The Thai Chamber of Commerce and Industry in Vietnam (ThaiCham) has sent a letter to Prime Minister Pham Minh Chinh, addressing the feed-in tariff (FIT) mechanism and payment obligations under signed Power Purchase Agreements (PPAs).
This group of businesses invested in Vietnamese renewable energy projects totaling over 2,594 MW capacity, with an estimated capital of 2,57 billion USD. Payments for these projects have been halted since 2023 because they commenced commercial operation (COD) without official acceptance documents. A Ministry of Industry and Trade report indicated that 173 grid-connected solar and wind power plants, or parts thereof, faced this issue, including nearly 150 concentrated solar power projects operating on the national grid.
ThaiCham stated that over the past two years, these businesses sent more than 20 official letters to the Ministry of Industry and Trade, Vietnam Electricity (EVN), and the Electricity Power Trading Company (EPTC) concerning reduced temporary FIT payments. Yet, they have received no official response or directive from the operators.
During a recent meeting between ThaiCham and EVN on 25/11, EVN confirmed that all relevant reports were submitted to the Ministry of Industry and Trade and the Government. The outstanding issues, EVN noted, await "decisions from competent authorities".
ThaiCham highlighted that payment delays expose investors to severe financial and policy risks. Payments for FIT were reduced by 25-50% for these plants. Furthermore, investors lack any official timeline for receiving full payments under their PPA contracts or for resolving overdue debts.
"Increased liquidity pressure impacts obligations with lenders, many of whom are international banks", the Association reported. This situation also raises concerns for shareholders, regulatory bodies, and auditors of publicly listed companies.
The investors affirm their compliance with commercial operation date (COD) conditions and PPA terms. They believe this prolonged issue significantly erodes investor confidence and diminishes Vietnam's attractiveness as a long-term renewable energy investment destination.
They urge competent government authorities to issue a final decision confirming the enforcement of signed Power Purchase Agreements (PPAs) and restoring contractual FIT payments.
"Timely resolution of these issues will ensure fairness, legal transparency, and consistency within Vietnam's investment environment", ThaiCham stated.
In march, several domestic and foreign business associations similarly appealed to the Government and the Ministry of Industry and Trade, advocating for stable and consistent renewable electricity pricing policies. Businesses estimate that current issues could result in losses of nearly 100% of project equity, totaling over 13 billion USD. They emphasized that unexpected policy shifts diminish investor confidence and impact future investment expansion.
Phuong Dung
