Acting Minister of Industry and Trade: Vietnam’s electricity system ranks first in Southeast Asia

Acting Minister Le Manh Hung, on behalf of the Industry and Trade Party Committee, presented a presentation on industrial and commercial development at the XIV Party Congress, January 21. According to Mr. Hung, the industry and trade sector plays a strategic pivotal role – one of the main driving forces promoting socio-economic development.

During the past term, industrial production recovered clearly and grew quite well (average 6.1% per year). In particular, the energy sector has developed strongly, rising to the top in Southeast Asia in terms of power system scale.

“National energy security is guaranteed, basically meeting the requirements of socio-economic development,” he said, adding that the energy structure is shifting positively, towards green, sustainable development.

In fact, by the end of 2025, the total power capacity of the entire system (excluding imported electricity capacity) will reach about 87,600 MW, an increase of about 6,400 MW compared to 2024. The adjusted National Electricity Development Plan 2021-2030 (Power Plan VIII) sets the goal of ensuring enough electricity supply to meet the requirement of average GDP growth of 10% per year during the period. 2026-2030, and about 7.5% in the period 2031-2050. Accordingly, the total capacity of power plants serving domestic demand (excluding exports) is 183,291-236,363 MW.

It is estimated that the total investment capital to develop power sources and transmission grids is about 136.3 billion USD in the period 2026-2030 and an additional 130 billion USD is needed in the years 2031-2035. From 2036 to 2050, Vietnam continues to need to invest an additional 569.1 billion USD for this activity.

Along with the energy sectoraccording to the Acting Minister, the processing and manufacturing industry grows on average 6.9% per year, creating a driving force to promote industrialization and modernization of the country. The localization rate has improved, a number of key industries have affirmed their positions in the global value chain.

Import and export are always a bright spot, growing on average 10.9% a year. Trade surplus is continuously maintained at a high level, contributing to replenishing foreign exchange reserves and stabilizing the macroeconomy.

The domestic market is developing positively with an average growth rate of 7.7% per year, serving as a “pedestal” to help the economy stand firm and recover quickly from external shocks. E-commerce is growing strongly, with an average rate of over 20% per year, leading digital transformation in businesses. Synchronous international economic integration through 17 Free Trade Agreements (FTAs) with nearly 6 billion consumers.

Besides the achieved results, industry and trade still have some limitations. For example, low levels of technological autonomy and added value, slow green and smart transformation. Meanwhile, the energy infrastructure has not kept up, and the power source structure is unbalanced. Exports depend heavily on imports and the FDI sector, while trade and logistics infrastructure are not synchronized and costs are high.

In the coming period, Vietnam will enter a new era – the era of science and technology, innovation, green transformation, digital transformation and deep international integration. To promote industrial and commercial development, Acting Minister Le Manh Hung said that the Ministry of Industry and Trade will focus on perfecting institutions and policies, creating a favorable business and investment environment, removing bottlenecks, and mobilizing development resources.

The industry and trade sector aims to restructure industry and trade associated with science, technology and innovation to increase productivity, quality and competitiveness. Accordingly, the operator prioritizes mastering emerging industries and building a number of large domestic enterprises capable of leading key fields. Energy, industrial, commercial infrastructure and logistics centers are developed synchronously in a green and smart direction.

“The industry and trade industry is committed to changing thinking from management to creation, accompanying businesses, turning challenges into breakthrough opportunities,” Mr. Hung added.