Abstract: Maintaining sustainable development is an important issue for the hydropower industry of Vietnam. This research proposes a hybrid approach based on grey model (GM) and Malmquist productivity index (MPI), to predict future business and measure operational performance of Vietnamese hydropower companies over several time periods. From that, government and decision making units (DMUs) can improve business performance and build a sustainable development strategy. The study conducted on 19 hydropower companies, which have published their complete information on Vietstock site. The result showed twelve companies increased in productivity while the other seven didn’t. Technical change was more impact than efficient change in period 2013 – 2016. In general, both of them impact on Vietnam’s hydropower industry productivity. The results also reflect the fact that the performance change did not depend on company size. The study will be a useful reference for other industries as well.