VIETNAM Law and Practice Contributed by: Adam Moncrieff and Thuy Huynh, Orrick
1. Structure and Ownership of the Power Industry 1.1 Law Governing the Structure and Ownership of the Power Industry Vietnam’s electricity sector remains state-led, but it is no longer a purely state-owned system. The legal framework now supports a mixed market in which the Vietnamese state and its enterprises retain control over the electricity grid and retail backbone, while private and foreign capital plays a major role in developing generation capacity. As of mid-2026, the cornerstone statute is the 2024 Electricity Law, which took effect in early 2025 and sits alongside the investment, enter- prise, land, construction, environmental and competi- tion regimes. In practice, no electricity generation pro- ject can be analysed under the Electricity Law alone. The market is partly unbundled. Investment in gen- eration is relatively open and includes state-owned generators, independent power producers, build– operate–transfer (BOT) projects and renewable devel- opers. Whilst it is possible under Vietnamese law for the private sector to develop and own transmission infrastructure, ownership and operation of transmis- sion remains concentrated in the state-owned electric- ity utility Vietnam Electricity (EVN) and its group enti- ties, and distribution is still largely organised through EVN’s regional utilities. Retail supply is therefore far less liberalised than generation, and the single-buyer structure continues to shape project bankability, dis- patch and payments. That basic structure explains why Vietnam can appear open to the private sector and foreign investors on paper but still be highly cen- tralised in commercial reality. Electricity storage now deserves to be treated as a distinct segment rather than a mere add-on to gen- eration. For several years, battery energy storage systems were discussed mainly as pilot or behind- the-meter assets, but policy has moved and storage is now part of mainstream planning under the revised National Power Development Plan VIII (“Revised PDP8”). Even so, the regulatory model for storage is still maturing, especially where standalone systems need a reliable revenue stack, grid service payments or a clear tariff pathway.
1.2 Principal State-Owned or Investor-Owned Entities EVN is the central corporate actor in the sector. It sits at the heart of transmission, much of distribution, sys- tem purchasing and the retail relationship with most consumers. EVN remains the single largest electricity generator in its own right, mainly developing, owning and operating large-scale thermal and hydro power generating assets. Its corporate group includes the National Power Transmission Corporation, known as EVNNPT, the main regional power corporations and generation-related entities. Even where EVN does not own an asset, it is often the key offtaker, counterparty or operational gatekeeper. Outside EVN, the most important state-linked gen- eration players are PetroVietnam and PV Power in gas and thermal projects, together with Vinacomin or TKV in coal-related assets. Those SOE groups remain important because Vietnam’s baseload and fuel-linked generation still depend on state-led hydrocarbon ownership and development and mining policy. These SOEs are less active in renewable energy generation, and it is the private sector including foreign investors that has led the development of renewable energy in Vietnam through solar including rooftop, onshore wind and industrial energy solutions. Foreign sponsors and investors are active in new-generation LNG-to-power, offshore wind development studies and acquisitions of operating or late-stage projects. A notable structural development has been the sepa- ration of the national grid system and market opera- tion function from EVN into the National Power Sys- tem and Market Operator (NSMO). That separation does not turn Vietnam into a fully independent liber- alised market, but it is important because it separates the grid system operation and dispatch functions from state utility electricity purchase. 1.3 Foreign Investment Review Process Foreign investment is generally permitted in Vietnam’s power sector, especially in generation and associated infrastructure. There is no broad prohibition on foreign ownership of electricity generation projects, and for- eign sponsors have long participated through project companies, joint ventures, share acquisitions and BOT structures. In practice, however, being legally allowed
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