After nearly 20 years of implementation and 4 amendments, the practice of implementing electricity laws shows that there are still some issues that Electricity Law 2004 could not resolve.
To create a synchronous and feasible legal framework for electricity activities and investments in the electricity sector, and to overcome difficulties in implementation of the Electricity Law 2004, a new Electricity Law was passed on 30 November 2024 and took effect on 1 February 2025 (“Electricity Law 2024”).
Highlights of the Electricity Law 2024
In general, the Electricity Law 2024 regulates planning for electricity development, investments in electricity project construction; development of renewable energy and new energy; electricity operation licenses; competitive electricity market, electricity trading activities; dispatch and operation of the national electricity system; protection of electricity construction works and safety in the electricity sector; responsibilities, rights and obligations of agencies, organizations and individuals in electricity activities and electricity use; State management of electricity.
Below are some notable new points of the Electricity Law 2024:
| No. | Highlight | Interpretation |
| 1 | Applying market mechanisms to electricity prices; direct electricity sale mechanism |
Electricity prices will be implemented according to market mechanisms with prices regulated by the State. Electricity purchase and sale can be through direct power purchase agreements (DPPA), electricity term contracts, electricity purchase or sale options, electricity future contracts between electricity sellers and electricity buyers. The winning bid price of electricity will be the maximum electricity price for the electricity buyer to negotiate with the winning investor.
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| 2 | Gradually reducing and eventually eliminating cross-subsidy in retail electricity prices between customer groups |
Retail electricity prices will be implemented according to a reasonable and gradually decreasing price structure, moving towards eliminating cross-subsidy of electricity prices between customer groups which do not participate in the competitive retail electricity market when they are not eligible to participate or do not choose to participate in buying and selling electricity on the competitive retail electricity market. The right of the parties to decide on electricity purchase price and selling price will be guaranteed on the basis of not exceeding the electricity price frame and retail electricity price structure prescribed for by the State. Electricity prices are guaranteed to be implemented publicly, transparently, equally, and without discrimination between electricity units.
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| 3 | Investment and financial incentives for investors (domestic and foreign) in construction of power sources and power grids, and electricity business |
Applying investment, financial and other incentives and support to domestic and foreign organizations and individuals in construction of power sources and power grids, and in electricity business. The Electricity Law 2024 clearly states that all economic sectors are encouraged to participate in investing in construction of power sources and power grids according to the planning for electricity development, the power supply network development plan in the provincial-level planning, the plan to implement the planning for electricity development, power generation, power distribution, electricity wholesale, and electricity retail activities; non-State economic sectors are allowed to operate the power grids which they have invested in and constructed according to the provisions of law.
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| 4 | Encouraging investments in developing renewable energy and new energy projects |
Encouraging investment in developing renewable energy projects, new energy, power plants using fossil fuels to switch to low-emission fuel sources, installation of equipment and carbon capture systems to reduce emissions into the environment; developing coal-fired thermal power at a reasonable level in the direction of prioritizing large-capacity, high-efficiency units using advanced, modern technology; ensuring compliance with environmental protection laws.
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| 5 | Nuclear power development |
Additing the nuclear power development policy; accordingly, the planning for development of nuclear power will be closely linked, synchronized, and consistent with the master plan for electricty development, and ensuring the safety of nuclear power plants according to the provisions of the Energy Law.
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Guiding legal documents
To create a synchronous legal framework, just a very short time after the Electricity Law 2024 came into effect, a series of legal documents providing guidelines for implementation of the Electricity Law 2024 has synchronously been issued (which previously somehow took a long time to achieve):
At the decree level:
| No | Document number văn bản | Summary of content | Date of issue | Effective date |
| 1 |
Decree No. 18/2025/ND-CP
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Detailing a number of articles of the Electricity Law related to electricity trading activities and circumstances of ensuring electricity supply. | 8 February 2025 |
8 February 2025
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| 2 | Decree No. 56/2025/ND-CP | Providing regulations on planning for electricity development, plans of developing power supply networks, investments in construction of electricity projects and bidding to select investors for electricity business projects. |
3 March 2025
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3 March 2025
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| 3 | Decree No. 57/2025/ND-CP | Providing regulations on the mechanism for direct electricity purchase and sale between renewable energy power generation units and large electricity users. |
3 March 2025
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3 March 2025
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| 4 |
Decree No. 58/2025/ND-CP
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Providing regulations on the development of renewable energy and new energy power. |
3 March 2025
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3 March 2025
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| 5 | Decree No. 61/2025/ND-CP | Providing regulations on electricity operation licenses. |
4 March 2025
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4 March 2025
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| 6 | Decree No. 62/2025/ND-CP | Providing regulations on the protection of power construction works and safety in the electricity sector. |
4 March 2025
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4 March 2025
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| 7 | Decre No. 72/2025/ND-CP | Providing regulations on the mechanism and timing for adjusting average retail electricity prices. | 28 March 2025 | 28 March 2025 |
At the circular level:
| No | Document number | Summary of content | Date of issue | Effective date |
| 1 | Circular No. 02/2025/TT-BCT | Providing regulations on protection of power construction works and safety in the electricity sector. |
1 February 2025
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1 February 2025 |
| 2 | Circular No. 03/2025/TT-BCT | Providing regulations on documents, order and procedures for purchasing and selling electricity with foreign countries. |
1 February 2025
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1 February 2025 |
| 3 | Circular No. 04/2025/TT-BCT | Providing regulations on procedures for stopping and reducing power supply. |
1 February 2025
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1 February 2025 |
| 4 | Circular No. 05/2025/TT-BCT | Providing regulations on power transmission, power distribution, and power metering systems. |
1 February 2025
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1 February 2025 |
| 5 | Circular No. 06/2025/TT-BCT | Providing regulations on dispatching, operation, handling, troubleshooting, black start and restoration of the national power system. |
1 February 2025
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1 February 2025 |
| 6 | Circular No. 07/2025/TT-BCT | Providing regulations on implementation of management of demands for electricity. |
1 February 2025
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1 February 2025 |
| 7 | Circular No. 08/2025/TT-BCT | Providing regulations on electricity generation costs of power plants in the period before participating in the competitive electricity market for some types of power plants. |
1 February 2025
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1 February 2025 |
| 8 |
Circular No. 09/2025/TT-BCT |
Providing regulations on documents, order, procedures, methods for determining and approving the electricity generation price framework; regulations on documents, order, procedures for formulation and approval of the electricity import price framework. |
1 February 2025
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1 February 2025 |
| 9 | Circular No. 10/2025/TT-BCT | Providing regulations on the method of determining and principles of applying the avoided cost price list for small renewable energy power plants; main contents of the power purchase contract. |
1 February 2025
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1 February 2025 |
| 10 | Circular No. 11/2025/TT-BCT | Providing regulations on the method for determining and the order and procedures for approving the price of auxiliary services for the power system; main contents of the contract for providing auxiliary services to the power system. |
1 February 2025
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1 February 2025 |
| 11 | Circular No. 12/2025/TT-BCT | Providing regulations on the method for determining the price of electricity generation services; principles of calculating electricity prices for implementation of power projects; main contents of the power purchase contract. |
1 February 2025
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1 February 2025 |
| 12 | Circular No. 13/2025/TT-BCT | Providing regulations on determining electricity bills to be paid in the cases where electricity metering equipment is inaccurate, stops working or is lost. |
1 February 2025
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1 February 2025 |
| 13 | Circular No. 03/2025/TT-BTNMT | Detailing the scope of basic surveys on renewable energy and new energy electricity resources in Vietnam. | 20 February 2025 | 20 February 2025 |
| 14 | Circular No. 14/2025/TT-BCT | Providing regulations on the method for preparation, records, order and procedures for approving electricity transmission service prices. |
1 February 2025
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1 February 2025 |
| 15 | Circular No. 15/2025/TT-BCT | Providing regulations on the method for preparation, records, order and procedures for approving prices applicable to power system operation and dispatch services and electricity market transaction management services. |
1 February 2025
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1 February 2025 |
| 16 | Circular No. 16/2025/TT-BCT | Providing regulations on the operation of the competitive wholesale electricity market. |
1 February 2025
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1 February 2025 |
| 17 | Circular No. 17/2025/TT-BCT | Providing regulations on the method for preparation and order and procedures for approving wholesale electricity price frameworks; methods for determining wholesale electricity prices; main contents of wholesale electricity contracts. |
1 February 2025
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1 February 2025 |
Adjustment of Power Planning VIII
Along with the synchronization of the legal framework for power activities, after many proposals for amendments and adjustments, on 15 April 2025, the Prime Minister issued Decision No. 768/QD-TTg, approving the adjustment of the Planning for National Power Development for the period of 2021 – 2030, with an orientation to 2050 (“Power Planning VIII”), creating a legal basis for investments in the development of power generation and grid projects in Vietnam.
Electricity production and import
According to the adjusted Power Plan VIII, the total electricity production and import output is expected to reach 650-624 billion kWh by 2030, 82-102% higher than in 2024. The electricity output growth target is to ensure supply to serve the average GDP growth of 10% in the 2026-2030 period. To achieve this target, the total electricity capacity target by 2030 is expected to reach 183-236 GW, an increase of 122-187% compared to 2024 and an increase of 16-49% (+25-78 GW) compared to the initial Power Plan VIII.
Period of 2021-2030:
| No. | Adjusted Power Planning | Initial Power Planning | |||
| Structure | Capacity (MW) | Percentage (%) | Capacity (MW) | Percentage (%) | |
| 1 | Onshore and nearshore wind power | 26,066-38,029 | 14.2-16.1 | 21,880 | 14.5 |
| 2 | Offshore wind power | 6,000-17,032 | 3.2-7.2 | 6,000 | 4.0 |
| 3 | Solar power (including concentrated and rooftop solar power, excluding existing rooftop solar power) | 46,459-73,416 | 25.3-31.1 |
12,836
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8.5 |
| 4 | Biomass power, waste-to-energy power, geothermal and other new energy | 3,009-4,881 | 1.6-2.06 | 2,270 | 1.5 |
| 5 | Hydropower | 33,294-34,667 | 14.7-18.2 | 29,346 | 19.5 |
| 6 | Nuclear power | 4,000-6,400 | 2.2-2.7 | ||
| 7 | Power Storage | 12,400-22,300 | 6.8-9.4 | 2,700 | 1.8 |
| Pumped-storage hydropower | 2,400-6,000 | 1.3-2.5 | 2,400 | 1.6 | |
| Battery Storage | 10,000-16,300 | 5.5-6.9 | 300 | 0.2 | |
| 8 | Cogeneration (using residual heat, blast furnace gas, etc.) | 2,700 | 1.8 | ||
| 9 | Thermal power | 67,457 | 44.8 | ||
| Coal-fired thermal power | 31,055 | 13.1-16.9 | 30,127 | 20.0 | |
| Domestic gas-fired thermal power | 10,861-14,930 | 5.9-6.3 | 14,930 | 9.9 | |
| LNG-fired thermal power | 22,524 | 9.5-12.3 | 22,400 | 14.9 | |
| 10 | Flexible power sources (thermal power using LNG, oil, hydrogen) | 2,000-3,000 | 1.1-1.3 | 300 | 0.2 |
| 11 | Electricity imports (from Laos, China) | 9,360-12,100 | 4.0-5.1 | 5,000 | 3.3 |
| Total capacity | 183,291-236,363 | 100.0 | 150,489 | 100.0 | |
Period of 2031-2050:
| No. | Adjusted Power Planning | Initial Power Planning | |||
| Structure | Capacity (MW) | Percentage (%) | Capacity (MW) | Percentage (%) | |
| 1 | Onshore and nearshore wind power | 84,696-91,400 | 10.9 | 60,050-77,050 | 12.2-13.4 |
| 2 | Offshore wind power | 113,503-139,097 | 14.7-16.6 | 70,000-91,500 | 14.3-16 |
| 3 | Solar power (including concentrated and rooftop solar power) | 293,088-295,646 | 35.3-37.8 | 168,594-189,294 | 33.0-34.4 |
| 4 | Biomass power, waste-to-energy power, geothermal and other new energy | 7,077-9,561 | 0.9-1.14 | 6,015 | 1.0-1.2 |
| 5 | Hydropower | 40,624 | 4.8-5.2 | 36,016 | 6.3-7.3 |
| 6 | Nuclear power | 10,500-14,000 | 1.4-1.7 | ||
| 7 | Power Storage | 116,674-117,447 | 14-15 | 30,650-45,550 | 6.2-7.9 |
| Pumped-storage hydropower | 20,691-21,327 | 2.5-2.6 | |||
| Battery Storage | 95,983-96,120 | 11.5-12.4 | |||
| 8 | Cogeneration (using residual heat, blast furnace gas, etc.) | 4,500 | 0.8-0.9 | ||
| 9 | Thermal power | 69,391-80,445 | 8.4-10.0 | 61,462-77,262 | 11.2-15.0 |
| Coal-fired thermal power | 0 | 0 | 0 | 0 | |
| Thermal power using biomass and ammonia | 25,798 | 3.1-3.3 | 25,632-32,432 | 4.5-6.6 | |
| Domestic gas-fired thermal power switching to LNG use | 7,900 | 0.9-1.0 | 7,900 | 1.4-1.6 | |
| Domestic gas-fired thermal power switching to hydrogen use | 7,030 | 0.8-0.9 | 7,030 | 1.2-1.4 | |
| LNG-fired thermal power with hydrogen combustion | 18,200-26,123 | 2.3-3.1 | 4,500-9,000 | 0.8-1.8 | |
| LNG-fired thermal power switching to hydrogen use | 8,576-11,325 | 1.1-1.4 | 16,400-20,900 | 3.3-3.6 | |
| LNG-fired CCS thermal power | 1,887-2,269 | 0.2-0.3 | |||
| 10 | Flexible power sources (thermal power using LNG, oil, hydrogen) | 21,333-38,641 | 2.8-4.6 | 30,900-46,200 | 6.3-8.1 |
| 11 | Electricity imports (from Laos, China) | 14,688 | 1.8-1.9 | 11,042 | 1.9-2.3 |
| Total capacity | 774,503-838,681 | 100.0 | 490,529-573,129 | 100.0 | |
Transformer stations and power grids
In addition to electricity production and import, transformer stations and power grids also need to be invested in order to ensure power transmission capacity.
| No. | Item | Periods | ||
| 2026 – 2030 | 2031 – 2035 | 2036 – 2050 | ||
| 1 | Construction of new 500kV substations | 102,900 MVA | 73,800 MVA | 72,900 MVA |
| 2 | Renovation of 500kV substations | 23,250 MVA | 36,600 MVA | 102,600 MVA |
| 3 | Construction of new 220kV substations | 105,565 MVA | 44,500 MVA | 81,875 MVA |
| 4 | Renovation of 220kV substations | 17,509 MVA | 34,625 MVA | 103,125 MVA |
| 5 | Construction of new 500kV lines | 12,944 km | 7,480 km | 7,846 km |
| 6 | Renovation of 500kV lines | 1,404 km | 650 km | 750 km |
| 7 | Construction of new 220kV lines | 15,307 km | 4,296 km | 5,370 km |
| 8 | Renovation of 220kV lines | 5,483 km | 624 km | 830 km |
Demands for Investment Capital
To achieve the above targets on power generation and transmission, Vietnam needs to mobilize a huge amount of capital for investment in power sources and power grids.
| No. | Item | Periods | ||
| 2026 – 2030 | 2031 – 2035 | 2036 – 2050 | ||
| 1 | Investments in power sources | USD 118.2 billion | USD 114.1 billion | USD 541.2 billion |
| 2 | Investments in power grid | USD 18.1 billion | USD 15.9 billion | USD 27.9 billion |
| Total investment capital | USD 136.3 billion | USD 130.0 billion | USD 569.1 billion | |
Due to limited public investment resources, the private sector (including foreign investment) is expected to play a key role in investing in power generation projects in the coming periods.
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