The rate, 18 percent lower than domestic rates, will apply for 25 years and to plants that become operational before December 31, 2025.

The price is applicable at the border, meaning power plants need to install and operate transmission lines to the border.

Vietnam has seen demand for power surge to support its rapidly growing economy, and shortages are expected from 2021. The state power utility, Vietnam Electricity, earlier this year signed a deal to buy 1.5 billion kWh of hydropower from Laos annually for two years starting in 2021.

Vietnam has also been developing its own renewable energy sector. As of March the country had 11 wind power projects generating 377 MW out of a total of 78 planned with a capacity of 4,800 MW.

Another 250 wind power projects, with a total capacity of 45,000 MW, have been proposed.