Joint Analysis: Viet Nam DPPA: Why Industry Uptake Remains Modest - A View from Industry
Viet Nam’s Direct Power Purchase Agreement (DPPA), legalised under Decree 57/2025/ND-CP, has been positioned as a cornerstone policy to accelerate renewable energy deployment and enable corporates to contract directly with generators. Yet, despite its strong potential, industry uptake has so far remained modest. To better understand why and to capture perspectives directly from market participants, the Asia Clean Energy Coalition (ACEC) and the Fashion Industry Charter for Climate Action (Fashion Charter) conducted a survey from 18 August to 6 September 2025. The survey gathered 141 responses from corporate buyers and 14 from renewable energy developers, distributed through ACEC membership, Fashion Charter signatories, ACEC’s broader networks, and cascaded further to supply chain partners. This approach ensured insights not only from large electricity users but also from firms of various sizes in their supply chains that are often underrepresented in policy discussions yet play a critical role in Viet Nam’s energy transition.
Agreement rates cited in this analysis are calculated as the share of respondents selecting “agree” or “strongly agree,” excluding “don’t know,” to reflect informed perspectives. In each section, “total respondents” refers to the whole sample of the group surveyed (buyers or developers), unless otherwise indicated.
Both buyers and developers recognize the DPPA’s potential but are constrained by shared concerns: uncertainty in pricing and charges, limited project availability, mismatched contract preferences, lack of standardized tools and guidance, and a lengthy, complex permitting and licensing process. Aggregated demand, transparent DPPA-related charge methodologies, and clearer government support are widely seen as essential to unlock broader market uptake.
What we heard from buyers
Approved project availability is the top constraint. 70.7% of DPPA-eligible buyers (annual consumption ≥ 2,400,000 kWh) agreed/strongly agreed that the limited pipeline of qualified projects constrains participation and bargaining power.
Pricing and charge transparency is a close second. 69% of DPPA-eligible buyers highlighted uncertainty around DPPA charges, especially the difference clearing cost (CcI); 61% flagged the 30-minute matching load consumption and RE generation as a technical/financial challenge.
Cost competitiveness is not yet clear. Less than 16% of DPPA-eligible buyers anticipate all-in DPPA costs to be lower than current EVN retail tariffs once transmission, system, and settlement costs are included, particularly for lower-volume users or daytime-peaking loads or in industrial zones (with private licensed electricity retailers). About 45% of potential buyers are anticipating higher overall costs to use DPPA, while 38% of buyers provided neutral position, often because they remain in negotiations, do not yet have clarity on DPPA charges, or are waiting to assess the impact of evolving retail tariffs.
Navigation hurdles persist. Among DPPA-eligible buyers, 68% noted the absence of a single contact point at local utilities/authorities, and 57.5% pointed to difficulties in identifying reputable developers as significant barriers.
Demand aggregation is essential. Only about one-third of total respondents from buyers side consume >20 million kWh/year, underscoring the need for aggregation so that smaller loads can participate at bankable scale, and dispersed loads can be covered more efficiently.
What we heard from developers.
Permitting and licensing need greater consistency. About 50% reported uncertainty around Electricity Operation Licenses (EOL); 35.7% cited challenges with Investment Registration Certificates (IRC) (notably for rooftop); 64.3% pointed to unclear Investor Selection Processes.
Price signals and charge design affect feasibility. 64.3% see EVN ceiling tariffs for physical DPPA as limiting project viability (especially solar); 85.7% view CcI/charge design as a major planning uncertainty. 50% flagged foreign exchange risk, and 35.7% noted commercial pressure to absorb EVN-related fees, further tightening margins.
Financing remains challenging. Several developers highlighted the challenges in financing for virtual DPPAs, given tariff structures, shorter contract terms, and limited credit assurances. The mismatch between buyer preferences for 5 - 10 year tenors and developer needs for 20 year PPAs reduces contract viability.
Standardization and data access are lacking. 78.5% emphasized that the absence of standardized DPPA templates slows negotiations. Access to 30-minute consumption data was also highlighted as a critical gap for accurate modeling and forecasting.
Where attention is needed to accelerate uptake
For the government. Clarify how DPPA charges are calculated, especially the difference clearing cost (CcI), and make this information publicly available, consider applying caps or removing these specific charge sub-components. Streamline permitting and licensing procedures for both the Electricity Operation License and the Investment Registration Certificate, while ensuring transparent and timely Investor Selection Process. Designate a clear lead organization for DPPA day-to-day transaction implementation, with clear contact points within MOIT, EVN, and provincial authorities. Allow licensed industrial zone retailers to aggregate demand from smaller buyers, and endorse standardized DPPA contract templates to reduce negotiation delays. Simplifying the current 30-minute matching requirement would help lower technical and financial barriers to participation. At the same time, a transparent and predictable retail tariff structure, supported by clear regulations and guidance, will provide the certainty needed for long-term renewable energy commitments to avoid delays and pricing challenges that could potentially hinder DPPA negotiations.
For corporate buyers. Build internal capacity by training procurement, finance, and sustainability teams on DPPA processes. Assign dedicated staff to manage renewable procurement and improve internal approvals. Share demand profiles (consumption volumes, load patterns, renewable targets) early in negotiations with developers, and actively participate in industry coalitions to exchange experiences and strengthen collective advocacy.
For developers. Publish clear information on project pipelines, including capacity, timelines, and technology, to support buyer planning. Adopt standardized contracts and explain risk-sharing options to reduce transaction costs. Explore more flexible pricing approaches (e.g., fixed, indexed, or hybrid tariffs), aggregate smaller buyers into bankable demand, and work with licensed industrial zone retailers if applicable.
For industry coalitions. Consolidate feedback from both buyers and developers and present it coherently to regulators. Develop and share practical handbooks and case studies to guide businesses. Facilitate regular matchmaking and networking events between buyers and developers, and mobilize donor or coalition support for pilot projects that can demonstrate how the DPPA works in practice.
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About and Acknowledgements
Asia Clean Energy Coalition
Founded in 2022, the Asia Clean Energy Coalition (ACEC) is a pivotal initiative aimed at propelling the transition to clean energy across Asia. By uniting leading renewable energy buyers, sellers, and financiers, ACEC works to influence policy in key Asian markets, offering strategic advice and coordination to promote sustainable energy solutions. As a hub for expertise and strategic communication, ACEC plays a critical role in shaping energy policies that drive investment, ensure energy security, and foster sustainable economic growth across the region.
Fashion Industry Charter for Climate Action
In 2018, fashion stakeholders worked to identify pathways for the broader textile, clothing, and fashion industry to advance a holistic commitment to climate action. They created the Fashion Industry Charter for Climate Action which contains the vision to achieve net-zero emissions by 2050. Today, the Fashion Charter brings together brands, suppliers and retailers as well as supporting organizations to work collaboratively to drive the fashion industry to net-zero emissions no later than 2050. It sets out a collective plan of commitments for signatories to implement in order to decarbonize their operations and supply chains.
Acknowledgements
The Asia Clean Energy Coalition (ACEC) and the Fashion Industry Charter for Climate Action (Fashion Charter) would like to sincerely thank our members and signatories, as well as partners from AmCham Viet Nam and EuroCham Viet Nam, for their valuable support and insights. Their contributions have been instrumental in shaping our joint analysis and ensuring that it reflects a broad and representative perspective from multinational companies, local supply chain partners, and business associations committed to advancing renewable energy in Viet Nam.
