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Future skills and job creation through renewable energy in Vietnam

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The study analy­ses the employ­ment impacts of var­i­ous sce­nar­ios for expand­ing elec­tric­i­ty gen­er­a­tion in Vietnam’s pow­er sec­tor. Four sce­nar­ios are analysed for the future devel­op­ment of the pow­er sec­tor in Viet­nam: The Min­istry of Indus­try and Trade (MOIT) revised sev­enth Pow­er Devel­op­ment Plan; Dan­ish Ener­gy Agency Stat­ed Pol­i­cy (DEA Stat­ed Poli­cies); Asian Devel­op­ment Bank “Path­ways to low-car­bon devel­op­ment for Viet­nam” low-car­bon sce­nario (ADB Low-Car­bon); and the Green Inno­va­tion and Devel­op­ment Cen­tre (GreenID) Base and Renew­able Ener­gy (Base & Renew En) sce­nario. This report presents the result­ing employ­ment effects, pre­sum­ing that the elec­tric­i­ty sec­tor focus­es on all pow­er gen­er­a­tion tech­nolo­gies out­lined in the government’s offi­cial pow­er sec­tor plan. It also pro­vides an ini­tial assess­ment of the skill require­ments, attain­ment lev­els and tech­ni­cal train­ing required for Vietnam’s present pow­er sec­tor plans and future low-car­bon pow­er sec­tor ambi­tions. The four sce­nar­ios con­sid­er time­lines con­sis­tent with MOIT’s report­ing of the PDP 7 (rev) sce­nario, which is between the years 2015 and 2030.

 

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Key policy opportunities:

Pol­i­cy oppor­tu­ni­ty 1: With the deci­sion by the Viet­namese Gov­ern­ment to increase the share of renew­ables from 6 % to 10.7 % in the cur­rent pow­er sec­tor plan (PDP 7 rev), the gov­ern­ment paved the way to cre­at­ing 315,000 job-years through the pow­er sec­tor by the year 2030. With renew­ables cre­at­ing twice as many jobs as the fos­sil-fuel sec­tor per aver­age installed MW, the gov­ern­ment can fur­ther boost employ­ment by adopt­ing a more ambi­tious low-car­bon pow­er sec­tor plan.

Pol­i­cy oppor­tu­ni­ty 2: For wind and solar, around 25 % of jobs cre­at­ed are for high-skilled work­ers. The ten­den­cy for high-skilled work­ers in the pow­er sec­tor is expect­ed to fur­ther increase over the next decade in Viet­nam. There­fore, the train­ing capac­i­ties at uni­ver­si­ties and tech­ni­cal schools need to be rec­on­ciled with this devel­op­ment, in order to cre­ate employ­ment in Viet­nam and to meet the expect­ed demand in the country.

Pol­i­cy oppor­tu­ni­ty 3: The gov­ern­ment can active­ly man­age a just tran­si­tion to low­car­bon ener­gy sources by rede­vel­op­ing voca­tion­al train­ing cur­ric­u­la and uni­ver­si­ty pro­grammes towards the new ener­gy world of renew­ables while sup­port­ing affect­ed work­ers and com­mu­ni­ties domi­ciled in the coal-pow­er-gen­er­at­ing regions of the coun­try, such as the Mekong Delta.

 

 

Year of pub­li­ca­tion: 2019

Edi­tors: Ayo­de­ji Okun­lo­la, Lau­ra Nagel, Sebas­t­ian Hel­gen­berg­er, Nguy Thi Khanh, Nguyen Thi
Mai Dung and Sarah Kovac — IASS Pots­dam, GreenID and UfU

Tech­ni­cal imple­men­ta­tion: Klaus Sauer­born, Pham Ngoc Toan, Nguyen Thi Hoang Nguyen,
Đào Quang Vinh — Insti­tute of Labour Sci­ence and Social Affairs, Vietnam

Sug­gest­ed cita­tion: IASS/Green ID. Future skills and job cre­ation through renew­able ener­gy in Viet­nam. Assess­ing the co-ben­e­fits of decar­bon­is­ing the pow­er sec­tor. Potsdam/Hannoi: IASS/Green ID, 2019.

DOI: 10.2312/iass.2019/024

 

This study is part of a 2019 series of two stud­ies assess­ing the co-ben­e­fits of decar­bon­is­ing the pow­er sec­tor in Viet­nam. Edit­ed by IASS, GreenID and UfU: