Time for Vietnam to Resolve Its Renewable Energy Legal Quagmire

fulcrm.sg Published 19 Nov 2025 Le Hong Hiep

In Vietnam, an impasse over feed-in-tariffs for renewable energy producers threatens foreign investors’ confidence in government policies

Afestering legal crisis is threatening to derail Vietnam’s energy development plans. 173 solar and wind projects, representing about US$13 billion in investments, are stuck in limbo due to ongoing disputes regarding their feed-in-tariffs (FITs) – the guaranteed payments that the government would pay for their contribution to the power grid. This situation raises concerns about Vietnam’s business environment and the consistency of its economic policy. If Vietnam does not resolve these disputes promptly, the country could face significant legal, financial, and reputational repercussions.

Between 2018 and 2021, Vietnam experienced a significant boom in renewable energy, primarily fuelled by the government’s commitment to offer attractive 20-year FITs to investors for projects that began commercial operations before designated deadlines. However, in 2023, an investigation by the Government Inspectorate found that many of these projects had not obtained their Construction Completion Acceptance (CCA) certificates before their Commercial Operation Date (COD). Following the inspection, the Ministry of Industry and Trade issued a new circular, effective June 2023, stipulating that renewable energy projects must obtain a CCA certificate before being recognised for COD. This effectively disqualified the affected projects from receiving the original FIT rates.

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Cần có cơ chế giữ chân nhà đầu tư quốc tế (cho điện gió)

Note: “Tập đoàn Orsted, Tập đoàn năng lượng lớn nhất Đan Mạch và nhà phát triển điện gió ngoài khơi lớn nhất thế giới, mới đây đã tuyên bố giảm mục tiêu tham vọng và rút khỏi thị trường Việt Nam.

petrovietnam.petrotimes.vn

Năng lượng gió thì vô hạn nhưng nguồn lực đầu tư, vốn thì hữu hạn. Nếu không có những chính sách, cơ chế cụ thể thì nguồn lực đầu tư này sẽ chuyển từ Việt Nam sang những khu vực khác trên thế giới.

Các tổ chức quốc tế đánh giá Việt Nam có tiềm năng về điện gió lớn nhất Đông Nam Á, vượt xa các quốc gia khác. Hội đồng năng lượng gió toàn cầu (GWEC) đã ước tính, Việt Nam có khoảng 600 GWh điện gió chưa khai thác, gồm 300 GWh điện gió ngoài khơi và 300 GWh điện gió trên bờ.

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Can Vietnam Replace China? No, But it was Never Supposed to Either

vietnam-briefing.com

March 27, 2023Posted by Vietnam BriefingWritten by Pritesh SamuelReading Time: 

An opinion piece in Bloomberg titled ‘Trying to Replace China’s Supply Chains? Don’t Bother?’, published March 1, 2023, claims that ‘Vietnamese factories were supposed to save globalization’ but that they cannot. This is incorrect and here’s why, writes Dezan Shira and Associates, Head of Business Intelligence, Pritesh Samuel.


Vietnam’s factories were never supposed to save globalization. They offer businesses an alternate location for manufacturing – in line with a China+1 strategy that myriad companies now pursue due to rising costs in China.

Globalization is shaped by several factors, including geopolitics, national interests of governments, regional trade and investment initiatives, public policymaking directives by key trade bodies, and so on. It cannot be trivialized into the assumption that a single country can save it.

China’s advanced supply chain and supplier network, driven by the government’s long-term national policies, make it a manufacturing giant. At present, no single country, including Vietnam, can fully replace China’s manufacturing capacity.

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Advancing sustainable development with FDI: Why policy must be reset

Simon Evenett and Johannes Frit z3 June 2021
Advancing sustainable development with FDI-1
In many countries, foreign direct investment, or FDI, outperforms aid, remittances, and portfolio investments as the largest source of external financing. FDI creates jobs, boosts productivity, and brings management expertise and technology. Since the Global Financial Crisis of 2009, however, annual inflows of FDI have been in decline. New greenfield investments into developing countries have been particularly hard hit, falling by 57 percent year-on-year in the fourth quarter of 2020. Developing countries in Asia have been more resilient but not entirely spared. Supported by the Hinrich Foundation, a new report delves into this critical issue of declining FDI and explores the policy options that can help reverse the trend. In this 27th Global Trade Alert report, entitled Advancing sustainable development with FDI: Why policy must be reset, renowned trade experts Simon Evenett and Johannes Fritz detail the developments that have contributed to FDI’s decline and show what can be done to reinvigorate FDI as an engine for sustainable development.
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FDI paradox: the bigger incentives FIEs get, the bigger losses they incur

Last update 16:00 | 16/03/2019

VietNamNet Bridge – More and more foreign invested enterprises (FIEs) have reported losses, though they continue to enjoy attractive investment incentives. Economists say this is ‘abnormal’.

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There are 21,400 FIEs in Vietnam

A Ministry of Finance’s (MOF) report presented at a recent working session with Deputy PM Vuong Dinh Hue showed a high proportion of unprofitable FIEs.

There are 21,400 FIEs, which account for 3 percent of total existing enterprises in Vietnam. FIEs maintained high growth rates in revenue and profits from 2011 to 2017. In 2017 alone, FIEs’ turnover soared by 28 percent compared with the year before, while their asset growth rate reached 22 percent and stockholder equity 14 percent. Tiếp tục đọc “FDI paradox: the bigger incentives FIEs get, the bigger losses they incur”

Vietnam fears effects of US tax bill on foreign investment

Last update 10:38 | 04/02/2018

Tax reform passed by the US Congress at the end of last year may affect Vietnam’s economy as US investors are likely to send their investment back home, where the corporate income tax (CIT) rate has been slashed, Vietnamese economic experts have warned.

Vietnam fears effects of US tax bill on foreign investment, vietnam economy, business news, vn news, vietnamnet bridge, english news, Vietnam news, news Vietnam, vietnamnet news, vn news, Vietnam net news, Vietnam latest news, Vietnam breaking news

The sweeping tax reforms, signed into law by President Donald Trump on December 22, include reductions in the CIT rate from 35 per cent to 21 per cent and a minimum of 10.5 per cent rate on any foreign profits US companies send home.

The tax overhaul should encourage corporations to relocate or build new operations in the US instead of overseas, where the CIT rate is often lower.

The US Government also hopes that US companies will repatriate their foreign cash piles given the attractive 10.5 per cent tax rate. Tiếp tục đọc “Vietnam fears effects of US tax bill on foreign investment”

Next-generation FDI: what’s the new strategy?

Last update 16:00 | 04/12/2017
 VietNamNet Bridge – The draft strategy on attracting FDI in 2018-2023 is being compiled by the Ministry of Planning and Investment (MPI) with support from the World Bank. 

vietnam economy, business news, vn news, vietnamnet bridge, english news, Vietnam news, news Vietnam, vietnamnet news, vn news, Vietnam net news, Vietnam latest news, Vietnam breaking news, FDI, MPI, tax incentives

MPI is drafting the strategy on attracting FDI in 2018-2023

After 30 years of foreign investment, 24,000 projects with total investment capital of $313 billion have been implemented in Vietnam. FDI accounts for 25 percent of total investment capital and makes up 20 percent of GDP.

Vietnam, in an effort to attract FDI, has pursued an open policy, offering many incentives to investors. Tiếp tục đọc “Next-generation FDI: what’s the new strategy?”