Can foreign investors invest in renewable energy in Vietnam?
The answer is yes — foreign investors are not prohibited from investing in renewable energy in Vietnam. However, precision matters: under Appendix I, Part B of Decree 96/2026/ND-CP, the cluster “hydropower, offshore wind power and nuclear energy” is subject to conditional market access.
Do not infer that all renewable energy types are conditional — solar power and onshore wind power are not included in the above cluster.
1. Legal framework for renewable energy investment in 2026
- Law on Investment 143/2025/QH15 + Decree 96/2026/ND-CP — the general investment procedure framework, with a new feature: foreign investors may establish an enterprise first and supplement the Investment Registration Certificate (IRC) within 12 months;
- Law on Electricity 61/2024/QH15 (effective from 1 February 2025) — the sector legal framework, with Articles 26–29 governing offshore wind power;
- Decree 58/2025/ND-CP — incentives for renewable energy and offshore wind power;
- Resolution 253/2025/QH15 — energy policy for 2026–2030.
Do not cite: Law on Investment 61/2020, Decree 31/2021; the 2004 Law on Electricity; draft amendments to the Law on Electricity (drafts are not legal grounds).
2. Investment procedures: two main steps and the new 12-month rule
Investment procedures for a foreign-invested renewable energy project comprise two main steps under Law on Investment 143/2025:
- Investment policy approval — depending on project scale and approving authority;
- Issuance of the Investment Registration Certificate (IRC).
New feature of Decree 96/2026: foreign investors may establish the enterprise first and complete IRC issuance within 12 months. This gives investors more control over project timelines, but does not waive the obligation to complete the IRC on time.
3. Offshore wind incentives under Decree 58/2025
Decree 58/2025/ND-CP provides specific incentives for offshore wind power:
- Exemption from sea area use fees during basic construction, for up to 3 years, and a 50% reduction for the following 9 years;
- Exemption from land use fees and land rentals during basic construction, for up to 3 years.
Eligibility conditions: the project must obtain investment policy approval before 1 January 2031 and fall within the 6,000 MW offshore wind power plan.
In addition, Decree 272/2026 tightens technical standards for offshore wind power — investors should update to the latest standards when preparing project dossiers.
4. General incentives under the Law on Investment
Renewable energy is a sector eligible for investment incentives, so projects enjoy:
- Corporate income tax incentives under the Law on Corporate Income Tax 67/2025;
- Land rental incentives in accordance with land and investment laws.
5. Mandatory planning framework: the adjusted Power Development Plan VIII
Renewable energy projects must conform to the adjusted Power Development Plan VIII under Decision 768/QD-TTg. This is a prerequisite — projects inconsistent with the plan will not obtain investment policy approval.
For rooftop solar power, Decree 243/2026 provides that surplus electricity trading is capped at 50% — investors should carefully model project finance on this ratio.
6. Risk warning: the FIT price mechanism is being renegotiated
Important warning: the old FIT (feed-in tariff) price mechanism is currently being renegotiated between EVN/EPTC and project owners. Project financial models must not be built on the assumption of a “fixed FIT price”.
Investors should:
- Assess electricity price scenarios across multiple cases, without relying on a single FIT figure;
- Closely monitor the negotiation process and any new price framework;
- Include price adjustment clauses in the power purchase agreement (PPA) cautiously and with legal advice.
7. Points requiring further verification
- Specific articles on investment incentives, investment policy approval and IRC issuance in Law on Investment 143/2025 — verify against the original text before citing article numbers;
- The exact placement of “renewable energy” in Appendix II of Decree 96/2026 (ordinary versus especially incentivized investment);
- The authority for investment policy approval for power projects under Law on Investment 143/2025 — not the old 2020 Law rules;
- The offshore wind power price framework and investor selection mechanism — no official framework yet.
Practical checklist for investors
- Identify the renewable energy type (offshore wind, hydropower, solar, onshore wind) and check whether it falls under conditional market access in Appendix I of Decree 96/2026;
- Cross-check the project against the adjusted Power Development Plan VIII (Decision 768/QD-TTg);
- Plan the procedure sequence: investment policy approval, then IRC issuance — leveraging the new rule allowing enterprise establishment first with IRC supplementation within 12 months;
- For offshore wind: verify Decree 58/2025 incentive eligibility (policy approval before 1 January 2031, within the 6,000 MW plan) and the new technical standards in Decree 272/2026;
- Build multi-scenario financial models for electricity prices — do not promise or assume a fixed FIT price;
- Do not use repealed instruments or draft texts as legal grounds.
Frequently asked questions
Is solar power subject to conditional market access?
No. Appendix I, Part B of Decree 96/2026 lists only “hydropower, offshore wind power and nuclear energy” as conditional. Solar power and onshore wind power are not in this cluster.
Can a foreign investor establish a company before obtaining the IRC?
Yes. A new feature of Decree 96/2026 allows foreign investors to establish the enterprise first and complete IRC issuance within 12 months.
What incentives apply to offshore wind power?
Under Decree 58/2025: exemption from sea area use fees during construction (up to 3 years) and a 50% reduction for the following 9 years; exemption from land use fees/land rentals during construction (up to 3 years). Conditions: policy approval before 1 January 2031 and inclusion in the 6,000 MW plan.
Is the FIT price still guaranteed?
Do not assume so. The old FIT mechanism is being renegotiated (EVN/EPTC). Investors must reflect this risk in financial models and must not promise a fixed FIT price.
Need advice on renewable energy investment in Vietnam? Contact FLAT Law Firm for support with investment policy approval, IRC issuance, incentive assessment, and electricity price risk management.
This article was prepared by FLAW AI Legal Council — the legal content quality council of FLAT Law Firm (an artificial intelligence system, not a substitute for licensed legal counsel). It is for general information only and does not constitute legal advice for any specific case. Legal instruments may be amended, supplemented, or replaced; please consult the original texts before applying them.
