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New resolution on Vietnam’s National Energy Development17 December 2025

On 11 December 2025, Vietnam’s National Assembly passed Resolution No. 253/2025/QH15 on National Energy Development for 2026–2030, effective from 1 March 2026. This landmark Resolution introduces significant changes impacting offshore wind, power project bidding, and the DPPA mechanism:

"The electricity price under private DPPA is negotiated between buyer and seller (price cap removed)."

1. DPPA Mechanism

  • expanded eligibility for DPPA participation to include electricity retailers in: industrial parks, economic zones, export processing zones, industrial clusters, high-tech zones, IT parks and high-tech agricultural zones;
  • the electricity price under private DPPA is negotiated between buyer and seller (price cap removed); and
  • the specific scale and criteria for ‘large consumers’ eligible to participate in DPPA mechanism will be further guided by the Minister of Industry and Trade (“MOIT”).

2. Master planning adjustment

  • approval authority for adjusting Power Development Plan: the MOIT shall approve adjustments for updating the power development plan and report the implementation results to the Prime Minister; and
  • adjustment for updating the planning must not increase the total installed capacity of any type of power source specified in the approved power development plan.

3. Bidding prices for power projects

  • except for thermal power, small modular nuclear and offshore wind projects, the bid winning price is the electricity tariff in the PPA and must not exceed the applicable price framework in the bidding year (for the avoidance of doubt, LNG to power projects have been excluded from the application of this Resolution);
  • the buyer must negotiate and conclude the PPA with the winning investor within 30 days from receipt of a valid negotiation dossier. There is no consequence if the parties fail to agree within this time frame; and
  • these provisions apply to power projects scheduled to commence operation between 2026 and 2030, with operational phases falling within 2025–2030 as specified in the power development planning.

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"The buyer must negotiate and conclude the PPA with the winning investor within 30 days from receipt of a valid negotiation dossier."

4. Offshore wind

  • offshore wind power projects that connect to and sell electricity to the national grid are classified among the cases in which investor may be directly appointed (without land use rights auction or investor selection bidding) if the following conditions are met:
      • included in the Power Development Plan and scheduled for operation during 2025–2030; and
      • comply with requirements on national defense, security, sovereignty, marine resources and environment, maritime and petroleum;
  • electricity price shall not exceed the ceiling price of the applicable offshore wind power price framework in the year of negotiation; and
  • enterprises use their own production/business funds for surveying offshore wind projects. If a project fails or is not selected, the survey costs can still be accounted for as production or business costs for the purpose of calculating corporate income tax, rather being a total loss, which is generally more advantageous for domestic enterprises with other business activities in Vietnam than for offshore investors.
We will provide a comprehensive analysis of the implications of this new legislation in due course.

 

Hanoi Trainee Ha Hoang and Intern Hoang Nguyen also contributed to this article.

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