New job opportunities on the horizon with the rise of renewable energy
The energy sector’s transition will result in job losses in traditional energy industries, but it will also generate numerous green and sustainable employment opportunities in the economy. Ninh Thuan, a province in south-central Vietnam, is among the leading regions attracting renewable energy projects and aims to become a renewable energy hub by 2025.
The Department of Industry and Trade in Ninh Thuan has issued calls for a total of 46 projects, including 35 solar farms and 11 wind farms, with a combined capacity exceeding 3,000MW. Ninh Thuan’s renewable energy endeavors will contribute to addressing the national energy security challenge and support Vietnam’s ambitious net-zero target by 2050. However, the rapid development of renewable energy projects has posed a challenge for the province in terms of human resources to facilitate the transition.
As per the National Power Development Plan for 2021-2030, Vietnam will significantly expand its renewable energy sources, aiming for over 75% of energy consumption to come from renewables. Solar power capacity will increase tenfold, wind power will grow thirtyfold, and new sub-sectors such as offshore wind, battery storage, and biomass will emerge. Meanwhile, coal-fired power plants older than 40 years will need to be phased out and replaced with alternative fuels, with complete elimination by 2050.
This shift in the energy sector will necessitate a change in the labor structure, with a demand for 25% of highly skilled workforce, particularly in wind and solar energy, over the next decade. Vietnam leads ASEAN in terms of the current scale and proportion of renewable energy, with wind and solar power accounting for 27% of the total power capacity, according to the International Renewable Energy Agency. However, the energy transition process from “brown to green” still faces challenges due to limited domestic human resources, with a reliance on foreign staff.
With a population of over 100 million, with 51% in the working age group, Vietnam possesses a plentiful labor force. The energy transition trend necessitates a highly skilled workforce in the future, prompting Vietnam to find appropriate solutions to become self-reliant in human resources. Dr. Guido Hildner, the German Ambassador to Vietnam, emphasized that the transformation of the energy industry is a complex process but also presents significant opportunities. In Germany, the number of employees in green occupations increased by 56.7% to five million between 2012 and 2020.