In the energy sector, the Vietnamese government is striving to generate enough electricity to power almost every home by 2020; the country's power production expected to grow 14 percent annually between 2015 and 2030.72 The country's General Department of Energy estimates that $148 billion is needed in developing Vietnam's energy grid in the period between 2016-2030.73
This investment is needed in order to keep up with the power demand generated by urbanization. Since 2012, Vietnam has allowed independent power producers to enter the market after launching its competitive generation market scheme, the first of three phases of its power market development roadmap.74
Further, the November 2016 ratification of the Paris Agreement means that the government will have to focus more effort on reducing Vietnam's reliance on new coal-fired power plants. According to The General Directorate of Energy, Vietnam, the government aims to increase its share of renewable energy to more than a tenth of its total power production by 2030 from less than 4 percent in 2015, with an emphasis on the development of wind and solar energy infrastructure.75 There are significant challenges that must be overcome to make this happen however and it will require both effective government action and the technical expertise in renewables of international companies. Despite Decree 15, one of the key challenges that remain to private sector PPP investment in the country is the perceived lack of transparency in the current PPP planning, tendering and monitoring processes. Further reform is required to bring the country in line with many Asian peers in this regard.76