Five Foreign Business Groups in Vietnam, Including from Korea, the UK and Japan, Urge Payment for Renewable Power Projects

Financial News, Hanoi (Vietnam) – correspondent Bu Thi Tien and special correspondent Kim Jun-seok – Business associations representing companies from Korea, the United Kingdom, Europe, Japan and Thailand in Vietnam have urged the Vietnamese government to resume normal payments under Power Purchase Agreements (PPA) for renewable energy projects based on the Feed-in Tariff (FIT) scheme.
According to local media reports on the 15th, five foreign economic organizations in Vietnam – the Korean Chamber of Commerce in Vietnam (KOCHAM Vietnam), the Japan Chamber of Commerce and Industry (JCCI), the British Chamber of Commerce, the European Chamber of Commerce in Vietnam (EuroCham Vietnam) and the Thai Chamber of Commerce and Industry in Vietnam – recently submitted a joint petition on renewable energy projects to the Government Office of Vietnam, the Ministry of Industry and Trade of Vietnam (MOIT) and other authorities.
These groups welcomed the approval and implementation of the 8th National Power Development Plan (PDP8) by the Vietnamese government, but expressed concern that payments under PPAs are being reduced for solar and wind projects with a combined capacity of about 12 GW that fall under the FIT scheme.
They pointed out that delayed or reduced payments could affect investors’ financial structures and credit ratings, and may lead to higher financing costs or even contractual disputes.
The associations stated that "the international investment community is watching this issue very closely" and called on the Vietnamese government to come up with policy solutions to resolve the problem. They further stressed that resolving the issue would also help attract the capital needed for renewable energy investment and the broader energy transition.