The year 2025 marks a significant turning point for Vietnam’s electricity sector as power demand surges while supply faces numerous constraints. This is a golden opportunity for energy companies with strategic investment plans to seize growth potential and lead the shift toward clean, sustainable energy.
⚡ Electricity Demand Sees Strong Growth
According to forecasts by the Ministry of Industry and Trade, Vietnam’s electricity consumption in 2025 is expected to grow between 10.5% and 14.3% compared to the previous year, reaching 342.3–354 billion kWh. This growth is driven by a targeted GDP expansion of 8% and rapid industrialization and urbanization across the country.
However, electricity supply is projected to increase by only 7.8%, reaching an installed capacity of 94.2 GW. The imbalance between supply and demand could place significant pressure on the grid, especially in northern regions during the dry season peak months.
🏭 Power Structure: Coal Remains Dominant, Renewables Accelerate
Coal-Fired Power: The Current Backbone
Coal-fired power continues to play a crucial role, particularly in northern Vietnam. In 2024, coal power output rose 18%, accounting for nearly 50% of total electricity generation. The commissioning of major plants like Vung Ang 2 and Quang Trach 1 will increase installed capacity by another 10%, strengthening short-term energy security.
Gas-Fired Power: A Comeback in the Making
Gas power is poised for a revival with two LNG-imported gas plants expected to come online in Q3 2025. This will raise the sector’s capacity by 20%, ushering in a new growth cycle for companies involved in LNG infrastructure and power generation.
Hydropower: Weather-Dependent
Hydropower remains an essential part of Vietnam’s electricity mix but is increasingly influenced by weather and regulation. Despite a 10% production boost in 2024 due to favorable rainfall, government-imposed electricity price caps are compressing profit margins for hydropower firms.
Renewable Energy: The Long-Term Growth Engine
Renewables are emerging as a long-term strategic growth driver. Vietnam expects to add 1,177 MW of new solar and wind capacity in 2025, in addition to 4,598 MW from transitional projects that have completed power price negotiations. This makes renewable energy one of the most promising investment sectors this year. Vietnam’s electricity sector
🏗️ Infrastructure & Policy: Growth Catalysts – Vietnam’s electricity sector
Grid Infrastructure Expansion
EVN is implementing 10 major power generation projects with a total capacity of 8,800 MW, set for completion in 2025. Key projects include the Hoa Binh Hydropower Plant Expansion and new 500 kV transmission lines—critical for improving national grid stability.
Policy Support
The government is promoting the Direct Power Purchase Agreement (DPPA) mechanism and finalizing new price frameworks for wind power, paving the way for broader private sector participation in Vietnam’s energy transition. Vietnam’s electricity sector
📈 Opportunities for Energy Companies
In this landscape, many energy firms are poised for notable growth in 2025:
- Gia Lai Electricity JSC (GEG): Targets VND 3,400 billion in revenue (+43%) and VND 777 billion in pre-tax profit—over 4 times higher than 2024—driven by renewable energy projects and debt recovery from Tan Phu Dong 1.
- PC1 Group JSC (PC1): Forecasts VND 11,889 billion in revenue and VND 771 billion in net profit, up 18% and 67.4%, respectively, thanks to new hydropower contributions, expanded wind capacity, and industrial real estate.
- Refrigeration Electrical Engineering Corporation (REE): Projects over 20% growth in both revenue and profit. The energy segment contributes 43%+ of total revenue, with plans to add 100 MW of new capacity and invest in offshore wind.
- Ha Do Group JSC (HDG): Expects after-tax profit of over VND 1,000 billion, 2.4 times higher than 2024, supported by renewable energy and real estate project revenues.
🔍 Conclusion
The year 2025 promises to be a breakout year for Vietnam’s electricity sector. Companies with robust strategies, diversified power portfolios, and operational efficiency are well-positioned to ride the growth wave while contributing to the nation’s ongoing energy transformation.
Research by VPNA
Vietnam’s electricity sector
