Overview of the forum on promoting green energy in industrial parks, organized by Business Forum Magazine

Rapid renewable energy expansion

At the forum “Promoting Green Energy in Industrial Parks – Effective Solutions for Businesses” recently organized by the Business Forum Magazine in collaboration with the Institute for Smart Energy Application Research (iSEAR) and relevant agencies under the direction of the Vietnam Chamber of Commerce and Industry, Mr. Hoang Quang Phong, Vice President of VCCI, said that Vietnam aims for economic growth of over 8% in 2025 and double-digit growth from 2026. To achieve this, electricity supply must grow 1.5 times, equivalent to adding 8,000 - 10,000 MW annually. This presents a major challenge, requiring rapid solutions to develop power sources, especially distributed energy sources like rooftop solar power with fast deployment capacity.

To ensure national energy security, Vietnam has implemented several policies and strategic plans, with the most notable being the adjustment of Power Plan VIII. This revised plan increases total power capacity to about 183–236 GW by 2030 to meet the growing electricity demand of its rapidly developing economy.

Power Plan VIII prioritizes and introduces breakthrough policies to promote rooftop solar power development for households and construction sites, especially in regions facing power shortages like the North, focusing on self-produced and self-consumed solar energy. By 2030, this power source capacity is expected to grow by 2,600 MW. It is allowed unlimited capacity expansion as long as costs remain reasonable and existing grids are used without upgrades.

Notably, solar power - both concentrated and rooftop - has been increased in the plan to 46,459 - 73,416 MW (accounting for 25.3–31.1%), up from the previous 25,867 - 52,825 MW.

By March 2025, the Government had issued many policies including Decree 57/2025 on direct electricity trading between renewable energy producers and large users, and Decree 58/2025 detailing the Electricity Law on renewable and new energy development.

These policies have established a strong legal framework for green transition plans, encouraging enterprises to shift to clean energy use and enabling them to confidently pursue green and sustainable development strategies.

According to Mr. Nguyen Ngoc Trung, Deputy Director of the Department of Industry Economics - Party Central Committee’s Commission for Policies and Strategies, Vietnam currently has about 419 industrial parks, with 381 in operation, and around 900 industrial clusters planned, of which 700 are active. About 40,000 enterprises operate in these parks and clusters.

With large factory roof areas and concentrated electricity use, the potential for rooftop solar power in industrial parks and clusters is immense. Estimates suggest a technical potential of over 12 - 20 GWpeak (equivalent to the capacity of about 10 large coal-fired power plants) providing a huge source of green electricity that can be self-produced and consumed within industrial parks.

Detailed regulations for Decree 57 and Decree 58 needed

According to Mr. Hoang Quang Phong, despite clear policies from the Party and Government, enterprises in industrial parks still face challenges investing in and installing rooftop solar power systems due to unclear and inconsistent regulations. Procedures and guidance from ministries and agencies remain vague, leaving businesses uncertain about which rules to follow when installing and using rooftop solar power.

The adjusted Power Plan VIII has introduced significant changes in capacity, power source structure, and renewable energy development to support economic growth. However, enterprises in industrial parks remain reluctant to invest in rooftop solar power due to its low investment appeal, slowing the green energy transition below expectations.

Additionally, in cases of direct electricity purchase and sale under the Direct Power Purchase Agreement (DPPA), stakeholders face difficulties with administrative procedures at local Departments of Industry and Trade when registering projects. Specifically, unclear investment policies and guidance have yet to be effectively implemented by enterprises.

To help enterprises deploy green energy - especially rooftop solar power in industrial parks - more effectively, Mr. Nguyen Ngoc Trung said that ministries and agencies must quickly issue detailed circulars and guidelines for implementing Decrees 57/2025/ND-CP and 58/2025/ND-CP. Clear regulations are urgently needed on rooftop solar models for self-production and self-consumption in industrial parks, including capacity limits for excess power sold to the grid, internal electricity purchase agreements between enterprises, and simplified connection procedures. A stable and transparent legal framework will give businesses confidence for long-term investment in this sector.

Additionally, the goverment should consider tax incentives and green credit policies to support businesses installing renewable energy systems. Examples include import tax exemptions or reductions on green energy equipment, allowing accelerated depreciation of assets like solar power systems, and establishing green credit funds for preferential loans for rooftop solar projects. Promoting the ESCO (energy service company) model, where a third party invests in installation and businesses buy only the electricity, can help small businesses overcome upfront investment barriers.

Moreover, industrial park infrastructure developers should coordinate with the electricity sector to upgrade onsite grid systems, install smart meters, build transformer stations with backup capacity, and ensure technical readiness to receive distributed renewable energy. At the same time, they must develop a flexible, secure grid operation system with backup to handle outages or incidents, maximizing solar power use without disrupting overall operations.

Developing green energy requires strong cooperation between the public and private sectors. While the government is committed to creating favorable conditions and providing support, the active involvement of enterprises as investors and end users is important for success. Vietnam also needs to strengthen partnerships with development agencies and international organizations to access green financing, advanced technologies, and project management expertise. By combining ODA funds, preferential loans, and domestic private capital, larger and more comprehensive renewable energy projects - especially in industrial parks - can be effectively developed.

Nguyen Hoai Nam,General Secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP) Advantage in contract negotiations Seafood is one of Vietnam's key export industries, so reducing electricity use and increasing green energy adoption are top priorities for seafood enterprises in their investments and system upgrades. With about 1,000 seafood factories of various sizes, all require freezing processes that consume large amounts of energy. Electricity is among the top four biggest expenses for these businesses. As a result, many want to invest in stable, cost-saving power solutions like rooftop solar power. In practice, rooftop solar has proven economically beneficial. For export activities, using solar power is also viewed positively by major global brands during contract negotiations. With the issuance of Decree 57 and Decree 58, there is hope that the Ministry of Industry and Trade will provide clear guidance on key issues such as applying price ceilings, limiting system capacity, and detailed implementation instructions to help industries fully benefit. Phan Duy Phu, Deputy Director of Hydropower and Renewable Energy Department, Electricity Authority, Ministry of Industry and Trade Clearer regulations for rooftop solar power projects The new legal regulations have revised key provisions to remove obstacles for renewable energy projects. Notably, any building with a roof, regardless of ownership, can install solar power systems for self-production and self-consumption if technical and legal conditions are met. This greatly expands renewable energy deployment, especially in industrial parks and clusters with large rooftop areas that consume significant electricity. Rooftop solar panels are no longer classified as energy projects under construction regulations. This simplifies the investment and installation process by eliminating the need for construction permits, saving time and costs for businesses. A major reform is the streamlined administrative procedures for renewable energy projects. The development process for self-produced and self-consumed solar power systems is now clearer and simpler, reducing unnecessary appraisals. Instead of extensive pre-inspections, focus has shifted to intermediate and post-inspection stages, with oversight by specialized agencies after operation begins. The Ministry of Industry and Trade issued Circulars 09 and 10/2025/TT-BCT to guide electricity pricing and power purchase contracts for small renewable energy projects. Decision 988/QD-BCT on the 2025 electricity price framework specifies prices by region and by type, including with or without battery storage systems (BESS), enhancing transparency and investment predictability. Under Decree 58, self-produced solar power systems may sell excess electricity up to 20% of monthly output. This improves economic efficiency, especially for households and businesses with fluctuating or seasonal loads. However, currently only EVN can purchase this excess electricity. Other power companies are excluded, potentially creating barriers in industrial parks served by non-EVN wholesale or retail distributors. The Ministry of Industry and Trade is preparing a 2025 policy to offer financial and technical support for households installing solar power, aimed at expanding the solar model at small scale and promoting green consumption. Phan Cong Tien, Director of the Institute for Smart Energy Applications (iSEAR) Promoting distributed power development at the local level According to Decree 58, a major challenge with direct electricity trading through the national grid is the rule that projects with capacities of 10 MW or more must participate in the spot electricity market. However, plants under 30 MW are typically connected only to the 110 kV distribution grid or lower and lack the capacity to connect to the 220 kV transmission grid. Since these small projects are usually near the buyer, mandatory spot market participation is economically inefficient and problematic for all parties. Therefore, this rule needs to be reviewed to allow projects below 30 MW to trade electricity through bilateral agreements between buyers and sellers. In this case, parties would pay fees for using the distribution grid and related services to EVN without joining the spot market. This reduces costly long-distance transmission and increases efficiency for both buyers and sellers. Such changes would encourage and promote the development of distributed power sources at the local provincial and city level. Additionally, it is proposed to remove restrictions on buyers and the purchase rate of surplus electricity in industrial parks. Besides EVN buying surplus electricity, units in industrial parks should be allowed to buy surplus electricity freely, without limiting purchase rates. If concerns about weak grids limiting electricity flow to the main grid arise, such restrictions should only apply at the connection point between the industrial park grid and the electricity company, not within the industrial park itself. Truong Van Cam, Vice President and General Secretary of the Vietnam Textile and Apparel Association (VITAS) Green energy transition: A competitive edge in export markets Major markets are introducing stricter requirements to reduce greenhouse gas emissions, increasing pressure on enterprises for green growth and sustainable development. In response to these changes, textile and garment businesses are diversifying markets, focusing on new export opportunities, and enhancing capacity and development resources. Among these resources, green energy is gaining significant attention. The textile and garment industry consumes a large amount of electricity, so switching to green and renewable energy helps enterprises save substantial costs while meeting green export standards. Although solar radiation in the Northern region is lower than in the South, rooftop solar power still proves highly cost-effective for many businesses. For example, in Nam Dinh, about 60% of textile and garment enterprises have installed rooftop solar systems. Several timely solutions have been implemented to address challenges faced by textile and garment enterprises. However, going forward, there is hope that the Government will increase support for green and energy transformation, including capital aid, tax incentives for green projects, and human resource training.