Financing energy transition for sustainable development in Vietnam: key issues and policy implications

The transition to a clean energy system is crucial for achieving sustainable development goals. Finance is considered one of the key driving forces for global energy transition. In Vietnam, the transition of energy sector towards sustainability presents significant opportunities for sustainable economic growth and the mitigation of climate change's adverse impacts. As in other countries, there is a substantial financial demand for a successful energy transition. Despite financing efforts to promote this transition process, several challenges persist, stemming from its nature, sources of finance, financial instruments, and the legal framework. Through a comprehensive review and analysis of existing research, the paper highlights the current landscape of sustainable energy financing in Vietnam and emphasizes the importance of addressing key issues to overcome financing barriers. Based on these findings, recommendations are proposed for financial institutions, project developers, public and private investors, regulators and other stakeholders to facilitate successful energy transition through strategic financing mechanism.