- The Law on Construction 2025 aims to streamline construction investment and improve regulatory certainty
- The Law on Construction 2025, effective from 1 July 2026, introduces significant reforms aimed at streamlining construction investment and improving regulatory certainty. For foreign investors, key changes include express recognition of liquidated damages, providing greater confidence when using international-style construction contracts such as FIDIC. The law also recognises international construction dispute-resolution mechanisms, including Dispute Adjudication and Review Boards, although projects involving public investment or PPPs remain subject to restrictions.
- The law provides clearer rules on force majeure and fundamentally changed circumstances, including changes in government policy, abnormal geological conditions and archaeological discoveries, improving risk allocation on long-term projects.
- It also clarifies the hierarchy between construction and other laws, giving the Law on Investment priority for projects using special investment procedures. Finally, project owners assume greater responsibility for contractor selection, project management, supervision and contractual compliance, making robust due diligence and contract structuring particularly important for foreign developers and investors.
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- Changes to liberalise Vietnam’s Direct Power Purchase Agreement (DPPA) framework
- Vietnam’s Decree 243/2026/ND-CP, effective from 26 June 2026, significantly liberalises the Direct Power Purchase Agreement (DPPA) framework, creating new opportunities for renewable energy developers and corporate power consumers.
- For investors, the most significant change is the reduction of the off-grid “large electricity consumer” threshold from 200,000 to 20,000 kWh/month, substantially expanding the pool of eligible corporate offtakers. Licensed electricity retailers in industrial parks and clusters can also now participate, enabling new multi-party supply structures.
- The reforms are particularly relevant to foreign investors in manufacturing, industrial parks and data centres. Data centres and EV/charging infrastructure are expressly recognised as eligible large electricity consumers under the grid-connected DPPA model. The grid-connected participation process has also been reduced from seven steps to three, improving regulatory efficiency.
- For rooftop solar, surplus electricity sales to the grid can increase from 20% to 50%, while pricing with industrial-zone retailers is no longer subject to a regulatory price cap. Existing projects and agreements should be reviewed for opportunities to renegotiate under the more favourable regime.
- Vietnam Business Guide
- Vietnam’s legal and regulatory landscape has evolved at an unprecedented pace over the past year. With significant reforms across investment, taxation, digital business, land, and other key areas, keeping abreast of these developments has become increasingly important for businesses and investors seeking to establish or expand their presence in Vietnam. The Guide reflects the latest legislative and regulatory developments and provides readers with an up-to-date overview of the legal framework governing investment and business operations in Vietnam. It examines the principal market entry options available to foreign investors, including the establishment of wholly foreign-owned enterprises and investment through mergers and acquisitions. Furthermore, it provides practical guidance on the key legal and regulatory issues encountered in the course of doing business in Vietnam, including corporate governance, taxation, employment, intellectual property, real estate, and dispute resolution.
