Vietnam electricity sector reforms

In July 2026 the Vietnamese government issued Decree 278, amending electricity pricing rules to give enterprises more autonomy and to expand the Direct Power Purchase Agreement (DPPA) mechanism. The change is intended to accelerate the transition to a market‑based, competitive electricity sector and to integrate more renewable generation. Officials debated the timing: the state‑owned utility EVN warned that broader DPPA participation could create cost‑recovery and revenue‑stability issues, while the Ministry of Industry and Trade argued that including retail distributors and large users would boost consumer choice and align with the 2024 Electricity Law.

A few weeks later, state‑owned generators EVNGENCO1 and EVNGENCO3 reported that they had met or exceeded their 2026 generation targets. EVNGENCO3 produced 15.3 TWh in the first half of the year, while EVNGENCO1 posted a 7.2 % year‑on‑year increase, reaching 22.35 TWh by July. Both companies highlighted continued operation of thermal and hydro assets, progress on renewable projects such as floating solar, pumped‑storage and battery‑energy‑storage systems, and ongoing digital transformation initiatives. The performance data underscores the sector’s move toward higher efficiency, diversified generation, and alignment with the broader market reforms introduced earlier in the month.