A Study of the Development Strategy of the Wind Power Sector in Vietnam

Abstract

Nowadays, the wind power market is growing rapidly, while the cost of wind power equipment is decreasing, so Vietnam is currently building many wind power projects to ensure green energy development in its power system. However, some barriers in price mechanisms, and economic and technical conditions have also caused disadvantages in the process of developing wind power projects. This paper studies the SWOT-TOWS analysis to evaluate in greater detail the strengths, weaknesses, opportunities, and threat factors linked to it. Then the former compares the internal and external factors influencing the wind power industry on the way it exploits potential strategies. In general, Vietnam has satisfactory wind power development potential, and the wind power sector has been supported by a number of strong but unstable policies in the past. The rapid development of wind power capacity in recent times has also led to great challenges for investors and managers in actual operating conditions. Currently, investment costs for wind power plants are still quite high, Feed in Tariff (FIT) prices are not stable, transmission grid capacity is limited, and environmental treatment issues during construction and operation have not been fully considered.