As global attention intensifies on renewable energy, China and Vietnam are deepening their collaboration in the clean energy sector. Both nations recognize the vast potential of renewable resources and the pressing need to address climate change, prompting ambitious joint efforts in wind power, solar energy, and electric vehicles (EVs).
Wind Power Cooperation
Wind power has emerged as a cornerstone of the China-Vietnam energy partnership. With extensive coastlines and abundant wind resources, both countries are well-suited for wind energy generation. Chinese companies, known for their technological prowess and cost-effective solutions, have been actively investing in Vietnam’s wind power sector. Since the first Chinese wind turbine was installed in Vietnam’s Ninh Thuan province in late 2020, China’s influence in the country’s wind industry has grown, making Vietnam the largest market for Chinese wind turbines.
Solar Energy Collaboration
Solar energy is another key area of cooperation between the two nations. The abundant sunshine in both countries makes solar power a viable and sustainable option for clean energy production. Chinese solar panel manufacturers have established a strong presence in Vietnam, with more than a dozen companies investing over $2 billion to create the largest solar power industry cluster in the country.
The Phu My Solar Power Plant in Binh Dinh province, a 330-megawatt facility, exemplifies this collaboration. As the largest photovoltaic power station in central Vietnam, the plant is crucial to the nation’s National Power Development Plan 7. The facility is designed not only for electricity generation but also for potential expansions into energy storage, clean hydrogen production, and desalination projects.
Addressing Power Demand and Generation Challenges
Vietnam’s rapid economic growth has led to a surge in electricity demand, prompting the country to seek power imports from neighboring nations. According to Le Van Luc, deputy director of the Electricity and Renewable Energy Authority, annual electricity imports from China and Laos are expected to increase from 1,000 MW to 3,000 MW by 2025, with further growth to 5,000 MW projected by 2030.
Domestically, Vietnam faces challenges in power generation. The country has nearly exhausted its hydropower potential, with hydropower’s contribution to the electricity supply expected to decline to 12.4% by 2030. Additionally, delays in power project developments have resulted in a shortfall of over 17,500 MW in projected capacity from 2016 to 2030.
Electric Vehicle Adoption
China and Vietnam are also collaborating on the adoption of electric vehicles. Both countries have set ambitious targets for EV penetration, recognizing the environmental and economic benefits of transitioning to electric transportation. Investments are being made in charging infrastructure and battery technology, with joint ventures between Chinese and Vietnamese companies working to establish a robust EV ecosystem.
China’s leadership in EV technology and manufacturing makes it a crucial partner for Vietnam’s EV ambitions. Chinese EV manufacturers are gaining traction in the Vietnamese market, offering models that strike a balance between affordability, performance, and range. Additionally, the two countries are focusing on developing a comprehensive EV infrastructure, including charging stations, to support widespread adoption.
This growing partnership in renewable energy development reflects both nations’ commitment to sustainable growth and environmental stewardship, positioning them as key players in the global clean energy transition.
