Incentives for Solar Energy Development In Vietnam

Energy experts in the world said that solar power will become the greatest potential source in Vietnam in the near future and may be the main source of energy for renewable energy development in Vietnam. At the present, the number of the solar projects in Vietnam is approximately 200 with a total capacity of 17,000 MV and this number is increasing more and more.

Vietnam government had changed to focus on clean energy and environmental protection and they now have a legal framework in place to support solar development. The prime minister has recently issued the Decisition No. 11/2017/QD/TTg on the mechanism for encouragement of development of solar power in Vietnam. Accordingly, the investors (both domestic and foreign) can have the incentives in tax and lands when they invest in developing solar energy, including:

1. Raising capital: Organization and individuals involved in the development of solar power projects may raise domestic and foreign capital to carry out solar power projects.

2. Import duties: Solar power projects are eligible for exemption of import duties on goods imported as fixed assets on materials, components and semi-finished products that cannot be domestically manufactured and are imported to serve domestic production.

3. Corporate income tax: Corporate income tax exemption and reduction granted to solar power projects shall be the same as those granted to projects eligible for investment incentives.

4. Grid-connected solar power projects, transmission lines and substations shall be eligible for exemption or reduction land levy, land rent, water surface rent.

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