Vietnam’s Mekong Delta: Unlocking Green Potential and New Energy Opportunities

The Mekong Delta, nestled in the heart of southern Vietnam, is renowned for its fertile lands and bustling waterways. As the nation’s agricultural powerhouse, it has long been a critical contributor to Vietnam’s economic development. Today, the region is evolving into a pivotal player in the renewable energy landscape, offering immense potential for investors seeking sustainable opportunities.

With over 2,200 hours of annual sunlight, a 700 km coastline ideal for wind energy, and more than 23 million tonnes of agricultural by-products produced annually, the Mekong Delta offers vast resources for solar, wind, and biomass energy projects. As Vietnam accelerates toward its net-zero emissions target by 2050, the region is positioned as a cornerstone of this national effort, attracting groundbreaking initiatives and global partnerships.

This article aims to shed light on the untapped potential of the Mekong Delta’s energy sector, highlighting existing projects, investment opportunities, and challenges. It serves as an invitation to investors to explore this vibrant region and join hands in powering a sustainable future.

Renewable Energy Potential in the Mekong Delta

The region is richly endowed with natural resources, offering an unparalleled opportunity for sustainable energy development. The abundant sunlight, with 2,200 to 2,500 hours of sunshine each year, makes the Delta a prime location for solar energy projects. Similarly, the region’s 700 km coastline and favorable wind speeds position it as a hotspot for offshore and onshore wind energy project. Additionally, the Delta generates over 23 million tonnes of agricultural by-products annually, making it a rich resource for biomass energy. Clean energy production from materials like rice husks and straw not only advances sustainability but also provides effective waste management solutions. While hydropower opportunities in the Mekong Delta are limited compared to other parts of Vietnam, its extensive river network opens the door to potential tidal energy exploration.

“The Mekong Delta not only faces the challenge of climate change, but also has an urgent need for green transformation to maintain production and sustainable economic development. This helps minimize negative impacts on the environment and opens up new opportunities for growth and international cooperation. Currently, businesses need more foundations to build appropriate renewable energy development strategies” – Mr. Ho Quang Minh, Chairman of VANZA

Key Renewable Energy Projects in the Mekong Delta

According to the national renewable energy development plan to 2035, in terms of technical potential, the Mekong Delta region has over 68,600 MW of onshore wind power potential and over 31,500 MW of solar power potential.

The Mekong Delta is witnessing the emergence of several noteworthy initiatives that underline its potential for renewable energy development. Below are some standout projects:

• Solar Energy: Kien Giang Province has approved the research and investment for 15 solar power projects, with a total capacity of 2,427 MWp. Of these, 12 projects have been proposed to the Ministry of Industry and Trade, with a total capacity of 1,715 MWp. These are all solar power plant projects combined with industrial shrimp farming areas (4 existing shrimp farming areas and 3 planned shrimp farming areas according to the industrial shrimp farming plan), and they will be located on water bodies, without using land exclusively for the power plant construction.

• Wind Energy: With a vast offshore potential estimated at 1,200 to 1,500 MW, the Mekong Delta’s coastline is integral to wind energy expansion. A standout project is the largest onshore wind power project in the Mekong Delta region, located in Bac Lieu Province, and it is the first project to be built on the continental shelf in Southeast Asia. To date, the province has 8 completed wind power projects that are now operational, with a total capacity of nearly 470 MW, ranking third in the country.

• Biomass Energy: Harnessing over 23 million tonnes of agricultural by-products annually, the Delta has significant potential for biomass-based clean energy solutions. A notable project is the Hau Giang Biomass Power Plant, located in Hau Giang Province, with a capacity of 2x10MW, using rice husk as the main fuel. To date, this is the largest biomass power plant in the Mekong Delta. The plant has also received investment funding through Japan’s Joint Crediting Mechanism (JCM) via the Global Environment Facility (GEF).

• LNG-to-Power Projects: The Bac Lieu LNG Power Project has been approved in principle and has received investment certification with a total investment of nearly 4 billion USD, funded by FDI, making it one of the largest projects in the Mekong Delta region. The project has not yet been started; however, according to the plan, Phase 1 of the project will have a capacity of 800 MW, and Phase 2 will reach a capacity of 3,200 MW.

Together, those projects are expected to exemplify the Mekong Delta’s commitment to advancing renewable energy development and addressing sustainability challenges.

Challenges

Despite its vast potential, the Mekong Delta faces hurdles that could impede its journey to becoming a renewable energy hub. Tackling these challenges is crucial to ensuring success:

• Procedural Delays: Lengthy approval processes and navigating complex regulations often slow the pace of project implementation.
• Land Use Issues: Expansive energy projects can conflict with agricultural activities, creating challenges for local communities dependent on farming.
• Environmental Concerns: Renewable energy development may inadvertently impact local ecosystems, with issues such as biodiversity disruption requiring careful mitigation.
• Infrastructure and Workforce Constraints: The region’s existing infrastructure may not be equipped to handle large-scale energy projects, and a shortage of skilled workers poses additional barriers.
• Currency Exchange Risks: For foreign investors, fluctuating exchange rates can affect financial planning and project feasibility.

By addressing these challenges, the Mekong Delta can further solidify its position as a destination for sustainable energy investments.

The Mekong Delta: A Rising Energy Hub

The Mekong Delta is emerging as a critical contributor to Vietnam’s renewable energy sector and as a promising investment destination for international stakeholders. With abundant natural resources, ambitious projects, and government commitment to achieving net-zero emissions, the region is primed for transformation into a global renewable energy hub.

The combination of favorable government policies, ambitious projects, and Vietnam’s net-zero commitment underscores the urgency and strategic timing for entering this market.

The national renewable energy development plan through 2035 states that the Mekong Delta can utilize more than 31,500 MW of solar electricity and more than 68,600 MW of onshore wind power (according to VANZA in November 2024). Aside from this possibility, though, the Mekong Delta’s energy demand has grown by 15% over the last 10 years, which is concerning. Forecasts indicate that this demand will continue to rise by an average of 12% annually over the next ten years. The energy demand may quadruple by 2030 compared to 2005.

Following the announcement event of “Annual Economic Report Mekong Delta 2024” and Forum “Promoting Investment and Sustainable Development in the Mekong Delta” which took place at the end of March, the upcoming event in Can Tho City with the theme “2025 Vietnam – Chine Trade and Investment Cooperation in Sustainable Development” will offers a unique platform to connect with local stakeholders, explore opportunities, and engage in Vietnam’s renewable energy revolution.

Date – Time: 17:00 ~ 21:00, April 25, 2025

Venue : Can Tho City, Mekong Delta Region, Southern Vietnam

REGISTER HERE