Solar power, especially rooftop solar power, is receiving much support to accelerate in the future. The government encourages the development of solar power projects, including rooftop solar power projects. 

Vietnam's demand for energy is projected to increase by more than 10% annually until 2020, and by 8% annually in 2021-2030. In 2020, the demand for electricity will be expected to rise by 265 to 278 billion kWh, up from 86 billion kWh by 2010, to 572 to 632 billion kWh in 2030. To address this growing demand, the Government of Vietnam has recently had to revise the energy development plan to increase the share of renewable energy, such as biomass, solar and wind, to address this demand. In addition, Vietnam has to bear a cost of USD 148 billion annually by 2030 to be able to add more 6,000-7,000 MW annually. In order to satisfy this demand, the Government had to revise the rise in energy supplies. Today, just 2.1 percent of the total generated power is used for renewable energy.

Recently, the rise of foreign investment in green energy projects has been seen in Vietnam. In just 2018, a national electricity plan was completed with 121 solar projects of capacity of 8100 MW while an additional 220 projects awaited approval. Only solar power on the roof, according to the data of the Vietnam Electricity Group (EVN), as of the end of August 2019, there were nearly 13,000 rooftop solar projects registered to sell electricity to the Group, with a total electricity output of 30,5 million kWh. It is expected that an additional 300 MW of rooftop solar power will be installed by the end of 2019, and by the end of 2020, the total rooftop solar power capacity may reach 2,000 MW.

Rooftop solar power is considered a special profitable channel of the companies due to the following reasons: reducing electricity bill, less investment cost for additional substations, fast execution time, avoiding the fluctuations in electricity prices and inflation effects, and environmental protection. In the world, rooftop solar power has become a choice of many large businesses, such as Intel and Wal-Mart, Google, Facebook, Amazon, Tesla, etc.

To support rooftop solar power, Ho Chi Minh City Development Commercial Joint Stock Bank (HDBank) has issued a lending program for businesses investing in rooftop solar power projects to enjoy preferential loans with a ratio of 70%, 5-year loan term. The main guarantee is the rooftop solar power system, with a sponsorship of up to 10 billion.

The Vietnamese policies and incentives of the Government on clean energy today:

• The government has allowed 100 % foreign ownership of Vietnamese companies in the energy sector. Foreign investors can choose among permitted investment forms such as 100 % foreign-invested company, joint ventures or public-private partnership (PPP) in the form of BOT (Build-Operate-Transfer) form.

• In addition, Under the Law on Investment, renewable energy projects are eligible for special investment incentives, as follows:

• Corporate income tax preferences:Revenues from new investment ventures for the production of renewable energies are subject to a 10 per cent corporate income tax (CIT) rate for the first fifteen years, or to a four-year corporate income tax exemption, and a 50.0% cut for the next nine years. In particular, for the first 15 years, the preferential CIT rate of 10% is available to companies producing electricity from renewables which are able to meet several criteria in line with Decision No. 693/QD-TTg. New renewable-energy investment projects in socio-economic areas have the right to a 4-year tax exemption and a 50 percent reduction for the following nine years..

• Import duty preferences: Import duty exemptions for goods imported to build or shape permanent resources such as raw materials, materials produced and other parts are available.

• Land related incentives: Investors may be entitled to exemption from the land use fee that would usually apply for 11 years or, in cases where the investment project is in a region facing extreme socio-economic difficulties, 15 years. In addition, investors may exempt themselves from land rent and rent for water surfaces during the capital construction period (which is the period of construction of the new facility for up to three years from the effective date of a land rental agreement). Therefore, in accordance with Law on Land, land clearing payment and subsidies will be given. The provincial peoples are responsible for all land rental and allocation of land for renewable energy projects.

On 22 November,the Government Office announced the conclusion of the Prime Minister's meeting on solar power price (FIT price) after July 1, 2019. The Ministry of Industry and Trade, in particular, has been assigned by the government to study solar bidding mechanisms. The solar power rate will not therefore be split into regions, or the same electricity price plan for all regions will apply as in the previous Ministry of Industry and Trade plans following June 30, 2019 (when Decision No. 11/2017/QD-TTg expires).