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Vietnam: Key power and energy legal developments to watch in 2021 for implementing the National Energy Development Strategy to 2030 with a vision to 2045

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In brief

The government of Vietnam recently issued Resolution No. 140/NQ-CP1 promulgating the government’s action program (“Government’s Action Program“) to implement Resolution No. 55-NQ/TW of the Politburo on the orientation of the National Energy Development Strategy to 2030, with a vision to 2045 (“Resolution No. 55“). The Government’s Action Program highlights, among others, the specific tasks and responsibilities of state management agencies of Vietnam to implement the general and specific objectives of the energy development as earlier set forth in Resolution No. 55.

Resolution No. 140 also sets out a list of key specific laws, regulations, programs, projects and master plans required to be prepared and issued in the next 10 years for implementing the Government’s Auction Program with specific agenda items for 2021.

While certain key legal frameworks for the energy sector are in progress and require final approval as soon as possible, this list indicates a roadmap for how the government of Vietnam will design the energy sector in the next five to 10 years with specific starting items for 2021. The list also covers a wide range of topics, from different sources of renewable energy, oil and gas, and coal, to energy efficiency, climate change and greenhouse gas emissions reduction.

Notably, in addition to upcoming legal mechanisms (e.g., new PDP8, energy master plan, pilot corporate virtual/synthetic DPPA program, solar/renewable energy auction/bidding mechanism, revised FiTs for wind farms), from the Government’s Action Program, there are some other key legal frameworks to watch in 2021, including:

  • mechanisms for developing offshore wind power in line with the implementation of the Vietnam Sea Strategy
  • mechanisms to encourage the development of renewable energy for self-consumption (with priority for rooftop solar power)
  • mechanisms for developing floating solar power
  • mechanisms for biogas power development
  • a comprehensive Law on Renewable Energy to be studied/drafted
  • proposed amendments to the Electricity Law in the period 2021-2022
If you would like to further discuss details of the Government’s Action Program or the short- and long-term priorities of the energy sector in Vietnam, please do not hesitate to contact us.

1 Resolution No. 140/NQ-CP dated 2 October 2020 promulgating the Government’s Action Program for implementing Resolution No. 55-NQ/TW dated 11 February 2020 of the Politburo regarding the orientations of the Vietnam National Energy Development Strategy to 2030, with a vision to 2045 (“Resolution No. 140“).

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Frederick Burke is a member of Baker McKenzie’s Global Policy Committee, comprised of the Firm’s Managing Partners globally, responsible for driving the overall strategy of the Firm. He is also the Managing Partner of our Baker McKenzie offices in Vietnam, more particularly in Hanoi and Ho Chi Minh City. He has more than 30 years’ experience practicing in the areas of corporate law, real estate, international trade and is highly regarded for his work on foreign investment projects in Vietnam and China for key players in property development, trade, IT/C, and project finance, among other areas. Mr. Burke is the go-to advisor for big deals in Vietnam’s flourishing industries including: renewable energy, agribusiness, airlines, hotels, resorts and tourism and large scale infrastructure projects. He is currently the representative of the American Chamber of Commerce in Vietnam to the Prime Minister’s Advisory Council on Administrative Reform in Vietnam and he has been recognized by the Ministry of Justice of Vietnam for his “Outstanding contributions in the field of international legal cooperation”. Mr. Burke is consistently ranked as a Leading Lawyer in Corporate / M&A by leading legal publications in Vietnam (Legal 500 AP 2007-2018; Chambers and Partners AP 2012-2018; IFLR1000 2010-2018).

Author

Thanh Hai Nguyen is a partner based in Baker McKenzie's Hanoi office. He has been serving as Chair of the Legal Committee of the American Chamber of Commerce in Hanoi (AmCham Hanoi) since April 2017, as well as an active member in the Vietnam Business Forum (VBF)'s Power & Energy Working Group and Investment & Trade Working Group. He is an admitted lawyer in Vietnam and a member of the Hanoi Bar Association.

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