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Nearly a year after Vietnam’s issuance of its National Power Development Plan for 2021-2030, with a vision to 2050 (“PDP VIII”), the Prime Minister issued Decision No. 262/QD-TTg dated April 1, 2024, approving the Implementation Plan for PDP VIII (“Implementation Plan”). Among other contents, the Implementation Plan sets forth the list of prioritized power source projects through 2030, and the capacity of renewable energy sources through 2030, as detailed below.

Prioritized Power Source Projects through 2030

The Implementation Plan lists out six types of power source projects prioritized for development through 2023 according to the capacity approved under PDP VIII. They include:

  • Domestic gas-fired power (14,930 MW)
  • LNG-fired power (22,400 MW)
  • Coal-fired power (30,127 MW)
  • Cogeneration power using residual heat, blast furnace gas, and by-products of technological lines in industrial facilities (2,700 MW)
  • Hydropower (29,346 MW)
  • Pumped storage hydropower (2,400 MW)

With respect to each type, the Implementation Plan provides details of projects by location and their operational progress. Such information is set out in Schedule III of the Implementation Plan.

For power source projects not included in this list, the provincial People’s Committees will consult with the Ministry of Industry and Trade (“MOIT”) and relevant agencies on compliance with the planning prior to appraisal and issuance of in-principle investment approval.

Renewable Energy Projects through 2030

The Implementation Plan allocates the capacity of the following renewable energy sources by locality/region:

  • Offshore wind power (6,000 MW)
  • Onshore wind power (21,880 MW)
  • Hydroelectric power (29,346 MW)
  • Biomass electricity (1,088 MW)
  • Electricity produced from waste (1,182 MW)
  • Rooftop solar power for self-production and self-consumption (2,600 MW)
  • Battery storage (300 MW)

With respect to each renewable energy source, the Implementation Plan provides a list of certain renewable energy projects through 2030, including the expected life cycle of the projects, and the allocated capacity for various localities/regions. For the remaining capacity, the provincial People’s Committees were tasked to propose a list of additional projects, and the MOIT was to finalize and submit it to the Prime Minister for approval before April 30, 2024. To date, however, we are not aware of any decision of the Prime Minister approving additional projects to meet the capacity of renewable energy sources allocated under the Implementation Plan.

Other Notes

The Implementation Plan sets out that from 2023 to 2025, the authorities will prioritize developing the following legal framework:

  • Pricing framework for various types of power sources. The purpose is to complete the electricity price management mechanism according to the market mechanism with State regulation.
  • Direct electricity trading mechanism.
  • Mechanism to encourage the development of distributed/rooftop solar power projects for self-production and self-consumption purposes.
  • Electricity Law (amended).
  • Law on Economical and Efficient Use of Energy (amended).
  • Mechanism to develop the carbon credit market.

The MOIT is responsible for promulgating transmission prices for transmission grid projects in the form of socialization investment to encourage the private sectors to invest in power grid infrastructure.

The Ministry of Planning and Investment is tasked with (i) proposing regulations on the authority to decide investment policies for offshore wind power projects, hydrogen/ammonia production projects using offshore wind power, and offshore wind power export projects and (ii) developing a public and transparent bidding mechanism to select investors to implement power projects and provide guidance to localities for implementation.

WRITTEN BY

For further information, please contact:

Tram Ngoc Bich Nguyen – Partner,
tram.n@tilleke.com

BIOGRAPHY

Tram Ngoc Bich Nguyen is a partner with the Vietnam corporate and commercial team of Tilleke & Gibbins. Based in firm’s Ho Chi Minh City office, Tram’s practice focuses on foreign investment and corporate matters, mergers and acquisitions, real estate, e-commerce, fintech, and data privacy. Her expertise includes advising foreign and multinational clients on investment in Vietnam, ranging from market-entry stage to expansion, corporate governance, internal rules and regulations, fundraising, restructuring, commercial transactions, and employment.

Tram has advised in domestic and cross-border M&A transactions involving Vietnamese companies engaged in a broad range of business sectors including real estate, healthcare, pharmaceuticals, energy, education, and distribution. Clients also benefit from Ms. Tram’s solid legal background in development, construction, management, operation, and lease activities in respect of real estate projects in Vietnam.

She also provides advice to technology-based businesses, including e-commerce retailers, platform owners, social networks, payment intermediaries, and fintech entrepreneurs. She assists multinational corporations in their adherence to local data protection laws and advises on issues such as platform and social network operations, terms and conditions, vendor contracts, e-contracting, cybersecurity, and data privacy.

Prior to joining Tilleke & Gibbins, Tram spent 16 years with one of Vietnam’s top local firms, where she had been a partner since 2019. Tram is a qualified lawyer in Vietnam and holds an LLM from the University of the West of England in Bristol, U.K., and an LLB in Commercial Law from the Ho Chi Minh City University of Law.

EXPERIENCE

  • Advised the Vietnamese branch of an international coatings company to transfer its land site with an area of 18,343 sqm in Binh Duong Province.
  • Advised a Vietnamese investment management firm on a land clearance and compensation agreement with provincial authorities in respect of its real estate project in Quang Nam Province.
  • Advised a top real estate investor on divestment from a joint venture company operating a serviced apartment building in Hanoi.
  • Advised a Vietnamese investment management firm on its potential investment in a hotel and resort project developed on land with a total area of 164 ha in Ba Ria – Vung Tau Province.
  • Advised a Vietnamese investment management firm on a transaction in which it acquired warehouses from a market expansion service provider and leased the acquired warehouses back to the same company.
  • Represented a capital management firm on a proposed acquisition of shares in offshore holding companies of three high-profile real estate projects in Vietnam.
  • Represented a Singapore-headquartered capital management firm on its investment in a chain of 11 eye and general hospitals.
  • Advised a Thai retail giant on the acquisition of a chain of retail outlets in Vietnam.
  • Represented a startup incubator in its investment in two pharmaceutical companies, including a wholesale business and a retail business.
  • Advised a Vietnamese investment management firm on investment and acquisition in a hospital in Dong Thap Province.
  • Represented a startup incubator in its investment in a retail business with more than 20 branches and more than 20 business locations.
  • Represented a Middle Eastern-Vietnamese joint venture investment fund on its investment into two solar power projects.
  • Represented a Middle Eastern-Vietnamese joint venture investment fund in its acquisition of shares in a hydropower company.
  • Advised on the proposed listing of a Singapore-based company on the Main Board of Singapore Exchange Securities Trading Limited, in connection with its shipyard subsidiaries in Vietnam.
  • Represented a Vietnamese agriculture and food group on their inaugural issuance of fixed-rate VND bonds, guaranteed by the Credit Guarantee and Investment Facility (CGIF), a trust fund of the Asian Development Bank.
  • Represented a ride-hailing technology company on its acquisition of an intermediary payment service provider from the founders and strategic shareholders in multiple tranches.
  • Advised an international university in Vietnam on its restructuring and obtainment of licenses and permits required for education operations.
  • Advised an American-funded university on various regulatory matters in respect of daily operation of education establishment in Vietnam.
  • Represented a Singapore-based education company in their indirect acquisition of an international K-12 school in Vietnam.
  • Advised on an offshore transaction for sale of shares in holding companies of an English training center in Vietnam.
  • Advised a Japanese tobacco company on tobacco regulations related to marketing, advertising, and labeling, and operation of its representative office in Vietnam.
  • Advised two leading FMCG companies on their day-to-day operations in Vietnam, commercial contracts with customers and service providers, advertising and promotion, antitrust, and termination of employment.
  • Advised a leading Asian airline on the operation of their representative office in Vietnam and the group’s loyalty campaign.
  • Advised a Japanese tobacco company and a multinational insurance company on building up the dawn raid policies for their Vietnam entities.
  • Advised banking and non-banking credit institutions in their banking products (e.g., entrustment lending, discounting, and factoring) and compliance matters (such as anti-money laundering and counter-terrorist financing).
  • Advised foreign investors on setting up their Vietnamese entities which engage in manufacturing of electronic devices and software, and corporate governance in Vietnam.

Education

  • LLM, University of the West of England (Bristol, U.K.)
  • LLB, Ho Chi Minh City University of Law

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