Economic growth in Vietnam has spurred significant growth in electricity demand at a compound annual growth rate of 13 percent since 2000 and is projected to continue at 8 percent through 2030. The country will need $8-10 billion annually in energy sector investment over the next decade to account for the increasing energy demand and forecasted energy shortages. Concerns about high prices, energy security, environmental and health impacts, and inadequate energy services have led countries like Vietnam to pursue a diversified energy mix. With significant renewable energy resource potential and attractive solar feed-in-tariff (payment made to solar owners for the energy they generate and send back into the grid), Vietnam has attracted investments from both local and international investors.

Through the Vietnam Low Emission Energy Program II, USAID works closely with the Government of Vietnam (GVN) at the national level to develop and implement long term energy policies and plans that support scaling up clean energy and mobilizing much needed investment from the private sector. To support Vietnam to diversify its energy sources and reduce its dependence on thermal coal power, USAID is working with the GVN and private sector to accelerate the deployment of wind and solar power through private sector-oriented mechanisms, such as the Direct Power Purchase Agreement which allows direct transaction of clean power between private buyers and sellers. USAID also provides support to the GVN to diversify its power sources and improve grid planning and power system operation practices to maximize the integration of renewable energy sources. Through the USAID Vietnam Urban Energy Security project, USAID is addressing Vietnam’s rapidly growing energy demand by working with key city governments to develop and implement urban energy plans while creating business opportunities for entrepreneurs in order to promote deployment of advanced, distributed energy solutions such as rooftop solar, battery storage, demand response, and electric vehicles.


  • USAID Vietnam Low Emission Energy Program (V-LEEP II) supports Vietnam’s energy sector transformation to a clean, secure, and market-driven sector by mobilizing investment in the deployment of advanced energy systems, enhancing power system flexibility, and increasing competitiveness. [2020-2025, $36.25 million]
  • USAID Vietnam Urban Energy Security works with Danang and Ho Chi Minh cities to improve the enabling environment for distributed energy deployment and investment, supports adoption of innovative energy solutions, and mobilizes private investments for distributed energy solutions. [2019-2023, $14 million]
  • USAID INVEST seeks to unlock the power of private capital to drive inclusive growth by providing grants, technical assistance, and convening power to help raise awareness of investment opportunities, lower transaction costs, and mitigate the risk of investments that generate positive social, economic, and environmental impact. In Vietnam, USAID INVEST covers renewable energy, sustainable health care, power transmission, port modernization, financial inclusion and climate financing. [2019-2023, $8.7million]


A solar farm in Binh Thuan province, which was built with technical support from USAID.
A solar farm in Binh Thuan province, which was built with technical support from USAID.
Phuong Nguyen/USAID
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