Month: November 2024

Wind power in Vietnam holds significant potential for growth as a scalable alternative to thermal power, considering the country’s favourable natural conditions. With a coastline spanning 3,000 kilometres and consistently high mean wind speeds, Vietnam has many opportunities to expand its installed wind capacity. Given the suitable water depth, distance to the shore, and good offshore wind resources, large areas of Vietnam’s territorial waters are suitable for offshore wind developments.
Developing offshore wind projects requires a complex and coordinated supply chain that involves various stakeholders, activities, and resources. The supply chain covers the entire lifecycle of offshore wind projects, from planning and design to construction and installation, operation and maintenance, decommissioning and recycling. The supply chain faces many challenges and risks, such as technical, financial, regulatory, and logistical issues. Vietnam boasts a pre-existing supply chain in parallel industries with synergies to offshore wind, including oil and gas and onshore wind. This suggests the country’s potential to leverage its existing experience in parallel industries to supply and facilitate the development of offshore wind projects. Considering its advantageous location in the APAC region, marine traffic, and port infrastructure, Vietnam also has the potential to become a supply chain hub for offshore wind components, particularly in the following areas:
• Fabrication of jacket foundations;
• Tower manufacturing;
• Nacelle assembly

1. Vietnam Overview
For the purpose of this guide, Vietnam can be divided into two primary regions: the northern and southern areas.
Northern Region:
In the years 2018-2021, renewable energy in Vietnam experienced significant growth, with most projects concentrated in the Central Highlands, Central South, and South regions. Meanwhile, the Northern region mainly developed hydroelectric and thermal power projects, many of which faced delays compared to the planned schedule. This has led to difficulties and challenges in the operation of the national power system. To mitigate the risk of power shortages, especially during hot periods in the Northern region, there is a need to accelerate the development of renewable energy sources in this area. Additionally, with the Northern economic focal area (Ha Noi, Hai Phong, QuangNinh, Hai Duong, etc.) being a power consumption centre, leveraging the offshore wind potential and aiming for a balanced development of source-load relationships, minimizing long-distance transmission is necessary. PDP 8 encourages further development of renewable energy sources in the Northern region up to the year 2030. Seaports in Hai Phong and Quang Ninh currently specialize in shipbuilding. This location is well-suited for researching and receiving technology transfers, domesticating mechanical engineering products, and supplying equipment for renewable energy power plants, particularly offshore wind power.
Southern Region:
Southern / Southern Central regions possess high potential of renewable energy especially in Ninh Thuan, Binh Thuan areas. Aside from high wind speed and ideal seabed condition for offshore wind foundation installation, Ninh Thuan also has potential to develop international ports to serve the offshore wind industry. Additionally, Ninh Thuan and Binh Thuan areas are situated in proximity to the Southern economic focal area (Ho Chi Minh City, Binh Phuoc, Tay Ninh, Ba Ria – Vung Tau and Binh Duong) which is a power consumption centre. Utilizing the existing potential of renewable sources in the Southern / Central Southern regions, avoiding long-distance transmission was therefore key in the most recent renewable energy developments. Though seaports in the Southern Central region are mainly under development with an international orientation. Ho Chi Minh and Ba Ria – Vung Tau ports have long been specialized in shipbuilding and fabricating large scale maritime and oil & gas equipment and vessels. Their recent contracts in manufacturing offshore wind components (including jacket foundations and OSS) are proof of the existing capabilities and beginning of an offshore wind supply chain. The southern area, thanks to its existing oil and gas manufacturing infrastructure, lends itself to a faster development timeline.

2. Installed Capacity
The installed capacity for wind power projects in Vietnam has seen a significant increase in recent years, reaching 4.8 GW at the end of 2023, with 3.9 GW of onshore wind projects and 874 MW of nearshore projects.
These projects are primarily situated in the central coastal provinces of Quang Binh and Quang Tri, as well as the southern coastal provinces of Ninh Thuan and Binh Thuan. Additionally, numerous wind power plants are located in the highland provinces of Gia Lai, Kon Tum, and a significant number are spread across the Mekong Delta. A large proportion in the Mekong Delta area are installed in nearshore conditions.
Whilst there is a current base of onshore and nearshore wind projects, no offshore projects have been constructed to date.

3. OFW projects with a survey license
Only three OFW projects have been granted survey licenses to date, including:
a) Thang Long OFW Power Project in Binh Thuan province, developed by Enterprise Energy Group, with a capacity of 3,400 MW.
b) The OFW project of Vietnam Oil and Gas Technical Services Corporation (PTSC) and Sembcorp in Ba-Ria Vung Tau province with the purpose of exporting 1.2 GW to Singapore pursuant to Singapore Energy Market Authority tender.
c) Ben Tre Wind Farm, co-developed by Mainstream and Advanced Information Technologies Corporation (AIT), with a capacity of 500 MW.

4. Grid planning
The power grid in Vietnam relies on a 500 kV transmission line stretching from the South to the North and is currently operation on two circuits. This backbone is supported by 220 kV and 110 kV HVAC infrastructure.
However, Vietnam´s transmission infrastructure is struggling to keep up with the growing demand for electricity across regions, leading to shortages and load shedding. To address this issue, plans are underway to upgrade the power infrastructure at all voltage levels. This includes constructing dedicated substations for connecting OFW power at 500 kV and 220 kV, as well as installing a third circuit for the 500 kV backbone.
Private sector investment into Vietnam´s grid has been encouraged since 2004 but has been limited due to constraints under the legal framework. Following Law 03/2022/QH15, private investors are permitted to develop and operate grid assets, however, the implementing investment framework requires clarification.

5. National marine spatial planning (NMSP)
The NSMP was approved on 28 June 2024 under Resolution 139/2024/QH15 by the National Assembly. OFW development is to be encouraged in 28 areas in the South Western sea region, In addition to other potential sea areas in other regions. Investigation, assessment, effective and sustainable exploitation of marine renewable energy sources is identified as a nationally important project and will be implemented throughout the entire planning period from 2021 to 2050.
A plan for implementation for of the NMSP and issuance of relevant support materials (e.g. data, maps, diagrams) will be completed in parallel (NMSP Implementation Plan).

6. Port Infrastructure
The ports of Vietnam have been assessed to determine their capability to support the logistics and operations of offshore wind projects. Suitable ports were identified for the assembly, staging, and transportation of foundations and wind turbine components. The analysis was based on various factors such as the port’s available space, water depth, berthing capacity, lifting equipment, accessibility, and the infrastructure’s overall readiness to handle components such as nacelles, blades, towers, and foundations. Consequently, ports with potential to support offshore wind developments have been identified.
Ports in the northern regions, including those in the Hai Phong cluster, currently demonstrate low capabilities in supporting the offshore wind industry, requiring higher investments and longer development timelines. It was found that height constraints of numerous prominent Northern shipyards would significantly limit the transportation of foundations. This limitation combined with geographical proximity to electrical components and cabling manufacturing (LS Vina Cables & System JSC, GE Vietnam Limited and ABB Automation and Electrification Vietnam Company Limited) make them ideal for future development of smaller complex components such as WTGs assembly lines or OSS components. Finally, these ports can also leverage their strong shipbuilding experience to build offshore wind dedicated vessels.
Ports in the southern regions present favourable conditions for the construction of larger components, likely influenced by the established presence of the oil and gas sector. A notable location would be the Vung Tau Port cluster, where PTSC is pioneering in the offshore wind industry. Congested quayside and yard area due to oil & gas operations in Vung Tau might obstruct the marshalling activities for future developments. The Thi Vai port cluster could also act as a staging and manufacturing hub, thanks to the presence of major manufacturing facilities for wind towers and steel foundations (CS Wind and SREC). This cluster also presents the potential for future development for manufacturing of monopole foundations.
To progress the development of the domestic supply chain capabilities, the southern ports should continue fostering their foundations and towers manufacturing capabilities. Ports in Vung Tau should reach a consensus allowing for a coordinated approach, increasing the facilities’ capabilities and usage efficiency. The coordination of the various activities among ports is essential and allows for the optimisation of logistical operations ensuring the projects’ seamless execution.

7. Local Suppliers
Domestic suppliers have been identified that have already supported offshore wind projects or have announced plans to enter the offshore wind supply chain. The available information focused on supplier’s track record, manufacturing capabilities, quality standards, and future expansion plans.
The suppliers’ assessment indicated that Vietnam’s existing capacity to manufacture foundations and towers could meet specific offshore wind requirements. However, as the domestic, and consequently regional, demand is anticipated to increase, the existing infrastructure will not be able to support the delivery of key components such as WTG blades and nacelles. This is mainly linked to the current inactivity of WTG OEMs who have yet to confirm plans to establish such manufacturing facilities in Vietnam.
The suppliers acknowledged that their investment decisions are highly linked to the development of Vietnam’s offshore wind market which should be backed-up by a consistent project pipeline. Having a consistent project pipeline is fundamental to the development of the domestic offshore wind supply chain and infrastructure.
Another key factor which can contribute to the development of a domestic supply chain is the finalisation of an offshore wind specific regulatory framework. Vietnam, as of the time of writing of this report, has yet to establish such a regulatory framework, resulting in the developers’ unwillingness to engage with the domestic suppliers and commit investment in the local infrastructure. The suppliers are now making preliminary steps to kick-start the development of a domestic supply chain conducting market studies, establishing connections with other local suppliers, fostering relations and partnerships, as well as promoting their offshore wind capabilities through marketing initiatives and the establishment of representative sales offices.

8. Job creation
Offshore wind projects provide job opportunities across the project’s entire lifecycle, spanning from the development, construction, and operation phases. The available information indicated a promising potential to generate numerous high-quality jobs, offering opportunities for technology transfer and knowledge exchange/sharing. The domestic personnel could potentially be mobilised to various positions in the offshore wind industry, such as mechanical engineering, electrical engineering, environmental expertise, and project management. As the offshore wind sector continues to expand, the potential for direct, indirect and induced jobs will increase.
Offshore Wind Supply Chain for Fast-Track Scenario in Vietnam Page 14 It is estimated that about 55,000 jobs including direct, indirect and induced jobs, could be generated throughout the development of 6 GW offshore wind capacity as presented under the PDP 8. Such development could create two inter-regions renewable energy industries, northern and southern, with associated service centres. A specific emphasis would be on manufacturing, servicing, research and training, and operation & maintenance activities. Key provinces that could be benefited by the development of offshore wind project would be Quang Ninh, Hai Phong for the North, and Ho Chi Minh, Vung Tau, Binh Thuan and Ninh Thuan for the South.

9. PTSC
PTSC, a member of Vietnam Oil & Gas Group (PetroVietnam- PVN), traces its origins back to Geophysical Group 36F, established in 1966. Over 47 years of development, PTSC has achieved significant milestones, propelling itself to the forefront as a premier contractor in delivering technical services to the oil & gas (O&G) industry and various other sectors within Vietnam and the broader region.
Today, PTSC stands as the leading local EPC/EPCI Technical Services Provider with a proven track record of over 100 O&G projects in Vietnam and internationally. This wealth of experience underscores their capability to navigate and excel in complex energy projects. Leveraging its extensive offshore engineering expertise, PTSC strategically entered the offshore wind sector at the close of 2021 with dual pivotal roles as a Technical Services Provider (Manufacturing Contractor) and Investor & Developer.
As a technical services provider, PTSC commenced its first milestone in this sector by winning the manufacturing contract for 02 units of Offshore Substations (OSS) in 2022 for The Hai Long 2 and Hai Long 3 Offshore Wind Farms in Taiwan. In consortium with Semco Maritime, PTSC has cumulatively secured the manufacturing contracts for 9 OSS units, serving leading offshore wind developers in Taiwan & Europe markets by the end of 2023. Another significant achievement for PTSC was securing the Procurement and Construction contract (EPC) in May 2023 for 33 Suction Bucket Jacket (SBJ) foundations – the first to be manufactured in Asia – for the Greater Changhua Offshore Wind Farms in Taiwan. By December 2023, PTSC recorded a substantial total backlog for contract value in the offshore wind sector, exceeding 1.2 billion USD. PTSC is poised to participate in numerous projects involving the fabrication of components (open to various types) for offshore wind power in the near future. PTSC plays a crucial role as a linchpin in the supply chain for offshore renewable energy in Vietnam.
In its role as an investor and a developer, PTSC is distinguished as one of the foremost local investors and developers for offshore wind farm projects in Vietnam. Presently, in collaboration with Sembcorp Utilities Ltd Pte (SCU, Singapore), PTSC is actively engaged in the joint development of the 2.3 GW Offshore Wind Farms Project off the south coast of Vietnam. This project is part of the Government-to-Government cooperation, with the aim of exporting green electricity to Singapore. Notably, PTSC stands as the first and only domestic investor in Vietnam to have been granted the extensive marine survey license for an offshore wind project by MONRE.
PTSC claims to be capable of supporting the following key supply chain work packages. However, it is noticed that to some extent despite their O&G detailed design experience, PTSC currently might lack OWF detailed design capabilities. This deficiency is particularly evident in their lack of involvement in Integrated Load Assessment or experience in managing large capacity electrical cables. However, PTSC’s strategic partnerships with leading international well-established offshore wind investors/developers and technical services providers, such as Furgo and Semco Maritime would help augment PTSC’s proficiency in those fields.

10. Challenges
• No supply chain specific incentives are in place so far, which creates hurdle to the development of a domestic offshore wind supply chain. The government is advised to take actions, starting with the allocation of investments to improve the domestic port infrastructure, which could act as marshalling or staging port for projects not only in Vietnam but also to other countries in the vicinity.
• Vietnam’s current supply chain strengths lay within the manufacturing of fixed-bottom offshore wind foundations. A few identified suppliers have already been awarded contracts to supply such structures to other regional markets.
• Vietnamese suppliers have established relationships with other international players aiming to exchange experience and knowledge, which will facilitate the development of the domestic supply chain. Semco Maritime and PTSC have forged such a partnership for the delivery of two offshore substations for the Hai Long project in Taiwan.
• Vietnam’s capabilities to provide wind turbine units (nacelle and blade) are limited as there is no manufacturing facility present in the market. A significant investment will be required to establish such facilities, which could require up to 3 years to be fully operational.
• Vietnam’s port infrastructure is suitable and capable of supporting the nearshore projects. However, the infrastructure will require investments to upgrade the port’s facilities. Targeted investment is advised, allowing for the creation of two clusters, one in the North and one other in the South

Legal and regulatory frameworks for OFW project development in Vietnam
OFW is at a nascent stage in Vietnam and there is not currently a national government strategy or plan for the sector. OFW sites have not yet been identified or zoned by the government within the context of a national plan.
Development is regulated and governed by the legal and regulatory framework that applies to both onshore and OFW. However, OFW projects have been delayed by issues impacting the application and interpretation of this framework.
A definition of an OFW projects is currently provided under Article 2.7 of Circular 19/2023/TT-BCT (Circular 19). Under Circular 19 an OFW project is defined as a grid-connected wind power plant with wind power turbines built in sea area beyond 6 nautical miles (nm) from the mainland. However, Circular 19 is a ministerial-level document and it is only applicable in a limited context (i.e. for the generation of solar and wind power tariffs) and not the OFW sector as a whole.
The current Draft Law on Electricity proposes a new definition for OFW projects under Article 24.5:
“A marine wind power plant” is a wind power plant with all wind turbines built and operated in the territorial sea of Vietnam and located outside the average [lowest] tide level line over many years towards the sea. An offshore wind power plant includes:
(a) a nearshore wind power plant being a marine wind power plant with all turbines built within 6 nautical miles from the average lowest tide level line for many years towards the sea, and
(b) an offshore wind power plant being a marine wind power plant, with all wind turbines built beyond 6 nautical miles offshore from the average tide level line for many years.”

PDP8
Given that energy transition is one of Vietnam´s strategic priorities, Vietnam´s PDP9 places a focus on clean energy development. PDP8 aims to achieve 31 to 39 percent of renewable energy generation capacity by 2030 and 68 to 72 percent by 2050. OFW is planned to reach approximately 6 GW by 2030 and between 70 to 91.5 GW, with the potential for further growth in case of technological development, competitive costs, and swift transmission build out.

PDP8 Implementation Plan
The Implementation Plan for PDP8 was approved under Decision 262/QD-TTg of the Prime Minister dated 1 April 2024 (Decision 262). Key contents of the PDP8 Implementation Plan include:
Approval and details of:
– Priority power source and grid projects, including regional interconnected grid projects.
– Renewable energy projects for development to 2025 (small-scale hydropower, onshore wind power projects, biomass, waste-to-energy, etc.)
– Prioritised schemes and projects on policy and technology capacity enhancement with respect to the power sector.
Policy and planning to:
– Allocate resources and capital in power sector investment.
– Facilitate the energy transition to clean and renewable energy sources.
– Coordinate state agencies in the implementation of PDP8.
– Assign tasks and responsibilities for implementation of PDP8 under Decision 500/QD-TTg.

Key power projects
Priority power projects for development in the period to 2030 are detailed under PDP8, and in the PDP8 Implementation Plan. OFW projects are not included in the priority project list under PDP8 or the PDP8 Implementation Plan.
A list of key energy projects and programmes have also been identified under Decision 270/QD-TTg of the Prime Minister dated 2 April 2024 (Decision 270). Within the power sector, Decision 270 identifies key power source (thermal, hydro, pumped storage hydro) and grid projects.
Development and implementation of an OFW pilot programme (OFW Pilot Scheme) is a key project under Section 7, Appendix, Decision 270. Projects under Decision 270 will be overseen by the State Steering Committee for key energy projects established under Decision 1447/QD-TTg dated 22 November 2023 of the Prime Minister.
The MOIT plans to submit the OFW Pilot Scheme in November 2024.

Pilot OFW Projects
The MOIT has been assigned responsibility for the development of the OFW Pilot Scheme. This includes an assessment of obstacles under the current legal framework and an identification of regulatory reform required.
The MOIT has provided an assessment of OFW potential and legal and regulatory reform required. Following receipt of recommendations from the MOIT, instructions with respect to OFW Pilot Scheme have been issued under Notice 356/TB-VPCP dated 30 July 2024. Pursuant to this Notice the MOIT, in conjunction with EVN and PVN, are required to devise the OFW Pilot Scheme.
On 1 October 2024 the Government assigned the MOIT to report on the necessary procedures to assign PVN responsibility to conduct a survey and pilot scheme for the implementation of OFW.

OFW Power Pricing
Rules for determining renewable energy power project price ranges have been adopted under Circular 19/2023/TT-BCT dated 1 November 2023, effective from 19 December 2023 (Circular 19). Following this Circular, EVN will manage the development of annual renewable energy power price ranges, which are subject to Electricity Regulatory Authority of Vietnam (ERAV)´s appraisal and the MOIT´s approval. The price calculation will be based on data from a standard OFW plant.
It is expected that the MOIT will issue a supplementary Decision which provides solar and wind tariff ranges, including OFW. However, pending this Decision, OFW tariffs are not currently available.

Electricity wholesale market (VWEM) operation rules
On 12 March 2024, the MOIT published a Draft Circular on the operation rules for VWEM for public consultation. Under this Draft, grid-connected power plants with an installed capacity of over 30 MW are required to directly participate in the VWEM, except certain special power plants and renewable energy power plants.
Non-hydro renewable energy power plants will participate indirectly or directly in the VWEM and on a voluntary basis, subject to having an installed capacity larger than 10 MW and required infrastructure.

Direct power purchase agreements (DPPA) mechanism
On 3 July 2024, the Government issued Decree 80/2024/ND-CP approving the introduction of a DPPA mechanism in Vietnam.

Investment Frameworks
Two investment frameworks are available for OFW development in Vietnam. Projects can be developed as an Independent Power Producer (IPP) project, under the Law on Investment and related regulation, or as a Public Private Partnership (PPP) project under the Law on Public Private Partnership. There are significant parallels between the two licensing and permitting processes, however, there are also key differences. To date, planned IPP projects remain at an early stage of development and no OFW projects in Vietnam have been developed as a PPP project.

Investor Selection
Currently, the Draft Law on Electricity includes a provision on investor selection under Article 33.3:
From time to time, depending on socio-economic development conditions, the Government shall provide specific regulations on:
a) Conditions for investors to participate in bidding;
b) Selection of investors for implementation of offshore wind power projects other than as stipulated in sub-clause 1 of this Article to achieve the targets for development pursuant to the master planning and demand for attraction of investors in this sector;
c) Selection of investors for development of offshore wind power projects for which survey has been approved pursuant to Clause 31.3(c)
(…)

Site Planning
OFW sites have not yet been identified or zoned by the Government within the context of a national plan and the country currently adopts an open-door approach to site selection. Planning is currently on the basis of national and regional capacity only. In addition to general plans such as the National Master Plan under Resolution 81/2023/QH15, OFW projects are governed by specialised plans, such as:
– National Energy Master Plan (Decision 893/QD-TTg)
– National Energy Master Plan Implementation Plan (Decision 338/QD-TTg)
– PDP8 (Decision 500/QD-TTg)
– PDP8 Implementation Plan (Decision 262/QD-TTg)
– National Energy Development Plan (Decision 215/QD-TTg)
– National Marine Spatial Plan (Resolution 139/2024/QH15)
The basis for inclusion of wind power project in the National Power Development Plan (NPDP) is prescribed under Circular 02/2019/TT-BCT (Circular 02) and the Law on Planning. The investor submits their pre-Feasibility Study documents to the MOIT through the Provincial People´s Committee (PPC)/Provincial Department of Planning and Investment (DPI) and engages with the MOIT and relevant agencies to progress the application. The PPC proposes supplementing the project into the NPDP (on an independent basis or in conjunction with other projects). The MOIT gathers the related agencies´ opinions and submits these to the Prime Minister for consideration and a final decision.

Site Survey Permit
The OFW site survey process in Vietnam is currently regulated by Decree 11/2021/ND-CP which regulates activities including the measurement, observation, investigation, survey and assessment of marine resources under Article 9.4. Under the current process an investor submits a survey application to the Ministry of Natural Resources and Environment (MONRE).
The Prime Minister has authority over projects where the investment policy is approved by the National Assembly or the Government. With the exception of projects under the authority of the Prime Minister, the MONRE is the competent authority for, among others, (i) inter-regional sea areas, sea areas beyond 6 nm from the lowest sea level edge of the mainland and islands (sea level measured as an average over many years); and (ii) sea areas related to foreign investors or foreign-invested economic organizations. With the exception of projects under the authority of the Prime Minister and the MONRE, the relevant PPC can make decisions on sea areas within 6 nm from the lowest sea area level edge of the mainland and islands (sea level measured as an average over many years).
Due to ambiguity with respect to the rights of foreign-based investors to conduct site surveys at sea, engagement with local firm with respect to survey activity has been an option selected by some foreign developers.
It is possible that government coordinated bidding will be introduced with respect to project sites going forward, however, the basis and structure of such a mechanism has not yet been determined.
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Please do not hesitate to contact Dr. Oliver Massmann at omassmann@duanemorris.com if you have any questions. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.

Am 22. Oktober 2024 erließ die vietnamesische Regierung die lang erwartete Verordnung Nr. 135/2024/ND-CP (Verordnung 135) über Förderrichtlinien- und mechanismen zur Entwicklung von Aufdach-Solaranlagen zur Eigenproduktion und zum Eigenverbrauch. Im Vergleich zu ihrem letzten Entwurf enthält die Veordnung 135 günstigere Regelungen für Entwickler von Aufdach-Solaranlagen (RTS). Im Folgenden möchten wir auf die wichtigsten Regelungen der Verordnung 135 eingehen:
1. Eigenproduktion und Eigenverbrauch im Sinne der Verordnung 135: Die Veordnung erfasst RTS-Anlagen, die auf Dächern verschiedener baulicher Anlagen installiert werden, darunter Wohnhäuser, Büros, Industriezonen, Cluster, Exportzonen, High-Tech-Parks, Wirtschaftszonen, Produktionsanlagen und Geschäftsniederlassungendie. Unter RTS-Energie zur Eigenproduktion und zum Eigenverbrauch wird gemäß Verordnung 135 Energie verstanden, die von Organisationen oder Einzelpersonen zur Bedarfsdeckung selbst erzeugt und verbraucht wird.
2. Grundsätze für die Entwicklung von RTS-Anlagen zur Eigenproduktion und zum Eigenverbrauch:
• Bei der Durchführung des Baus und der Projektentwicklung müssen alle geltenden Vorschriften in Bezug auf Investitionen, Bau, Land, Umwelt, Sicherheit, Brandbekämpfung und Prävention eingehalten werden;
• Während der Investitions- und Bauphase der RTS-Anlagen sind importierte und gebrauchte Solarmodule und Gleichstrom-Wechselrichter streng verboten.
3. Geregelte Verstöße:
• Entwicklung von RTS-Anlagen, die nicht der Verordnung 135 entsprechen;
• Entwicklung, Installation und Betrieb von netzgekoppelten RTS-Anlagen, die die behördlich angemeldete/registrierte Kapazität überschreitet;
• Nichteinhaltung der von der zuständigen Behörde erlassenen Stilllegungsanordnung.
Es ist darauf hinzuweisen, dass der letzte Verordnungsentwurf den Handel mit bzw. Verkauf von RTS-Energie untersagte. In der neuen Verordnung 135 fehlt jedoch eine solche Regelung.
4. Modelle: Gemäß Verordnung 135 haben Erzeuger das Recht, ihre RTS-Stromanlagen an das Netz anzuschließen. Im Falle des Netzanschlusses kann überschüssiger Strom bis zu 20% der installierten Kapazität an Vietnam Electricity (EVN) verkauft werden. Beabsichtigt ein Erzeuger den Netzanschluss und den Verkauf von überschüssigem Strom, ist dieser zur Einhaltung der in der Verordnung 135 festgelegten Standards verpflichtet.
5. RTS-Stromanlagen ohne Netzanschluss: RTS-Anlagen, die nicht an das Netz angeschlossen werden, benötigen keine Betriebserlaubnis und können ohne Kapazitätsbeschränkungen errichtet werden. Vor der Installtion müssen die Erzeuger allerdings die zuständigen Elektrizitätswerke und das örtliche Departement für Industrie und Handel (DOIT) den Standort und die installierte Kapazität der RTS-Anlage melden. Darüber hinaus sind sie verpflichtet, die Installation der RTS-Anlage bei der zuständigen Behörde für Bauwesen, Brandschutz und Brandbekämpfung anzuzeigen.
6. Netzgekoppelte RTS-Anlagen:
• RTS-Anlagen mit einer Kapazität von weniger als 100 kW:
Die Erzeuger sind gegenüber dem DOIT und den zuständigen örtlichen Behörden für Bauwesen, Brandschutz und Brandbekämpfung meldepflichtig. Die Entwickler können wählen, ob überschüssiger Strom in das nationale Netz eingespeist werden soll. Soll überschüssiger Strom nicht in das nationale Netz eingespeist werden, müssen Erzeuger eine Nullausfuhrvorrichtung installieren.
• RTS-Anlagen mit einer Kapazität von 100 kW bis unter 1.000 kW:
Es gelten dieselben Bestimmungen wie für RTS-Anlagen mit einer Leistung von weniger als 100 kW. Darüber hinaus müssen die Erzeuger die Installation EVN mitteilen. Überschüssiger Strom kann verkauft werden, sofern die Kapazität nicht diejenige Gesamtkapazität übersteigt, die der jeweiligen Provinz/Stadt im Rahmen des nationalen Energieentwicklungsplans und seines detaillierten Durchführungsplans zugewiesen wurde.
• RTS-Anlagen mit einer Kapazität von 1.000 kW oder mehr:
Die Entwickler müssen beim DOIT ein Erzeugungsregistrierungszertifikat beantragen. Eine Strombetriebsgenehmigung ist erforderlich, sofern die Erzeuger überschüssigen Strom an das Netz verkaufen möchten. Erzeuger müssen zusätzlich das vorgeschriebene Verfahren zur Unterstützung des nationalen Energieplans befolgen, wenn ihre Kapazität diejenige Gesamtkapazität übersteigt, die der jeweiligen Provinz/Stadt im Rahmen des nationalen Energieentwicklungsplans und seines detaillierten Durchführungsplans zugewiesen wurde. Wenn überschüssiger Strom nicht in das nationale Netz eingespeist wird, muss eine Nullausfuhrvorrichtung installiert werden.
7. Batteriespeichersystem („BESS“): Gemäß Verordnung 135 wird Erzeugern die Installation von BESS empfohlen, um einen zuverlässigen und sicheren Stromanlagenbetrieb zu gewährleisten.
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Bei Fragen und für weitere Einzelheiten steht Ihnen Dr. Oliver Massmann unter omassmann@duanemorris.com gerne zur Verfügung. Dr. Oliver Massmann ist Generaldirektor von Duane Morris Vietnam LLC.

On 22 October 2024, the long-awaited Decree No. 135/2024/ND-CP regulating policies and mechanisms to encourage the development of self-production and self-consumption rooftop solar power (“Decree 135”) was finally issued by the Government. At a glance, Decree 135 offers more favorable provisions to rooftop solar (“RTS”) system developers compared to its latest draft. We would like to point out the key notes of Decree 135 as follows:
1. Self-production and self-consumption under Decree 135: Mechanisms and policies under Decree 135 are provided for the development of self-production and self-consumption RTS power installed on the roofs of various constructions including individual residences, offices, industrial zones, clusters, export processing zones, high-tech parks, economic zones, production facilities, and business establishment. Self-production and self-consumption RTS power, according to Decree 135, refers to electricity produced and consumed by an organization or individual to meet their demands.
2. Principles for Development of self-production and self-consumption RTS power systems:
• The implementation of the construction and project development must be in compliance with all applicable regulations on investment, construction, land, environment, safey, firefightigin and prevention;
• During the RTS power system’s investment and construction phase, imported and used solar panels and DC-to-AC converters are strictly prohibited.
3. Regulated violations:
• Developing self-production and self-consumption RTS power systems not in line with Decree 135;
• Developing, installing and operating the self-production and self-consumption grid-connected RTS power systems with a capacity exceeding the notified/registered capacity approved by a competent authority;
• Failing to comply with dispactch orders given by the competent authority.
It is worth noting that, in the latest draft, using regulations for encouragement of self-production and self-consumption RTS power systems to trade or sell electricity for other organizations/individuals is a violations. However, such a provision is not provided in Decree 135.
4. Models: According to Decree 135, developers of self-production and self-consumption RTS power systems can opt to either connect or not to connect their RTS power system to the grid. In the case of connection to the grid, no more than 20% of the RTS power system’s installed capacity may be sold to Vietnam Electricity (EVN) in exchange for the surplus power produced. Depending on whether or not they are connected to the national power grid and whether or not they have extra power production that they may sell to EVN, RTS power systems must meet a variety of standards as set out in Decree 135.
5. Mechanism for RTS power system not being connected to the grid: RTS power system in this case is not subject to the requirement of the electricity operation permit and is able to be developed without any limitation regarding its capacity. Prior to installation, the developer must inform the relevant power units and the provincial Department of Industry and Trade (DOIT) of the RTS power system’s installed capacity and location. They must also notify the provincial authorities responsible for construction, fire safety, and firefighting of the RTS power system’s installation.
6. Grid-connected RTS power system:
• RTS power systems with a capacity of less than 100kW: Developers must notify the DOIT and local construction and fire prevention and firefighting competent authorities. Developers can choose whether surplus electricity is imported into the national grid. A zero-export device must be installed if surplus electricity is not fed into the national grid.
• RTS power systems with a capacity from 100 kW to under 1,000 kW: Apart from the procedures as set out for RTS power system being less than 100kW, developers must further notify EVN and may sell the surplus electricity of no more than 20% of its actual installed capacity if the capacity has not exceeded the total capacity allocated to its local province/city under the national power development plan and its detailed implementation plan.
• RTS power systems with a capacity of 1,000 kW or more: Developers must register with the DOIT to obtain the development registration certificate. The electricity operation permit is required if the developers sell the surplus electricity to the grid. When the total capacity exceeds the capacity allocated to such province/city under the national power development plan and its detailed implementation plan, the developer must additionally follow the regulated procedure for supplementing its project to the national power planning. A zero-export device must be installed if surplus electricity is not fed into the national grid.
7. Batter energy storage system (“BESS”): According to Decree 135, installing BESS is advised for developers in order to guarantee reliable and secure power system operations.
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Please do not hesitate to contact Oliver Massmann under omassmann@duanemorris.com if you have any questions or want to know more details on the above. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.
Thank you!

Member of Financial Action Task Force (FATF)? No, Vietnam is not currently a member of FATF.
Vietnam is a member of the Asia/Pacific Group on Money Laundering (APG). For more information about the assessment of the implementation of anti-money laundering and counter-terrorist financing (AML/CFT) measures in Vietnam, please consult the APG website.
On FATF Blacklist? No. However, it is currently on the FATF’s grey list
Member of Egmont? No.
Overview of country risks
Vietnam’s deeper integration into the regional and world economy for the past few years has been a great opportunity for international money laundering crimes. However, money laundering activities only become clearly visible recently though bank accounts opening, securities trading, gambling, illegal transfer of foreign currencies out of the country, use of credit cards, etc.
Combating money laundering has become one of the top concerns, not only for the State Bank of Vietnam, but also for other relevant authorities in Vietnam. According to a report of the State Bank of Vietnam, in 2012, suspicious transactions had a total value of VND51,000 billion, while in 2013 it was VND79,000 billion and in 2014, the value went up to VND119,000 billion. This shows an increasing and alarming number of transactions suspicious of money laundering. We note that the Law on Anti-money Laundering took effect on January 1, 2013.
It seems, however, that the AML legal framework is still insufficient, guiding implementation remains unclear, awareness of credit institutions of money laundering is low, ability to detect money laundering activities is weak, information technology in AML activities is insufficient, and in particular the punishment regime for violating acts of the AML law is only formalistic. The government, especially the State Bank of Vietnam, is strongly recommended to tighten its regulations in this sector.
Key directives/legislative framework
• Law on Prevention of and Anti Money Laundering No. 14/2022/QH15, issued by the National Assembly on November 15, 2022 (the AML law);
• Decree No. 19/2023/ND-CP dated April 28, 2023 issued by the government on detailing the implementation of certain provisions of the AML law (Decree 19);
• Decree No. 88/2019/ND-CP dated November 14, 2019 issued by the government on sanctions for administrative violations against currency and banking legal regulations (Decree 88), amended by Decree 143/2021/NĐ-CP;
• Decision No. 11/2023/QĐ-TTg dated April 27, 2024 of the Prime Minister stipulating the threshold for large transactions that must be reported (Decision 11).
• Circular No. 09/2023/TT-NHNN on guiding the implementation of certain regulations on anti-money laundering, issued by the State Bank of Vietnam on July 28, 2023; and
• Penal Code No. 100/2015/QH13 issued by the National Assembly on November 27, 2015, as amended by Law No. 12/2017/QH14 dated June 20, 2017 (Penal Code 2017). Penal Code 2017 became effective January 1, 2018.
Who are the regulators/monitoring authorities?
Who are the affected/reporting entities?
The following state authorities are responsible for reporting, preventing, and fighting against money laundering activities:
• SBV is mainly responsible to the government for state administration and implementation of AML regulations.
• Ministry of Public Security is responsible for collecting, receiving and investigating information of money laundering related crimes.
• Ministry of National Defence is responsible for exchanging information and documents on money laundering activities aimed at financing for proliferation of weapons of mass destruction in Vietnam and foreign countries with the State Bank of Vietnam.
• Ministry of Finance is responsible for implementing AML measures in insurance business, securities sector, accounting service, prize-winning games and casinos, lottery, betting and other service sectors under the state management of the Ministry of Finance.
• Ministry of Construction is responsible for implementing AML measures in real estate business sector, except real estate leasing, subleasing and real estate consulting services.
• Ministry of Justice is responsible for implementing AML measures applicable to the notary public and law practising sectors.
• Ministry of Industry and Trade is responsible for implementing AML measures applicable to trading in precious metals and gems sectors, except for trading in gold bars and gold jewellery and fine arts.
• Ministry of Planning and Investment is responsible for implementing AML measures applicable to the sectors under its management.
• Ministry of Home Affairs is responsible for implementing AML measures applicable to associations, social funds, charity funds and religious institutions.
• Ministry of Foreign Affairs is responsible for implementing AML measures applicable to foreign non-governmental organisations.
• Ministry of Information and Communications is responsible for implementing AML measures applicable to telecommunications or Internet network-based game business sector.
• The People’s Procuracy and the People’s Court coordinate with other agencies in the investigation, prosecution, and resolution of money laundering crimes.
• People’s Committees at all levels are responsible for conducting legal training on AML in the province, coordinating with state authorities to implement policies, strategies and plans to prevent and fight money laundering.
• The Anti-Money Laundering Steering Committee is responsible for assisting the prime minister in preparing strategy, plans, policies and programs in the process of preventing and fighting against money laundering:
o client acceptance policy;
o processes and procedures to identify clients, verify and update client information;
o transactions which must be reported;
o the process of review, detection, handling and reporting of suspicious transactions; the way to communicate with the clients who make suspicious transaction;
o information keeping and security;
o applying temporary measures and principles of handling the cases of transaction delay;
o reporting and information supply regime to the State Bank of Vietnam and the competent state agencies;
o professional training on the prevention of and combating money laundering;
o internally controlling and auditing the compliance with the policies, regulations, processes and procedures related to the prevention of and combating money laundering, responsibilities of each individual and division in the implementation of internal rules in the prevention of and combating money laundering.
For financial institutions
• Where clients open accounts or set up transactions with the financial institutions for the first time.
• Where clients do not have a bank account or have made no transactions for the past six months, or deposit, withdraw or make a bank transfer of at least VND 400,000,000, or a foreign-currency amount of equal or greater value per day, except for final settlements or withdrawals of savings interest, credit card debt repayments, repayments of loans to financial institutions, instalment payments registered with financial institutions, withdrawals of profits from securities or bond investment portfolios.
• Where there are doubts about transaction or the parties concerned in transactions are related to the money laundering.
• Where there are doubts about the accuracy or completeness of the clients identification information previously collected.
For relevant non-financial institutions or individuals:
• Doing business in prize-winning games, including prize-awarding electronic games; telecommunications network-based games, Internet-based games; casinos; lottery tickets: clients implementing high value transactions (i.e., over VND70 million per day).
• Doing real estate business and management services, except for real property leasing, subleasing, and consulting services: when providing these services to the buyer, purchaser and asset owner.
• Trading in precious metals and stones: when clients performing the sale and purchase transaction in cash of precious metals and stones with value of over VND400 million per day.
• Providing legal agreement services: when acting on behalf of the customer to perform a transaction related to establishment, administration or management of legal agreements.
• Providing services of establishment, management and executive of enterprise; supplying registration office, address or place of business; supplying services of company representative: clients requesting such services.
• Providing services of director and secretary provision of the enterprise to a third party: third party and director/secretary to such director.
Legal requirements for KYC
Customer due diligence
The application of measures to identify clients depends on the results of money-laundering risk assessment. Procedures for management of money laundering risks cover classification of customers by low, medium and high level of risk. In particular, the above-mentioned services providers/entities must update the client identification information on a regular basis during the period during which they have relations with the clients.
In addition, clients must also be classified into different groups, product and services used, their place of residence or headquarters, based on different risk exposure levels. Customer risk ratings based on customers; products, services used or to be used by customers; geographic locations of customers’ residence or head office and other factors (Art 4.2(c) – Circular 9/2023/TT-NHNN).
Reporting requirements/obligations
Recordkeeping
Information, documents, records relating to customer identification, results of the reporting entity’s analysis and assessment of customers and/or reporting transactions and other related documents must be kept for at least five years from closing date of the transaction or the date of account closure or the reporting date. Reports of high-value transactions (i.e., from VND400 million), suspicious transactions and transactions of electronic money transfer exceeding VND500 million or equivalent amount in foreign currency (for domestic transfer) or $1,000 (for inbound or outbound transfer) and information, documents and records of the transactions, must be kept for at least five years from the date of the transaction.
Tipping off
The reporting entity/ individual, management or employees of reporting entity/individual is not allowed to inform a person involved in a suspicious transaction that it has reported, or will report, the transaction to the State Bank of Vietnam.
Whistle-blowing
The AML law only sets out regulations on reporting to the following state agencies, rather than whistle-blowing:
• State Bank of Vietnam;
• Investigating agencies, agencies assigned to conduct a number of investigative activities, or People’s Procuracies, national security protection agencies under the People’s Public Security;
• State inspection agencies, agencies assigned to perform the function of conducting the specialised inspection of reporting entities.
Offences
Enforcements
If the parties related to the transactions are included in the blacklist or there are grounds to believe that the transaction required to be performed is related to the criminal activities or requested by competent state authorities, the reporting entity/individual must apply measures to delay the transaction within a maximum of three working days and must immediately report in writing and notify via phone to the competent state agencies and the SBV for cooperation. If the reporting entity/individual does not receive any feedback from the competent state agencies after three working days, it can proceed with the transaction.
In addition, the reporting entity/individual must block the accounts or seal or temporarily seize assets of the individuals/organisations upon having the decision of competent state agencies under the law, and must report on the implementation to the State Bank of Vietnam.
Penalties
Persons violating the AML law are subject to administrative sanctions of up to VND500 million, discipline or criminal penalty depending on the nature and seriousness of such violations. The criminal sanctions varies from one year to a maximum of 15 years’ imprisonment, together with partial or whole confiscation of assets, monetary fine of up to three times of the violated amount, abandonment of holding certain positions or titles from one to five years.
The criminal sanctions against corporate legal entities include monetary fine of VND1 billion up to VND20 billion, together with business operation suspension of one to three years, banning from particular business field operations of one to three years, or forced termination and liquidation.
Internal procedures and training
Pursuant to article 24 of the AML law, reporting entities/individuals must establish internal procedures on prevention and combating money laundering, with the following contents:
• customer acceptance policy;
• customer identification procedures and processes;
• risk management policies and procedures;
• procedures for reporting of should-be-reported transactions;
• steps in examining, detecting, handling and reporting suspicious transactions; methods of contact with customers performing suspicious transactions;
• storage, security and confidentiality of information;
• apply provisional measures, principles for handling postponement of transactions;
• regimes for reporting or providing information to the State Bank of Vietnam and other competent state authorities;
• recruitment and training of personnel specialising in AML activities;
• internal control, audit of compliance with policies, regulations, regulatory processes and procedures relating to AML activities; responsibilities of each natural person or department for implementation of internal rules and regulations on AML.
Sanctions
International conventions
International cooperation in the field of prevention of and combating money laundering includes: (i) exchange and provide information on prevention of and combating money laundering; (ii) determining and blocking assets of the violating persons; (iii) performing judicial assistance; (iv) research, training, information support, technical assistance, financial aid and AML experience exchange; and (v) other aspects. The process, procedures and cooperation methods are in accordance with international agreements to which Vietnam is a party.
CTF – Countering terrorist finance
The Ministry of Public Security is tasked with the preparation of a list of organisations and individuals related to terrorism and terrorist finance (blacklist). The reporting entity/individual must promptly report to the competent anti-terrorism authorities, and at the same time send reports to the State Bank of Vietnam upon detecting organisations and individuals to conduct transactions included in the blacklist or when there is evidence that other organisations and individuals commit acts related to the money laundering crime for terrorism financing.
At the same time, the reporting entity/individual must apply measures to delay the transaction and block the accounts or seal or temporarily seize assets of the individuals/organisations.
Anti-bribery and corruption laws
Corruption is widespread throughout Vietnam. For information, Vietnam ranks 83/180 according to the 2023 Corruption Perception Index. Sectors most affected by corruption are public administration and security; health sector, judiciary, and land management. The Vietnamese government acknowledges the negative impact of corruption on both Vietnam’s future prosperity and the party’s own legitimacy, and thus has adopted one of the most comprehensive and ambitious anti-corruption laws in Asia. The anti-corruption legal framework has seen some improvements after the adoption of the Anti-corruption Law by the National Assembly in 2005 (as amended in 2007, 2012 and 2018) and the National Strategy on Anti-corruption to 2030.
However, in the last 10 years of implementation, considering the increasing level of complexity of corruption cases, the current legal framework has been proved to be inadequate to combat corruption in Vietnam. This prompted the Vietnamese government to refine the current regime to make the policies fully effective and operational in practice.
There is no definition of “bribery” under Vietnam laws. In essence, however, it could be defined as an act of offering, promising, making or receiving money or anything of value (minimum threshold: VND 2 million (approx. $90) or intangible benefit: no clear guidance but sex, job positions, and education acceptance offerings may be considered) to induce or influence an act/omission or decision. The current laws only target people with positions and power (i.e., state officials). Please note the receipt of minimum VND 1 billion is subject to death penalty.

Please do not hesitate to contact Oliver Massmann under omassmann@duanemorris.com if you have any questions or want to know more details on the above. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.
Thank you!

Überblick über die geltenden Bestimmungen zur Einfuhr von gebrauchten Maschinen
Am 19. April 2019 wurde der Beschluss Nr. 18/2019/QD-TTg über den Import von gebrauchten Maschinen, Ausrüstungen und technologischen Fertigungslinien („Beschluss 18“) veröffentlicht, der 2022 durch den Beschluss Nr. 28/2022/QD-TTg geändert und ergänzt wurde.
Der Beschluss 18 enthält allgemeine Grundsätze, darunter
(i) Begriffsbestimmungen hinsichtlich der Maschinen und technologischen Fertigungslinien
(ii) Anforderungen an gebrauchte Maschinen und technologischen Fertigungslinien, die zur Einfuhr nach Vietnam bestimmt sind
(iii) Einzelheiten zum behördlichen Verfahren wie Voraussetzungen, Zeitplan, erforderliche Dokumente
(iv) Inspektion der Maschinen und technischen Fertigungslinien mit umfangreichen Regelungen über das Inspektionszertifikat (sofern erforderlich) und Organisationen, die zur Inspektion berechtigt sind
Was Sie wissen müssen:
1. Da sich die Anforderungen und Verfahren für gebrauchte Maschinen und technologische Linien unterscheiden, ist es zunächst wichtig, die Art der Maschine zu bestimmen, die nach Vietnam eingeführt werden soll. Gemäß Beschluss 18 werden Maschinen und Ausrüstungen als vollständige Struktur definiert, die aus Teilen, Gruppenteilen sowie Komponenten bestehen und für den beabsichtigten Zweck verbunden werden. Unter technologische Fertigungslinien wird hingegen ein System von Maschinen, Ausrüstung, Werkzeugen und/oder anderen Geräten verstanden, die gemäß eines technologischen Verfahrens bzw. Schemas an einem festen Standort installiert oder verbunden werden, um einen synchronen Betrieb in der Herstellung zu ermöglichen. Vereinfacht ausgedrückt heißt das, dass Beschluss 18 einzelne Maschinen als „Maschine und Ausrüstung“ einordnet, während technologische Fertigungslinien aus mindestens zwei Maschinen bestehen müssen.

2. Im zweiten Schritt ist zu bestimmen, ob die gebrauchte Maschine bzw. technologische Fertigungslinie folgende Anforderungen des Beschlusses 18 erfüllt:
(i) Gebrauchte Maschine
Grundsätzlich dürfen gebrauchte Maschine nicht älter als 10 Jahre sein. Ausnahmen existieren in wenigen bestimmten Sektoren, in denen eine Höchstaltersgrenze zwischen 20 bis 25 Jahren besteht.

(ii) Gebrauchte Fertigungslinien
– Die Restkapazität (d. h. die Anzahl der Produkte, die die Linie in einem bestimmten Zeitraum produziert) oder -leistung muss noch mindestens 85% der ursprünglichen maximalen Kapazität bzw. Leistung entsprechen.
– Der Rohstoff- oder Energieverbrauch der technologischen Fertigungslinie darf 15 % ihres ursprünglichen Maximalverbrauchs nicht überschreiten.

3. Sind die Anforderungen erfüllt, müssen neben den nach dem Law on Customs erforderlichen Zolldokumenten ebenso folgende Dokumente eingereicht werden:

(i) Kopie des letzten Unternehmensregistrierungszertifikats mit dem Siegel des Importeurs
(ii) Inspektionszertifikat von einer ordnungsgemäß lizensierten Inspektionsorganisation, die sämtliche der in Beschluss 18 niedergelegten notwendigen Inhalte aufweist
(iii) Übersetztes und beglaubigtes Herstellerzertifikat mit Angabe des Herstellungsjahres und der Herstellungsnormen, die für die gebrauchte Maschine gelten, wenn die Maschine in den G7-Ländern oder in Korea (im Falle einer gebrauchten Maschine) hergestellt wurde.

4. Sonderfälle: In Sonderfällen kann ein Importeur eine Sondergenehmigung beim Ministry of Science and Technology (MOST) beantragen, falls er eine Maschine oder technologische Fertigungslinie importieren möchte, die nicht den Anforderungen an das Höchstalter, die Kapazität oder den Verbrauch entsprechen. Der Importeur muss in diesem Fall gegenüber dem MOST eine detaillierte Erklärung abgegeben, weshalb die gebrauchte Maschine für ihn notwendig ist.
Was Sie tun müssen
Um die Einhaltung der geltenden Vorschriften für die Einfuhr von gebrauchten Maschinen, Ausrüstung und technologischen Fertigungslinie zu gewährleisten, müssen Sie:
1. Beschaffen Sie alle Informationen und Dokumente über die gebrauchte Maschine/Technologielinie, die Sie importieren möchten, d. h. Alter, Technologie, Komponenten, Hersteller, Herkunftsland, Verwendungszweck einer solchen Maschine/Technologielinie und aktueller Zustand. All diese Informationen müssen von allen Beteiligten sorgfältig geprüft und bewertet werden, bevor Sie sich für die Einfuhr einer solchen Maschine/Fertigungslinie entscheiden;

2. Finden Sie Ihr vertrauenswürdiges Inspektionsunternehmen, da für die Einfuhr einer gebrauchten Maschine/technischen Fertigungslinie ein Inspektionszertifikat erforderlich ist. Es ist erwähnenswert, dass die Liste der ordnungsgemäß lizensierten Unternehmen auf der Website des MOST veröffentlicht wird. Es ist jedoch ratsam, dass Sie oder Ihr Berater sich zunächst mit diesen Unternehmen in Verbindung setzen, um eine sorgfältige Due-Diligence-Prüfung durchzuführen, da jedes dieser Unternehmen über unterschiedliches Fachwissen und Erfahrungen in Bezug auf verschiedene Arten von Maschinen/technologischen Fertigungslinien verfügt;

3. Finden sie einen Rechtsberater ihres Vertrauens. Ein fähiger Rechtsberater kann Sie in jeder Phase unterstützen: Von der Entscheidung über den Import bis hin zur Abwicklung der Einfuhr Ihrer gewünschten Maschine/Fertigungslinie nach Vietnam. Daneben kann ein Rechtsberater Ihnen auch Unterstützung anbieten bei:

(i) Identifizierung des exakten Typs der gewünsche Maschine/Fertigungslinie
(ii) Identifizierung der Anforderungen an eine solche Maschine/Fertigungslinie
(iii) In Abstimmung mit dem Inspektionspartner den Zustand der Maschine/Fertigungslinie bewerten und die Durchführbarkeit des Imports einschätzen
(iv) Überwachung Ihres Arbeitsprozesses mit dem Inspektionspartner und Unterstützung bei den rechtlichen Aspekten eines solchen Prozesses
(v) Erstellung einer Checkliste hinsichtlich der erforderlichen Unterlagen und Durchführung der notwendigen Tätigkeiten in Bezug auf die Antragsunterlagen für die Einfuhr (darunter Entwurf, Überprüfung, Unterstützung bei der Übersetzung/Beglaubigung, etc.)
(vi) Zusammenarbeit mit den relevanten Parteien (z.B. MOST, Inspektionspartner, Zollbehörde), um die Einhaltung der Vorschriften für die Einfuhr zu gewährleisten.
Zwischen 2023 bis 2024 unterstützte Duane Morris Vietnam einen Mandanten bei seinem Vorhaben, eine gebrauchte technologische Fertigungslinie aus Deutschland zu importieren. Das Mandat von Duane Morris Vietnam beinhaltete die umfassende rechtliche Beratung zu jeder Phase des Geschäftsplans, einschließlich die Überprüfung und Bewertung der betreffenden Fertigungslinie, die Suche nach einem geeigneten Inspektionspartner, die Klärung von rechtlichen Angelegenheiten zwischend dem Mandaten und diesem Partner, die Überprüfung der mit dem Import zusammenhängenden (Antrags-)Unterlagen. Durch die Unterstützung von Duane Morris Vietnam wurde konnte der betreffenden Fertigungslinie ein entsprechendes Inspektionszertifikat erteilt und für das Geschäft des Mandanten nach Vietnam importiert werden.

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Bei Fragen und für weitere Einzelheiten steht Ihnen Dr. Oliver Massmann unter omassmann@duanemorris.com gerne zur Verfügung. Dr. Oliver Massmann ist Generaldirektor von Duane Morris Vietnam LLC.

On 19 April 2019, the Prime Minister issued Decision No. 18/2019/QD-TTg on import of used machinery, equipment and technological lines (“Decision 18”). Decision 18 was later amended and supplemented by Decision No. 28/2022/QD-TTg of the Prime Minister on 20 December 2022.
Generally, Decision 18 provides the basic principles for the import of used machines and technological lines into Vietnam, including:
(i) detailed definitions on machines and technological lines;
(ii) requirements of used machines and technological lines to be allowed to be imported into Vietnam;
(iii) procedures for the importation of used machines and technological lines in Vietnam with detailed provisions on works to do, timeline and application documents; and
(iv) inspection of used machines and technological lines with detailed provisions on the inspection certificate (where required) and eligible organizations to implement inspecting activities.
WHAT YOU MUST KNOW
1. First thing first, as the requirements and the procedures will differ between used machines and technological lines, it is important to identify the type of machine to be imported into Vietnam. According to Decision 18, while machinery and equipment are defined as a a complete structure comprised of parts, groups of parts, and components that are interconnected to operate to serve the intended purposes, technological line means ystem of machinery, equipment, tools and/or devices that are installed or interconnected on a fixed site according to a technological process or diagram to ensure synchronous operation serving manufacturing.
In other words, a single machine is treated as “machinery and equipment” under Decision 18 while technological line means two or more machines connected together to serve a purpose on a fixed site according to a technological process or diagram.
2. After the first round of identification, it is important to decide whether the used machine/technological line meets the requirements as set out in Decision 18. According to Decision 18, the main requirements for used machines/technological lines, among others, are as follows:
(i) Used technological lines:
– Remaining capacity (which is the number of products that the technological line produce in a given time period) or performance must achieve at least 85% of its design capacity or performance.
– The amount of raw materials or energy consumed by the technological line shall not exceed 15% of its design consumption level.
(ii) Used machines: Used machines’ age must not exceed 10 years. In some specific sectors, the maximum age can be 20 years to 25 years as specified under Decision 18 (as amended).
3. In terms of procedures, provided that the used machines/technological lines meet all the requirements as set out in Decision 18, apart from the required import documents under the Law on Customs, generally, the importer must submit to the competent customs authority the following additional documents:
(i) Copy of the latest Enterprise Registration Certificate affixed with the importer’s seal;
(ii) Inspection certificate issued by a duly licensed organization with the contents as set out in Decision 18;
(iii) Translated and legalized manufacturer’s certificate providing the manufacturing year and manufacturing standards applied to the used machine in case of the machine being manufactured in G7 countries or Korea (in case of used machine).
4. Special cases: In case an importer wishes to import used machine whose age exceeds the age limit regulated in Decision 18 where remaining capacity or performance of such a machine achieves 85% or above of its design capacity or performance, and amount of raw materials or energy consumed by that machine does not exceed 15% of its design consumption level to serve its manufacturing in Vietnam. The importer can seek approval from the Ministry of Science and Technology (MOST). Such an approval will be later used in the import documents. It is important to note that, in this case, the importer must thoroughly explain the necessity of the used machine to the MOST for the MOST to issue its approval.
WHAT YOU MUST DO
To ensure the compliance with the prevailing regulations on importation of used machinery, equipment and technological line, you must:
1. Obtain all information and documents you can about the used machine/technological line you intend to import, i.e. age, technology, components, manufacturer, country of origin, use of such a machine/technological line, and current status. All of these information must be carefully reviewed and assessed by all relevant parties before you decide to import such a machine/technological line;
2. Find your trusted inspection company. As the importation of used machine/technological line requires inspection certificate from a duly licensed company, you must find yourself a trusted and duly licensed company after you have decided that you will go through with your plan of importing used machine/technological line. It is worth noting that the list of duly licensed companies is published at the website of the MOST. However, it is advised that you or your advisor reach out to these companies first to carefully perform due diligence on these companies before you decide to go with one since each of these companies has experience and expertise in different types of machine/technological line;
3. FIND YOUR TRUSTED LEGAL ADVISOR. A capable legal advisor can support you from your decision-making phase of the import until you import your desired used machine/technological line into the border of Vietnam. Among others, a legal advisor can help you with:
(i) identifying the exact type of your desired machine/technological line;
(ii) identifying the requirements for such a machine/technological line;
(iii) along with the inspection partner, assessing the current conditions of such a machine/technological line and assess the feasibility of the importation of such a machine/technological line;
(iv) monitoring your working process with the inspection partner and support on the legal aspect of such a process;
(v) preparing checklist of required documents and implementing necessary work with regard to the application documents for the import (i.e. drafting, reviewing, supporting on the translation/notarization, etc.); and
(vi) work with relevant parties (i.e. the MOST, the inspection company, the customs authoritiy) to ensure the compliance of the import.
From mid-2023 until mid-2024, Duane Morris Vietnam supported a client with its plan to import a used technological line from Germany. During this engagement, Duane Morris Vietnam’s scope of work covers the support from legal aspect for the client’s business plan from start to finish, including reviewing and assessing the technological line, finding the suitable inspection company and taking care of legal matters between the client and such company, reviewing documents and application documents related to the import, providing comprehensive advice to the client with legal aspect of the import. With Duane Morris Vietnam’s support, the technological line was issued with the appropriate inspection certificate and was ready to be imported into Vietnam for the client’s business.
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Please do not hesitate to contact Oliver Massmann under omassmann@duanemorris.com if you have any questions or want to know more details on the above. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.
Thank you!