VIETNAM Law and Practice Contributed by: Adam Moncrieff and Thuy Huynh, Orrick
that access can be arbitrary, and the legal framework is moving towards more transparent market participa- tion; however, equal treatment remains constrained by planning status, connection availability – including how many existing generators may be putting elec- tricity into the grid in a particular location – and the operational needs of a centrally managed system. The practical message is that access rights are meaningful only when read together with the system rules and the actual capacity of the network in a relevant location. 5. Distribution 5.1 Constructing and Operating Electricity Distribution Facilities Distribution is still largely organised through EVN’s regional power corporations and affiliated structures. Vietnam does not have a truly liberalised electricity distribution market. Although Vietnamese law con- tains a licensing regime for electricity distribution, public distribution is not, in practice, a market in which private operators generally participate. EVN and its power corporations carry out public distribution, with non-EVN activity limited to narrow cases such as industrial parks or other bounded networks. Public electricity distribution is still carried out in prac- tice by EVN, through its regional power corporations. EVN is state-owned and remains the central entity for public distribution and retail supply. The governing framework includes the 2024 Electricity Law technical regulations, construction and land laws, environmental rules and retail tariff rules. In ordinary consumer sup- ply, the system remains utility-driven with no change or choice. In industrial zones, private campuses and specialised commercial developments, the picture is more varied. This is the part of the sector where microgrids, cam- pus supply and private network solutions are becom- ing more relevant. Vietnam has not yet created a fully separate microgrid code, but the combination of DPPA reforms, distributed energy growth and indus- trial demand is pushing policy in that direction. The same is true for storage at distribution level, which is increasingly seen as part of demand management and reliability rather than only as a generation-side tool.
The legal framework is therefore widening, even if it still looks utility-centred in form. For privately owned power generators, distribution is less about acquiring a liberalised retail business and more about identifying the permitted boundaries of private supply. A generation project serving an indus- trial park or large integrated site may have more room for private infrastructure and supply arrangements than a generation project selling to EVN. 5.2 Regulatory Process for Obtaining Approvals to Construct and Operate Electricity Distribution Facilities As mentioned above, public distribution is carried out in practice by EVN and its power corporations, and in practice, Vietnam does not currently have a gener- ally open market for competing distribution utilities. A non-EVN entity may hold a distribution or retail licence only for a limited, defined scope, for example within an industrial park or a similar bounded network. Where that applies, the proponent would need the usual pro- ject, land, construction, fire safety, environmental and electricity operation approvals. Public hearings are not generally required for electricity distribution licens- ing, although public consultation may be required if the project is subject to an environmental impact assessment or land recovery process. The electricity operation licence is granted by the competent licens- ing authority, not merely recommended to another body. The licensing process itself may be completed in weeks after a complete filing, but the overall project approvals usually take several months or more, and may take longer if land or environmental issues are involved. 5.3 Terms and Conditions Imposed in Approvals to Construct and Operate Electric Distribution Facilities Vietnamese law recognises electricity distribution as a licensed activity, but this should not be read as mean- ing that Vietnam has an open private distribution mar- ket. In practice, EVN remains responsible for public distribution, while non-EVN distribution is generally confined to specific closed or semi-closed networks, such as industrial parks.
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