In a press conference on 30 September 2021, the Ministry of Industry and Trade (“MOIT”) confirmed that there would be NO FIT extension for wind energy projects after 31 October 2021.

The Ministry of Industry and Trade recently issued a new draft Circular on regulations on methods of building electricity generation price brackets and determining electricity generation prices, power purchase agreement for solar and wind energy projects. This Circular will apply to solar energy projects that have not met the COD deadline of 1 January 2021 or wind energy projects that have not met the COD deadline of 1 November 2021. Though it is only at draft stage, it is expected that the Circular will come into force soon and give developers as well as investors clarity on renewable power projects development and related transactions.

According to the Draft, this Circular will apply to:
i) Ground-mounted solar energy projects, floating solar power projects
ii) Rooftop solar energy projects
iii) Onshore wind energy projects and
iv) Offshore wind energy projects.

The electricity generation price bracket is the range of values from 0 (zero) to the ceiling price of the type of solar and wind power plants corresponding to each type of solar power plant (floating, ground mounted) and wind power plant (onshore, offshore). The ceiling price is the electricity generation price of a standard solar and wind power plant. Standard solar and wind power plants are plants that have operated, are under negotiation or are selected during the year (N-1).

Electricity generation price of newly built solar and wind power plants is determined based on:

a) Reasonable expenses of the Investor in the whole economic life of the project;
b) The financial internal rate of return (IRR) is 12%.

The electricity generation price of a solar and wind power plant includes the following components:

a) Power purchase and sale contract price: To be agreed upon by the two parties and determined according to the formula specified in Article 11 of this Circular;
b) Specific connection price: To be agreed upon by both parties and determined according to formula specified in Article 14 of this Circular.

Electricity generation price of solar and wind power plant is exclusive of value-added tax and other taxes, fees and cash receipts according to the State’s regulations (except for taxes and fees already paid) included in the electricity generation price plan.

The draft Circular also provide a new Power Purchase Agreement (“PPA”) template to be used for solar and wind energy projects , including detailed procedure for PPA negotiation and checklist of documents to request for PPA negotiation.

For more information on the above, please do not hesitate to contact the author Dr. Oliver Massmann under Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC, Member to the Supervisory Board of PetroVietnam Insurance JSC and the only foreign lawyer presenting in Vietnamese language to members of the NATIONAL ASSEMBLY OF VIETNAM.


Since 1 January 2021, there have been no legal instruments in effect guiding the development of rooftop solar power projects in Vietnam (“RTS”). After a period of examining suitable power model, scale and purchase price, in March 2021, the Ministry of Industry and Trade (“MOIT”) submitted the Draft Decision on mechanisms for RTS development for the Prime Minister’s approval.

Notable provisions of the Draft Decision:

1. A rooftop solar power system must satisfy the following conditions:
• Photovoltaic panels must be installed on the roof of construction works;
• Constructions works must have independent functions and purposes (i.e. not constructed to install RTS system);
• RTS system’s capacity must not exceed 01 MWac and 1,25 MWp; and
• RTS system must be connected to a power grid of 35kV or less.

2. Electricity Buyer can be:
(i) Electricity Vietnam (EVN) or an authorized representative of EVN; or
(ii) In case the RTS system is not connected to EVN’s power grids: organizations, individuals purchasing electricity from the Seller/RTS developer or an authorized representative of such organizations and individuals.

In case the Buyer is EVN, the Seller and Buyer must sign the standard Power Purchase Agreement (“PPA”) unless agreed otherwise. The PPA is valid for 20 years from Commercial Operation Date (“COD”) Seller and other independent Buyers can discuss and agree on the order of implementation, installation, connection and maintenance as well as electricity purchase price by themselves in accordance with Vietnam laws.

3. Proposed FiT rate for RTS projects with COD in 2021 and EVN as Buyer:

No. Capacity of the RTS system / Electricity Purchase Price

1 – < 20 kWp: 1.582,16 VND/kWh (Equivalent USCent 6,84/kWh)

2 – From 20 kWp to less than 100 kWp: 1.468,82 VND/kWh (Equivalent USCent 6,35/kWh)

3 – From 100 kWp to 1,250 kWp (less than 01 Mwac): 1.362,41 VND/kWh (Equivalent USCent 5,89/kWh)

4. FiT rate for RTS projects with COD in 2022 and beyond shall be submitted by the Ministry of Industry and Trade for Prime Minister’s approval.

5. RTS system with capacity greater than 100 kWp must self-consume at least 20% of generated capacity per month and is only paid for 80% of total generated amount.


For more information on the above, please do not hesitate to contact the author Dr. Oliver Massmann under Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC, Member to the Supervisory Board of PetroVietnam Insurance JSC and the only foreign lawyer presenting in Vietnamese language to members of the NATIONAL ASSEMBLY OF VIETNAM.


Last June, the whole solar energy industry rocked (and became excited!) with the news that the Deputy Prime Minister, in one of his meetings with the Ministry of Industry and Trade (MOIT) on 20 June 2018, has agreed in principle that the COD extension for solar energy projects under the Decision 11 shall be extended beyond the original deadline of 30 June 2019. According to Vietnam’s political tradition, this development would normally mean the subsequent issuance of official legislation to formalize the decision. One source infomed the market players that the decision for extension would first be issued by end of July for Ninh Thuan projects due to the province’s economic downturn, and by the end of this year, a decision to extend nationwide will follow. On 4 July 2018, the Ministry of Planning and Investment (MPI), in coordination with the MOIT, submitted an official letter No. 4545 (Letter 4545) to the Prime Minister to formally propose the COD extension. That letter 4545 was addressing Ninh Thuan solar energy projects only but market players expected that proposal for nationwide extension would follow very soon.
However, in a rare and unpredictable move, on 26 July 2018, the Government’s Office issued an Official Letter No. 7108 (Letter 7108) to reject the proposal for COD extension for Ninh Thuan solar energy projects, without mentioning any rationale behind it or any reference to the Deputy Prime Minister’s in-principle agreement with the MOIT. That means, as a result of Letter 7108, everything under Decision 11 would stay the same, at least for Ninh Thuan solar energy projects.
What remains unclear is whether the MOIT/MPI would continue pushing for a nationwide COD extension, amidst the Letter 7108. One source continues insisting that such a nationwide COD extension (which was planned to go through by end of 2018) is still reviewed by the Prime Minister. From the IPP’s perspectives, it is understandably viewed as a 50/50 decision. A high-yielder would continue go for bigger projects with hope that nationwide COD extension will take place, while others may choose to go with smaller one to ensure the construction time to be secured.
We will keep our clients updated on the development of this saga. Time is of essence now yet everything is still up in the air. For prudent reasons, we would have to advise IPPs to go with smaller projects now for the purpose of plausible construction time. We can help introducing such projects.
Please do not hesitate to contact Dr. Oliver Massmann under or any lawyers in our office listing if you have any questions or want to know more details on the above. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.

Vietnam – Solar Power Breaking News – Possible Extension of deadline for Feed in Tariff (9.35 USD cent per KW) – what you must know:

The current solar Feed-in-Tariff for on-grid projects in Vietnam is 2,086 Vietnamese dong/kWh (equivalent to 9.35 UScents/kWh) (VAT excluded). According to Decision 11/2017/QD-TTg, this solar FIT applies for projects which come into operation before 30 June 2019 and within 20 years from the commercially operational date (“COD”) (i.e., the date when the solar plant is ready to sell electricity to the buyer – EVN).

However, from our informal high level contact within the MOIT recently, it is very likely that the solar FIT of US9.35 cents/kWh will continue to apply beyond the original COD (i.e. 30 June 2019). The deadline shall be likely extended for another half a year or another year for solar projects across Vietnam, except for projects in Ninh Thuan. This policy is not yet formally adopted but very likely will be publicized at the end of this year.

For solar projects in Ninh Thuan, the COD deadline extension will be longer (i.e. for another one and a half year from 30 June 2019). This is due to the fact that, in Ninh Thuan province, nuclear energy development has been stopped and the Government would like to develop solar energy there to support the province’s economic development.The special policy for solar projects in Ninh Thuan will be coming very soon, according to our MOIT contact. He informed us that the Deputy Prime Minister has already approved this special policy for Ninh Thuan and all await formal procedures.

We will closely monitor to update on any further changes.

Please contact Dr. Oliver Massmann under if you have questions on the topic or any other lawyer in our office listing. Dr. Oliver Massmann is the General Director of Duane Morris LLC.


1. Official No. 5111/VPCP-KTTH issued by the Government Office in response to Official Letter No. 5400/BTC-CST of the Ministry of Finance in relation to tax preferences applicable to solar roof projects of 50 kW or less.
Issuance date: 31 May 2018
Effective date: 31 June 2018
The Government in-principle approves the request from the Ministry of Finance on tax advantages applicable to solar roof projects of 50 kW or less. The Government also assigned the Ministry of Finance to issue relevant legal documents to implement this policy. Currently, request of the Ministry of Finance and draft future regulations on this topic have not yet been published.

2. Legal news: Solar power master plan – rumor on delay
The Ministry of Industry and Trade (“MOIT”) must report the list of approved solar power plants to the Prime Minister before 15 July 2018. The MOIT must also promptly finalize the national solar power development master plan for the Prime Minister’s consideration.
Currently, the number of solar power projects submitted by investors to the MOIT is significant. According to Vietnamnews, the MOIT has approved more than 70 solar power projects, with a total capacity of over 3,000MW, to come into operation before June 2019. The capacity is much larger than the combined capacity of projects by 2020 (i.e., 850 MW for solar power projects) as approved by the Prime Minister in the current power master plan VII.

Unconfirmed rumor: the MOIT (and other authorities) would likely not review and approve any application for addition of new solar power projects to the power development master plans / solar power development master plans from now until 30 June 2019. In addition, the MOIT would issue an official letter to confirm this temporary suspension.

3. Decree No. 63/2018/ND-CP issued by the Government on Investment in Form of Public-Private Partnerships (“PPP”) (“Decree 63”) replacing the old PPP Decree 15/2015/ND-CP (“Decree 15”)
Issuance date: 4 May 2018
Effective date: 19 June 2018
Decree 15, when introduced in 2015 was highly praised by legal commentators to be well drafted and make the PPP laws and regulations in Vietnam move closer towards bankable projects. However, in implementation process, there have been conflicting legal issues that deter investors from choosing PPP as an investment method, leading to a humble number of PPP projects thus far. Moreover, as PPP laws are only at Decree level, regulatory framework for PPP projects mainly includes the Law on Enterprises, Law on Public Investment, Law on Bidding, etc. most of which regulate public investment instead of private one or investment cooperation between the Government and private investors. The investors are also concerned about the stability of PPP regulations, as they are mainly Decrees. While a PPP project could take years to complete, regulations at Decree level may change and cause investors confusion in implementation of the laws. The state agencies also face certain difficulties in managing these PPP projects.
We provide below key notes on Decree 63:

Capital contribution responsibility
The investor is responsible for contributing and mobilizing capital for the project implementation, in particular, the ratio of the investor’s equity capital in total project investment capital is determined as follows:
– For projects with total investment amount of up to VND1,500 billion, the equity capital that the investor must maintain must be at least 20% of the total investment capital;
– For projects with total investment capital of more than VND1,500 billion:
o For investment portion of up to VND1,500 billion: the equity capital that the investor must maintain must be at least 20% of the total investment capital;
o For investment portion that exceeds VND1,500 billion: the equity capital that the investor must maintain must be at least 10% of the total investment capital.
There is no capital contribution requirement from the Government side.

Project approval authority
Decree 63 makes it clear the following authorities will approve PPP projects:
– The National Assembly decides the investment policy of important national projects;
– The Prime Minister decides the investment policy of the following projects:
o Projects Type A using state budget from 30% or above or below 30% but more than VND300 billion of the total investment capital of the project;
o Projects Type A using BT contracts.
– Ministers of relevant ministries decide investment policy of their own projects not falling within the approval authority of the National Assembly and the Prime Minister.
– Provincial People’s Councils decide investment policy of the following projects:
o Projects Type A not falling under the approval authority of the Prime Minister;
o Projects Type B using public investment budget; and
o Projects Type B using BT contracts.
– The provincial People’s Committee decides the investment policy of projects in their provinces not falling within the approval authority of the National Assembly, the Prime Minister and the provincial People’s Council.

Payment methods in BT projects
Practice shows that investors are very interested in well-located land when implementing BT projects. However, when such land fund gradually becomes exhausted, BT projects seem not to attract investors. Decree 63 has added another method in addition to the exchange of land for infrastructure, so that the investors will have more options in receiving payments. Specifically, the investor may also receive payment in the form of the transfer of right to conduct business, exploit works/ services, etc.

Conversion of existing public projects
Decree 63 contains procedures on converting existing public projects to PPP projects aside from other revised provisions. Those who are engaged in infrastructure projects in Vietnam may want to review how to implement such conversion in practice.

4. Decree No. 82/2018/ND-CP issued by the Government on the management of industrial zones and economic zones (“Decree 82”)
Issuance date: 22 May 2018
Effective date: 10 July 2018
Decree 82 regulates the planning, establishment, operation, policies and state management of industrial zones (IZ) and economic zones (EZ). It governs state management agencies, organizations and individuals related to investment, production and business activities in industrial zones and economic zones.
IZs are geographical areas eligible for investment incentives and enjoy preferential policies applicable to geographical areas with difficult socio-economic conditions under the investment law.
EZs are geographical areas eligible for investment incentives and enjoy preferential policies applicable to geographical areas with special difficult socio-economic conditions under the investment law.

Capital for investment on infrastructure of IZs
Investment projects on infrastructure development in IZs in areas with difficult socio-economic conditions or areas with particularly difficult socio-economic conditions shall be supported with capital from the central budget for the infrastructure investment.
Provincial People’s Committees shall balance local budgets to support investors in developing technical infrastructure systems inside and outside the IZs.

Capital for investment on technical infrastructure and social-economic infrastructure of EZ
EZ’s technical infrastructures, social infrastructure facilities and important environmental protection and treatment works shall be allocated capital from development investment sources of local budgets and support capital sources.
Large-scale infrastructure investment projects which play a key role in the development of EZs, may mobilize capital from bonds issuance. The technical and social infrastructure facilities, service works and public facilities of the economic zone may be financed by official development assistance (ODA) capital, preferential credit capital and supports other techniques.
Investment projects on construction and business of infrastructure in functional zones in EZ may mobilize capital by allowing investors to lease a part or whole of the land area in EZ for their investment or sub-lease business activities.
Please do not hesitate to contact Dr. Oliver Massmann and Tran Minh Thanh under if you have any questions or want to know more details on the above. Dr. Oliver Massmann is the General Director and Tran Minh Thanh is the Vietnamese lawyer of Duane Morris Vietnam LLC.

Rechtsanwalt in Vietnam Dr. Oliver Massmann – Solar Strom – Zahlungsmechanismen von Vietnam Electricity (früher Electricity of Vietnam, EVN) für den Solarstromproduzenten (Independent Power Producer, IPP) – Was Sie wissen müssen:

Rechtsanwalt in Vietnam Dr. Oliver Massmann – Solar Strom – Zahlungsmechanismen von Vietnam Electricity (früher Electricity of Vietnam, EVN) für den Solarstromproduzenten (Independent Power Producer, IPP) – Was Sie wissen müssen:

  1. Die Periodizität der Zahlung von Energieverkauf vom Kunden (EVN) zum IPP

Der IPP und EVN werden gemeinsam das Messergebnis auf monatlicher Basis eines gemeinsam beschlossenen Datums ablesen. Der IPP wird das Ergebnis schriftlich aufnehmen und gemeinsam mit der Rechnung an EVN, innerhalb von 10 Tagen ab Ablesedatum, schicken. Die Zahlungsfrist fuer EVN sind 15 Werktage vom Erhalt Rechnung des IPP.

  1. Frequenz der Preisanpassungen, sodass Zahlungen in VND dem entsprechenden USD-Wert entsprechen

Es ist in Entscheidung 11 und Rundschreiben 16 nicht klar formuliert, aber wir verstehen es so, dass die Anpassungen zur Zeit der Zahlung, fuer ins Stromnetz integrierte Projekte durchgefuehrt werden. Fuer Stromnetzprojekte wird die Anpassung jaehrlich durchgefuehrt. Vorschriften wurden in vorherigen Stromprojektdokumenten eingefasst.

  1. Mechanismen fuer Preisanpassungen (sprich: anwendbare Preisanpassungen sind nach dem Durchschnitt der Anpassungsperiode gewichtet, sodass der Verkäufer den VND/USD Wechselkursraten nicht ausgesetzt ist

Für Stromnetzprojekte wird die Anpassung zum Zeitpunkt der Zahlung durchgeführt. Fuer Stromnetz Dachzellenprojekte wird die Anpassung jährlich durchgeführt. Das heisst, dass der FiT fuer Stromnetzprojekte im gesamten Jahr gleich bleibt. Der FiT fuer Stromnetzprojekte des nächsten Jahres wird basierend auf dem Wechselkurs VND/USD am letzten Arbeitstag des Vorjahres bestimmt.


Falls Sie irgendwelche Fragen haben bzw. Details erfahren wollen, zögern Sie bitte nicht Dr. Oliver Massmann unter zu kontaktieren. Dr. Oliver Massmann ist der General Direktor von Duane Morris Vietnam LLC.


Vielen Dank!





Rechtsanwalt in Vietnam Dr. Oliver Massmann Solar Energie Handlungsplan um Deals mit dem neuen Stromkaufvertrag abschliessen zu koennen

Interview mit Dr. Oliver Massmann

  1. Welche signifikanten Aenderungen bringt der neue PPA fuer den Solarenergie-Sektor?

Decision 11 fuehrt die Feed-in-Tariff (FiT) – Rate von 9,35 US Cents pro kWh ein. Die FiT Rate ist nur fuer Solarenergie-Projekte anzuwenden, welche ans Stromnetz angeschlossen werden sollen oder es bereits sind. Die Solarzellen muessen einen Wirkungsgrad, groesser als 15% besitzen. Die FiT Rate ist vom Wechselkurs zwischen dem VND und dem US-Dollar abhaengig. Die Rate bleibt waehrend des Jahres stabil. Jedoch wird sie von der vietnamesischen Staatsbank am letzten Arbeitstag des Jahres, fuer das folgende Jahr angepasst.

Mit dem Ergebnis, dass die finanzielle Planung einfacher wird und den Investoren gewisse Sicherheiten gewaehrt werden, wie zum Beispiel den Schutz vor Waehrungsfluktuation.

  1. Welche Aspekte des neuen PPA haben sich im Vergleich zum Entwurf vom April 2017 veraendert?

Verglichen mit dem Entwurfs-PPA ist die FiT Rate jetzt in der finalen Version des PPA ausgegeben. Jetzt gibt es Referenz zu den Anpassungen der FiT im Fall von USD/VND Wechselkursfluktuationen.

Das Ministerium fuer Planung und Investitionen machte keine weiteren grossen Veraenderungen hinsichtlich der Schwaechen des Entwurfs vom April 2017.

Der Investor hat immer noch das groesste Risiko selbst zu schultern.

  1. Ist der PPA bankfaehig?

Nein! Allgemein betrachtet ist der PPA in seiner finalen Version nicht bankfaehig.

  1. Gibt es einen Weg den PPA bankfaehig zu machen?

Ja! Man kann den Solarenergie-PPA bankfaehig machen. Wir haben 20 Jahre Erfahrung mit dem Ausgestalten der Bankfaehigkeit fuer PPAs im Bereich der durch Gas und Kohle betriebenen Kraftwerke und im Windenergiebereich in Vietnam. Der Investor sollte alle Geschaeftskanaele nutzen und erfahrene Verhandlungsexperten zur Unterstuetzung einbinden, um den PPA bankfaehig zu machen. Es ist eine Sache der Verhandlung und Erfahrung in diesem Bereich. Decision 11 sichert Investoren die Moeglichkeit zur Verhandlung mit EVN zu. Der Preis bleibt, er ist nicht verhandelbar.

Abkommen, wie das EU – Vietnam Freihandelsabkommen (,,EVFTA“) oder die Trans-Pazifische Partnerschaft (,,TPP“), welches jetzt das Umfassende und Fortlaufende Abkommen der Trans-Pazifischen Partnerschaft genannt wird (,,CPTPP“), setzten einen grossen Meilenstein fuer die Bankfaehigkeit des PPA.

Das EVFTA wurde 2015 unterzeichnet und soll erwartungsgemaess bis 2018 von allen Mitgliedsstaaten unterzeichnet werden. Dann soll es wahrscheinlich 2019 in Kraft treten. Es wird erwartet, dass das EVFTA das BIP Vietnams erhoehen wird und die Wirtschaft von Vietnam liberalisiert. Ein weiterer Aspekt ist die Eliminierung von fast allen Zoellen (ueber 99% aller Tariflinien). Als Ergebnis wird es riesige Auswirkungen auf die Handelsentwicklung und das Interesse von Investoren geben.

Ein weiteres wichtiges Abkommen ist die CPTPP. Am 4. Februar 2016 wurde die TPP von 12 Staaten unterzeichnet. Die unterzeichnenden Staaten machten gemeinsam 28% des globalen Handels und 40% des weltweiten BIP aus. Jedoch hat US Praesident Trump zu Beginn des Jahres 2017 beschlossen, dass sich die USA von der TPP zurueckziehen wird. Die verbliebenden 11 Mitgliedsstaaten haben die Zukunft der TPP bei der APEC in Da Nang, Vietnam diskutiert und sind sich einig geworden, die TPP unter dem neuen Namen der CPTPP in Kraft zu bringen. Weiterhin beschlossen die Staaten ein neues Rahmenabkommen auszuarbeiten, welches Aenderungen zur vorherigen TPP mit sich bringen soll. Die groessten Veraenderungen wurden im Bereich des geistigen Eigentums durchgefuehrt. Der Schutz von Urheberrechten und der spezielle Schutz von Biologika oder Pharmazeutika beispielsweise wurde reduziert.

Dennoch bleibt der Anspruch der Marktzugriffsmoeglichkeiten dem der ersten TPP entsprechend.  In bestimmten Mitgliedsstaaten muessen interne Verhandlungen stattfinden. Ferner brauchen die Staaten Zeit, um ihre Gesetze an die CPTPP-Regeln anzupassen. Die Verhandelnden haben sich das Unterzeichnen der ueberarbeitenden TPP fuer das erste Quartal in 2018 als Ziel gesetzt. Nach der Ratifizierung der CPTPP in mindestens 6 Laendern,  tritt dieses in Kraft.

Mit der CPTPP wird Zugriff auf mehr Marktsektoren gewaehrleistet, als es durch die WTO der Fall ist. Genannt werden koennen hier z.B: Telekommunikation, Vertrieb von Waren, Herstellung und Verarbeitung. Trotzdem werden gewisse Restriktionen im Strom –und Energiesektor verbleiben, die im Folgenden noch diskutiert werden.

Durch das EVFTA und die TPP wird Vietnam Zugriff auf weiteste Teile des internationalen Marktes erhalten. Damit bekommt Vietnam die Moeglichkeit seine Import –und Exportraten (ein Anstieg um bis zu 37% bis 2025 wird erwartet) und die auslaendischen Investitionen zu erhoehen.

Ein weiteres notwendiges Instrument ist das Investor-State Dispute Settlement (ISDS), welches unter dem EVFTA und der TPP Anwendung finden wird. Dadurch erhalten Investoren das Recht, bei investitionsbezogenen Streitfaellen, Ansprueche im Investitionsland, mithilfe internationaler Schiedsgerichtsbarkeit einzuklagen. Die Schiedsgerichtsprozesse sollen oeffentlich gemacht werden um Transparenz bei Streitfaellen gewaehrleisten zu koennen. Bezueglich der TPP wurde der Geltungsbereich des ISDS auf ,,investment agreements“ (Investitionsvertraege) und ,,investment authorization“ (Investitionsbewilligung), in der Diskussion bei der APEC-Veranstaltung am 10. und 11. November 2017, reduziert.

Als Schlussbemerkung: Die Bankfaehigkeit des PPA wird durch die Wirkung des EVFTA und der TPP in den naechsten Jahren verbessert, wenn der legislative Rahmen dafuer geschaffen wird. Die Wirtschaft wird durch den Zugriff auf weitere Teile des globalen Marktes und durch weitere auslaendische Investitionen dynamischer werden. Mit der Durchfuehrung des ISDS bei der TPP werden die Investoren mehr Sicherheit in Bezug auf Streitschlichtung und fuer den Schutz vor den Risiken des internationalen Handels besitzen. Mit dem Ergebnis, dass Banken eher gewillt sein werden PPAs zu finanzieren.

Unsere Empfehlungen: Bisher ist die Bankfaehigkeit nicht in dem Masse gegeben, wie sie erwartet wurde. Sie sollten jedoch vor den kommenden Abkommen gewarnt sein, die grosse Auswirkungen auf das Wirtschaftswachstum und die Wirtschaft selbst haben werden. Wenn sich alles weiterhin in die richtige Richtung entwickelt wie es bisher der Fall ist, wird der PPA in der Zukunft bankfaehiger werden und es werden sich bessere Investitionsmoeglichkeiten daraus ergeben.

  1. Wie wurde das Problem der Bankfaehigkeit in der Vergangenheit gehandhabt?

Die TPP und das EVFTA sind nicht die einzigen Abkommen, die die Bankfaehigkeit des PPA verbessern.

Vietnam und die USA unterzeichneten 1999 das Bilaterale Handelsabkommen (BTA), welches im Jahr 2001 in Kraft trat. Es war ein riesiger Erfolg und ein wichtiges Abkommen fuer die Wirtschaft von Vietnam. Es war die erste Oeffnung des vietnamesischen Marktes nach aussen und fuer die Schaffung neuer Geschaeftsmoeglichkeiten und fuer neue Standards von Finanzierungsprojekten wichtig.

Ein weiterer wichtiger Fakt ist der WTO-Beitritt Vietnams 2007. Dieser hat die Handelsbeziehungen zwischen Vietnam und anderen Nationen, durch das Entfernen von Handelsschranken und durch die Verpflichtung zur Nicht-Diskriminierung verbessert. Ferner war es ein politisches Zeichen, den Willen Vietnams fuer eine Integration in den internationalen Handel, durch das Aktzeptieren internationaler Handelsregeln, auszudruecken.

Fuer das Erfuellen der Verpflichtungen sind Anpassungen der Gesetze notwendig, um die Funktionsfaehigkeit und Effizienz der Projekte zu gewaehrleisten. In den letzten Jahren wurden viele wichtige Gesetze verabschiedet. Diese verhalfen zur Verbesserung der Bankfaehigkeit des PPA, z.B: das 2014 Investitionsgesetz, das 2014 Unternehmensgesetz, das 2012 Arbeitsgesetz, etc.

Zusaetzlich wurde 2011 das rechtliche Rahmenwerk fuer Windkraftprojekte eingefuehrt.

Unsere Empfehlungen: Sie sollten bestehende internationale Abkommen als Basis fuer Verhandlungen nutzen. Erinnern sie sich an vergangene erfolgreiche Faelle und  behalten Sie die Schwierigkeiten der Projektentwicklung im Auge. Mit einer gut strukturierten Projektentwicklung ist es moeglich den PPA bankfaehig zu machen.

  1. Was sind die Hauptprobleme des PPA fuer Investoren?

Mit den zahlreichen Solarprojekten, die nur auf wenige zentrale Standorte verteilt sind, sollte die Kapazitaet der vorhandenen Einrichtungen fuer die Stromaufnahme, Grund zur Sorge fuer den Transfer von Risiken zu den Stromerzeugern darstellen.

EVN besitzt eine Monopolstellung fuer den Vertrieb, Reparationen, Wartung, Inspektion und Durchfuehrung des Stromverteilungsnetzes.

Es besteht es grosses Risiko aufgrund des Mangels einer Garantie der Regierung ueber EVNs Zahlungsverpflichtung in Faellen, in denen die Energie produziert wird, aber EVN aufgrund technischer Schwierigkeiten den Strom nicht weiterleiten kann. Eine Loesung fuer die Ueberbrueckung dieser Garantieluecke kann die Nutzung des MIGA-Backup der Weltbank (Mulitlaterale Investitions Garantie Behoerde) oder die Unterstuetzung durch die Asean Entwicklungsbank darstellen.

Gruende fuer eine Stromverteilungstoerung kann z.B. sein: Faelle hoeherer Gewalt oder Vertragsbeendigungen. EVN kann die Einspeisung des Stromes in Faellen von Wartung oder Reparationen verweigern.

Circular 16 enthaelt keinerlei Garantien oder Kompensationen fuer die Investoren bei Eintritt der genannten Faelle.

Unsere Empfehlungen fuer die Vermeidung potenzieller Risiken:

Nehmen Sie sich vor dem Veto-Recht EVNs und den vietnamesischen Behoerden in Acht! Seien Sie geduldig. Entscheidungsprozesse in Vietnam gehen durch viele Stadien und brauchen ihre Zeit.

  1. Es werden Konflikte zwischen den Investoren und EVN entstehen, da die Risiken auf den Investor verschoben werden. Welche Konfliktbewaeltigungsmoeglichkeiten beinhaltet der

PPA fuer Investoren?

Grundsaetzlich wird der PPA durch das vietnamesische Gesetz bestimmt. Er beinhaltet keine Regelungen fuer eine internationale Streitbeilegung.

Konflikte koennen dem Ministerium fuer Elektrizitaet und Erneuerbare Energien mitgeteilt werden. Wenn diese Option fehlschlaegt, koennen Investoren bei der Electricity Regulatory of Vietnam (ERAV) Hilfe ersuchen, oder Antrag bei einem vietnamesischen Gericht stellen.

Der PPA erlaubt nationale und offshore Schiedsgerichtsbarkeit. Jedoch liegt es in EVNs Haenden, ob diese Moeglichkeit im Einzelfall bestehen wird.

Unsere Empfehlungen fuer erfolgreiche Verhandlungen mit EVN: Sie muessen verstehen, wie EVN arbeitet und was deren Ziele sind. Seien Sie sich EVNs Monopolstellung im Energiesektor in Vietnam bewusst. Versuchen Sie nicht ,,das Rad neu zu erfinden“.

Ueberfordern Sie EVN nicht mit zu ambitionierten Intentionen hinsichtlich des Enwicklungsantrages. Sie koennten von zu vielen neuen Dingen veraengstigt sein. Verlassen Sie sich auf funktionierende erfolgreiche Strategien der Vergangenheit und stellen Sie Referenz zu erfolgreichen Projekte her.

  1. Welche Sicht besitzt das MoIT hinsichtlich der Schwaechen des PPA?

Das MoIT ist sich der Schwaechen des PPA bewusst und weiss, dass der PPA Investoren nicht in der Art anziehen wird, wie es zur Energiebedarfsdeckung noetig waere und um Probleme hinsichtllich der Entwicklung erneuerbarer Energien bewaeltigen zu koennen.

Das MoIT weiss ferner, dass der Solarenergie-Sektor in Vietnam grosses Potenzial besitzt.

Letztendlich erwartet das MoIT das Anziehen kleiner Investitionsprojekte, bei denen die Bankfaehigkeit fuer Investoren nicht von all zu grosser Bedeutung ist.

  1. Ist die Sicht des MoIT realistisch?

Unserer Meinung nach, ist die Sicht des MoIT nicht realistisch. Diese koennte zu unschaffbaren Projekten fuehren, aufgrund der bestehenden Risiken der finalen Version des PPA und durch die nicht vorhandenen versichernden oder unterstuetzenden Leistungen von Banken. Darueberhinaus haengt der Erfolg von Projekten, von dem Ergebnis der Verhandlung mit EVN ab.

  1. Welche Ratschlaege koennen Sie zukuenftigen Investoren bezueglich der Projektentwicklung geben?

Nehmen Sie sich in Acht! Sie muessen das Projekt auf einer Schritt-fuer-Schritt Basis entwickeln und sich auf die Verhandlungen mit EVN vorbereiten, falls Sie sich entscheiden, in ein ans Stromnetz eingegliedertes Energieprojekt zu investieren.

Bitte werden Sie sich an den Autor Dr. Oliver Massmann unter wenn Sie Fragen haben. Dr. Oliver Massmann ist co-Generaldirektor von Duane Morris LLC.

Vielen Dank!




Lawyer in Vietnam Dr. Oliver Massmann – Solar Power – Payment mechanism from Vietnam Electricity (former Electricity of Vietnam, EVN) to Solar IPP – What you must know:

1. The periodicity of payment for energy sales by client (EVN) to IPP

The IPP and EVN will together read the metering result on a monthly basis on a mutually agreed date to determine the power delivered and received in a month. The IPP will record the result in writing and send it together with the invoice to EVN within 10 working days from the result reading date. The payment deadline for EVN is within 15 working days from the receipt of the IPP’s invoice.

2. Frequency of price adjustment such that payment in VND reflects equivalent USD value

It is not clear in both Decision 11 and Circular 16, but we understand that the adjustment will be made at the time of payment for grid connected projects. For on-grid rooftop projects, the adjustment is made annually. Provision have been included in previous power project documents.

3. Mechanism for price adjustment (e.g. is applicable price adjustment is weighted average of adjustment period such that seller is not exposed to changes to VND/USD exchange rate).

For on-grid projects, the adjustment is made at the time of payment. For on-grid rooftop projects, the adjustment is made annually. It means that the FiT for on-grid rooftop projects remains the same in a year. The FiT for on-grid rooftop projects for the next year will be adjusted based on the announced VND/USD exchange rate on the last working day of the preceding year.

Please do not hesitate to contact Dr. Oliver Massmann under if you have any questions or want to know more details on the above.







1. Could you point out for me the good point of this solar PPA?

While the previous draft solar PPA does not require the Feed-in-Tariff (FiT) conversion between USD and VND be according to the exchange rate at the time of payment, this newly issued solar PPA repeats the language in Decision No. 11/2017/QD-TTg (Decision 11) that the FiT will be adjusted according to the fluctuation in the VND/USD exchange rate. This is consistent with what is stipulated in Decision 11.
In addition, I note that while the FiT for power output from on-grid projects is adjusted according to the fluctuation in the VND/USD exchange rate, meaning at any time during the year, it is not the same for rooftop projects. Instead, the mentioned FiT for excessive power output generated from rooftop projects remains the same throughout the first year of operation, and the new FiT for the next year will be adjusted based on the announced VND/ USD exchange rate of the last working day of the previous year.

2. Are there any concerns of investors that the solar PPA has not solved?

The rights of the investors are not fully protected in the following cases:
– when EVN is in the process of installing equipment, or making repairs, replacement, inspection or examination of the grid connection of the seller’s power plant;
– when the transmission grid or the distribution grid connected to EVN’s grid has a problem or grid equipment directly connected to EVN’s transmission grid or the distribution grid has a problem; and
– when EVN’s grid needs support to recover after the incident in accordance with the provisions of operation of the national power system and the standards, technical regulations of the electric industry.
– allocation of feeding points into the grid
It is quite risky for the producer if the output is ready to be fed to the grid but the connection is not available to do so. Absent a clear indication of whether the Solar PPA is a ‘take or pay” agreement, investors will find it difficult to secure and ensure the profits and revenue of their projects.
• No international arbitration dispute resolution clause
• No Government guarantee to enhance the credit of EVN as the sole off-taker;
• No provision addressing the risks of changes in applicable laws; and
• The Solar PPA is required to follow a specific template, which is not bankable.

3. Is this PPA solar bankable or not?

This PPA is not bankable due to reasons specified in 2).

4. In your opinion, how Vietnam government should do in order to reach their target for solar power capacity in the coming to time?

There is an increasing interest of foreign investors in the sector, proven by the fact that there are many solar projects with total capacity of 10,000 MW registered with the MOIT. However, not many of them have submitted the pre-feasibility study to the MOIT for consideration. There are many reasons behind this, but the most important ones are the lack of Government guarantee of EVN’s payment obligation in the PPA and currency hedging. Thus, the Government should consider a mechanism where EVN has to fulfil its payment obligation and the investors are ensured that they will be able to remit their profits abroad in foreign currency.

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

Renewable Energy Vietnam – Duane Morris – We get deals done:

  1. Describe the role of yourself/company/department within renewable energy in Vietnam. 

Duane Morris, as both advisor and advocate, guides clients through the complex legal, financial and political issues that pervade the energy industry. For both producers and policy-makers, as well as industry participants and consumers, Duane Morris attorneys help manage the dynamic challenges of the energy market. Our attorneys counsel our clients on regulations, transactions, litigation, project development, facility construction, financing, government relations and policy matters concerning energy. Our attorneys draw upon legal and industry experience with fossil fuels, nuclear power and renewable sources to find creative solutions to meet our clients’ needs. We have been involved in several renewable energy deals in Vietnam until successful close of the respective deal. We can get bankable deals done.

  1. Describe those individuals/companies/government departments with whom you operate mostly with?

Electricity Regulatory Authority of Vietnam, Institute of Energy, General Department of Energy, EVN, Ministry of Planning and Investment.

  1. Explain the purpose of each of these connections whether they be formal, contracted relationships or informal relationships

They are formal relationships, where I either acted as the Chairman of the Legal Sector Committee of EuroCham, or work on behalf of our clients to connect with the authorities to get better understanding of the regulations in the sector and propose necessary changes.

  1. Describe any customs or habits that are features of doing business in the renewable energy industry? Likewise describe any customs or habits that are features of doing business in Vietnam. Explain how these customs or habits are used?

Build and maintain relationship with Government officials at all levels (central, provincial) is a must. Meetings can be formal or sometimes invite them out for lunch/ dinner. Do not go into too much details of your project or investment plan in the initial meeting. Save it for the next meetings. The first one should only be for “getting to know each other” purpose.

Vietnam has a consensus-driven system, meaning everyone has to say something. Any person has veto right. Thus, to make sure that a decision in favor of your investment is made, you have to gain support of every person who has the decision-making right.

In addition, decision making process in Vietnam has to go through many levels and thus takes quite long. Be patient then.

You should always set up a meeting some weeks in advance. Although some officials are able to communicate in English, it is advised to have a translator/ interpreter.

  1. In your opinion, who are the ‘big players’ within the renewable energy industry within Vietnam? This applies to private companies, national companies, government departments etc. 

EVN as the sole off-taker and its generation companies are the main players in the sector. Besides, the General Department of Energy, the Electricity Regulatory of Vietnam (both under the Ministry of Industry and Trade) play an important role in setting regulatory framework.

  1. Explain any rules or laws that dictate how you must operate within the renewable energy industry and within Vietnam. 

Wind: Decision No. 37/2011/QD-TTg, Circular No. 32/2012/TT-BCT

Biomass: Decision 24/2014/QD-TTg, Circular 44/2015/TT-BCT

Solid-waste power: Decision 31/2014/QD-TTg, Circular 32/2015/TT-BCT

Solar: Decision 11/2017/QD-TTg, Circular guiding the Decision and promulgating the PPA is being drafted

There are a number of laws and documents regulating an investment in Vietnam. I just name some major laws: Investment Law, Enterprise Law, Labor Law, Commercial Law, Civil Code, etc.

  1. In your opinion, to what extent does a hierarchy exist within the renewable energy industry in Vietnam? 

The development of renewable energy industry does not catch up with economic development speed. Although the Government has set out the increasing role of this sector in the energy development plan, I am afraid that the Government may fail to meet its target due to lack of support policies and bankable PPAs.

  1. Describe the main changes that have occurred to the renewable energy industry in Vietnam in the last 10 years. 

The renewable industry in Vietnam is very young. Indeed, it only started developing since the adoption of the Wind Decision in 2011. Following that Decision, the Prime Minister continued completing the legal framework for the sector by introducing Biomass Decision and Solid-Waste Decision in 2014, and the latest Decision being the Solar Decision issued in April 2017. The adoption of these policies was the joint effort of many relevant ministries, including the General Director of Energy under the Ministry of Industry and Trade, which was established at the end of 2011 to improve state management in the sector.

In 2009,  the first factory producing solar panels with total investment of USD10 million came into operation in Vietnam. Later in 2010, GE Energy invested USD61 million to establish the first factory producing wind turbines in Hai Duong. This was considered as a boost for the renewable energy market. However, by 2015, renewable energy only accounted for 5% in the total energy output, in which there is no wind and solar power but only small hydro power.

FYI, the first wind power plant came into operation in 2012 in Binh Thuan with a capacity of 30 MW. Recently, the first solar plant in Dong Thap also commenced its operation.
Please do not hesitate to contact Dr. Oliver Massmann under if you have any questions or want to know more details on the above. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.

Thank you!

© 2009- Duane Morris LLP. Duane Morris is a registered service mark of Duane Morris LLP.

The opinions expressed on this blog are those of the author and are not to be construed as legal advice.

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