for the system to operate like a well-synchronized machine, there must be shared responsibilities and benefits among all stakeholders. Only when all parties work together and share both rights and obligations can we generate sustainable momentum for the energy sector’s development.