Reshaping Vietnam's electricity market: the impact of Resolutions 70 and 328

Resolution 328 provides that the Prime Minister will approve the restructuring of EVN in 2026 to support the development of a competitive electricity market. While details remain to be confirmed, the restructure looks set to erode EVN’s current market monopoly and encourage private sector participation. An early draft of Resolution 328 included a provision to separate the National Power Transmission Corporation (NPT) from EVN by 2026, however this provision was excluded from the final issued Resolution 328. It is worth noting that in August 2024, the National Load Dispatch Centre (A0) was already separated from EVN.

Resolution 70 and Resolution 328 commit to developing a market-based energy pricing mechanism to accurately reflect costs without cross-subsidisation, paving the way for a two-part consumer tariff plan to be completed in 2025 and applied from 1 January 2026. Currently, Vietnam operates using a single-phase tariff based on actual consumption; the new two-part system will include charges for both energy use and registered capacity, aimed at covering true supply costs such as grid maintenance and operations.

Under a draft decision on the roadmap for implementing the two-part tariff proposed by the MOIT, the process is divided into four phases:

• Phase 1 (2025 – June 2026): surveying and updating metering data of large electricity consumers (engaged in DPPA with renewable energy generators).
• Phase 2 (January – June 2026): paper-based pilot (issuing parallel invoices, without actual payment, to all large electricity consumers together with guidance on the two-part retail tariff).
• Phase 3 (July 2026 – July 2027): official pilot implementation.
• Phase 4 (from August 2027 onwards): evaluation and expansion of the two-part tariff to other consumer groups.

For private investors, this mechanism clarifies infrastructure and grid costs. Renewable energy developers under DPPAs may see steadier revenue, while the market gains transparency and competitiveness.

Notably, while this two-part tariff system is currently limited to retail and consumer demand, it mirrors strident requests from power generation investors, particularly LNG-to-power project investors, to implement something similar at the supply end, given generators cannot rely solely on actually-dispatched power for their revenue. It remains to be seen whether the two-component plan at the point of consumption is a precursor to analogous changes at the point of generation.  

The DPPA regime was introduced to much fanfare in July 2024 and tweaked in March 2025 but, to date, has failed to launch in any significant way due to issues including unnecessarily restrictive commercial terms and a stunted enabling environment. Resolution 70 reaffirms the DPPA regime's importance to developing a competitive power market. Resolution 70 and Resolution 328 both recognise the importance of electricity consumers being able to select electricity suppliers in line with their needs and provide that further regulations to ensure effective implementation of DPPAs must be completed in parallel with completing the plan for designing a competitive retail electricity market (ie by June 2026, to be applied from 1 January 2027).

On this point, Resolution 70 marks a shift from prior policy by recognising consumers’ rights to choose electricity suppliers and supporting the DPPA mechanism as a means to boost competition in the sector, not just as a means of facilitating consumers' direct access to green energy.

Resolution 328 requires urgent completion of a legal framework for contract enforcement and dispute resolution, along with special mechanisms to resolve long-standing, stalled energy projects. It also calls for an end to delays by state-owned enterprises in fulfilling payment obligations under contracts with private companies. Given the importance of such matters to the bankability of energy projects in Vietnam, including overall investor confidence, this is a notable point and investors should closely follow the upcoming regulations.

The resolutions direct authorities to cut implementation time and compliance costs in the power sector by 30–50% and streamline administrative procedures, aimed at addressing delays in large-scale power projects. For urgent or minor changes to power planning, some adjustment procedures will be waived.

We already see progress in this direction, with a number of newly issued legal instruments and several draft amendments actively simplifying administrative procedures across both the investment and construction sectors. Together, these reflect four main trends:

• Reducing procedural requirements: fewer projects may require investment policy approval, with issuing authority shifting from the National Assembly to the Prime Minister. Pre-feasibility reports may no longer be mandatory, and some projects may not need construction permits. Report 266/BC-BCT dated 9 September 2025 of the MOIT on the implementation of the revised Power Development Plan VIII (Report 266) further recommends removing investment policy approval, potentially influencing future law amendments.
• Shortening licensing timelines: investment registration certificates for projects not requiring policy approval must be issued within 10 days, down from 15.
• Minimising documentation: for example, investors need to submit only one physical set and an electronic version for Prime Minister-level investment policy approval rather than eight paper sets. However, obtaining digital signatures may initially lengthen procedures.
• Streamlining project implementation requirements: a key change forecast in the near future might be to allow foreign investors to establish economic organisations in Vietnam without having to first obtain separate approval to implement specific investment project(s).

• Investor selection mechanism: Resolution 70 opens the door to streamlined investor selection processes for energy projects, highlighting the value of directly appointing investors to implement large-scale projects vital to national defence and security without the need for competitive processes. Details need to be confirmed, but this seems likely to occur in particular in the offshore wind sector, where ambition and actual progress are currently out of sync. These changes are being closely monitored for their impact on investment in Vietnam’s power market. Please see our further analysis on current regulations on investor selection in the power sector here.
• Capital allocation for project implementation: Resolution 70 encourages the use of green bonds and credits for energy projects. Under Decision 21/2025/QD-TTg, qualifying solar, wind, or new energy projects can be classified as green and receive state incentives, including green credit, bond support, and a 2% annual interest subsidy as outlined in Resolution 198/2025/QH15 dated 17 May 2025 and a draft government decree.
• The new resolutions also promote the development of national integrated energy hubs—combining LNG/gas, refining, and renewables—in strategic provinces such as Ho Chi Minh City, Quang Ngai, Thanh Hoa, Ca Mau, Khanh Hoa, Quang Tri, Hai Phong, Quang Ninh, Nghe An, among others. These initiatives should be aligned with the natural gas pricing framework and offtake mechanisms.

• Green hydrogen and ammonia: Resolution 70 pilots hydrogen and ammonia production and use, promotes offshore wind and solar projects linked to the production of hydrogen and ammonia, and outlines plans for coal plants to convert to cleaner fuels. Despite high costs and challenges, investor interest in green hydrogen and ammonia is growing, with several projects proposed or underway.
• Nuclear power: Resolution 70 urges the swift development of Ninh Thuan 1 and 2 nuclear projects (targeting operation between 2030 and 2035), and invites state and private involvement in small modular reactors. However, according to Report 266, progress relies heavily on international partners due to Vietnam’s lack of experience, making completion before 31 December 2031 unlikely.

Although mandatory emission reductions to meet Vietnam’s net-zero commitments may pose challenges for many private enterprises across various sectors, the following key tools aimed at reducing GHG in the energy sector could present excellent business opportunities:

• Carbon capture, storage and utilisation (CCS/CCUS): Resolution 328 aims to have relevant plans in place between 2025 and 2026 to finalise the legal framework and encourage CCS/CCUS technology, particularly for fossil fuel power generation. Although mentioned in prior policies, CCS/CCUS projects currently lack specific regulations and are governed by general investment, transportation, oil and gas, or sea dumping laws depending on their activity. While investor interest is growing, legal uncertainty remains due to the complex and cross-sectoral nature of CCS/CCUS. A comprehensive legal framework is unlikely to be in place before 2026; instead, we expect a policy roadmap or pilot scheme for large-scale projects in the near term.
• Renewable energy certificate (REC) market: Resolution 70 calls for the introduction of renewable portfolio standards (RPS) and the development of a REC market, with an overall report on building the roadmap and regulations to be finalised between 2025 and 2026, and related mechanisms and policies to be finalised between 2025 and 2030. RPS was previously noted in Decision 2068/QD-TTg (2015), which set minimum renewable energy rates for electricity producers and distributors at no less than 10% by 2030 and 20% by 2050, though these targets were not fully codified into law. With renewed reference in Decision 1415/QD-TTg (2025) and Resolution 70, a compliance REC market is now expected, encouraging investment in renewable energy projects and REC trading.
• Carbon market: Resolution 70 and Resolution 328 urge the rapid development of a carbon credit trading system, a domestic carbon market and links to international markets as progress has been delayed, with related mechanisms and plans to be completed between 2025 and 2026. A pilot carbon exchange is now slated for launch by the end of 2028, not 2025 as initially planned. Interactions between the REC and carbon markets may lead to double counting of renewable projects. A carbon tax on fossil fuels is also under consideration, with related policies to be completed between 2026 and 2030. Upcoming regulations are expected to clarify how these mechanisms interact and prevent double counting or double burdens for businesses.

Under current regulations, fines for delayed projects are woefully low (they can reach VND100 million or approximately US$3,800). Subsequent steps can be taken to terminate investors' involvement in delayed projects, but this is a cumbersome and rare process in practice. Resolutions 70 and 328 signal stricter enforcement, with heavier sanctions for investors who have registered to develop energy projects but delay or fail to implement them, thereby affecting national energy security. Further specific policies and directives on this will be introduced in the coming year.