Vietnam Electricity

Vietnam Electricity has not set any emissions reduction targets. The company should develop a long-term target that aligns with its 1.5°C pathway. Additionally, the company should set intermediate targets at gaps of no more than five years to incentivise near-term action on longer-term goals.

In the absence of a fossil fuel phase-out plan, Vietnam Electricity is expected to continue relying on coal and gas in the long term. As a result, the company’s projected locked-in emissions significantly exceed its 1.5°C carbon budget for the period 2022-2037. The company is projected to reduce its emissions intensity by 12% between 2022 and 2027 due to a decrease in its share of coal generation. However, it must reduce its emissions intensity by approximately 24% to align with its 1.5°C pathway in 2027.

There is no evidence that Vietnam Electricity has a low-carbon transition plan. The company should establish a time-bound action plan that outlines how it will transition to a low-carbon economy. This should include medium- and long-term targets, verifiable and quantifiable key performance indicators and financial commitments. Further, the plan should be informed by scenario analysis to ensure its ambition is sufficient to align with a 1.5°C pathway.

Vietnam Electricity has not disclosed any commitments to transition towards a low-carbon economy.

Vietnam Electricity does not have a low-carbon transition plan.

In 2020, Vietnam Electricity had a total installed energy capacity of 69 GW. About 56% of this is comprised of renewable energy. Further, approximately 36.2% of the company’s power generation in 2020 was from renewable sources (31.2% hydro, 5% other renewable energy). The company is implementing the project Vietnam Renewable Energy Accelerating Change (REACH) with a loan worth USD 202 million financed from the World Bank and the Canada Fund. It has also requested loans of USD 2 billion from the World Bank to support its energy transition for 2025-2035.

The company’s emissions intensity increased between 2017 and 2022 due to an increase in the share of coal-fired electricity in its generation mix from around 28% in 2017 to 38% in 2022. However, the company’s share of energy generation from low-carbon sources remained static.

Vietnam Electricity plans to add another 4.5 GW to its installed renewable energy capacity; however, the timeline of its plan is unclear. The company does not disclose emissions data. The company needs to improve its disclosure structure to include more financial and emissions data in the future.

No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders. No evidence was found of the company undertaking just transition planning to mitigate the social impacts of the low-carbon transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in just transition planning.

No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s actions to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks. No public commitment by the company was found stating its intention to reskill and upskill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company reskills and upskills workers in a way that ensures gender balance and inclusion of vulnerable groups.

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders. No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

No company policies or commitments related to respect for human rights were found in the public domain. This includes the necessary policies and systems by which the company can ensure respect for basic human rights in its operations and supply chain.

No evidence of the company’s policies or commitments related to key decent work issues were found in the public domain. These issues include the provision of secure, safe and healthy workplaces, where workers are fairly renumerated and have a meaningful say in decision-making.

No company policies or commitments related to key ethical business topics – personal data protection, tax, bribery and corruption, and lobbying and political engagement – were found in the public domain. This includes ensuring ethical business conduct throughout its operations and in its business relationships.