HÀ NỘI — Despite the Vietnamese Government's recognition of hydrogen energy's potential and the launch of a national strategy, the adoption of hydrogen in Việt Nam remains limited, experts have said. 

According to the Ministry of Industry and Trade (MoIT), the majority of domestic hydrogen demand in Việt Nam is sourced from fertiliser factories, which account for approximately 316,000 tonnes per year as well as the Dung Quất oil refinery (39,000 tonnes) and the Nghi Sơn oil refinery and petrochemical complex (139,000 tonnes).

The ministry said that while industries like steel manufacturing and float glass production use a small amount of hydrogen, this limited demand has contributed to the absence of a developed system for storing, transporting and distributing hydrogen in the country.

Additionally, Việt Nam has not yet begun exporting hydrogen energy, the MoIT noted. 

Challenges 

Experts have highlighted significant challenges in the development of hydrogen energy in Việt Nam, citing unclear investment guidelines, limited infrastructure and a lack of regulations.

They have stressed the need for clear investment incentives and a robust regulatory framework to support large-scale production and infrastructure expansion.

Lê Ngọc Ánh Minh, president of the Vietnam ASEAN Hydrogen Club, noted that hydrogen projects focusing on electrolysis using renewable energy are currently financially nonviable due to high production costs.

Minh pointed out that major hydrogen projects in Europe and Australia are also facing delays or cancellations because of the same issue.

According to the Vietnam Petroleum Institute (VPI), the cost of producing clean hydrogen (blue and green hydrogen) will remain high until the end of the year, with production costs in Việt Nam being 1.3 to 2.1 times that of grey hydrogen.

The institute emphasised that Government policies are essential to make clean hydrogen more competitive and to foster its development in the country.

Minh further suggested that industries such as oil and gas, mining and chemicals should be involved in hydrogen production to leverage their existing expertise. He also stressed the importance of international collaboration, citing partnerships with China as a potential way to reduce production costs.

He added that collaboration with the EU, the US and other hydrogen technology leaders could help strengthen Việt Nam's position in the global hydrogen market.

Strategy

The Hydrogen Energy Strategy to 2030 approved by the Prime Minister has opened up new development space for Việt Nam's energy industry in a green, clean and sustainable direction, under the views and policies of the Party and State, as well as global development trends.

Việt Nam launched its hydrogen strategy in February 2024. The strategy sets an ambitious goal of producing 100,000 to 500,000 tonnes of green hydrogen annually by 2030, with a long-term target of 10 to 20 million tonnes per year by 2050. These targets align with the country's broader net zero emissions goal.

The strategy includes plans to develop both blue hydrogen (from natural gas and carbon capture) and green hydrogen (from renewable sources), serving both domestic and export markets.

Việt Nam also plans to pilot hydrogen and ammonia cofiring in power generation as part of its National Power Development Plan (PDP8).

The MoIT said several green hydrogen production projects are being developed in Trà Vinh, Bến Tre, Bạc Liêu and Tiền Giang. 

Some domestic and foreign investors are also collaborating with local authorities to research and propose further hydrogen production projects. Notable areas under consideration include Bình Định, Long An, Ninh Thuận, Quảng Bình, Quảng Trị, Sóc Trăng and HCM City. — VNS