RECCESSARY’s “ASEAN Weekly” highlights Southeast Asia’s new energy and carbon market updates. (Image: RECCESSARY)
This week in ASEAN, Vietnam’s heatwave pushed electricity demand to record highs, exposing delays in its power development plan. At the same time, Indonesia tightened forest carbon rules to improve credit quality and curb greenwashing, while Vietnam moves to launch new carbon sequestration regulations in June. Below are ASEAN’s key stories from May 25–31.
VinFast taps founder’s son as chairman to navigate losses, rapid expansion
Vietnam’s electric vehicle maker VinFast—often dubbed the “Tesla of Vietnam”—announced on May 25 the appointment of Pham Nhat Quan Anh, eldest son of Pham Nhat Vuong, as its new chairman. His immediate mandate is expected to focus on steering the company toward profitability while sustaining its aggressive global expansion strategy. Read more here
Indonesia, Vietnam roll out new forest carbon rules to attract investors
Resource-rich Indonesia is moving to further open its forestry carbon market, as the Ministry of Forestry rolls out a new regulation aimed at improving credit quality and market integrity.
In addition to Indonesia, Vietnam’s carbon market is expected to gain momentum as its regulatory framework develops, with a decree on forest carbon sequestration and storage services set to take effect in June. Read more here
Indonesia and Vietnam are strengthening legal frameworks for forest carbon credits. (Photo: Unsplash)
Philippines accelerates 200 power projects to strengthen energy security, renewables
The Philippines’ Department of Energy (DOE) said it is fast-tracking around 200 power generation projects as the country seeks to strengthen energy security by 2028 amid rising electricity demand, volatile fuel markets, and growing geopolitical uncertainty.
The Philippines will require an additional 20 gigawatts (GW) of renewable energy capacity to achieve its target of sourcing 50% of electricity generation from renewables by 2040, according to Energy Secretary Sharon S. Garin. “Energy security is inseparable from national security,” said DOE Undersecretary Felix William Fuentebella on Tuesday. Read more here
Vietnam heatwave pushes grid to record demand, prompts urgent PDP8 review
A severe heatwave is pushing Vietnam’s power system to its limits, prompting the Ministry of Industry and Trade (MOIT) to warn that electricity supply risks could intensify.
The warning comes after electricity demand repeatedly hit new highs over the past week, exposing vulnerabilities in a power system that remains heavily reliant on coal-fired generation and hydropower. The pressure is compounded by delays to key generation and transmission projects under the revised Power Development Plan VIII (PDP8), prompting the government to call for an urgent review of the country’s long-term power development strategy. Read more here
EU opens door to CBAM deductions, but Vietnam exporters may see little relief
The EU released on May 13, 2026 a long awaited draft proposal on carbon price deductions under the Carbon Border Adjustment Mechanism (CBAM). The document confirms that companies will be allowed to deduct carbon costs already paid by suppliers in exporting countries under the CBAM framework. The proposal has now entered a public consultation phase, with discussions focused on issues including payment certificate requirements, exchange rate conversion methods, and the accreditation standards for qualified third-party verifiers.
At first glance, the development appears to be good news for manufacturers operating in Vietnam. The country officially launched a pilot emissions trading system (ETS) in 2025, and its regulatory framework is gradually taking shape. But a closer look at the numbers reveals a harsher reality. Under the EU’s current framework, Vietnam’s ETS is unlikely to generate meaningful CBAM deductions during its first three years, precisely the period when CBAM costs are expected to rise most rapidly. Read more here
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Although the EU’s CBAM draft allows importers to deduct carbon prices paid in third countries, Vietnam’s current ETS is unlikely to generate meaningful offsets during its first three years. (Image: iStock)
Vietnam’s new time-of-use tariffs are forcing a rethink of RTS plus BESS strategies
Manufacturers operating in Vietnam are likely aware that the Ministry of Industry and Trade (MOIT) issued Decision No. 963/QĐ-BCT on April 22, 2026, redefining peak, off-peak, and normal electricity pricing periods across the national power system. The regulation took effect immediately upon signing. There was no transition period, no phased rollout, and little room for businesses to prepare. Companies simply woke up to find that peak hours had been reshuffled overnight.
The policy shift is particularly noteworthy because just last year, Vietnam’s MOIT and Germany’s development agency GIZ jointly released a report highlighting the strong potential of rooftop solar system (RTS) combined with BESS. The report identified steel, food processing, hospitality, and machinery manufacturing as especially suitable sectors due to their distinct electricity consumption patterns. Read more here
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