Securing a Power Project in Vietnam:
A Greenfield Utility-Scale Roadmap

Developing a utility-scale renewable energy project in Vietnam means navigating a structured, competitive approval process that can span several years. This Blue Paper sets out the key legal procedures from project concept through investment approval, for projects falling within provincial authority.

01 Introduction

Vietnam's power sector has seen rapid legislative development in recent years, driven by robust investment demand and the country's commitment to energy transition. Under the national power development plan, Vietnam targets 183,291-236,363 MW of total installed capacity by 2030, rising to over 774,000 MW by 2050 - with particular emphasis on solar, hydropower, onshore and nearshore wind, and offshore wind. This creates substantial opportunities for both domestic and foreign investors across the renewable and conventional power space.

This direction is anchored in three high-level policy instruments: Resolution No. 55-NQ/TW of 11 February 2020 (national energy development strategy to 2030, vision to 2045); Resolution No. 70-NQ/TW of 20 August 2025 (ensuring national energy security); and Resolution No. 253/2025/QH15 of 11 December 2025 (mechanisms and policies for national energy development for 2026-2030). For investors, developing a utility-scale power project means navigating a structured and competitive approval process in which each stage requires strict compliance and close coordination with the competent authorities. The overview below focuses on projects under provincial authority, under the Law on Investment No. 143/2025/QH15 ("Law on Investment 2025").

02 Form of selection of investors

Once a project has been included in the relevant power development plans, the first key step is to determine which investor-selection mechanism applies, as this determines the application dossier required. Current law recognises three methods.

(i) Investor approval, concurrent with the IPA

Under this route, the investment policy approval ("IPA") - which endorses the project's objectives, location and scale - can be issued concurrently with the investor approval decision ("IAD"), via a Combined IPA and IAD Application. Typical circumstances include: the investor already holds land-use rights; the project sits inside an industrial park, high-tech zone or concentrated digital technology zone; an energy project in areas of particularly difficult socio-economic conditions; an offshore wind project; or a nuclear power plant.

A key feature is financial-capacity assessment: the investor must demonstrate sufficient resources to meet land-lease obligations. While current law no longer prescribes a minimum equity ratio for renewable energy projects, in practice authorities typically require audited financial statements for the past two years (or bank balance confirmations), by reference to the former thresholds of 15% for projects using 20 hectares or more and 20% for projects using less than 20 hectares. For projects in areas with restricted land access - islands and coastal communes - opinions from the Ministry of National Defense and the Ministry of Public Security must also be obtained, given national security considerations.

(ii) Auction of land-use rights

This route is rarely used for power projects. A land-use rights auction requires the land to have been recovered by the State and fully cleared - with compensation, support and resettlement either completed or not required at all. Power projects typically involve large land areas and changes in land-use purpose, so most sites do not meet this condition.

(iii) Competitive bidding

Competitive bidding is the default route for power projects, including renewable electricity projects, because such projects are typically subject to both land recovery by the State and mandatory investor-selection requirements under sector-specific electricity regulations. If a land-use auction fails twice without identifying a successful bidder, or the expression-of-interest stage yields only one eligible investor, the process can shift to direct appointment: the investor submits a dossier to the Department of Finance ("DOF") seeking approval as project developer, the DOF runs an appraisal and submits a proposal to the provincial People's Committee for the investor approval decision. Where at least two investors compete and one is selected through bidding, no separate investor-approval application is required.

03 Key approval & permit milestones

Developing a utility-scale renewable electricity project follows a sequential path in which each milestone builds on the one before - the investor's journey from Power Development Plan ("PDP") to Investment Registration Certificate ("IRC").

3.1 - Inclusion in the Power Development Plans

New power projects, including renewable electricity projects, must be consistent with the Power Development Plans (PDPs), aligned with grid development, and compatible with power-system safety. If a project is already listed in the relevant PDP, this step is satisfied from the outset. National PDP approval rests with the Prime Minister; provincial PDP approval rests with the Chairperson of the provincial People's Committee.

The National PDP is prepared by the Ministry of Industry and Trade (MOIT) and approved by the Prime Minister. PDP8 was first approved under Decision No. 500/QD-TTg dated 15 May 2023 and subsequently replaced by the revised PDP8 under Decision No. 768/QD-TTg dated 15 April 2025 (covering 2021-2030, vision to 2050); the implementation plan followed under Decision No. 1509/QD-BCT dated 30 May 2025. A project qualifying for the National PDP must also be reflected in the Provincial PDP, since such projects affect local land use, infrastructure and grid connection at lower voltage levels. Timelines range from a few months where only provincial inclusion is needed, to several years where existing PDPs must be adjusted.

3.2 - Pre-Feasibility Study (Pre-FS)

Power projects selected through bidding generally require a Pre-FS, which serves as an important basis for appraisal at the IPA stage. Depending on the project structure and bidding framework, the Pre-FS may be prepared by the interested investor as part of its proposal, or by the provincial Department of Industry and Trade (DOIT) before the project is formally submitted for IPA. There is no separate statutory procedure governing its submission and appraisal; in practice, an investor-prepared Pre-FS is submitted to the provincial DOIT for consultation and preliminary comments before being incorporated into the investor's IPA dossier.

The surveys supporting a Pre-FS for a utility-scale energy project generally include topographic and geological surveys, wind or solar resource assessments, grid connection studies, environmental and ecological baseline surveys, and surveys of existing land use and potential resettlement impacts. The precise scope depends on the nature of the project and the requirements of the relevant provincial DOIT.

Cost of preparing the Pre-FS. Where the investor proposes a project, it bears the Pre-FS costs and cannot recover them if the project is not approved or no investor is selected; the law is unclear on whether a proposing investor can recover its costs from the eventual winner. Where the DOIT proposes the project, it bears the costs and is subsequently reimbursed by the selected investor.

3.3 - Investment Policy Approval (IPA) issuance

Once included in the relevant PDPs, either the investor or the DOIT may prepare a Pre-FS and propose the project for IPA - the formal approval required before investor selection begins. The IPA is mandatory for utility-scale power projects, as these typically involve land allocation or lease, changes in land-use purpose in areas relevant to national defense or security, or allocation of sea areas by the State. At the provincial level, IPA issuance rests with the Chairperson of the provincial People's Committee.

At the appraisal stage, the authorities examine consistency with the applicable PDPs, technical and grid-connection feasibility, environmental and social impacts, and land-use suitability. The DOF coordinates the inter-agency appraisal and consults the DOIT, the Department of Agriculture and Environment, the Department of Construction, and the Electricity and Renewable Energy Authority. If the outcome is favourable and the required conditions are met, the DOF submits an appraisal report to the Chairperson for issuance of the IPA, and the project then proceeds to competitive investor selection. The process runs in stages - submission to the DOF (around 2 working days), consultation with state agencies (around 7 working days), appraisal opinions and the DOF's report, and the final decision (around 3 working days) - approximately 14 working days in total.

3.4 - Expression of Interest (EOI)

The EOI is a mandatory preliminary filter through which the competent authority gauges market interest and investor capability before deciding on the appropriate selection mechanism. It identifies qualified investors and determines whether sufficient competition exists for a full bid: with multiple qualified participants, the process proceeds to competitive bidding; with only one qualified respondent, the authority moves directly to the investor approval procedure. The EOI is conducted largely online via the National E-Procurement System (VNEPS) and becomes mandatory from 1 July 2026.

Any interested investor may submit an EOI dossier, whether or not it has previously applied for an IPA. To participate, investors must meet the specific requirements of the EOI invitation package and the general eligibility conditions - valid legal status, VNEPS registration under the Law on Bidding No. 22/2023/QH15, a clean land-law record, and adequate financial capacity. In practice, financial capacity is the most rigorously assessed criterion and is often the primary basis for disqualification.

Financial-capacity requirement - equity.

An investor participating in multiple projects must ensure the remaining equity (after deducting equity allocated to other projects) still meets the minimum requirement.

Required documents.

What happens next depends on the number of qualified investors: two or more proceed to competitive bidding; only one moves forward under the investor approval procedure; and where none qualifies, the Chairperson may re-run the EOI using the existing package or revise and re-launch it.

3.5 - Bidding

Bidding can commence once the EOI phase has produced at least two qualified participants. It generally follows the one-stage, one-envelope method - the standard approach for most energy projects in Vietnam - under which bidders submit technical and financial proposals in a single envelope, evaluated in a unified process. The process is formally initiated when the bid inviting party (generally the DOIT/DOF) publishes the bid invitation package on VNEPS, including the draft power purchase agreement proposed by the electricity purchaser and agreed with the provincial People's Committee.

Bidders must be fully independent from the competent authority, the bid inviting party, and any consultants involved in preparing or evaluating the project. Bid dossiers, submitted electronically via VNEPS, must include bid forms, bid security, evidence of financial capacity and capital mobilisation, a comprehensive technical proposal, a financial proposal (including proposed electricity pricing), and relevant project experience.

Bid security is required at submission - most commonly a bank guarantee valued at 0.5% to 1.5% of total investment capital, as specified in the bid invitation package. It must remain valid throughout the bid validity period plus 30 days, is returned to unsuccessful bidders within 14 days of the selection results, and to the successful bidder once the project investment contract takes effect. It is forfeited if the bidder withdraws or amends its bid after the deadline, fails to keep the bid valid, breaches bidding regulations, fails to provide performance security, or refuses to sign the project investment contract.

Evaluation criteria. Bid dossiers are assessed on three weighted components: the investor's capacity (5-10%); the effectiveness of the investment for power-sector development (5-10%); and the feasibility of the proposed investment and business plan (80-90%).

1. Investor capacity (5-10%)

2. Effectiveness of investment for power-sector development (5-10%)

3. Feasibility of the proposed investment and business plan (80-90%)

Scoring. Dossiers are scored on a 100- or 1,000-point scale. To qualify for ranking, a bid must achieve at least 70% of the total, at least 60% on the capacity component, at least 60% on the investment-and-business-plan component, and at least 50% on the sector-development component - preventing a strong overall score from masking weakness in any single area. The highest composite score that also clears every minimum threshold is ranked first and declared the winner. A tie is broken by relevant experience, then by the lower electricity price.

The bidding results are set out in a Decision approving the result of investor selection (the "Investor Selection Decision"), issued by the Chairperson of the provincial People's Committee and publicly announced on VNEPS, confirming the ranked-first investor's right to implement the project and forming the legal basis for all subsequent steps. The selected investor then proceeds to negotiate the Project Investment Contract and the PPA, and to file for the IRC.

3.6 - Project Investment Contract

Following the Investor Selection Decision, the ranked-first investor is invited to negotiate and finalise the Project Investment Contract, whose term runs from the effective date until the investor has fully performed all bid commitments and other contractual obligations. An investor that fails to attend or refuses to proceed forfeits its bid security, with no refund.

Negotiation is subject to strict principles: the parties cannot re-open any content the bidder already offered in full compliance with the bid invitation package, and no fundamental elements may be changed unless the change clearly benefits the project. If negotiation fails, the bid inviting party revokes the Investor Selection Decision, negotiates with the next-ranked bidder, and issues a fresh decision on success. Within five working days of the contract taking effect, the provincial People's Committee publishes key contract information on VNEPS. At or before the effective date, the investor must provide performance security - a bank or insurance guarantee, typically 1% to 3% of total investment capital - valid from the effective date until termination.

3.7 - Power Purchase Agreement

Once the Project Investment Contract is signed, the selected investor and the Electricity Power Trading Company (EPTC) negotiate and execute the Power Purchase Agreement (PPA). A prerequisite for signing is approval of the project's Feasibility Study (FS Approval), which must be obtained within 15 months of signing the Project Investment Contract for hydropower, gas-fired thermal, coal-fired thermal and wind projects, or within 6 months for biomass and solar projects. PPA negotiation and execution must be completed within three months of the winning investor submitting a complete and valid dossier to EPTC.

3.8 - Investment Registration Certificate (IRC)

The final step is obtaining an IRC, which is mandatory for foreign investors and for FIEs where foreign investors and/or FIEs hold more than 50% of the charter capital. Local investors are not required to obtain an IRC, though many do so for clarity and administrative convenience. Once investor selection is complete and the Project Investment Contract has been signed, the investor obtains the IRC through a streamlined process - submitting a simple application form to the DOF together with the approved IPA, the Investor Selection Decision, and documents evidencing legal status. The DOF issues the IRC within roughly five working days. Once issued, the project company can be formally established, and the investor can proceed with construction and all subsequent implementation activities in accordance with the law.