On June 8, 2023, the Government of Vietnam promulgated Prime Minister’s Directive No. 20/CT-TTg on Strengthening Electricity Saving from 2023 to 2025 and Beyond (hereinafter “the Directive”). The Directive is rooted in the concern that the projected instability of electricity supply in the period 2023–2025 and the following years will affect future economic development, investment attraction, and the preservation of national security and social stability. Specific issues highlighted in the Directive include:
- Climate change is worsening the flow conditions of rivers that guarantee the generation capacity of hydropower plants.
- Import dependency for primary energy is increasing.
- Renewable energy sources such as wind and solar remain limited.
- Expanding investment in thermal power plants faces many difficulties.
- Electricity demand continues to grow at a high rate, averaging about 8.5% per year, outpacing economic growth.