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Solar power farm in Cam Ranh, Vietnam. (Photo: iStock)
Vietnam’s renewable energy sector is caught in a strange, somewhat contradictory moment. On one hand, the long-awaited Direct Power Purchase Agreement (DPPA) framework finally went live in March. By lowering the barriers for entry, it felt like the industry had finally turned a corner, moving toward a more open and competitive market. But just as we started to see a glimmer of hope, a "regulatory backlash" from the past has come back to haunt the industry.
While the DPPA is making headlines, there’s a much quieter, more unsettling story unfolding in the background. Word has been circulating that multiple foreign chambers of commerce have privately voiced their concerns to the government. At the heart of the issue is a staggering 12GW of solar and wind capacity—projects that are now seeing their FiT payments slashed or tied up in retroactive disputes. It’s a situation that has sent a chill through the market, raising serious questions about credit risk and the possibility of messy, long-term legal battles.
Unlock the full article to explore three key takeaways:
- Up to 12 GW of renewable energy projects in Vietnam face retroactive subsidy clawbacks.
- Administrative document revisions could slash electricity tariffs by nearly 50%.
- Developers face financing default risks, undermining investor confidence in the DPPA mechanism.