Assessing Vietnam’s green hydrogen potential for the commercial & industrial sector
This sector analysis provides an overview of Vietnam's hydrogen market, offering cost estimations for producing green hydrogen using renewable energies and guidelines for establishing hydrogen-related businesses. It targets German and European companies, focussing on partnerships with local entities that utilize hydrogen as a primary feedstock for industrial processes.
Vietnam offers numerous opportunities for international investors, including a well-established industrial sector, political and economic stability, and a strong commitment to climate objectives. Forming partnerships with local companies can create defossilised solutions by leveraging renewable resources, reducing reliance on fossil-based hydrogen, and enhancing energy independence. As electrolysis technology costs decline and demand for decarbonized products increases, the green hydrogen market is expected to grow.
Green hydrogen and its derivatives offer benefits such as defossilisation, energy storage, renewable energy integration, energy security, and economic opportunities. The analysis details production processes, input requirements, and costs, along with an overview of the import-export balance of hydrogen-based commodities. It highlights local industries with high potential for green hydrogen applications.
Vietnam’s chemical, refining, and steel industries are well-positioned to embrace green hydrogen solutions. The focus on solar PV-produced hydrogen includes cost details in case studies. Interviews with local manufacturers reveal strong interest in producing green hydrogen. Business cases estimate system sizing, costs (including electrolyser systems and solar PV plants), and the levelized cost of hydrogen (LCoH), demonstrating green hydrogen's use in green ammonia and food production. The National Climate Change Strategy 2050 aims for significant greenhouse gas reductions and increased renewable energy shares. While specific hydrogen targets are lacking, policies support renewable energy and industrial sectors, providing a framework for green hydrogen development.
