Building a Hydrogen Economy Model for Vietnam – From Vision to Reality
Speaker: Mr. Le Ngoc Anh Minh, Chairman of VAHC, presented at Vietnam Hydrogen Economy Workshop by VAHC and HUTECH School of Engineering on September 30, 2026
Mr. Le Ngoc Anh Minh opened his presentation by reviewing Vietnam's key policy milestones. In February 2024, the Prime Minister issued Decision 165/QD-TTg approving the National Hydrogen Energy Development Strategy to 2030, with a vision to 2050. In June 2026, hydrogen was added to Vietnam's list of national strategic technologies. Targets are to produce 100,000–500,000 tonnes of hydrogen per year by 2030, rising to 10–20 million tonnes per year by 2050, with hydrogen and hydrogen-based fuels expected to account for approximately 10% of final energy demand.
Fragmented vs Integrated Approach
Mr. Minh analysed the fundamental difference between two approaches. The fragmented approach treats research, production, storage and consumption as separate, independent segments. This leads to each stage developing without connection to others, creating resource waste and inefficiency. The integrated approach builds a circular ecosystem in which each link in the value chain generates value for the others. He emphasised: "Hydrogen is not a standalone energy project – it is a new industrial ecosystem, connecting agriculture, industry, finance, transportation, trade and human resource development."
Integrated Hydrogen Value Chain
Mr. Minh presented the integrated hydrogen value chain comprising four main stages. Feedstock: solar power, wind power, biomass, agricultural by-products, water, municipal waste, natural gas with CCUS, and by-product hydrogen from gas separation and petrochemical processes. Hydrogen production: electrolysis, biomass gasification, natural gas upgrading with CCUS, industrial by-product recovery, electrochemical hydrogen, and production from industrial emissions. Storage – transportation: high-pressure storage systems, liquefaction and transportation by ship and pipeline, hydrogen refuelling stations. Consumption: heavy-duty transportation, industrial applications (high-temperature heating and power generation), agriculture (fertilisers and soil improvement), chemicals (monosodium glutamate MSG and explosives), healthcare (H₂ therapy), and exports (liquid hydrogen LH₂, green ammonia NH₃, and e-SAF).
Two Focal Economic Models
Mr. Minh presented detailed two focal economic models for Vietnam.
Agricultural Model – Mekong Delta: This region produces over 50% of Vietnam's rice, along with a substantial share of the country's seafood, fruit and vegetable output. Key challenges are saltwater intrusion, climate change and the need to transition towards sustainable farming practices. He cited the Mekong Delta salinity distribution map showing severe saltwater intrusion threatening agricultural productivity and drinking water supplies. The strategic direction is to focus on producing hydrogen from agricultural by-products through gasification, aiming to manufacture green ammonia for fertiliser production. He cited figures: rice straw 29 million tonnes/year equivalent to ~2,500 MW, sugarcane bagasse 8 million tonnes/year equivalent to ~500 MW, animal manure 15 million tonnes/year equivalent to ~500 MW, totalling over 135,000 GWh/year and over 3,500 MW equivalent capacity. He emphasised the advantages of biomass gasification over electrolysis: reduced dependence on electricity, agricultural waste valorisation, and suitability to the Mekong Delta. He also presented the circular economy cycle: agricultural by-products → hydrogen → green ammonia → green fertilisers → soil improvement and increased agricultural productivity → generating additional biomass feedstock.
Industrial Model – Southern Key Economic Region: Including Ho Chi Minh City, Dong Nai and Tay Ninh, with connectivity to Lam Dong and Khanh Hoa. Advantages are a developed industrial base, renewable energy resources, deep-water ports, industrial parks, gas infrastructure and financial services. The strategic direction is to develop a diversified hydrogen portfolio, including water electrolysis (clean H₂, high purity, high energy efficiency), reforming with CCUS (blue hydrogen, using PV gas and CCS technology), industrial by-product hydrogen (available in large plants, low unit cost), methane pyrolysis (no CO₂ or low carbon emissions), and ammonia (NH₃ produced from ammonia cracking, can be stored and transported with high storage capacity and low transport cost).
Integrated Seawater Desalination Solution
Mr. Minh proposed an integrated seawater desalination solution using RO-EDI technology to produce ultrapure water for electrolysis, while also supplying clean water for domestic, agricultural and industrial use. He cited figures: 10–15 litres of high-purity water are required per kilogram of hydrogen produced. The estimated water production cost is approximately USD 0.88/m³, technically and economically feasible at industrial scale. Dual benefits include: providing clean water to millions of people in areas affected by saltwater intrusion, establishing a reliable feedstock supply for hydrogen production, and addressing both the water crisis and the energy transition simultaneously.
Phase-by-Phase Economic Forecast
Mr. Minh presented phase-by-phase economic forecasts. 2030: production 100,000–500,000 tonnes, self-sufficiency rate 30%, domestic consumption ratio 70%, creating 5,000–10,000 new jobs, contributing ~0.5% of GDP, emerging export market. 2035: production 1–2 million tonnes, self-sufficiency rate 40%, creating 20,000–30,000 jobs, contributing ~1.0% of GDP, USD 3 billion export market. 2040: production 5–7 million tonnes, self-sufficiency rate 50%, creating 50,000+ jobs, contributing ~1.5% of GDP. 2045: production 10–15 million tonnes, self-sufficiency rate 55%, creating 100,000+ jobs, contributing ~2.0% of GDP. 2050: production 10–20 million tonnes, self-sufficiency rate 50%, creating more than 100,000 jobs, contributing ~2.2% of GDP, becoming a major exporter.
Diversified Export Products
Mr. Minh introduced a diversified export product portfolio: liquid hydrogen for transportation and industry, targeting Japan, South Korea and Singapore; green ammonia for fertiliser, chemical feedstock and marine fuel, targeting ASEAN markets and Japan; e-SAF for sustainable aviation fuel, targeting international airlines and the European market; electrolysis equipment for green hydrogen production, targeting regional markets and ASEAN; and green fertiliser for agriculture, targeting export and domestic markets.
New Industries Emerging from the Hydrogen Economy
Mr. Minh analysed new industries emerging from the hydrogen economy. Financial services: green bond issuance and underwriting, carbon credit brokerage and trading, project financing and risk management, hydrogen infrastructure insurance, digital asset and energy trading platforms. Technology development and engineering services: R&D centres, engineering, procurement and construction (EPC), technology licensing, standards and certification. Mechanical engineering and equipment manufacturing: electrolyser manufacturing, compressor, storage tank and pipeline manufacturing, liquefaction equipment manufacturing, maintenance and repair services. Port services and logistics: ammonia and hydrogen storage terminals, marine fuelling facilities, export processing and certification, maritime transportation of H₂ and NH₃. Human resource development: hydrogen technology training centres, undergraduate programmes in hydrogen engineering, operations training and certification, international exchange programmes with Japan, South Korea and Germany.
Multiple Revenue Streams from the Hydrogen Economy
Mr. Minh emphasised that the hydrogen economy generates multiple revenue streams, fostering a diversified, multi-value economic ecosystem. Oxygen: by-product from the refining process, medical treatment and industrial oxygen, revenue from business operations. Clean water: produced by RO-EDI, for daily life, irrigation and aquaculture, saving fresh water resources and creating revenue from water sales. By-products from biogasification: soil improvement, agricultural and aquaculture productivity increase. Green NH₃: hydrogen converted, fertiliser production, high value in agriculture industry. Clean synthetic fuel: carbon-rich ash, carbon capture and storage, carbon credits and emission reduction. Heat: waste heat recovery, industrial use, power generation, carbon-free fuel, profit from energy savings.
Saigon Waterbus Model
Mr. Minh introduced the Saigon Waterbus model as an example of generating ancillary revenue from hydrogen infrastructure. Operating ferry services on the Saigon River generates significant additional revenue from ancillary services: restaurants and cafés at ferry terminals, souvenir sales, tourism and sightseeing services, advertising revenue. He proposed applying a similar model to hydrogen refuelling stations: retail services at hydrogen refuelling stations, education and visitor centres, R&D services, carbon credit trading, and technology licensing.
Benefits for Agriculture and Rural Areas
Mr. Minh analysed the benefits of the hydrogen economy for agriculture and rural areas. Soil improvement and increased productivity: biochar improves soil fertility and structure, green fertilisers. Water resources: desalination for irrigation water supply. Income diversification: farmers supply feedstocks for hydrogen production. Reduced production costs: biochar reduces the need for chemical fertilisers. Reduced dependence on imported fertilisers: enhancing food security.
Core Challenges
Mr. Minh frankly analysed the core challenges. Electricity costs: account for 60–80% of green hydrogen costs; electrolysis consumes 48–55 kWh/kg H₂. Production costs: grey hydrogen USD 1–2/kg; blue hydrogen USD 3–6/kg; green hydrogen from electrolysis USD 6–10/kg. Green hydrogen requires very low-cost renewable electricity to be economically competitive. He emphasised: "The Mekong Delta should prioritise biomass gasification over electrolysis. Not because electrolysis is unfeasible, but because gasification is better suited to the region's available resources."
Recommended Technologies for Southern Vietnam
Mr. Minh recommended technologies for Southern Vietnam: biomass gasification (directly uses renewable resources, can be stored in place); carbon capture and utilisation (CCUS) (wide range of applications, can be stored in place); petroleum refining by-product (relatively low cost, use in industry); high-temperature electrolysis (SOEC) (20–30% higher efficiency than PEM/ALK, onshore and offshore); low-temperature electrolysis (30–40% efficiency, R&D in progress); hydrogen thermal decomposition (stable and continuous supply, onshore and offshore); and hydrogen produced from water electrolysis (no carbon emissions, relatively low cost).
Key Supporting Technologies
Mr. Minh introduced four key supporting technologies. Utilisation of LNG cold energy: Messer Cai Mep utilises cold energy from LNG to reduce electricity consumption for industrial gas production by 50%, applications for hydrogen liquefaction and other energy-intensive processes. High-temperature electrolysis (SOEC): operates at 700–800°C, utilises industrial waste heat, reduces electricity consumption by 20–30%, significant potential in Vietnam's industrial zones. Advanced water treatment: RO-EDI seawater desalination produces purified water for hydrogen production, ensures water security, advanced membranes reduce energy consumption and costs. Ammonia cracking: import ammonia as a hydrogen carrier, crack NH₃ at the point of use into H₂ + N₂, no need for direct hydrogen pipelines, can reduce the cost of long-distance H₂ transportation.
Regional and International Cooperation
Mr. Minh presented the hydrogen strategies of selected countries. South Korea: target 5.3 million tonnes by 2050, PPP model, hydrogen transportation regulations, experience in rapid scale-up. Japan: target 3 million tonnes by 2030, Hydrogen Park model, integrated value chain, potential for technology transfer. China: target 5 million tonnes by 2030, Cluster/Hub model, regional planning, scale and production experience. India: target 5 million tonnes by 2030, National Green Hydrogen Mission, USD 2 billion incentive package, comparable economy and developing-country experience. Singapore: import, clear procurement strategy, financial hub, nearby market and supply-chain integration. Indonesia: hydrogen roadmap, ASEAN cooperation, investment potential, regional partner and market access. Malaysia: target 2 million tonnes/year by 2030, HETR – Hydrogen Economy and Technology Roadmap, Hydrogen Hubs, export-oriented, ASEAN partner and technology & supply-chain cooperation.
Mr. Minh introduced regional cooperation opportunities. China – Yunnan-Vietnam H₂ Corridor: China is promoting hydrogen development and has potential for cooperation with Vietnam through the Yunnan-Vietnam H₂ corridor, with Huu Nghi Quan border gate as the connection point. Japan and South Korea – Strategic Partners: both are hydrogen importers with ambitious targets and existing partnerships with Vietnam. Japan (JICA) supports infrastructure investment and technical cooperation. South Korea (KOICA) supports technology transfer and pilot projects. Germany (GIZ) supports policy and regulatory capacity building. EU supports green hydrogen certification and standards. Singapore: has announced clear demand for hydrogen and ammonia imports, with a strategy for hydrogen to meet up to 50% of electricity demand by 2050, a financial and trading hub for hydrogen and derivative products, opportunities for joint investment in production and technology development partnerships. Indonesia and Malaysia: both have large economies in ASEAN and significant hydrogen potential. Together with Vietnam, the two countries could form H₂/NH₃ corridors, connecting regional supply sources with demand markets such as Singapore, Japan and South Korea. Opportunities include technology and infrastructure cooperation (production, storage, transportation), joint project development and formation of H₂/NH₃ corridors, regional supply-chain integration, and expanding export markets to Singapore, Japan and South Korea.
Recommended Actions
Mr. Minh concluded with recommended actions. Establish the Hydrogen Centre at the National Innovation Centre (NIC) in the South (2027–2030), led by the Ministry of Science and Technology and the Ministry of Industry and Trade, with VAHC support. Pilot the use of RO-EDI to produce fresh water for hydrogen and clean water offshore (2027–2030), by the Ministry of Natural Resources and Environment, the Ministry of Planning and Investment and relevant agencies and localities. Develop green hydrogen and green ammonia projects in industrial zones, ports and coastal areas (2027+), by Departments of Industry and Trade, Provincial and City People's Committees. Focus on PPP investment and deploy the National R&D Centre in Vietnam, the US and Japan (ongoing), by the Ministry of Foreign Affairs, the Ministry of Industry and Trade, with VAHC support. Implement green hydrogen production planning associated with the development of the ASEAN Power Grid (APG) (2027+), by the Ministry of Industry and Trade, the Ministry of Planning and Investment, VAHC. Establish HUTECH and related universities as talent training centres (2027+), by the Ministry of Education and Training, HUTECH, VAHC. Develop and build key energy infrastructure systems for hydrogen (including ports, pipelines and storage) (2028–2035), by the Ministry of Transport, the Ministry of Construction, relevant agencies and localities. Establish the ASEAN Hydrogen Association (2027+), with VAHC support, the ASEAN Secretariat and relevant international partners.
Expected Outcomes by 2030
Mr. Minh presented expected outcomes by 2030: production capacity of 500,000 tonnes of H₂/year; contributing ~0.5% of GDP from the hydrogen economy; technology partnerships with global leaders; integrated water-hydrogen systems addressing both energy and water security; 5,000–10,000 new jobs across direct and supporting industries; establishing export capacity for NH₃ and H₂ to regional markets; and hydrogen centres operating in both the Mekong Delta and Southern Vietnam.
Vision to 2050
Mr. Minh concluded with the vision to 2050: production capacity of 10–20 million tonnes of H₂/year; contributing ~2.2% of GDP; technology ownership of 80–90% of key hydrogen technologies; Vietnam as a manufacturing hub for hydrogen production equipment; hundreds of thousands of jobs in the hydrogen economy; global leadership in hydrogen and ammonia exports; a complete ASEAN hydrogen supply chain; and Vietnamese technology companies exporting hydrogen solutions globally.
