Vietnam Power EPC Market

Vietnam Power EPC Market Analysis

The Vietnam Power EPC Market size is estimated at USD 4.33 billion in 2025, and is expected to reach USD 9.07 billion by 2030, at a CAGR of 15.90% during the forecast period (2025-2030).

• Over the medium term, Vietnam power market is undergoing significant transformation owing to the efforts taken by the government to improve electricity access in the country, along with its plans to increase the share of renewables in the country's power generation mix, these factors aid in driving the market growth.
• On the other hand, huge investments are required to set up and modernize power generation, transmission, or distribution networks, and weak private sector investments are restraining the power EPC market in Vietnam.
• Nevertheless, Vietnam has some of the most significant wind resources, creating enormous opportunities to exploit wind energy for power generation. The factors above clubbed with foreign investment and extensive R&D projects, offer an opportunity to grow the power EPC market in Vietnam.

Vietnam Power EPC Market Trends and Insights

Increasing Adoption Of Renewable Energy

• The adoption of renewable energy has witnessed significant growth in recent years across the country, which is driving the market. In recent years, the country has become one of the largest renewable energy markets in the Southeast Asia region.
• Vietnam is positioning itself as a leader in the renewable energy market, transforming its energy portfolio. By 2024, the country achieved a renewable energy capacity exceeding 48.56 GW, comprising 23.71 GW from hydropower, 18.67 GW from solar, and 6.18 GW from wind. These sources collectively contributed over 43% of Vietnam's electricity generation, with hydropower delivering over 95 TWh, solar generating 26.02 TWh, and wind producing 12.53 TWh. This performance underscores the critical role of renewables in meeting domestic energy demands and highlights Vietnam's commitment to achieving net-zero emissions by 2050.
• In Vietnam, companies are establishing strategic alliances with project developers to enhance solar energy initiatives nationwide. These partnerships are designed to accelerate the adoption of solar energy, leading to the development of new solar facilities and significant investments in the country's renewable energy sector.
• For instance, in August 2024, Runergy formally partnered with Vietnamese project developer Bigbang Solar to expand solar projects nationwide. Runergy expressed its commitment to advancing solar energy adoption in Vietnam. Runergy has systematically increased its presence in the Vietnamese market, expanding operations in 2023 by establishing ingot and wafer facilities, targeting a planned 7GW ingot capacity.
• The Vietnamese government approved a comprehensive plan to enhance renewable energy sources for electricity generation, including installing solar rooftops on commercial and residential buildings. This initiative aims to strengthen national energy security and ensure a reliable electricity supply. It aligns with Vietnam's socio-economic development goals, which project an average GDP growth of approximately 7% annually from 2021 to 2030.
• Furthermore, in June 2023, the Ministry of Industry and Trade (MoIT) introduced a strategic plan with various incentives to encourage the adoption of rooftop solar power systems for self-consumption. Investors who invest in rooftop solar solutions will benefit from exemptions from power operation licenses, simplified energy company registration, prioritized budgetary allocations, tax exemptions or reductions, and access to low-interest financing. These incentives align with Power Development Plan VIII, which aims to have rooftop solar panels powering half of the country's residential and commercial properties by 2030.
• Therefore, incresing adoption of renewable energy are expected to drive the Vietnam power EPC market in during the forecast period.

Segment Analysis

The Thermal Segment to Dominate the Market

Power comes from various sources ranging from fossil fuels like coal and oil to renewable sources like wind and solar. The energy mix for electricity generation is dominated by fossil fuels like coal, oil, and natural gas.

Vietnam is ramping up its thermal power generation to meet surging energy demands. The country has been focusing on expanding its thermal power capacity as part of its strategy to ensure energy security and support its growing industrial and economic activities. This increase in thermal power generation is driven by the need to address the rising electricity consumption and to complement renewable energy sources in the national energy mix.

Additionally, Vietnam's government has been investing in modernizing existing thermal power plants and constructing new facilities to enhance efficiency and reduce environmental impact. These efforts are aligned with the country's broader energy development plan, which aims to balance economic growth with sustainable energy practices.

For example, according to the Ember's Yearly Electricity Data, in 2024, coal was the leading resource in Vietnam's electricity generation, with about 149.35 TWh, accounting for over 48.75 percent of the total electricity generation. Meanwhile, around 95.84 TWh of the electricity generation came from hydropower that year.

Vietnam Electricity (EVN) projects the nation's total electricity output, imports included, to hit 308.7 billion kWh in 2024, marking a 9.9% rise from the prior year. Coal-fired power generation is set to dominate, making up nearly half of the output, with a robust growth rate of 17.7%. In the mix, hydropower is also poised for an uptick, anticipated to grow by roughly 10%.

Vietnam has officially approved the roadmap for its National Electricity Development Plan for the period 2021-2030. This plan outlines the strategic framework for the development of the country's electricity sector, focusing on sustainable growth, energy security, and the integration of renewable energy sources. The roadmap aims to meet the increasing electricity demand while ensuring environmental sustainability and economic efficiency.

For instance, In a pivotal stride towards sustainable energy, Vietnam's Deputy Prime Minister Tran Hong Ha has ratified a comprehensive roadmap for the National Electricity Development Plan, spanning from 2021 to 2030, and casting a vision towards 2050. This blueprint, widely recognized as Power Development Plan 8 (PDP8), sets ambitious targets for the nation. By 2030, Vietnam is poised to make significant strides in diversifying its energy portfolio. The sanctioned roadmap delineates plans to enhance capacities across various power sectors: thermal power is set to reach 14,930 MW; LNG thermal is targeted at 22,400 MW, and coal-fired thermal power is projected to hit 30,127 MW.

Vietnam plans to continue operating its coal-fired power plants at high capacity throughout 2025. This decision aligns with the country's ongoing efforts to meet its growing energy demands while balancing economic growth and energy security. Despite global trends toward renewable energy, coal remains a significant component of Vietnam's energy mix, contributing to its industrial and economic development. The government is expected to prioritize energy reliability and affordability, which are critical for sustaining the nation's rapid industrialization and urbanization.

For example, in November 2024, officials from the Vietnamese government announced plans for the country's coal-fired power plants to run at elevated levels in 2025, aiming to meet the nation's surging electricity demand. The government projected that these coal units would be operational approximately 75% of the time in the coming year, translating to 6,400 to 6,500 hours of activity. Electricity demand in 2025 is anticipated to rise by 11% to 14% compared to present levels.

Owing to these factors, thermal power generation is expected to dominate the market studied during the forecast period.

Competitive Landscape

The Vietnamese power EPC market is semi-consolidated. Some of the key players in this market are JGC Vietnam Co. Ltd., Doosan Enerbility Co., Ltd., Toshiba Corporation, Lilama Corporation, and IHI Infrastructure Systems Co. Ltd, among others.