A Practical Roadmap for Developers, Infrastructure Funds, Corporate Offtakers and Energy Investors
By Dr. Oliver Massmann (the architect of market access)
Executive Summary
Vietnam has moved beyond discussing renewable energy ambitions.
The legal framework now exists.
The Direct Power Purchase Agreement (DPPA) regime is operational. The Electricity Law provides the statutory foundation for direct electricity trading. Power Development Plan VIII continues to define the country’s generation roadmap. Offshore wind, energy storage, green hydrogen and large-scale renewable energy projects remain national priorities.
The critical question for investors is no longer whether Vietnam supports renewable energy investment.
The critical question is:
How can a project actually reach financial close and commercial operation?
Based on the current legal framework, investors should focus less on headline opportunities and more on project execution, bankability, site selection, offtake strategy and regulatory implementation.
Those who understand these practical realities are most likely to succeed.
The Biggest Mistake Investors Still Make
Many investors continue to start with technology.
Solar.
Wind.
Battery storage.
Hydrogen.
Offshore wind.
This is often the wrong starting point.
In Vietnam, successful projects typically begin with a different question:
Who will buy the electricity?
The most important commercial decision is often not the generation technology but the offtake structure.
Investors should first determine whether their project will rely on:
• Direct Power Purchase Agreements (DPPA);
• Electricity sales into the national system;
• Industrial customers;
• Export-oriented manufacturers;
• Green hydrogen production;
• Self-production and self-consumption models;
• Hybrid structures combining several of these approaches.
Without a clear offtake strategy, project development risk increases significantly.
Understanding the DPPA Opportunity
Article 47 of the Electricity Law now provides a clear legal basis for direct electricity trading between large electricity consumers and electricity generation units.
For investors this means that corporate renewable energy procurement is no longer merely a policy objective.
It is now part of Vietnam’s electricity market structure.
The most attractive potential customers include:
• Semiconductor manufacturers;
• Electronics producers;
• Data centres;
• Automotive manufacturers;
• Export-oriented industrial groups;
• RE100 participants;
• Large industrial parks.
Many of these companies face increasing pressure from customers, shareholders and regulators to reduce carbon emissions throughout their supply chains.
Renewable electricity procurement is therefore becoming a strategic business requirement rather than an environmental preference.
Developers that secure strong corporate offtakers early may gain a substantial competitive advantage.
Site Selection Is Becoming More Important Than Technology Selection
Many investors continue to evaluate projects primarily based on resource quality.
This is no longer sufficient.
A successful project requires simultaneous consideration of:
• Resource availability;
• Grid availability;
• Curtailment risks;
• Future transmission capacity;
• Industrial demand;
• Land availability;
• Permitting complexity.
The strongest solar resource or wind resource does not necessarily produce the strongest investment case.
In practice, projects located near major industrial demand centres often benefit from advantages that cannot be achieved through resource quality alone.
Energy Storage Is Becoming Increasingly Important
The Electricity Law expressly encourages renewable energy projects combined with energy storage systems.
Investors should pay close attention to this development.
Historically, renewable energy projects focused primarily on generation capacity.
Increasingly, value will be created through:
• Flexibility;
• Dispatchability;
• Grid support services;
• Demand management;
• Energy storage integration.
Battery storage is moving from optional enhancement to strategic project component.
Developers who ignore storage may find themselves disadvantaged in future market structures.
Offshore Wind Remains a Strategic Long-Term Opportunity
Vietnam possesses one of Asia’s strongest offshore wind resource bases.
However, investors should approach the sector realistically.
The opportunity is enormous.
The execution challenge is equally significant.
Successful offshore wind projects will require:
• Long-term capital commitments;
• Strong local partnerships;
• Early engagement with authorities;
• Careful management of marine permitting requirements;
• Comprehensive grid integration planning;
• Bankable offtake structures.
Investors entering the sector should view offshore wind as a long-term strategic platform rather than a short-term development opportunity.
Green Hydrogen and Green Ammonia: The Next Wave
The Electricity Law formally recognizes green hydrogen and green ammonia.
This is an important signal.
Vietnam is not merely planning for renewable electricity generation.
Vietnam is preparing for renewable industrialization.
Future opportunities may emerge in:
• Industrial decarbonization;
• Export-oriented hydrogen production;
• Sustainable fuels;
• Green ammonia manufacturing;
• Renewable energy hubs integrating generation, storage and hydrogen production.
Investors should begin evaluating these opportunities now, even if many projects remain several years from commercial maturity.
What Lenders Will Focus On
Project finance remains the ultimate test of investment quality.
Lenders will continue to examine:
• Revenue certainty;
• Offtake quality;
• Curtailment risk;
• Grid connection risk;
• Regulatory stability;
• Sponsor strength;
• Construction risk;
• Permitting status.
Projects that address these issues early will be significantly better positioned to achieve financing.
The strongest projects are not necessarily those with the highest generation potential.
They are the projects that present the lowest overall risk profile.
What Investors Should Do Now
For investors evaluating Vietnam’s renewable energy market in 2026, several practical actions deserve priority:
First
Identify suitable corporate offtakers before committing significant development expenditure.
Second
Conduct detailed assessments of grid availability and transmission constraints at an early stage.
Third
Evaluate whether energy storage should form part of the project’s initial design.
Fourth
Monitor implementation regulations affecting DPPA transactions, renewable energy pricing mechanisms and market liberalization.
Fifth
Develop a permitting strategy alongside the commercial strategy rather than treating permitting as a later-stage exercise.
Sixth
Build local partnerships capable of navigating regulatory, technical and commercial challenges.
Conclusion
Vietnam’s renewable energy market has entered a new phase.
The question is no longer whether opportunities exist.
They do.
The more important question is which investors can successfully convert those opportunities into bankable, operating projects.
The Electricity Law, DPPA framework and broader energy transition policies have created a foundation for significant private investment.
Success, however, will depend less on identifying opportunities and more on executing projects efficiently, securing reliable offtake arrangements, managing regulatory requirements and achieving bankability.
For investors prepared to focus on these fundamentals, Vietnam remains one of the most compelling renewable energy markets in Asia.
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For more information on the above, please do not hesitate to contact the author Dr. Oliver Massmann under omassmann@duanemorris.com. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.