Vietnam’s National Assembly Reviews Proposed Amendments to the Electricity Law

Government’s Submission on the Draft Amendments to the Electricity Law

Minister Le Manh Hung said the draft Law was developed around three key orientations: strengthening decentralization and delegation of authority in line with implementation capacity; reducing administrative procedures; and addressing practical bottlenecks to promote production, business activities and socio-economic development.

The proposed amendments are based on three main grounds.

First, the political basis: The draft seeks to institutionalize the policies and conclusions of the Party Central Committee and the Politburo on ensuring national energy security, in line with the target of achieving double-digit economic growth.

Second, the legal basis: The draft is grounded in the Constitution and the Electricity Law No. 61/2024/QH15. It also builds on National Assembly Resolution No. 253/2025/QH15 and aims to ensure consistency with legislation on planning, investment and land.

Third, the practical basis: Implementation of the revised Power Development Plan VIII and efforts to ensure adequate electricity supply during 2027–2030 have revealed bottlenecks requiring resolution at the National Assembly level, particularly in power planning, renewable energy investment and electricity pricing.

The draft Law aims to strengthen the legal framework for power generation and grid development to ensure electricity supply security under changing circumstances.

Following consultations, the Government revised the draft in two major respects. It gives priority to applying the Electricity Law to procedures for approval of investment policies for power projects, while removing special mechanisms for urgent power projects to ensure consistency with construction legislation.

The draft Law consists of three articles and focuses on four main areas:

1. Clarifying the scope of special mechanisms governing investment policy approval.

2. Narrowing the scope of the state monopoly.

3. Applying targeted incentives to selected types of power generation.

4. Introducing electricity bill support mechanisms for vulnerable groups.

Regarding power planning, investment, licensing, electricity markets and pricing, the Minister outlined four key areas.

First, power planning and construction investment: The draft provides that certain power projects would be exempt from investment policy approval procedures. The electricity price established through competitive bidding would serve as the basis for signing power purchase agreements (PPAs), helping limit subsequent price renegotiations. The draft also introduces public-private partnerships (PPPs) as an investment model for transmission grid development.

Second, renewable energy and new energy: The draft refines provisions governing the renewable energy certificate (REC) market and offshore wind power development, while introducing mechanisms to facilitate the development of other power sources.

Third, licensing, electricity markets and power trading: The draft reduces requirements for electricity operation licences and expands the cases eligible for exemptions. It also advances the development of competitive electricity markets and expands the direct power purchase mechanism.

Fourth, electricity and electricity service pricing: The draft establishes a roadmap for reducing and ultimately eliminating cross-subsidies between customer groups. It clarifies contractual pricing arrangements for certain power generation technologies and introduces pricing mechanisms to encourage renewable energy development and electricity storage.

Appraisal Report on the Draft Law

Nguyen Thanh Hai, Chair of the National Assembly’s Committee on Science, Technology and Environment, said the reviewing body agreed on the need to amend the Electricity Law. It considered the draft dossier adequately prepared for submission to the National Assembly for consideration and further deliberation. The committee also made the following recommendations:

1. Further refine the draft Law to achieve substantive reductions in administrative procedures and unlock investment resources, while ensuring transparency, competition, appropriate risk allocation and national energy security.

2. Investment mechanisms: The committee supported exempting certain power projects implemented in accordance with approved plans from investment policy approval procedures. However, it called for clearer provisions on the scope and conditions of application, as well as coordination with procedures relating to land, forestry and marine areas.

3. Electricity pricing: The draft should clarify that electricity prices are to be determined on the basis of reasonable and valid costs, investment efficiency, the level of risk and market conditions. Investment and business risks should not be transferred to the State, electricity purchasers or end-users. The elimination of cross-subsidies should also be distinguished from direct assistance for poor households and policy beneficiaries to safeguard access to electricity.

4. Competitive bidding and power purchase agreements: Electricity prices and PPA terms should be linked to the results of the bidding process, limiting renegotiation of terms already established through bidding.

5. Offshore wind power: The draft should clarify appraisal procedures relating to national defence and security, project transfer mechanisms and the treatment of survey costs.

6. Renewable energy certificates and small modular reactors (SMRs): Relevant provisions should ensure practical feasibility, consistency with the legal framework and compliance with safety requirements./.