Exhaustion of fossil energy and its green house emission force human to find out alterative energy sources. Bioenergy is an option of many economies including Vietnam - a country releasing condiderable amount of green house gas and being suffer serious consequence of the global climate changes. Vietnam has large biomass potential, but that is not yet effectively explored and bioenergy is facing a number of difficulties in the first stage of development This paper provides an overview (as of end-2011) of biomass potential, its use manners, policy framework as well as recommendations for effective utilization of biomass.