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The country has a relatively large distribution of renewable energy sources. Vietnam’s average amount of solar radiation is 5kWh per metre square each day. The government is expecting to produce 5% of its energy from renewables by 2020.
On July 4, 2008, the ministries of finance and of natural resource and environment introduced a subsidy for renewables. However, solar industry professionals did not believe it to be sufficient to entice investors.
In Vietnam, solar water heating remains the most lucrative investment. With regards to solar PV, connecting to the national grid is rarely profitable due to the high production costs. For residential installations, the cost of production is also high, but with lower generation capacity.
To date, Vietnam’s total solar capacity has been estimated to range between 1.6-1.8MWp. Residentially between 25-30% has been installed; 35% by the telecommunications industry and 35% by waterway traffic groups.