Vietnam National Hydrogen Strategy and Some Suggestions to Build the Roadmap

A Presentation by Dr. Oanh (VAHC) at the "Hydrogen Horizons" Workshop, March 31, 2026, USTH, Hanoi

April 3, 2026 by Annie Nguyễn

HANOI – Within the framework of the international workshop "Hydrogen Horizons - Advancing Vietnam-France Energy Collaboration" held at the University of Science and Technology of Hanoi (USTH) on March 31, 2026, Dr. Cao Thuy Oanh – representing the Vietnam ASEAN Hydrogen Club (VAHC) – delivered a significant presentation on "Vietnam National Hydrogen Strategy and Some Suggestions to Build the Roadmap" .

Dr. Oanh emphasized from the outset: VAHC is not a think tank – we are a project enabler.

The Hydrogen Moment – Global Potential vs. Regional Reality

Dr. Oanh opened with a comprehensive overview: Global hydrogen demand reaches 100 million tons/year, yet current low-emission hydrogen supply accounts for less than 1%. Investment jumped from $4.3 billion to $8 billion in the 2024-2025 period, but only 6% of announced projects reach Final Investment Decision (FID).

In ASEAN, hydrogen demand reaches 4 million tons/year in ammonia, refining, and chemicals. Vietnam is positioned as the potential central hub to capture the upcoming regional FID wave.

"The hydrogen opportunity is real – but execution is rare," Dr. Oanh stated.

Vietnam's National Hydrogen Strategy – The Top-Down View

Dr. Oanh recapped the core targets of Decision 165/QD-TTg (February 7, 2024) – Vietnam's Hydrogen Energy Development Strategy to 2030 with a vision to 2050:

• By 2030: Achieve hydrogen production of 100,000 – 500,000 tons/year; adopt advanced technologies for green hydrogen and carbon capture (CCS/CCUS); pilot hydrogen use in power generation, transportation, and heavy industry.

• By 2050: Achieve hydrogen production of 10 – 20 million tons/year; master green hydrogen and CCUS technologies; build a complete hydrogen ecosystem (production – storage – transport – use); target exports.

Guiding principles:

• Develop hydrogen along the entire value chain.

• Reasonable roadmap aligned with energy transition and global technology trends.

• Encourage hydrogen use in high-emission sectors.

• Strengthen international cooperation (COP, JETP, AZEC).

Vietnam Reality – Strategy is Clear, Execution Pathway is Not

Dr. Oanh candidly pointed out: The strategy is clear – but the execution pathway is still unclear.

Based on a survey of 930 enterprises, cooperatives, and traders across 14 provinces/cities (representing 41.1% of all provinces nationwide):

• 58.5% of enterprises consider hydrogen important or very important in the next 10-20 years.

• However, 44.5% have no plan to apply hydrogen; 19.3% are still considering; only 36.1% have a plan.

• Currently, only 20% of enterprises use hydrogen (primarily in food processing and mechanical sectors).

• Main barriers: High investment costs, high green hydrogen prices, lack of storage and distribution infrastructure, and unproven technologies.

"Hydrogen is strategic – but not yet investable. Strategy is moving faster than reality," Dr. Oanh remarked.

International Lessons for Vietnam

Dr. Oanh analyzed three successful global models:

1. Europe – Policy-Driven Market Creation:

• EU 2030 targets: 10 Mt domestic, 10 Mt imported, 40 GW electrolyser capacity.

• Policy tools: RED III (mandates & quotas), EU Hydrogen Bank (subsidy mechanism), European Hydrogen Backbone.

• Lessons for Vietnam: Policy must create demand (offtake), not just set production targets; initial financial support is required; keep regulations simple.

2. China – Scale & Cost Leadership:

• Target: Becoming the global hydrogen equipment manufacturing hub.

• Actions: Building the world's largest electrolyser manufacturing capacity; deploying massive local hydrogen clusters.

• Lessons for Vietnam: Scale drives cost reduction; the "industrial policy + local demonstration zones" model is highly applicable to Vietnam's coastal economic zones.

3. Japan – Technology, Safety & Business Models:

• Vision: Comprehensive hydrogen society + import strategy.

• Lessons for Vietnam: Critical questions from day one: Who is the offtaker? What is the hydrogen price? What is the risk-sharing mechanism? Demand certainty enables long-term investment.

"Successful hydrogen markets combine demand (EU), scale (China), and trust (Japan/US). Hydrogen is a system decision – not a single technology choice," Dr. Oanh summarized.

Suggested Roadmap for Vietnam

Drawing from international lessons and domestic reality, Dr. Oanh proposed a three-phase roadmap:

Phase 1: 2025–2030 – Kick-off Phase "No-Regret Pilots"

• Finalize the legal framework, basic technical and safety standards; strengthen public awareness.

• Deploy 5–10 bankable pilot projects in: steel, fertilizers, food processing, and refining (where ~20% of enterprises already use hydrogen).

• Develop 2–3 pilot port-based hydrogen/ammonia hubs.

Core principle: "No project – No market." Prioritize projects with clear offtakers, long-term contracts, and risk-sharing mechanisms.

Phase 2: 2030–2040 – Scale-up Phase (Clusters & Supply Chains)

• Expand port-based hydrogen hubs; develop pipelines, storage systems, and refueling infrastructure.

• Develop domestic supply chains for hydrogen equipment: electrolyser components, storage tanks, compression systems, and Balance of Plant (BoP).

Phase 3: 2040–2050 – Optimization Phase (Diversification & Export)

• Diversify hydrogen pathways (green, blue, biomass, and natural/white hydrogen).

• Expand applications in agriculture and residential sectors.

• Target exports of hydrogen, ammonia, e-fuels, and hydrogen-related technical services across ASEAN.

Additional Strategic Recommendations

1. White (Natural) Hydrogen:

• An emerging global trend with theoretical extraction costs estimated at <1 USD/kg.

• Recommendations: Integrate natural hydrogen surveys into national geological mapping programs; deploy small-scale pilots; draft an early legal framework similar to oil & gas extraction.

2. Standards, Safety & Public Acceptance:

• "No safety – No social license – No project."

• National standards must be established from the very beginning.

3. Emerging Applications (not short-term priorities but important for long-term adoption):

• Agriculture: Reducing plant oxidative stress, moving toward carbon-neutral farming.

• Daily life: Hydrogen inhalation, hydrogen cooking, hydrogen coffee roasting, ENE-FARM fuel cell models.

4. Investment & Financing Mechanisms:

• PPP model for shared infrastructure (ports, pipelines, storage); private investment for electrolyser plants and H₂/NH₃ production.

• Integrate with carbon markets to improve project NPV/IRR.

• International financing sources: JCM (Japan), climate funds, EU, IEA, IRENA support programs.

5. Hydrogen Refueling Station Economics:

• Canada example: Minimum hydrogen price of 4.3-4.9 CAD/kg required to achieve IRR ~8%.

• Implication for Vietnam: Early-stage price support and incentives are required; otherwise, projects will not be bankable.

Conclusion – VAHC's Commitment

Dr. Oanh concluded her presentation with VAHC's commitment:

"VAHC is committed to partnering with the Government in developing national strategies and technical standards; connecting Vietnamese enterprises with international partners in technology, finance, and markets; promoting pilot projects based on key principles: bankability, safety, data-driven approach, and international best practices."

Dr. Oanh's final message: From policy-driven to project-driven – No project, No market. Vietnam needs to act today to seize the hydrogen opportunity regionally and globally.

Reported by: VAHC Secretariat
Contact VAHC: contact@vahc.com.vn