Legal and Policy Outlook for Solar and Hydrogen Projects in Vietnam
Vietnam’s Bold Path to Net Zero
By Phuc Nguyen, Lawyer at Nishimura & Asahi at the seminar "Advanced Solar Energy Systems and Hydrogen Production, Storage, and Applications" on May 20 2025 in HCMC University of Natural Resources and Environment
Vietnam has outlined an ambitious path toward a net-zero future by 2050, driven by the integration of solar, wind, and green hydrogen energy. Under its National Climate Change Strategy, the government aims to cut greenhouse gas emissions by 43.5% by 2030 (compared to business-as-usual levels) and achieve net-zero by 2050.
Key Climate and Energy Targets
| Target Year | GHG Emission Cut | Energy Sector Emission Cap | Renewable Energy Share |
|---|---|---|---|
| 2030 | -43.5% | ≤ 457 MtCO₂e | ≥ 33% of electricity |
| 2050 | Net-Zero | ≤ 101 MtCO₂e | ≥ 55% of electricity |
Additional measures include banning new coal power plants after 2030 and gradually cutting existing coal capacity post-2035. The focus is shifting toward clean energy industries such as green hydrogen and battery storage.
Power Development Plan VIII (PDP8)
The National Power Development Plan for 2021–2030 (with a vision to 2050) reinforces Vietnam’s green direction. By 2030, renewables (excluding hydropower) are expected to make up 28–36% of the energy mix, increasing to 74–75% by 2050. The roadmap includes:
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Expansion of offshore wind and solar.
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Hydrogen and green ammonia development for local use and export.
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Transition to hydrogen once technologies become cost-effective.
Hydrogen Development Strategy
Vietnam aims to build a full green hydrogen ecosystem across production, storage, transportation, usage, and export. Key hydrogen targets:
| Year | Hydrogen Output Target | Key Technology |
|---|---|---|
| 2030 | 100–500K tons/year | Global CCS/CCUS |
| 2050 | 10–20M tons/year | Mastered CCS/CCUS and hydrogen |
Hydrogen is set to play a role in transport, meet 10% of final energy demand by 2050, and position Vietnam as a regional hub for green energy exports.
Legal and Investment Procedures
The presentation outlines the 10 essential steps to develop solar or hydrogen projects in Vietnam, including:
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Investment registration (IRC/ERC)
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Land lease/sublease
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Environmental Impact Assessment (EIA)
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Construction permits
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PDP inclusion
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Grid connection (via EVN/NLDC)
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Power Purchase Agreement (PPA)
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Commissioning and operation licensing
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Compliance and safety approvals
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Reporting to authorities
Incentives and Support for Investors
Vietnam offers attractive tax incentives to promote renewable and hydrogen energy investments:
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10% Corporate Income Tax (CIT) for 15 years
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4 years tax exemption, followed by 50% reduction for 9 years
Government support includes local facilitation of land and labor, and coordination from central ministries to streamline implementation.
Call to Action
✅ Government: Finalize regulatory frameworks
✅ Investors: Capitalize on green incentives and growing market demand
✅ Stakeholders: Collaborate for an equitable and sustainable energy transition
Vietnam’s legal and policy landscape is becoming increasingly favorable for green energy pioneers. With strong national targets, regulatory reforms, and fiscal incentives, the country is positioning itself as a future leader in solar and hydrogen energy in ASEAN.
For more information, please email: contact@vahc.com.vn
