Green transition in Vietnam

Around the world, countries are working hard to create greener and cleaner economies. Vietnam is following suit, and taking action as well. Sustainability is now one of its priorities: aiming to protect the environment while still growing its economy and improving people’s lives. In this article, we give you an update about Vietnam’s green transition. From major investments in renewable energy, to plans for helping workers and communities during the transition. We also look at how international partners are supporting Vietnam’s goals and the challenges that still lie ahead. Vietnam’s efforts show that with leadership, teamwork, and a focus on fairness, real development is possible. Join us as we take a closer look at how Vietnam is building a better, more sustainable future.

A strategic commitment to sustainability

On 23 April 2025, at a high-stakes virtual summit on climate action, Vietnam’s Prime Minister Pham Minh Chinh declared that the green transition is no longer optional. Instead, it is an inevitable path and a strategic national priority. Within his statement, the Prime Minister emphasized that the green economy must serve both environmental and economic objectives, ensuring prosperity for future generations while protecting the planet. The Government confirmed Vietnam’s commitment to achieving net-zero emissions by 2050, aligning its policies with global climate goals. Vietnam’s approach follows a people-centered philosophy, focusing on sustainable development that benefits every citizen, not just economic elites. If you are interested in these topics, we recently wrote two articles about sustainability in the Mekong Delta, and about responsible business conduct.

Green transition: the first steps

Vietnam is turning its ambitions into real-world action through several key initiatives. These reflect Vietnam’s understanding that economic transformation must go hand-in-hand with environmental integrity:

• Renewable energy push: the Government is scaling up wind- and solar power to reduce dependence on coal, with several large-scale projects already underway.
• Green hydrogen development: plans are in motion to produce hundreds of thousands of tons of green hydrogen by 2030, with significant growth expected by 2050.
• Energy efficiency campaigns: national programs promote reduced energy consumption across industry and households.
• Policy reforms: the Government is designing new regulations to attract green finance, promote clean technologies, and to support eco-friendly entrepreneurship.

A green transition for all

At the heart of Vietnam’s green strategy is the principle of a just transition, which includes a pledge that no one will be left behind. UNDP Resident Representative Ramla Khalidi praised Vietnam’s inclusive model, highlighting its commitment to equity, resilience, and social justice. It ensures that the green economy is not just environmentally sound; it is also socially fair. Vietnam’s approach includes:

• Retraining coal workers for clean energy jobs.
• Supporting vulnerable communities during the energy shift.
• Expanding access to social protections for those affected by climate and economic shifts.

Backing by global partners

Vietnam’s efforts are reinforced by international support, especially through the Just Energy Transition Partnership (JETP). This is a USD 15.5 billion initiative that includes Vietnam, several G7 countries, the EU, and Norway. JETP aims to help Vietnam phase out coal and scale up renewables, while ensuring social fairness. With partners like UNDP and international financial institutions backing Vietnam’s green shift, the country is building a broad coalition for sustainable development. Support from global partners includes, among other things:

• Climate finance to fund green infrastructure and innovation.
• Technology transfer to adopt modern clean energy solutions.
• Capacity building for policymakers, engineers, and communities.
• Policy advisory to align national laws with international standards.

Green transition challenges ahead

Despite strong momentum, Vietnam still faces several challenges. The Government is actively working to tackle these challenges through good governance, regional planning, and enhanced public-private partnerships. Some of the aforementioned challenges include:

• Energy infrastructure must be upgraded to support renewable integration.
• Coal dependency continues to pose short-term transition hurdles.
• Policy consistency and administrative coordination, in order to maintain investor confidence.
• Regional inequalities must be addressed to ensure fair access to green benefits.

Green transitioning with confidence

As the world accelerates toward a low-carbon future, Vietnam would like to be a leading example of how to grow sustainably, inclusively, and responsibly. Indeed, Vietnam is embracing a green economic future with determination, positioning sustainability as a core national priority. Current initiatives include: expanding renewable energy, investing in green hydrogen, boosting energy efficiency, and reforming policies to attract green finance and innovation. A just transition remains central to Vietnam’s strategy, making sure nobody is left behind. International partnerships, including major climate finance and technology support may help with this. Challenges such as energy infrastructure upgrades, coal dependency, and regional inequalities remain. However, Vietnam’s pragmatic and inclusive approach offers a hopeful model for sustainable growth in an increasingly climate-conscious world.

VNHL is here to support you

With our “base camp” in Vietnam, we can see the daily efforts of Vietnam changing into a greener life-style. For example, we recently saw with our own eyes that more and more solar energy projects are popping up along the coast. Meanwhile, people seem to be more and more aware of plastics pollution, trying to reduce its use. From our side, we are always happy to share are on – the – ground insights with you. So if you have any questions or requests relating to investing, doing business, and/or living in Vietnam: do not hesitate to contact us. Our main services are consulting, networking, and supporting. And you can reach us via the contact button in the right bottom corner, or by visiting our contact us page. In any case: we look forward to hearing from you.

*Dear reader, even though our VNHL Consulting team always tries its very best to provide its Clients with correct and complete info: we are not a Vietnamese law firm. The information in this post is therefore not meant to, and should also not be construed to, constitute legal advice. For specialized advice in the fields of law, accounting, tax, etcetera: we always recommend our Clients to speak with qualified specialists in those fields. We have several such specialists in our nationwide network, and we are always happy to introduce our Clients to them, when appreciated.