Scenario: a foreign investor brings a “power project checklist” from another market to Vietnam and finds half missing: no power-plan step, no electricity operation license, no connection agreement. Power projects in Vietnam run on their own procedural rails — off the rails means off schedule.
Step 1: fit the power development plan
Every power project must fit the national power development plan (Power Plan VIII and amendments). Projects outside the plan/implementation plan can hardly proceed — this is the first “entry ticket”, and the step most investors must supplement or adjust.
Step 2: investment policy approval
Power projects need investment policy approval under Investment Law 143/2025/QH15 (replacing Law 61/2020/QH14 from 1 March 2026). Dossiers cover project proposals, financing, land, technology, environment — authorities assess plan conformity, investor capacity and socio-economic efficiency.
Step 3: land, environment, construction
In parallel: complete land (leases, conversion under Land Law 31/2024/QH15), EIA and environmental licensing (Environmental Protection Law 72/2020/QH14), design, building permits, fire safety. This is the critical-path phase — any slow link drags the whole project.
Step 4: operation license and grid connection
Before generation, projects need the electricity operation license: generation and transmission 20 years; distribution, wholesale, retail 10 years (Decree 61/2025/ND-CP). Plus connection agreements with grid operators and PPAs (or DPPAs) — with commercial operation (COD) only after full acceptance.
Throughout: notes for foreign investors
Foreign investors need an Investment Registration Certificate (IRC) before establishing the project entity; comply with WTO commitments and sectoral market-access conditions. Bilingual documents must align — translation mismatches in investment dossiers are a common cause of avoidable delay.
Frequently asked questions
1. What are the main procedures for power projects in Vietnam?
Power-plan conformity → investment policy approval → land, environment, construction → operation license, connection, PPA → commercial operation (COD).
2. Can off-plan projects proceed?
Hardly. National power-plan conformity is the first entry ticket; off-plan projects need plan supplementation/amendment procedures.
3. How long do electricity operation licenses last?
Under Decree 61/2025/ND-CP: generation and transmission 20 years; distribution, wholesale, retail 10 years.
4. Do foreign investors need an IRC?
Yes — foreign investors must obtain an Investment Registration Certificate before establishing the project entity in Vietnam.
5. When does commercial operation (COD) begin?
After full acceptance, with the operation license, connection agreement and power purchase contract (PPA/DPPA) in place.
This article has been quality-reviewed by the FLAW AI Legal Council.
