The Prime Minister of Vietnam asked the Ministry of Industry and Trade to clarify several key points regarding the country's draft Power Development Plan 8 (PDP8). Specifically, he requested they: 1. Verify the feasibility and ability to ensure electricity supply and demand balance from 2022-2030 as outlined in PDP8. 2. Provide clear justification for not further developing solar power until 2030 and whether this contradicts resolutions to increase renewable energy. 3. Re-examine calculations for projected LNG imports and whether the amounts and risks align with goals to import 8 billion cubic meters by 2030 given geopolitical volatility could impact pricing and supply.

1. VIETNAM - ENERGY - Power Development Master Plan 8 - Latest Update
The Prime Minister (PM) had issued Official Letter no. 182/LDCP (“OL182”) on 10th
June 2022 for
his guidance on the approval of PDP8.
Context:
The Ministry of Industry and Trade (MOIT) has developed a plan to submit to the Prime Minister under
two scenarios including the basic scenario and the high scenario (towards Zero Carbon 2050). This
structure aims to drastically reduce coal power, sharply increase onshore and offshore wind power; No
solar power development: Developing LNG to replace polluted coal power and hydroelectric power
sources meeting due.
The Prime Minister basically agreed to bring the contents of the Power Development Plan VIII to the
meeting of the Permanent Government as soon as possible so that this plan is to be released soon in
June. However, before the meeting of the Permanent Government, Prime Minister Pham Minh Chinh
asked Deputy Prime Minister Le Van Thanh to direct the Ministry of Industry and Trade to clarify the
following key concerns:
1. Feasibility of PDP8: MOIT to clarify whether the latest draft PDP8 proposal sync with the
electricity generation and demand parameters.
MOIT is requested to clarify the feasibility of the planning, the most important of which from now to
2030 must ensure the balance of electricity for electricity demand, resolutely not to let electricity
shortage happen.
2. Solar Power development: MOIT to substantiate with clear basis on its opinion in relation to
capacities and delaying solar power generation sources development to 2030, and its alignment with
the Resolution 55-NQ/TW of the Politburo (“Resolution 55”).
According to the draft Power Development Plan VIII, in 10 years (2021 - 2030) there will be no further
development of solar power, keeping the current 8,736MW. The remaining number of projects already
in the revised Power Development Plan VII, with a total capacity of 6,200MW, the progress will be
extended until after 2030.
However, at the end of May 2022, the Ministry of Industry and Trade issued a written request for
comments on the direction of treatment with the number of solar power projects that must be extended
until after 2030. Accordingly, the number of these projects is divided into two parts: 1,925MW already
included in the expanded Power Development Plan VII has been approved for investment and
4,120MW of solar power projects is included in the expanded Power Development Plan VII but has not
been approved for investment.
This request is different from previous reports of the Ministry of Industry and Trade, so the Prime
Minister asked this ministry to have a clear position on the proposed treatment direction of 6,200MW
of the above solar power projects before consulting the Government and the Prime Minister.
On the other hand, the Prime Minister also asked the Ministry of Industry and Trade to clarify whether
the non-development of solar power until 2030 is contrary to Resolution 55 of the Politburo and to the
trend of falling solar power price, the development of integrated battery technology at a more reasonable
cost, so the non-development of solar power really makes sense?
3. LNG import: MOIT to clarify its explanations and calculations for LNG fuel import to align
with the goal in the Resolution 55. Also, ongoing war scenario in different parts of the world may

2. affect LNG fuel import and electricity pricing, making it volatile. MoIT to clarify on the plan to tackle
such aspects for LNG power sources development.
MOIT is required to carefully consider the feasibility and effectiveness of LNG power development to
2030. Currently, the draft Power Development Plan VIII proposes the plan to develop this type of
energy by 2030 is 23,900MW, accounting for 16.4% of the total power source.
According to calculations of the Ministry of Industry and Trade, the need to import LNG as drafted
Power Development Plan VIII will be about 14-18 billion m3 by 2030 and about 13-16 billion by 2045,
higher than the specific target in Resolution 55 of the Politburo stated that "Enough capacity to import
LNG of about 8 billion m3 by 2030 and about 15 billion m3 by 2045."
On the other hand, due to the Russo-Ukrainian war, the price of imported LNG inputs ranges from 15-
20 cents/kilowatt, while our commercial electricity price is currently only 6-7 cents/kilowatt is a future
obstacle to the signing of Power Purchase Agreements between the investor and Electricity Vietnam
Group (EVN) because it will be buying expensive - selling cheap.
Besides, the dependence of up to 16.4% on imported LNG by 2030 will put us at risk of importing high
gas prices when there is any volatility of regional and international geopolitics between now and 2030.
In addition, LNG is still fossil energy by nature, only CO2 deflation by 50% compared to coal-fired
power. And according to the trend of the 26th
United Nations Climate Change Conference (COP26), the
financial institutions after 2025 will tend to stop funding for LNG power projects.
Therefore, the Government leaders request the Ministry of Industry and Trade to consider and carefully
deliberate the proportion of imported LNG electricity of 16.4%.
Please do not hesitate to contact Dr. Oliver Massmann under omassmann@duanemorris.comif you
have any questions or want to know more details on the above. Dr. Oliver Massmann is the General
Director of Duane Morris Vietnam LLC.