VIETNAM Law and Practice Contributed by: Adam Moncrieff and Thuy Huynh, Orrick
greenfield thermal or renewables power project devel- opment since the BOT and FIT regimes ended with replacement regimes that simply fall short. Large consumers such as data centres are also begin- ning to influence the discussion. Whilst investment in data centres in Vietnam still lags compared with its neighbours, the importance of data centres in reshap- ing the electricity sector is the same in Vietnam as it is in most countries. These users care about reliabil- ity, grid sufficiency, clean power sourcing and price visibility. The DPPA framework is therefore especially relevant to them, whether through grid-connected structures or direct transmission arrangements. Even so, large consumers should not assume they can con- tract around the regulated system entirely. In most cases, they still remain exposed to the realities of grid charges, system constraints and the broader regula- tory environment. 2.2 Electricity Imports and Exports Vietnam permits electricity imports and has increas- ingly relied on them as part of its broader energy security strategy. Imports from neighbouring sys- tems, especially those of Laos and China, already play a practical role in balancing domestic needs and supporting regional supply. These flows are typically organised through cross-border arrangements that depend on specific interconnection infrastructure, governmental approvals and negotiated commercial terms rather than a simple open trading model. In that respect, cross-border power remains strategic infra- structure, not just ordinary trade. The Revised PDP8 raises the profile of imports further by increasing planned imported electricity volumes towards 2030. At the same time, it introduces a more outward-looking ambition for renewable and new- energy exports in the 2030 to 2035 horizon, includ- ing potential exports to countries such as Singapore and Malaysia. Those export ambitions are politically important, but they are still at a much earlier stage than the import arrangements. The legal and techni- cal pathways for export projects are more complex because it requires not only generation development but also cross-border transmission, market design and diplomatic co-ordination.
Approvals for imports and exports are project-specific and heavily regulated. The key issues are intergov- ernmental co-ordination, planning inclusion, intercon- nection approval, pricing methodology, and consist- ency with domestic system security. Investors should expect cross-border projects to involve a greater pub- lic-law overlay than a domestic plant selling under a conventional EVN-linked structure. In practice, that often means longer development timeframes and greater exposure to policy sequencing. One attractive feature, though, of imported electricity PPAs to date in Vietnam is that the PPAs negotiated have been con- siderably more bankable than what EVN is prepared to agree for domestic projects, with availability-based tariff structures, USD payments offshore and more Vietnam’s current electricity mix still rests on a con- ventional backbone of hydropower, coal and gas, even though renewable capacity has expanded rapidly. Hydropower remains structurally important, especially because it contributes both energy and system flex- ibility. Coal continues to matter for baseload supply, despite decarbonisation pressure. Gas, including the LNG pipeline under development, is expected to play a larger balancing and transition role over time, though actual project delivery remains the critical variable. Solar and wind have transformed the installed-capac- ity picture more quickly than the dispatched-energy picture. Vietnam’s earlier FIT rounds created a large build-out, particularly in solar, but grid constraints and curtailment have limited the practical value of some assets. That experience is one reason current policy is placing greater emphasis on transmission, stor- age and more controlled project sequencing. Capac- ity growth without evacuation capacity is no longer viewed as a sufficient success metric. sensible overall risk allocations. 2.3 Supply Mix of Electricity Looking ahead, the Revised PDP8 points to a much more diversified 2030 system. Solar targets have increased sharply, onshore and nearshore wind remain significant, offshore wind has a clearer strategic place, LNG stays important, imported power grows, and bat- tery storage moves from pilot status into mainstream planning. Perhaps the most politically striking change is the return of nuclear power to the medium-term
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