Written by Partner Ngoc Anh Bui and Foreign Counsel Vaibhav Saxena

Government of Vietnam issued Decree No. 58/2025 (“Decree 58”) with effect from March 03, 2025, guiding the Law on Electricity 2024 on areas related to development of renewable energy (RE) and new energy (NE) electricity sources.

Key Defined Terms

• Surplus electricity seller: means an organization or individual owning the self-produced/self-consumed power source or the one taking over rights and obligations of the primary.
• Buyer of surplus electricity ambit remains limited to Vietnam Electricity (EVN) umbrella.

Incentives

• Grid connected hybrid (storage coupled) RE projects get dispatch priority during the peak hours, except for self-produced/self-consumed sources.
• Wind and solar power sectors boosted with research support – aimed at self-reliance model.
• NE sources produced from 100% green hydrogen/green ammonia or with a mix of both are entitled to tax and investment credit policies support and on a socio-economic analysis.
• Exemption from sea area/land usage fees/rent during basic construction period, up to 3 years from the construction commencement date. Further, 50% reduction in the sea area usage fees for the subsequent 9 years and possible land rent relief as per the relevant regulations.
• Minimum offtake commitment at 70% for long-term if the project enriches energy security for the country. Conditional within the loan principal repayment term capped at 12 years, subject to agreement among the seller and the buyer. Overriding condition being the capability for the said minimum power generation, demand, technical parameters of the off takers grid.

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