Vietnam is set for a surge in power demand and consumption over the coming decade, which will stimulate the need for the rapid development of new power capacity. This stems largely from an expanding industrial and manufacturing sector, particularly as the ongoing U.S.-China trade war plays out. This has allowed Vietnam’s government to position itself outside of China’s shadow – a move to create an alternate manufacturing hub amid geopolitical uncertainties. Positive demographics and rapid urbanization will also further stoke electricity consumption growth rates in Vietnam, which Fitch forecasts to grow by an annual average of 6.7% between 2019 and 2028 – one of the fastest rates in Asia.
