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Dear readers,

Addressing a meeting between Prime Minister Pham Minh Chinh and foreign-invested enterprises (FIEs) at the
annual Vietnam Business Forum (VBF) on March 19 in Hanoi, Chairman of the American Chamber of Commerce
(AmCham) in Hanoi, Mr. Joseph Uddo, emphasized that electricity supply is the greatest concern facing US
investors in the country. “Without electricity supply that is reliable, affordable, and sustainable, many of the goals
discussed today will be difficult to reach,” he said, adding that “the one thing that ties all businesses and any future
investors together is the need for energy reliability and immediate access to renewable energy.”

Electricity supply is the “greatest concern” not only for businesses, both domestic and foreign, but also for the
government. In his response at the VBF, Prime Minister Chinh assured investors that “power shortages will not occur.”

Under the National Power Development Plan VIII for the 2021-2030 period with a vision to 2050 (PDP8), which was
approved by the Prime Minister in May last year, priority is being given to the development of renewable energy. The
plan targets increasing the share of renewable energy to 30.9-39.2 per cent by 2030 and 67.5-71.5 per cent by 2050.

As a tropical country, Vietnam has substantial potential for the development of solar power systems. In its
investment policy regarding solar power, the government encourages businesses and individuals to develop rooftop
solar power systems as a “self-produced and self-consumed” energy resource.

A host of rooftop solar power systems, especially at industrial parks, have been built, involving significant investment
costs. Producing 1 MW of rooftop solar power requires an outlay of some VND13 billion ($520,000) on average.

According to Mr. Tran Viet Nguyen, Deputy Head of the Trade Department at Electricity of Vietnam (EVN),
there are currently more than 103,000 rooftop solar power projects nationwide with a total capacity exceeding
9,500 MWp.

The 2017-2020 period witnessed the strong development of these rooftop solar power systems, with more than
101,000 projects installed for a total capacity estimated at more than 9,000 MWp. Under Prime Ministerial
Decision No. 13/2020/QD-TTg, dated April 6, 2020, on a mechanism encouraging the development of rooftop solar
power, surplus electricity generated by such systems was allowed to be traded. But this policy has not been applied
since Decision No. 13 expired on December 31, 2020. A legal gap on trading rooftop solar power was created by its
expiration, hindering the development of this environmentally-friendly energy resource.

In other words, the problem lies in the absence of a legal mechanism for the trading of rooftop solar power.

At a roundtable discussion hosted by VET / VnEconomy on May 10, discussions focused on a draft decree on the
development of rooftop solar power, on which the Ministry of Industry and Trade is now seeking public input.
Almost all speakers expressed a similar view, that to encourage the development of rooftop solar power there must
be a legal mechanism allowing the trade of electricity generated.

Our Cover Story in this mid-May issue therefore looks at the development of rooftop solar power systems in
Vietnam, especially at industrial parks, with a focus on the legal barriers impeding the further development of this
important renewable energy resource and appropriate solutions.

DR. CHU VAN LAM
Editor-in-Chief