VCI Legal- 29 November, 2025

On November 24, 2025 at 51st Session, the National Assembly Standing Committee provided feedback on the National Assembly Resolution Draft on mechanisms and policies to address difficulties and develop national energy in the 2026–2030 period (“the Draft”). In presenting the report on the Draft Resolution, the Minister of Industry and Trade articulated the practical challenges and specific policy mechanisms and solutions aimed at accelerating national energy development. 

This article details the salient provisions within the Draft National Assembly Resolution. 

1. Flexible adjustment basis for the national power development plan and the power grid development plan in the provincial plan

Adjustments shall be implemented based on one of the following grounds: 

• Sudden and urgent requirements for national defense, security, national interests implemented pursuant to agreements between the Government of Vietnam and foreign governments, or for disaster prevention, epidemic control, fire, and explosion prevention. 

• The necessity to adjust the plan promptly to protect the interests of the State, organizations, or individuals. 

• Adjustment of power generation projects, encompassing name, progress, administrative location, and capacity scale (not exceeding a 10% change); supplementation of power generation projects to compensate for or replace projects with delayed progress or those not implemented; or to meet a sudden surge in load demand, provided that the total installed capacity within the structure of each power generation type in the plan is not increased. 

• Adjustment of power grid projects to synchronize with power sources, evacuate capacity, or meet load demand, ensuring the safe and stable operation of the national power system. 

2. Investment Policy for Power Projects

To expedite investment progress, the Draft stipulates that power infrastructure projects included in the National Power Development Plan are exempt from the requirement for investment policy approval, except for projects under the authority of the National Assembly, medium/low-voltage power grids, emergency projects, and offshore wind power projects. 

Accordingly, the Investor, which is a State-owned enterprise holding 100% of the charter capital (or an enterprise wholly owned by such State-owned enterprise), implementing a nationally important and urgent power project, is not required to carry out procedures for submission to the State Owner’s Representative Agency for approval or endorsement of project-related content, capital mobilization, asset mortgage for loans, etc., but must report the implementation results to the State Owner’s Representative Agency. 

The important urgent national power projects currently undergoing site clearance and compensation can be implemented in parallel with the revision, supplementation, and updating of the general planning, land use planning and plan, and forest use plan. 

The Provincial People’s Committee is authorized to decide on the appointment of a State-owned enterprise holding 100% of the charter capital or an enterprise wholly owned by such State-owned enterprise as the investor for transmission grid infrastructure projects within the National Power Development Plan. 

3. Mechanism Applicable to BOT Power Projects

• Applicable Law: The BOT Company shall conduct its operations in accordance with Vietnamese law. In the circumstance of disputes related to the application and interpretation of the contract (excluding the land lease contract), foreign law chosen by the parties may be applied. 

• Contract Language: Project contracts shall be prepared in both Vietnamese and English. In case of discrepancy, the English version shall prevail (except for the land lease contract, where the Vietnamese version shall apply). 

• Mortgaging Land Use Rights: Economic organizations granted land by the State with a one-time rent payment for the entire lease period to implement the project are permitted to mortgage their land use rights and assets attached to the land at international financial organizations and foreign credit institutions. 

• Electricity Price and Payment: The electricity price in the Power Purchase Agreement (PPA) is to be denominated in US Dollars (USD), while payment shall be executed in Vietnamese Dong (VND). 

• Project Contract Term: 

• 20 years from the date of commercial operation of the plant for thermal power projects utilizing gas or liquefied natural gas (LNG); 

• 25 years for thermal power projects utilizing coal; 

• The commercial operation deadline shall be implemented flexibly according to international commitments and emission reduction targets. 

• Government Guarantee Term: 

• For the BOT contract: the entire term of the project contract. 

• For the PPA: 15 years for projects using gas or LNG, and 18 years for projects using coal. 

Concerns from the National Assembly Standing Committee Members of the National Assembly Standing Committee expressed particular interest in and requested clarification on the special mechanisms concerning the application of foreign law in BOT contracts and the mortgaging of land use rights. The Chairman of the Law and Justice Committee, Mr. Hoang Thanh Tung, noted the ambiguity regarding the time when parties can choose to apply foreign law. He asserted that, according to general principles, the parties must agree on the applicable law from the outset to avoid additional disputes later. 

Additionally, National Assembly Chairman, Mr. Tran Thanh Man emphasized the need to clarify the mortgage mechanism, stating that current land law does not permit the mortgaging of land use rights at international financial organizations or foreign credit institutions. Therefore, if this provision is necessary, a specific impact assessment is required, and consultation with competent authorities, similar to the policy for international financial centers, is needed. 

4. Offshore Wind Power Development

A key issue addressed in the Draft Resolution concerns offshore wind power, detailing the procedures for handling survey costs and preparing proposals for investment policy approval, and stipulating the authority for approving investment policies and selecting investors through bidding. 

• Handling of Survey Costs for Offshore Wind Power Projects Costs incurred for surveys related to bidding for investor selection shall be determined as follows: 

• The winning bidder shall reimburse the costs or be allowed to contribute capital to the project development; 

• The costs shall be accounted for as part of the enterprise’s production and business expenses if there is no winning bidder. 

• Investment Policy Approval for Offshore Wind Power Projects 

• The Prime Minister shall grant approval for investors that are State-owned enterprises or private enterprises whose main business line is electricity trading, with a minimum charter capital of VND 10,000 billion and minimum equity capital of 15% of the total proposed project investment. These projects must meet conditions regarding national defense, security, sovereignty, marine resources and environment, and maritime safety; must be approved before January 1, 2031; and the total capacity of approved projects must not exceed 6,000 MW and must be within the national power development plan. 

• The Provincial Peopless Committee shall grant investment policy approval for the following: (1) Projects selling electricity to the system that have a capacity collection substation located within the administrative boundaries under their management; (2) Electricity export projects. 

The provisions in the Draft are intended to create conditions for enterprises with genuine capability and capacity to access a sector that demands significant capital, high-end, modern technology, and abundant resources, such as the offshore wind power sector. 

The incentive Policies for Offshore Wind Power Projects The Draft Resolution also stipulates several incentive policies for offshore wind power projects: 

• For Export Projects: Exemption or reduction of sea area rent and land rent. 

• For Projects Generating Electricity for Domestic Demand: 

• Application of a long-term minimum contract electricity output of 90% of the average electricity output of the project over many years during the principal loan repayment period, but not exceeding 15 years, for projects approved before January 1, 2030, and generating power before January 1, 2032- 

• Application of a long-term minimum contract electricity output of 80% of the average electricity output of the project over many years during the principal loan repayment period, but not exceeding 15 years, for projects approved before January 1, 2032, and generating power before January 1, 2036. 

If the Resolution is passed, these incentive policies are expected to create a breakthrough to “unclogging bottlenecks” for a series of projects that have been and are being proposed in many localities. 

In addition, Mr. Tran Thanh Man requested clarification on the mechanism of indirect government guarantee for corporations and enterprises to ensure public debt safety and fiscal stability. He also requested further consideration of the contents related to the Direct Power Purchase Agreement (DPPA) mechanism and the pricing of electricity in USD in the PPA – two issues significantly impacting the ability to mobilize international capital. 

Deputy Minister of Industry and Trade Nguyen Hoang Long previously stated that numerous significant private firms have submitted plans for the implementation of offshore wind power following the issuance of the Politburo’s Resolution No. 68-NQ/TW on private economic development. The Ministry anticipates the inaugural offshore wind power project to commence before the year’s end.  

The Government Standing Committee has mandated that the advancement of offshore wind power development proceed without delay, despite a proposal to postpone it until after 2030 due to substantial investment costs (estimated at USD 60-70 billion), underscoring its significance as a strategic domain for long-term energy security. 

5. Reality of the Offshore Wind Power Sector in Vietnam

On April 18, 2025, the General Department of Meteorology and Hydrology, in collaboration with the United Nations Development Programme (UNDP) in Vietnam and the Norwegian Embassy in Vietnam, announced a detailed technical potential assessment report on Vietnam’s offshore wind energy. The report provides a comprehensive, updated, and high-resolution picture of Vietnam’s marine wind resource potential, highlighting Vietnam as one of the countries with the largest offshore wind power potential in the region. 

Currently, Vietnam has 17 nearshore wind power projects that have entered commercial operation, with a total installed capacity of 763.45 MW, accounting for 19.2% of Vietnam’s total wind power installed capacity (3,980 MW). These nearshore projects have significantly contributed stable capacity to the national power system. The advantages of nearshore wind power projects include good wind speeds and easier construction compared to onshore projects, as they do not face site clearance issues. Furthermore, nearshore projects have short connection lines, significantly reducing transmission losses. 

In Ho Chi Minh City (HCMC), the Department of Industry and Trade previously reported two notable proposals: (1) The Can Gio Offshore Wind Power Project, with a capacity of 1,000MW, to be implemented in Ly Nhon – Long Hoa – Can Thanh; (2) A 6,000MW Project, including 4,000MW integrated into the national grid and 2,000MW for green hydrogen production after 2030. 

In May 2024, Vingroup Corporation submitted a document to the HCMC People;s Committee proposing investment in a nearshore wind power project in Can Gio district. The proposal suggests a capacity of approximately 3,000MW, producing about 9 billion kWh of electricity annually, with a preliminary total investment of approximately USD 4.5 billion. Vingroup states the project aims to meet the electricity demand for the Can Gio reclaimed urban area and the Group’s other internal electricity usage activities. The enterprise requested permission from the HCMC People’s Committee to survey a sea area of 1,163 hectares in Can Gio to conduct detailed research. These two projects are currently in the research proposal stage but are considered key projects for the city in its clean energy development roadmap. 

Despite the achievements, the offshore wind power sector continues to face challenges and obstacles leading to delays in the implementation of projects in Vietnam. Therefore, to promote the development of Vietnam’s offshore wind power, it is essential to propose solutions related to legislation, technical technology, human resources, and construction. This involves leveraging the inherent potential and advantages of Vietnam’s maritime regions and natural conditions to build a reasonable investment strategy, complete infrastructure, and promote the development of advanced technology, thereby helping the offshore wind power sector become one of the important pillars in the national power system. 

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