Energy Transition Update: 13.4 - 20.4.2026
Energy Transition Update: 13.4 - 20.4.2026
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Energy Transition Update: 13.4 - 20.4.2026 ---
Vietnam advised to build sustainable linkages for bioethanol production
Vietnam needs stronger supply-chain linkages to support bioethanol production as demand rises with the nationwide rollout of E10 biofuel. Industry experts note that feedstock supply remains unstable, with cassava – the main input – subject to seasonal fluctuations and price volatility, while maize offers more stable quality but requires better planning. Currently, six ethanol plants have a combined capacity of about 600,000 cubic metres per year but face difficulties operating at full capacity due to raw material shortages. Developing integrated value chains – linking farmers, cooperatives and processing firms through long-term purchase agreements – is seen as critical to stabilising supply. Policy support such as tax incentives, zoning of feedstock areas and infrastructure investment is also recommended. Without these measures, Vietnam may struggle to meet growing biofuel demand, highlighting the importance of coordinated agricultural and energy policy in the green transition.
Fuel hikes push electric motorbike sales
Vietnam’s motorcycle market is seeing a strong shift toward electric vehicles as fuel prices rise and policy changes take effect. In Q1 2026, total motorcycle sales by major manufacturers reached 729,121 units, up 8.3% year-on-year, while demand for electric motorbikes accelerated sharply. VinFast alone received over 135,000 orders and delivered more than 93,000 units in March, reflecting record-high demand. The shift is driven by rising fuel costs, with gasoline prices exceeding VND 30,000 per litre, alongside tightening emissions policies and planned restrictions on petrol motorbikes in major cities. While gasoline vehicles still dominate, especially in rural areas, the trend indicates a structural transition toward electrification. However, the pace of change will depend on the expansion of charging infrastructure and the development of supporting ecosystems.
Da Nang charts mega merger for global eco-city vision
Da Nang city has unveiled a long-term master plan after merging with former Quang Nam province, forming one of Vietnam’s largest urban areas with a total area of nearly 11,860 sq.km and a projected population of up to six million. The plan aims to transform the expanded city into a major hub for logistics, finance, innovation, free trade and marine-based economic growth by 2050, with a longer-term vision of becoming a global eco-city by 2075. Key infrastructure projects include the Lien Chieu deep-sea port, upgraded airports and expanded industrial zones such as Chu Lai. The merger represents a significant shift toward large-scale regional urbanisation and economic integration. By combining industrial capacity, logistics infrastructure and tourism assets, the new Da Nang could emerge as a central growth pole in Vietnam. However, the scale of coordination required across governance, infrastructure and environmental management suggests implementation risks, particularly in balancing rapid development with sustainability goals.
Vietnam-Denmark partnership drives industrial energy efficiency gains under DEPP3
Vietnam and Denmark are advancing cooperation on industrial energy efficiency through the third phase of the Vietnam-Denmark Energy Partnership Programme (DEPP3), funded by Danish ODA. The programme supports Vietnamese firms in adopting energy-saving technologies and improving operational efficiency, with pilot projects showing annual cost savings of around VND 1.7 billion while also reducing noise and improving workplace conditions. DEPP3 is part of a broader long-term partnership to help Vietnam build a low-carbon energy system aligned with its climate commitments and national energy strategy. By improving industrial efficiency, the programme contributes to both cost competitiveness and energy security, highlighting the role of international technical cooperation in supporting Vietnam’s green transition.
PM outlines three key cooperation directions at expanded AZEC Summit
Prime Minister Le Minh Hung proposed three key directions for regional cooperation at the expanded Asia Zero Emission Community (AZEC) Summit, focusing on addressing energy security challenges and maintaining stable supply chains. In the short term, he emphasised stronger policy coordination, diversification of energy sources and ensuring uninterrupted supply chains, particularly for energy and food. In the medium and long term, he called for enhancing resilience through infrastructure development, strategic reserves and technology transfer, while also accelerating implementation of joint projects within the AZEC framework. The proposals reflect Vietnam’s growing role in regional energy governance and its commitment to achieving net-zero emissions by 2050. By promoting both short-term coordination and long-term structural reforms, Vietnam is positioning itself as an active participant in shaping Asia’s energy transition, though success will depend on effective cooperation and alignment among diverse regional economies.
Vietnam, Singapore promote green economic cooperation and sustainable trade
Vietnam is emerging as a key data centre growth market in Southeast Asia, driven by rapid digitalisation, cloud computing and AI demand. Hanoi and Ho Chi Minh City currently host around 73 MW of operational capacity, with an additional 137 MW expected by 2030. Competitive construction costs – averaging about US$7.2 million per MW – and rising demand from technology firms are attracting investor interest, though power availability remains a major constraint. The expansion reflects Vietnam’s transition toward digital infrastructure and data-intensive industries. However, limited electricity supply and regulatory bottlenecks could slow development, suggesting that energy planning and grid capacity will become critical to sustaining investment momentum.