Power is among Vietnam’s top FDI magnets — but also the sector with the most complex investment procedures, where investment law, electricity law and sector planning overlap. The Investment Law 143/2025/QH15 (effective 1 March 2026) is the current framework foreign investors follow when funding power projects.
The IRC: a project’s birth certificate
Foreign investors developing power projects in Vietnam need an Investment Registration Certificate (IRC) — except statutory exemptions. The IRC dossier includes the project proposal, financial-capacity proof and the investor’s legal documents. Issuing authorities are the industrial/economic zone management boards (for in-zone projects) or the provincial Department of Finance/People’s Committee per current decentralisation.
The power-sector particularity: IRCs are only issued when the project fits the power plan (adjusted PDP8) and has investment policy approval where required. Filing for an IRC when the project is not in the power plan gets the dossier returned at the first round.
Foreign ownership ratios
In power generation (solar, wind), Vietnamese law currently sets no general foreign ownership cap — foreign investors may own 100% of a generation project, except special segments with their own rules (such as state-monopolised power transmission). However, projects using land, water surfaces or sea areas remain subject to defence and security conditions and must respect WTO commitments and FTAs Vietnam has joined.
Common structures: 100% foreign-owned enterprises, or joint ventures with Vietnamese partners (favoured for offshore wind, where local partners know marine procedures and local relations). Capital contribution or share acquisition in an existing project company is a faster route than a new IRC — but requires contribution/acquisition registration procedures.
Three notes on capital and remittance
One, charter capital must be contributed in full, on the schedule committed in the IRC — late contribution draws penalties and affects subsequent procedures. Two, open a direct investment capital account at a licensed bank for contributions and profit remittance. Three, profit repatriation requires completing Vietnamese tax obligations and complying with foreign-exchange rules — plan tax and FX at deal structuring, not when profits arrive.
This article has been quality-reviewed by the FLAW AI Legal Council.
Frequently Asked Questions
Do foreign investors need an IRC for power projects in Vietnam?
Yes — foreign investors developing power projects need an Investment Registration Certificate (IRC), except statutory exemptions. The particularity: IRCs are only issued when the project fits the adjusted PDP8 and has investment policy approval where required. Filing when the project is off-plan gets returned.
What percentage of a wind or solar project may foreigners own?
In power generation, no general foreign ownership cap currently applies — foreigners may own 100% of a generation project, except special segments like state-monopolised transmission. Projects using land, water or sea areas remain subject to defence/security conditions and WTO/FTA commitments.
Does buying into an existing power project company need a new IRC?
Not necessarily — capital contribution or share acquisition in an existing project company is faster, but requires contribution/acquisition registration under investment law. This is the common structure in power-project M&A deals.
