Hydrogen is a powerful and clean energy source, as it produces only water when burned. However, the key lies in how hydrogen is produced. Currently, most hydrogen is "grey," derived from methane (CH4) splitting, which emits significant amounts of CO2. In contrast, "green" hydrogen is produced through water electrolysis, using renewable energy to split water into hydrogen and oxygen. However, green hydrogen accounts for only about 1% of global hydrogen production. To achieve net-zero carbon emissions, scaling up green hydrogen production is critical.

In Vietnam, the green hydrogen market is in its early stages but shows great potential due to the country’s abundant renewable energy resources, particularly solar and wind power. The government has issued the Hydrogen Energy Development Strategy to 2030, with a vision to 2050 (Decision 165/QD-TTg), aiming to produce 100,000–500,000 tons of clean hydrogen annually by 2030, and scaling up to 10–20 million tons by 2050, supported by Decree 58/2025/ND-CP to promote investment.

However, the market faces several challenges:

• Limited technology for electrolysis, storage, and transportation of hydrogen;
• High investment costs and long capital recovery periods;
• Lack of infrastructure, such as pipelines and refueling stations;
• Inconsistent policies and a lack of specific support mechanisms, such as fixed electricity tariffs or carbon credits;
• Limited human resources.

To address these, Vietnam needs to promptly establish technical standards, carbon pricing mechanisms, and green funds to support research, technology transfer, and pilot projects. Businesses should integrate hydrogen goals into their emission reduction strategies, optimize processes, and enhance international cooperation.

With experience in hydrogen projects across multiple countries, Air Liquide highly appreciates Vietnam’s commitment, as demonstrated by the announcement of the Hydrogen Development Strategy in early 2024 and its goal of carbon neutrality by 2050. They note that with significant wind and solar potential, Vietnam has the opportunity to become a regional green hydrogen production hub, reducing reliance on fossil fuels and strengthening its national energy position.