Prime Minister Nguyen Xuan Phuc has issued Decision No. 11/2017/QD-TTg dated 11 April 2017 to promoting the development of solar power projects in Vietnam.
Vietnam Electricity Group (EVN), designated as the sole Power Purchaser under Decision 11, will purchase all electricity generated from solar power projects with a feed-in tariff (“FIT”) of VND 2,086/kWh (excluding value added tax; equivalent to approximately 9.35 US cents/kWh at current exchange rates). This price is only apply for solar project have solar cells efficiency is higher than 16% or solar module efficiency is higher than 15%.
According to this decision, solar power projects are exempted from import duties on imported goods to create fixed assets for the project. Solar power projects, transmission lines and substations to connect to the grid are exempted from land use fee, land rent. Decision 11 allows capital to be mobilized from both domestic and foreign sources for the purpose of developing solar power projects in Vietnam. Investors will benefit from tax exemptions on raw materials and supplies imported for project purposes.
Incentives related to land use are also provided by Decision 11. Solar power projects connected to the grid are entitled to exemptions or reductions in land-related fees as per the laws applicable to projects entitled to investment incentives, including the exemption from land rental fees within the first three years of commencing commercial operation.
This Decision is effective from 1 June 2017 to 30 June 2019.