Vietnam’s state utility EVN has retroactively reduced previously agreed feed-in tariffs (FiTs) for some solar and wind projects, an investors’ petition seen by Reuters has alleged.
A subsidiary of EVN has reportedly been calculating payments based on an FiT lower than what was originally agreed.
The article reports that:
- A petition dated May 16 was sent to Vietnam’s top authorities by 16 foreign investors, including: Dragon Capital, ACEN Vietnam (Philippine-owned), and other investors from Thailand, Portugal, the Netherlands, South Korea, Singapore, and China
- They allege that EVN applied a lower, self-proposed provisional tariff starting from January 2025 invoices, without agreement, withholding parts of expected payments.
- The group claims the change violates previously guaranteed subsidies, causing financial distress and default risks.
For background, the original FiTs in question led to a renewable energy boom in Vietnam with installed capacity among the highest in Asia at the end of 2021.
The state power provider, however, has been struggling financially for a range of reasons, with said subsidies identified as weighing on its business. As a result, EVN has been looking for ways of reducing those costs including reducing FiTs.
This is, however, problematic for Vietnam’s credibility as a renewable energy investment destination. Moreover, retroactive subsidy cuts and unilateral withholding of payments can undermine trust in government guarantees, potentially chilling foreign capital.
See also: Electricity in Vietnam 2025: Supply, Pricing & Sources