64

Vietnam’s Power Development Plan 8 (PDP8) sets a course for the country’s energy transition to carbon neutrality by 2050. The plan targets significant growth in renewable energy, diversification of energy sources, and reduced reliance on imported coal. However, implementing PDP8 poses considerable challenges, including securing an estimated US $13 billion annually for new power capacities and grid upgrades, expanding the power grid to accommodate more renewables, and managing the risk of dependence on imported liquefied natural gas (LNG). The success of this plan could provide a model for other middle-income countries undergoing similar energy transitions. JEL Classification: L52; O21; Q48