Market Overview

The Vietnam solar energy market share reached approximately 25.43 TWh in 2024 and is projected to grow at a compound annual growth rate (CAGR) of 3.10% between 2025 and 2034, reaching a value of around 34.51 TWh by 2034. This growth is fueled by Vietnam’s continued shift towards renewable energy sources, with solar power playing a pivotal role in the country's energy transition. Government policies, technological advancements, and the growing need for sustainable and cost-effective energy solutions are all key drivers of this growth.

The solar energy market in Vietnam has experienced rapid development in recent years, supported by favorable government incentives, such as feed-in tariffs and solar power development plans. These efforts, combined with increasing environmental awareness, have led to a surge in both residential and industrial solar installations. As the demand for cleaner, renewable energy continues to rise, the market for solar energy is expected to expand significantly over the next decade.

Market Trends

The Vietnamese solar energy market is driven by several key trends that are shaping its growth trajectory. One prominent trend is the increasing adoption of residential solar power systems. With the rising cost of electricity and the government’s support for green energy initiatives, more homeowners are turning to solar energy for their electricity needs. This trend is contributing to the growth of the small-scale solar market, as more people seek to reduce their dependence on the grid and lower their utility bills.

Another key trend is the growing demand for commercial and industrial solar installations. As businesses look for ways to reduce operational costs and improve sustainability, the adoption of solar energy in these sectors is gaining momentum. Solar power not only provides significant savings in energy costs but also supports corporate social responsibility goals. Furthermore, advancements in solar technology, such as increased efficiency and lower costs for solar panels and batteries, are further propelling this trend.

Market Growth

The solar energy market in Vietnam is experiencing steady growth, driven by both domestic and international factors. Government policies that promote renewable energy, such as favorable tariffs and tax incentives, are central to the expansion of the market. The Vietnamese government’s commitment to increasing the share of renewables in the energy mix, as outlined in its renewable energy development plan, has encouraged investment in the solar sector. Additionally, the growing demand for clean energy solutions to combat pollution and reduce greenhouse gas emissions is providing a further boost to the market.

The market is also benefiting from technological advancements in solar power generation. Innovations in solar panel efficiency, energy storage solutions, and grid integration are making solar power more accessible and reliable. As solar energy becomes more affordable and scalable, both residential and industrial users are increasingly turning to solar energy as a viable and sustainable alternative to conventional power sources. The combination of government support, technological progress, and rising environmental awareness is expected to drive sustained growth in the solar energy market over the next decade.

Segmentation

The Vietnamese solar energy market can be segmented into technology, solar modules, and applications. Each segment plays a crucial role in the market's overall dynamics and growth potential.

By Technology

• Solar Photovoltaic (PV): Solar photovoltaic technology remains the dominant technology in Vietnam's solar energy market. PV systems convert sunlight directly into electricity and are widely used in both residential and commercial applications. As the cost of solar panels continues to decline and efficiency improves, solar PV systems are expected to maintain their position as the leading solar technology in the country.

• Concentrated Solar Power (CSP): Although CSP technology has a smaller share in Vietnam’s solar energy market, it is gaining traction for large-scale energy generation. CSP systems use mirrors or lenses to focus sunlight onto a small area, generating heat that is used to produce electricity. This technology is particularly suited for large utility-scale projects and is expected to grow as Vietnam continues to invest in renewable energy infrastructure.

By Solar Module

• Monocrystalline: Monocrystalline solar modules are known for their high efficiency and space efficiency. These modules are made from a single crystal structure and are highly favored for residential and commercial applications in Vietnam. Their higher efficiency makes them suitable for areas with limited space for solar panel installations.

• Polycrystalline: Polycrystalline solar modules are a more cost-effective alternative to monocrystalline panels, making them popular in both residential and commercial sectors. While they are slightly less efficient, their affordability makes them a widely used option for solar installations across the country.

• Thin-Film Solar Modules: Thin-film solar modules are lighter and more flexible than traditional silicon-based panels, which makes them ideal for specific applications where weight and space are concerns. They are particularly useful in commercial and industrial installations, and as technology advances, their efficiency and cost-effectiveness are expected to improve.

• Others: There are also emerging solar technologies, including organic photovoltaic cells and perovskite solar cells, that are beginning to make their way into the market. While still in the early stages of adoption, these modules have the potential to provide lower-cost, high-efficiency alternatives in the future.

By Application

• Residential: Residential solar installations in Vietnam are growing as homeowners look for sustainable, cost-effective energy solutions. With government incentives such as net metering and tax breaks, residential solar is becoming increasingly popular. Homeowners are investing in solar panels to reduce electricity costs and increase energy independence.

• Commercial and Industrial: The commercial and industrial sectors in Vietnam are rapidly adopting solar energy solutions to reduce operational costs and meet sustainability goals. Many businesses are turning to solar to power their operations, with large installations on rooftops and in open spaces. This segment is expected to experience significant growth as more companies invest in green energy initiatives.

• Utility: Utility-scale solar projects are a key driver of growth in Vietnam's solar energy market. Large solar farms are being developed to contribute to the national grid and meet the country’s increasing energy demand. As Vietnam continues to expand its renewable energy infrastructure, utility-scale solar projects will play a significant role in the nation’s energy transition.

Regional Analysis

Competitive Landscape

The Vietnamese solar energy market is highly competitive, with both local and international companies playing a key role. Some of the key players in the market include:

• SOLARBK

• GCL (Group) Holdings Co., Ltd.

• BIMGroup

• TRUNGNAM GROUP

• TTC Group

• Red Solar Energy Joint Stock Company

• Others

These companies are focusing on expanding their market share through technological innovations, strategic partnerships, and increasing their production capacities. The competition is intensifying as companies strive to offer high-quality solar panels and efficient energy solutions to meet the growing demand for renewable energy in Vietnam. Additionally, government incentives and the continued development of infrastructure are further driving the competitive dynamics within the market.

Future Outlook (2025-2034)

The future outlook for the solar energy market in Vietnam is promising, with continued growth expected through 2034. The government’s commitment to renewable energy, along with technological advancements, will ensure that solar energy plays a key role in the country’s energy transition. With increasing demand from residential, commercial, and industrial sectors, Vietnam is poised to become a leader in renewable energy in Southeast Asia. The continued development of utility-scale solar projects and improvements in solar panel efficiency will drive the growth of the market in the coming decade.