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Vietnam has launched its National Action Plan for Circular Economy (NAPCE) until 2035, prioritizing the expansion of renewable energy as a key driver of sustainable economic growth. The plan underscores the country’s commitment to reducing dependence on fossil fuels and increasing the share of clean energy in its national grid. Renewable Energy Targets and Expansion Plans Vietnam aims to generate 50% of its total energy from renewable sources by 2045. As part of this transition, the government is ramping up investments in solar, wind, biomass, and waste-to-energy projects. The plan sets an intermediate target of increasing renewable energy’s share to 47% of the country’s total primary energy mix by 2035. To achieve these goals, Vietnam is expanding its renewable energy capacity, with a particular focus on: Biomass and solid waste-based power plants: Targeting a total installed capacity of 2,270 MW. Waste-to-energy projects: Scaling up initiatives to convert non-recyclable waste into electricity. Smart grid development: Enhancing energy distribution efficiency and integrating decentralized renewable sources.Policy Incentives for Clean Energy Investment To encourage private sector participation, the Vietnamese government is introducing financial incentives, including tax exemptions and preferential lending schemes for renewable energy projects. The plan also supports the development of a carbon credit market, enabling businesses to trade emissions allowances and invest in green technologies. Challenges and Future Outlook Despite significant progress, Vietnam faces infrastructure and financing challenges in meeting its ambitious renewable energy targets. High initial capital costs and fragmented regulatory frameworks remain key hurdles. To address these issues, the government is promoting public-private partnerships (PPPs) and foreign direct investment (FDI) incentives to attract global investors. With its National Action Plan for Circular Economy, Vietnam is positioning itself as a leader in renewable energy within Southeast Asia. As the country accelerates its clean energy transition, continued policy support and industry collaboration will be critical in achieving long-term sustainability and economic resilience. |
