VIETNAM Law and Practice Contributed by: Adam Moncrieff and Thuy Huynh, Orrick
the previous iteration of PDP8. But the challenge for Vietnam remains – whilst the politicians and regula- tors have been busy over the last one to two years, private sector developers are less impressed, with the rate of investment in large-scale greenfield generat- ing capacity, including in renewables, being consider- ably less active. The gap between generating capacity rollout and the state’s objectives continues to widen. Despite all the legislative activity, the activity has not been where it really needs to be, and that is in the capacity of central and provincial authorities to actu- ally implement large-scale generation projects, it is in grid readiness, it is in tariff reform and it is in com- mercial risk allocation. In these areas, there is still a lot of work to be done. 1.7 Announcements Regarding New Policies In mid-2026, policy discussion is now focused less on whether Vietnam will continue expanding its power sector and more on how that expansion will be deliv- ered. High-level energy security policy remains firmly in favour of rapid capacity additions, stronger grid infrastructure, and more diversified fuel and technol- ogy choices. Offshore wind, LNG, storage, cross- border power and eventually nuclear or small modu- lar reactor policy all sit within that broader push. The state is not retreating from the need for there to be investment. But the state needs to make that invest- ment suitably attractive again in order for its planning needs to be met. The policy direction is clearer than it was several years ago. The revised National Power Development Plan VIII approved under Decision No 768/QD-TTg dated 15 April 2025 (“Revised PDP8”), Politburo Resolution No 70-NQ/TW dated 20 August 2025 on ensuring national energy security to 2030, with a vision to 2045, and National Assembly Resolution No 253/2025/QH15 dated 11 December 2025 on mechanisms and poli- cies for national energy development for 2026–2030 point towards a larger, more diverse and more mar- ket-based electricity system, with stronger support for renewables, LNG, domestic gas, battery storage, direct power purchase agreements and transmission investment. Direct power purchase agreements (DPPAs) are one of the most important developments for corporate
electricity users. Decree No 243 and Circular No 29, both of which were issued in June 2026, make DPPAs more practical. They clarify that the mechanism cov- ers renewable energy generators, large electricity con- sumers and retail electricity units in industrial-zone and similar models. Decree No 243 also expanded eligible large consumers beyond production custom- ers to include users such as data centres, electric vehicle charging stations and battery swapping facili- ties, subject to the relevant connection and eligibility requirements. For greenfield developers, though, the policy initia- tives are all well and good, but they need to translate into actual investment outcomes. This means asking whether the tariffs offered can support the neces- sary return on investments, based on the financial and other efforts needed to get projects into com- mercial operation, as well as whether those initiatives will achieve bankable risk allocations, better project contracts, more helpful support from state bodies, etc. Experienced developers have learned from ear- lier renewable rounds and the failure of Vietnam’s IPP regime to support new large-scale private sector investment that ambitious policy language on its own is not enough. Digitalisation and system data are also moving up the agenda. That matters because the next phase of the sector will require more sophisticated dispatch, demand forecasting, grid management, metering and settlement systems, especially if direct electricity sell- ing, increased renewable energy flows and storage integration all expand at the same time. Vietnam’s challenge is therefore not only to build more mega- watts; it is to manage a more complex power system than the legal framework was originally designed to support. 1.8 Unique Aspects of the Power Industry Vietnam’s power sector is interesting because it is at a cross-roads. Vietnam was previously success- ful in attracting large-scale foreign and private sector investment in thermal power through its BOT power scheme and successful feed-in tariff (FIT) schemes for renewables. But Vietnam did away with much of that, and arguably went too far the other way by developing the dispatch market mechanisms without providing
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