Vietnam’s renewable energy sector was stuck for nearly three years. After the solar and wind rush of 2019 to 2021, everything ground to a halt. Projects stalled, financing disappeared, and investors sat around waiting for direction. But as we head into 2026, things are finally moving again. What’s coming looks completely different from before. This time it’s about commercial viability, not government handouts.
As Alliance Mount’s Energy Investment Expert, founder of VHALT (Vietnam’s industrial decarbonization partner), and Senior DPPA Advisor to PECC2, I’ve watched this shift unfold from every angle. Whether advising institutional investors, working with manufacturers on decarbonization, or helping developers navigate the new power purchase framework, the message is clear: the fundamentals are stronger than they’ve ever been.
The FiT Legacy: Fast Growth, Hard Lessons
The feed-in tariff era changed everything overnight. Vietnam added 17 to 19 GW of solar and wind between 2019 to 2021 ( depending on the source), one of the fastest expansions anywhere. But we paid for that speed.
Grid congestion became a serious problem. Provinces like Ninh Thuận and Bình Thuận saw generation cuts hitting 30 to 40% at times. When the FiTs expired, project pipelines collapsed. For almost three years, developers were stuck waiting for a new framework that could restore confidence.
I remember the 2024 Solar & Storage Show in Ho Chi Minh City. Every conversation came back to the same question: When will we get regulatory clarity? The market wasn’t just slow; it was paralyzed. But that painful pause forced a reset. The speculators left, and what remained were serious players focused on the real stuff: grid integration, bankable PPAs, and actual corporate demand.
What’s Driving the Recovery
Vietnam’s comeback isn’t about one policy fix. Four forces are reshaping the market right now.
1. Political commitment matters.
Vietnam’s Net Zero 2050 pledge and the $15.5 billion JETP aren’t just announcements; they’re matters of national credibility. Having lived here for years, I’ve seen how deeply “saving face” shapes behavior at every level. This Net Zero pledge, made on the global stage, is not one the government intends to lose face over, and that gives it real weight.
2. Corporate demand is the real engine now
Vietnam’s export manufacturers are under massive pressure from global buyers to decarbonize. Through VHALT, I see it every day: factories need renewable power to keep selling to Europe and North America. This isn’t CSR anymore; it’s a commercial requirement.
3. The policy reboot is real
Decree 57 introduced Direct Power Purchase Agreements, letting renewable generators sell directly to corporate buyers instead of going through the single-buyer model. As Senior DPPA Advisor to PECC2, I’ve helped structure these early frameworks. Most haven’t been fully executed yet, but I expect 2026 will bring the first wave of direct DPPAs. Decree 58 also revived rooftop solar by clarifying self-consumption rules.
4. Capital is flowing again, but smarter
At Alliance Mount, our partners are backing integrated projects that combine generation with storage and clear corporate offtake. There’s real emphasis now on grid impact assessments and curtailment mitigation through storage. PDP8 actively encourages energy storage, making solar-plus-storage central to bankable projects. The focus has shifted from volume to quality.
Why This Time Is Different
The FiT boom ran on subsidies. This new phase runs on demand. Vietnam’s manufacturing competitiveness now depends directly on renewable energy. Corporate procurement is expanding, solar-plus-storage projects are being designed around industrial loads, and grid modernization is finally getting funded through JETP.
This isn’t just about energy; it’s about economic competitiveness. Clean power is now essential for Vietnam’s role as a global manufacturing hub. The lack of verifiable green energy was already affecting expansion decisions for some major suppliers before the DPPA mechanism provided a clearer path forward.
The Dragon Reawakens
Vietnam’s renewable sector is entering its most interesting phase yet, where fundamentals drive investment instead of incentives. The 2022 to 2024 slowdown created the discipline the market needed.
At Alliance Mount, we are leveraging our deep expertise to actively guide clients through this transformation: investors looking for quality projects with a path to securing long-term corporate offtakers, and supporting developers focused on high quality execution and ultimately the sale of the project.
The gridlock is over. Vietnam’s renewable sector is awake again, and this time it’s not chasing subsidies. It’s powering the next generation of green industrial growth.
