We are pleased to share the September edition of our Vietnam Infrastructure Spotlight newsletter. In this issue, we highlight recent legal and market developments in Vietnam's infrastructure sector.

Whether you're actively exploring new opportunities or simply keeping a close eye on market trends, we hope you find these insights both timely and valuable.

FRESHFIELDS NEWS

Enhancing energy and infrastructure offering. Freshfields has appointed Nguyen Ngoc, as Counsel, based in Ho Chi Minh City. Ngoc is a seasoned energy and infrastructure lawyer with over 15 years of experience advising on projects in Vietnam and Asia. She will work closely with colleagues in Vietnam, Singapore, and Tokyo to support multinational clients in the energy and infrastructure space. Source: Vietnam News and Vietnam Investment Review

LAW AND POLICY UPDATE

Another energy development plan

On 20 August 2025, the Politburo of the Communist Party of Vietnam issued Resolution No. 70-NQ/TW, outlining the strategy to ensure national energy security and sustainable development through 2030, with a long-term vision to 2045. This resolution builds upon the progress and lessons learned from Resolution No. 55-NQ/TW (2020), acknowledging persistent challenges in energy infrastructure, policy, and market dynamics.

The resolution emphasizes the critical role of energy in driving economic growth, national defense, and environmental sustainability. It calls for the State to lead in policy-making and infrastructure development, while encouraging robust participation from the private sector and foreign investors. Energy development is to be aligned with Vietnam’s socialist-oriented market economy and international climate commitments.

Key targets for 2030 include achieving a total primary energy supply of 150–170 million tons of oil equivalent, expanding power generation capacity to 183–236 GW, and increasing the share of renewable energy to 25–30%. The resolution also aims to reduce greenhouse gas emissions by up to 35% compared to business-as-usual scenarios and improve energy efficiency by 8–10%.

To meet these goals, the resolution outlines strategic solutions: diversifying energy sources (including renewables, LNG, and nuclear), modernising infrastructure (smart grids, storage systems), reforming legal frameworks, and enhancing international cooperation. It also prioritises the development of domestic energy industries, human resources, and innovation through science and technology.

To tender or not to tender

Decree 115, issued in September 2024, introduced mandatory bidding for nearly all greenfield projects—reversing the previous investor-led proposal model. This placed the burden of project preparation on regulators, often constrained by limited resources and deterred investors from funding costly project preparation activities.

However, recent amendments under Decree 225, effective from 15 August 2025, mark a turning point. The updates allow direct appointment of investors in many projects and remove the requirement for bidders to demonstrate technical capacity in proposal documents. While speed is now prioritised, maintaining project quality remains a critical concern.

Feed-in-tariff debate – Seeking common ground

A government meeting was held at the end of July to discuss solutions to EVN’s controversial decision to withhold part of the electricity payment to wind and solar power projects that failed to obtain the required Completion Acceptance Certificate (CCA). Following that meeting, EVN proposed two options for resolving the situation for the Government’s consideration.

Option 1: EVN would apply the lower feed-in-tariff (FIT) applicable at the time the project obtained the CCA for the entire term of the power purchase agreement (PPA). Each affected project company must refund the difference between the FIT it has been enjoying and such lower FIT to EVN. As a result, non-compliant projects would be subject to a significantly lower FIT for the remainder of the PPA term and would be required to return the excess payments received to date.

Option 2: EVN would allow project companies to continue applying the original FIT agreed in the PPAs, but they would be required to (i) pay an administrative fine of up to VND 100 million (approximately US$4,000) for failing to obtain the CCA before commercial operation, and (ii) refund to EVN the difference in FIT payments as described in Option 1. Source: Bloomberg

MARKET UPDATES

Renewable Energy

• Onshore Wind – Patience pays off. Singapore-headquartered Nexif Ratch Energy has received the nod from Gia Lai People’s Committee to implement the Van Canh Binh Dinh wind power plant with a capacity of 143 MW and 26 wind turbines. Source: Vietnam Investment Review
• Offshore Wind – Start of a long beginning. Denmark's Copenhagen Infrastructure Partners plans to cooperate with state-owned Petrovietnam on the development of an offshore wind power project in the former central province of Binh Thuan (now part of Lam Dong province). The two sides exchanged the Joint Development Agreement at a ceremony last month. Source: CIP and GlobeNewswire

Bioenergy

• The Ministry of Industry and Trade is pushing for wider use of biofuels, with a plan to make E10 the standard petrol nationwide. Under the proposal, from 1 January 2026, all petrol produced, blended, and sold for vehicles with petrol engines across the country must be E10, a fuel blend containing 10 per cent ethanol. The draft circular, now open for public consultation, sets out the roadmap for expanding the use of biofuels in the transport sector. Source: Vietnam Investment Review
• Vietnam wishes to see Italian group expand its investment and partnerships with domestic stakeholders in line with the country's green transition, particularly in the area of carbon capture, utilisation and storage. The company stressed its desire to expand strategic cooperation in the bioenergy sector, especially through programs that utilize agricultural and forestry by-products such as used cooking oil, cashew shell oil, and oil-bearing crops. Source: The Investor

LNG

• Quynh Lap. South Korea’s SK Innovation is seeking the opportunity to develop over US$2 billion Quynh Lap LNG thermal power plant via submitting a draft joint development agreement to Nghe An People’s Committee. The plant would have a capacity of 1,500 MW with two units and is expected to consume about 1.15 million tonnes of LNG annually. Source: Vietnam Investment Review
• Quang Ninh. The concerned authorities in Quang Ninh province gathered last month to discuss resolving land clearance and compensation bottlenecks for a US$2.2 billion LNG-to-power plant p The project, a key part of Vietnam’s national energy strategy, covers over 41 hectares and affects multiple households and entities in Cua Ong ward. However, disputes over land origin and compensation plans, especially for properties dated before 1 July 2004, have delayed the site handover. Source: The Investor
• Hai Lang. Quang Tri authorities have pledged stronger backing for the long-delayed Hai Lang LNG project as investors seek solutions to land and permitting hurdles. The project is set to adjust its construction roadmap amid delays and Quang Tri People’s Committee committed to helping remove obstacles to keep the project on track. Source: Vietnam Investment Review

Nuclear

• Signing financing agreements in September – Mission (im)possible. The Ministry of Finance has been tasked with completing negotiations and signing credit agreements for the Ninh Thuan 1 nuclear power project in September and for Ninh Thuan 2 within next March. Talks with partners on credit agreements are key to advancing the nuclear power project, as securing financing remains one of the biggest hurdles for the developers. Source: The Investor

Oil & Gas

• Low-emission oil refinery (or a trade balancing attempt). ExxonMobil has begun surveying Van Phong Economic Zone in Khanh Hoa as part of its search for a location to host what could become its first near zero-emission refinery in Asia-Pacific, with a total investment estimated at US$10 billion. Source: Vietnam Investment Review

Aviation

• Ready for take-off. Vietnam’s newest carrier Sun PhuQuoc Airways, which will begin commercial flights in November, has taken delivery of the first of eight Airbus aircraft it will buy this year. Sun PhuQuoc Airways will connect Vietnam’s Phu Quoc Island with major economic and tourism locations, such as Hanoi, HCMC and Da Nang. Source: VN Express International
• Aviation industrial complex. Capital A, the parent company of Malaysian budget airline AirAsia, is exploring investment opportunities in an aviation industrial complex in Quang Tri, through a potential partnership with local conglomerate T&T Group. Source: The Investor

Shipping

• Eying on HCMC. France's CMA CGM Group is exploring Ho Chi Minh City’s seaport development plans with a view to future investment. The company considers Vietnam, particularly HCMC, a strategic hub and is seeking the detailed information on the city’s sea transport and seaport planning to shape its investment plans. Source: The Investor

Manufacturing

• E-bike market. The Seoul-based LG Energy Solution (LGES) plans to invest in an electric motorbike manufacturing plant and charging stations in Phu Tho with ODA funding. LGES is now the world’s second largest EV battery supplier with a 21.2% market share. Source: The Investor
• EV market. Posco International Corporation, under South Korean chaebol Posco, plans to further invest in some core industrial fields in Vietnam, like manufacturing of electric vehicle motors and permanent magnets to supply global automobile makers. Source: The Investor