DPPA in Vietnam: Ten Years in the Making

Ten years ago, while working at Nike, I began engaging on what would eventually become Vietnam’s Direct Power Purchase Agreement (DPPA) policy—a landmark piece of legislation that is now helping unlock corporate renewable energy procurement in one of APAC’s fastest-growing economies. A decade later, meaningful policy developments have laid the groundwork for some of the most impactful corporate renewable energy procurement legislation during a critical period for corporate climate action and the global economy.

In 2015, the idea of a DPPA in Vietnam was still in its infancy. Corporate buyers were starting to feel the pressure of global climate commitments, and we were eager to find ways to source renewable energy in countries where traditional procurement methods were unavailable or unviable. Vietnam, despite its clear renewable energy potential, had no mechanism for companies to buy clean power directly from generators. But there was growing momentum and pressure to evolve the policy landscape.

One of the early catalysts came through international diplomacy. Then–U.S. Secretary of State John Kerry played a surprisingly critical role in shaping the enabling environment. With the support of USAID, Kerry helped advance discussions not just on renewables, but on the balancing mechanisms needed to stabilize the grid as clean energy scaled up. His efforts were particularly focused on aligning financing for infrastructure that would allow Vietnam’s grid managers to incorporate U.S. liquefied natural gas (LNG) as a balancing resource. LNG wasn’t the end goal—but it was a bridge that made higher renewable penetration more technically feasible, and politically palatable.

These early engagements—spanning diplomacy, development assistance, and corporate advocacy—formed the backbone of Vietnam’s first serious consideration of a DPPA. For years, however, progress was slow. Vietnam’s energy policy framework remained highly centralized, and the power sector was tightly controlled by state-owned enterprises like VietnamElectricity (EVN), Ministry of Industry and Trade (MOIT), PetroVietnam, and Vinacomin Power. Meanwhile, corporate demand for renewable energy kept growing.

Between 2016 and 2020, several pilot programs were proposed. International companies continued to push for legal clarity and a viable DPPA mechanism, with organizations like USAID’s V-LEEP program helping translate technical models into real-world solutions. Despite these efforts, the legislation stalled—slowed by changes in government leadership, competing energy priorities, and persistent questions around how to ensure grid stability.

But behind the scenes, key foundations were being laid. Vietnam’s solar boom in 2019 and 2020 proved that renewable energy could scale rapidly if the incentives were right. This success brought new credibility to the push for corporate procurement and illustrated the growing strain on the traditional one-buyer (EVN) model. Policymakers took note.

By 2023, the conversation had shifted. With support from both foreign investors and domestic stakeholders, MOIT finalized the long-awaited DPPA framework. In 2024, new legislation officially enabled direct power purchase agreements between renewable energy developers and large corporate customers. For the first time, companies could contract directly for clean power—opening a new chapter in Vietnam’s energy transition.

Today, Vietnam’s DPPA mechanism stands as one of the most progressive in the region. It offers an alternative to state-utility procurement, increases investor confidence, and positions Vietnam as a competitive destination for multinationals with science-based climate targets. The policy is expected to drive billions in clean energy investment while helping factories and businesses decarbonize their operations and supply chains in line with global standards.

Looking back, the journey took longer than many of us hoped. But the result is a policy born not just from urgency, but from a decade of collaboration, persistence, and belief in the power of corporate partnerships to accelerate clean energy transitions. Vietnam’s DPPA offers a critical path forward for enabling scope 3 decarbonization across supply chains—during a critical period for global climate action and economic resilience.

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