By Sandy Tran
In the context of climate change and sustainable development becoming a global trend, Vietnam is witnessing robust growth in green industries. Vietnam has demonstrated strong commitment to green industrial development through various policies and legal documents, including the National Strategy for Green Growth 2021-2030, vision to 2050 (Decision 896/QD-TTg dated July 26, 2022); Environmental Protection Law 2020 and implementing decrees on green economy and circular economy development; Vietnam's commitment at COP26 to achieve net-zero emissions by 2050; Vietnam's Renewable Energy Development Strategy to 2030, vision to 2050; and Power Development Plan VIII targeting renewable energy share of 30.9-39.2% by 2030.
Based on data from the Ministry of Planning and Investment and the World Bank's report on green investment in Vietnam in 2024, here are the top 5 green industries attracting the largest investment flows:
1. Renewable Energy
Leading the list is the renewable energy sector with accumulated investment capital from 2021-2024 reaching $12.5 billion. Thanks to favorable legal framework from Decree 42/2023/ND-CP on incentive mechanisms for solar and wind power development, this sector has attracted many major investors. According to Vietnam Electricity (EVN), wind and solar power capacity has tripled compared to 2022. Notable projects include:
- Thang Long Wind offshore wind power complex in Binh Thuan with investment capital of $4.5 billion (groundbreaking Q4/2024)
- Xuan Thien Ninh Thuan solar power plant with investment of $2.2 billion (completed 2023)
2. Battery Production and Energy Storage
According to the Vietnam Battery Association report, the battery and energy storage industry attracted $5.8 billion in investment in 2024. Notably, major groups like VinES ($2.3 billion in Q2/2024) and Samsung SDI ($1.8 billion in Q3/2024) are expanding their production capacity for electric vehicle batteries and large-scale energy storage systems.
3. Waste Treatment and Recycling
Data from the Ministry of Natural Resources and Environment shows that in 2024, the waste treatment and recycling industry attracted $3.2 billion in investment. Key projects focus on:
- Waste-to-energy technology with investment of approximately $1.5 billion
- Smart plastic recycling systems with investment of about $1.0 billion
- Industrial wastewater treatment with investment of around $0.7 billion
4. High-tech and Sustainable Agriculture
According to the Ministry of Agriculture and Rural Development statistics, the high-tech agriculture sector has attracted about $2.8 billion in investment during 2023-2024. Notable projects include:
- Smart greenhouse systems
- Water-saving irrigation technology
- Industrial-scale organic fertilizer production
5. Green Materials and Sustainable Construction
The Vietnam Building Materials Association reports that this sector attracted $2.3 billion in investment in 2024. Projects focus on:
- Next-generation insulation materials production
- Low-carbon concrete
- Recycled construction materials
Development Prospects
The World Bank forecasts that total investment capital needs for green industry in Vietnam could reach $50 billion for the entire 2025-2030 period. The government has committed to creating favorable conditions through tax and land incentives for green industry projects, including: Corporate income tax incentives under Decree 82/2018/ND-CP for green supporting industry projects; Land incentives under Decree 57/2022/ND-CP; Financial support and green credit through Vietnam Environmental Protection Fund; Electricity price support mechanism for renewable energy projects; and Technology transfer incentives under the Technology Transfer Law 2017.
Conclusion
The strong development of these 5 green industries not only contributes to Vietnam's sustainable development goals but also creates attractive investment opportunities for both domestic and foreign investors.
References:
• Annual Report 2024 by the Ministry of Planning and Investment
• World Bank's Green Investment in Vietnam Report 2024
• UNDP Report "Assessment of Green Industry Development Policy Framework in Vietnam" 2024
• Industry Reports from Vietnam Battery Association and Vietnam Building Materials Association
• Websites: Government Portal (chinhphu.vn); Ministry of Industry and Trade (moit.gov.vn); Legal Library (thuvienphapluat.vn)
• Statistical data from Vietnam Electricity (EVN), Ministry of Natural Resources and Environment, Ministry of Agriculture and Rural Development