In the following article, we use the term “advocacy” to refer collectively to the efforts done by EuroCham, AmCham, and Vietnam Business Forum (VBF), as they are intertwined.
Over the past five years, energy advocacy in Vietnam has shiftedfrom broad knowledge-sharing to pushing highly specific agendas—many of which have not aligned with the country’s long-term energy security or economic interests.
This was best embodied in the Greenbooks and Made in Vietnam Energy Plans, which promoted policies that favored a small subset of businesses rather than the broader industry or the Vietnamese economy.
Fortunately, the revised Power Development Plan 8 (PDP8) has largely ignored these efforts and instead prioritizes what is best for Vietnam.
The Last Five Years: A Focus on the Wrong Priorities
Advocacy efforts pushed for costly, expensive projects such as LNG and Offshore wind in PDP8 when Vietnam has abundant solar and onshore wind power potential that can be maximized at much lower costs.
Unreasonably high Feed-in-Tariffs (FiTs) which would have resulted in significant financial losses for Vietnam Electricity (EVN). These suggested policies primarily served a handful of large foreign corporations, rather than Vietnam’s economic interests as a whole.
LNG & Offshore Wind Dilemma
International, multi-billion-dollar energy companies are capable of executing LNG projects responsibly at scale. However, “paper projects” driven by speculative advocacy sought economic rent from policies that were never in Vietnam’s best interest. This misaligned advocacy delayed LNG project development unnecessarily, and was already miscredited by Institute for Energy Economics and Financial Analysis (IEEFA) back in 2021.
Likewise, Offshore wind under terms that were ultimately unsustainable and have now (after 5 years) been soundly rejected by the Vietnamese Government. Almost all large, listed companies that initially pushed for these policies have since exited Vietnam, proving their demands were unrealistic from the start. The only remaining international players in Offshore Wind are unlisted companies, which are not required to disclose their business decisions to stock markets—yet they, too, have realized the limitations of past advocacy efforts.
What Should Be The Focus Now?
LNG from large international companies can provide a stable baseload at reasonable prices and support the massive roll-out of cheap renewable power, while also supporting Vietnam’s broader trade and political relationships.
Onshore and nearshore wind offer the same basic benefits as Offshore wind—but at significantly lower costs—especially when structured through the DPPAs that do not financially burden EVN. Reintroducing a FiT would only repeat the issues seen in PDP7 implementation.
Ground-mounted solar is more complex, as it is not well-suited for DPPA models. However, a merchant market approach may be a viable alternative. Again here, reintroducing a FiT would only repeat the issues seen in PDP7 implementation.
No FiTs should be offered for solar or wind projects—this will drive down development costs naturally, ensuring that all viable projects reach an acceptable cost level under the DPPA framework, where EVN carries no financial risk.
Lessons Learned: Moving Towards a Brighter Future
The revised PDP8 is a major step in the right direction, and we believe it will be a great success.
The lesson here is clear: energy policy must be driven by Vietnam’s long-term interests—not by the short-term goals of a few.
Despite the wasted time, Vietnam always looks forward. We now have the foundation for a more sustainable, balanced, and economically sound energy future.
Indochina Energy Partners (IEP) supports businesses in navigating Vietnam’s energy transition through tailored solutions in solar, wind, Direct Power Purchase Agreements (DPPA), battery energy storage systems (BESS), and bioenergy.
For more information or to explore collaboration opportunities, please contact us at: sales@indochina-ep.com
