VIETNAM Trends and Developments Contributed by: Adam Moncrieff and Thuy Huynh, Orrick
projects, whose first commercial operation is sched- uled for the 2030 to 2035 period if conditions allow. The revised National Energy Master Plan (NEMP), as adjusted by Decision No 363/QD-BCT dated 28 Feb- ruary 2026, points in the same direction, with pro- jected final energy consumption of around 120 million to 130 million tonnes of oil equivalent by 2030 and a renewable energy share of 25% to 30% of total pri- mary energy. For energy project developers, however, the headline targets from the PDP8 and NEMP are plans or statements of aspiration only, with success- fully developed projects still needing to fit within rel- evant national and provincial land use, grid capacity and procurement plans. A lot of new laws, but still some missing pieces Vietnam has passed a large package of electricity- sector reforms in a short period. The Law on Electric- ity was introduced in 2024 and came into force on 1 February 2025. It was followed by three main decrees issued in early 2025, namely: • Decree No 56 on electricity development planning, power grid development, electricity investment and bidding; • Decree No 57 on DPPAs between renewable energy generators and large electricity users; and • Decree No 58 on renewable energy and new energy development. Later updates – including Decree No 243 and Circular No 29, both issued in June 2026, amending and pro- viding further guidance to Decree No 57 and Decree No 58 on operation of the Vietnam Wholesale Elec- tricity Market, Circular No 62/2025/TT-BCT on bat- tery storage pricing, and proposed amendments to the Law on Electricity 2024 – continued that process. These reforms matter because they create more legal pathways for private investment. They recognise DPPAs, introduce new pricing concepts for renewable energy and storage, refine power-market participation rules, and provide more routes for project selection. They also sit alongside administrative simplification and decentralisation measures, including proposals to reduce licensing conditions and move more imple- mentation responsibility to provincial authorities.
While many regulatory instruments outline general principles, eligibility criteria or tariff methodologies, they defer some crucial commercial details to future regulation, project documentation or negotiations with stakeholders such as Vietnam Electricity (EVN), the Electric Power Trading Company (EPTC), the National Power System and Market Operator (NSMO), provin- cial authorities or the Ministry of Industry and Trade (MOIT). At the time of writing, what is missing is the legal and regulatory underpinnings of certain key aspects of tariff determination and risk allocations to give prospective developers of large-scale greenfield power generation projects the confidence that the projects can be developed and financed in a bank- able manner. Renewables after the feed-in tariff era Vietnam’s initial success in developing solar and wind power capacity was driven by feed-in tariffs. Those tariffs helped Vietnam to build renewable capacity at a speed few markets in the region matched. They also exposed weaknesses in grid planning, construction timing, land use and other permitting, and in the way commercial operation dates were assessed. A large number of renewable energy projects that had not achieved commercial operation by the end of the feed-in tariff regimes were left in transition. Some pro- jects missed the relevant deadline and moved into lower transitional tariff arrangements. Others have faced scrutiny over whether they properly achieved commercial operation, completed construction acceptance, satisfied land and planning requirements, or obtained fire safety and other permits in time. Ongoing disputes with EVN involving existing renew- able projects have become a more serious issue for Vietnam, for both existing and prospective domestic and foreign developers. These issues affect Vietnam’s standing in the eyes of renewable energy develop- ers, including (rightly or wrongly) in relation to per- ceived unilateral change in law risk, EVN credit risk and the reliability ofdispute resolution. Some operat- ing projects have reportedly faced delayed, reduced or suspended payments from EVN. In some cases, the issue appears to be alleged project non-compliance. In others, the legal basis for non-payment has been less clear to developers.
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