At the intersection of energy justice and local governance, Local Energy Planning (LEP) in Vietnam demonstrates how grassroots participation can shape sustainable energy policies. This chapter examines the role of LEP in addressing Vietnam’s growing energy demand while promoting environmental sustainability and social equity. It explores how community-led initiatives contribute to inclusive decision-making, integrating local knowledge to enhance energy resilience and efficiency. This study illustrates how decentralized energy planning fosters adaptive solutions to environmental and socio-economic challenges, particularly in rural and underserved areas. Despite its potential, LEP faces significant institutional, financial, and technical barriers that hinder its full implementation. Additionally, the integration of renewable energy sources within existing policy frameworks remains a challenge due to regulatory inconsistencies and the dominance of centralized energy planning. Through an assessment of policy frameworks and stakeholder dynamics, this chapter highlights the need for stronger institutional support, capacity building, and policy coherence. Ultimately, it argues that LEP can serve as a crucial mechanism for advancing Vietnam’s energy transition, ensuring equitable access to clean energy while empowering local communities in decision-making processes