Impact of policy instruments for solar energy development in Vietnam

Objective - This study analyzes the development of renewable energy in ASEAN and delves into specific promotion instruments for solar energy in Vietnam. Method Cost-benefit analysis was conducted to compare economic benefits with investment and operating costs. Methodology - Vietnam was entering a period of transformation in the field of renewable energy, especially solar energy (installed solar power capacity was 16,000 MW in 2023, intending to increase to 25,320 MW in 2030). Compared to ASEAN countries with many similarities in developing this industry, such as Indonesia (solar power capacity was 2,100 MW in 2023), Vietnam faced an excellent opportunity to surpass. Findings - The results of the study show that government instruments had different levels of influence on various aspects, and the most influential were the FIT tariff (243.75 points) and tax exemption (49.71 points). Novelty - Although solar energy in Vietnam is developing rapidly, it is still necessary to improve and develop reasonable allocation strategies for supporting policies and incentive mechanisms to optimize economic benefits. Type of Paper - Empirical Keywords: Policy Instruments, Solar Energy, Renewable Energy, Energy Transition, Sustainable Development, Sustainability Goals, FIT. JEL Classification: E16, E27, O11, O13, O32. URI: http://gatrenterprise.com/GATRJournals/JBER/vol10.1_1.html DOI: https://doi.org/10.35609/jber.2025.10.1(1)