Power Development Plan (PDP) VIII states that Vietnam requires US$135 billion from 2021 to 2030 for developing new power sources and transmission grids, with projections soaring to US$399.2 billion to $532.1 billion cumulatively for the period from 2031 to 2050. However, as of March 2023, the amount of investment by domestic and foreign direct investment (FDI) in green development-related fields amounted to approximately US$9 billion. This indicates a significant gap in required financial deployments. Active participation from diverse economic stakeholders, including foreign partners, is deemed crucial to establish a conducive investment environment, but this is hindered by barriers such as high upfront costs, perceived risks, intricate approval processes, and prolonged timelines.

The existing legal framework lacks clarity and consistency in green investment policies, emphasising the necessity for a dedicated policy framework. To address these gaps and support the Vietnamese government's efforts, ETP collaborates with the Industrial Economy and Service Department, Ministry of Planning and Investment (MPI). The project's objective is to support the development of a dedicated policy framework, considering factors like effectiveness, economic viability, stakeholder interests, and relevance to the Vietnamese context. The resulting policy recommendations aim to create a conducive environment, promoting investments in energy transition projects and accelerating the adoption of renewable energy in Vietnam's power sector.