The new decree is seen as the latter of two policy moves needed to jumpstart the country’s clean energy market. New funding is already flowing, but concerns remain as to whether Vietnam’s power grid can handle more renewables.
Some question if the US$3 billion deal may yet be revived, given vague terms under the country's resource mobilisation plan announced last year that might allow a renegotiation. Observers say the termination is 'good news' for Vietnam's energy transition goals.
Countries should invest in localising major portions of their supply chains, and source affordable solar modules and turbines from China, according to the Institute for Energy Economics and Financial Analysis.