Vietnam’s state-run power utility has reported reduced previously agreed-upon subsidized rates paid to certain solar and wind projects, placing these renewable energy ventures at risk of defaulting on their loans, according to a petition from investors reviewed by Reuters.
The petition, dated May 16 and addressed to the country’s top policymakers, follows a prior warning from many of the same investors. They caution that billions of dollars in investments are now endangered due to retrospective changes to state subsidies. The change comes even as Vietnam continues to push for rapid growth in renewable energy capacity.
From January 2025, a subsidiary of the state utility Electricity of Vietnam (EVN) began withholding a portion of payments and applied a provisional tariff unilaterally set by its own proposal, the petition stated.
One of the investors signed in petition said that this action has forced the company to violate agreements with domestic and international banks, putting it at significant risk of default as the company struggles to meet ongoing debt repayments and experience severe cash flow shortages.
Sixteen foreign stakeholders, including private equity firm Dragon Capital, the Vietnamese arm of the Philippines-based energy group ACEN. There are also investors from Thailand, China, South Korea, Singapore that co-signed the petition. Numerous other local project developers also endorsed the letter.
Vietnam’s renewable energy boom was initially propelled by attractive feed-in tariffs (FiTs), under which the government guaranteed to purchase power for 20 years at prices above market rates—a strong incentive for energy producers.
While EVN did not immediately respond to this latest petition, it previously told Reuters that preferential pricing could not continue for projects found to be in violation of regulatory guidelines. The company has not clarified whether these rules have been applied retroactively or identified which projects were affected.
