Vietnam: October 2021 updates to the Draft PDP8

In brief

On 3 October 2021, the Government's Appraisal Council organized a meeting to review a new draft decision that was recently proposed for submission to the prime minister for the approval of the national power development plan for the period of 2021-2030, with a vision to 2045 ("Draft PDP8") and its corresponding proposal serving as an explanatory report ("New PDP8 Proposal"), as recently proposed by the Ministry of Industry and Trade of Vietnam (MOIT).


This new draft was made upon the instruction of the new deputy prime minister and the Office of Government (OOG), following a review of the previous draft and of Proposal No. 1682/TTr-BCT in March 2021 ("Previous Proposal No. 1682").

The Draft PDP8 proposes an addition of about 19,266 MW to the current capacity of coal-fired plants in order to reach 40,469 MW by 2030, which will account for 31.2% of the total installed capacity. While the draft claims that power capacity ratio of coal-fired power sources will gradually decrease compared to the current status, this new draft even adds about 3,076 MW of coal (while reducing about 8 GW renewables by 2030) compared to the previous draft PDP8 proposal in March, and continues to pursue a number of coal-fired projects from the amended power development plan #7 (PDP7) (although some coal-fired projects have been removed).

Regarding gas-to-power, among the approximately 17,900 MW projects recently proposed, the Draft PDP8 only includes about 10,300 MW of gas-to-power projects to be developed by 2030, with the rest of the other projects to be deferred until after 2030 (including about 1.5 GW projects in the central region and about 6.1 GW in the south). In the northern region, other than the recent approval for about 1.5 GW, an addition of 2,250 MW gas-to-power projects was proposed for energy security reasons of the region and to minimize cross-region power transmissions.

While there are public sector concerns regarding energy security and cross-region power transmissions, the continued reliance on coal creates certain concerns for a number of private sector investors taking into account their significant interests in gas-to-power sources as a new baseload power of the country and their active use of renewable energy, private sector participation in the grid transmission investments, and energy storage to achieve energy transition.

We set out below the key highlights of the most recent official proposal of the MOIT on the Draft PDP8.

Click here to access the full alert.

Contact Information

Copyright © 2024 Baker & McKenzie. All rights reserved. Ownership: This documentation and content (Content) is a proprietary resource owned exclusively by Baker McKenzie (meaning Baker & McKenzie International and its member firms). The Content is protected under international copyright conventions. Use of this Content does not of itself create a contractual relationship, nor any attorney/client relationship, between Baker McKenzie and any person. Non-reliance and exclusion: All Content is for informational purposes only and may not reflect the most current legal and regulatory developments. All summaries of the laws, regulations and practice are subject to change. The Content is not offered as legal or professional advice for any specific matter. It is not intended to be a substitute for reference to (and compliance with) the detailed provisions of applicable laws, rules, regulations or forms. Legal advice should always be sought before taking any action or refraining from taking any action based on any Content. Baker McKenzie and the editors and the contributing authors do not guarantee the accuracy of the Content and expressly disclaim any and all liability to any person in respect of the consequences of anything done or permitted to be done or omitted to be done wholly or partly in reliance upon the whole or any part of the Content. The Content may contain links to external websites and external websites may link to the Content. Baker McKenzie is not responsible for the content or operation of any such external sites and disclaims all liability, howsoever occurring, in respect of the content or operation of any such external websites. Attorney Advertising: This Content may qualify as “Attorney Advertising” requiring notice in some jurisdictions. To the extent that this Content may qualify as Attorney Advertising, PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME. Reproduction: Reproduction of reasonable portions of the Content is permitted provided that (i) such reproductions are made available free of charge and for non-commercial purposes, (ii) such reproductions are properly attributed to Baker McKenzie, (iii) the portion of the Content being reproduced is not altered or made available in a manner that modifies the Content or presents the Content being reproduced in a false light and (iv) notice is made to the disclaimers included on the Content. The permission to re-copy does not allow for incorporation of any substantial portion of the Content in any work or publication, whether in hard copy, electronic or any other form or for commercial purposes.