Vietnam’s public utility sector is undergoing rapid transformation to meet the demands of its growing economy and urban population. With strong government backing and increasing foreign investment, key segments such as electricity, water and waste management are expanding infrastructure, adopting greener technologies, and embracing public-private partnerships. This sector plays a crucial role in Vietnam’s sustainable development and industrial competitiveness.

Electricity

As of 2024, Vietnam’s total installed power generation capacity (commercially operational) reached approximately 82,387 MW. This positioned Vietnam as the leading country in terms of power capacity within the ASEAN region.

Key trends

  • Vietnam’s electricity demand is surging, driven by industrialization, urbanization, and an expanding population. The electricity demand in 2025 is projected to grow 5-13% compared to 2024.
  • In the draft revision of Power Development Plan VIII (PDP VIII) currently open for public consultation, the Ministry of Industry and Trade (MoIT) estimates that Vietnam’s electricity system will need to grow to 210,000 MW by 2030 and 840,000 MW by 2050—representing increases of 35% and 50%, respectively, compared to the targets set in the approved plan.

Import & Export

  • Vietnam has been steadily increasing electricity imports, especially during anticipated power shortages in the northern region. By the end of 2024, imported electricity reached around 5 billion kWh, up from 1.4 billion kWh in 2021. These imports primarily come from Laos and partially from China.
  • Under the revised Power Development Plan VIII (PDP VIII draft), Vietnam plans to increase import capacity to 5–8 GW from Laos and ~3.7 GW from China by 2030. Imported electricity could account for ~5% of installed capacity by then.
  • Exports, by contrast, are being scaled back. The country is reducing its export target by 2030 to just 400 MW (down from at least 5 GW previously), with Cambodia as the sole off‑taker. After 2030, Vietnam aims to export 5–10 GW to partners such as Singapore and Malaysia by 2035.

Government efforts

  • Master Planning: Vietnam has enacted the National Electricity Development Plan 2021–2030 (PDP8), targeting a shift towards cleaner and renewable energy sources, reducing coal dependency, and aligning with sustainability goals.
  • Infrastructure Expansion: Massive investments have doubled expressway length, launched 80 major power projects, and upgraded over 100 grid assets in recent years. The government has made power supply for economic growth a top priority.
  • Legislative Measures: New decrees and amendments to the Electricity Law and Public Investment Law streamline procurement and support a robust legal framework for investor participation.
  • Renewable Energy Promotion: Efforts continue to promote wind, solar, and hydro energy, with incentives for both foreign and domestic capital.

International involvement

  • Tokyo Gas, Kyuden International, and Truong Thanh JV secured a $1.99 billion LNG‑to‑power plant license in Thai Binh (1,500 MW capacity) in December 2023. First turbine online by Q4 2028.
  • S.-based AES Corporation and PV Gas JV approved a $1.4 billion Son My LNG Terminal & power plant project in Binh Thuan (Son My complex).

Source: https://www.pvgas.com.vn/news/binh-thuan-province-introduction-of-investors-of-son-my-lng-to-power-project

  • SK Group (South Korea) proposed a 1.5 GW LNG plant + 240,000 m³ storage total cost $2.35 billion) in Ninh Thuan province.
  • O Mon/Block B gas‑power scheme (~$12 billion) is Vietnam’s energy priority, with Japanese technical expertise and Vietnamese public/private participation.
  • Chitchareune Construction is developing 1,200 MW wind farm in Laos to supply electricity to Vietnam from late‑2027; total investment ~$1.9

Water & Waste Management

Key trends

Water Supply & Sanitation

  • As of 2023–2024, Vietnam operated around 1,000 water supply plants with a combined capacity of 13.2 million m³/day, serving ~94% of the population with a standard supply level of 120 liters/person/day. System losses have been reduced to approximately 15.5%.
  • The National Strategy on Rural Water Supply and Sanitation (2030–2045) aims for 100% rural access to safe water and sanitation by 2045, with 50% of rural areas providing domestic wastewater collection systems and 30% of wastewater being treated.

Wastewater Treatment

  • As industrialization and urbanization accelerate, Vietnam is grappling with serious environmental challenges, particularly in wastewater management. Industrial zones, export processing areas, and major cities are key sources of pollution, negatively impacting public health and the environment. While the country has made notable progress—raising the share of industrial zones with compliant wastewater treatment systems from 63% in 2015 to 92% in 2023—significant issues still persist and require further attention to fully meet its sustainable development goals.

Solid Waste

  • Vietnam generates approximately 60,000 tons/day of household (municipal) solid waste, much of which is disposed in landfills; only ~20% of landfill sites meet sanitary standards.
  • Electronic-waste (e-waste) is a growing environmental concern. Vietnam was the world’s fourth largest importer of plastic scrap in 2022, with only one-third properly recycled; informal recyclers play a major role, though safely integrating them remains a challenge.

Government efforts

  • Vietnam coordinates with donors such as ADB, JICA, World Bank, Germany and others to upgrade water/wastewater infrastructure, promote PPP models, and improve tariff frameworks in multiple provinces.

International involvement

  • JFE Engineering Corporation collaborated with Thuan Thanh Environment JSC for the construction of a USD 74-million hi-tech waste-to-energy plant, which completed in 2023 and commenced operation in 2024. The plant has the capacity of processing 600 tons of solid waste and generating 13.5 MW of electricity.
  • ADB, Japan (JICA), World Bank, Germany, plus UK, Denmark, Australia cooperate on urban sanitation/wastewater infrastructure, corporate governance training, and sustainable policies.
  • In January 2025, Vietnam recorded US $73.8 million of newly registered FDI in the water supply and waste treatment segment across three

Interested in tapping into the Vietnam public utilities market for your business?

Here at GLOBAL ANGLE, we are able to conduct market research in Vietnam. Our local Vietnamese partner, team members, and local researchers are based in the country for on-the ground and comprehensive market research and business consulting services. We can conduct detailed research on Vietnam’s public utilities market to your needs.

Read our previous market research in Vietnam