Vietnam: New project to enhance solar power development

Vietnam: New project to enhance solar power development

Under Decision 11/2017/QD-TTg, organizations and individuals engaging in
solar development projects will get preferential benefits on investment,
tax, and land.

Specifically, the organizations and individuals will be allowed to mobilize
capital from domestic and foreign organizations and individuals to develop
solar power projects in line with current regulations. Solar power projects
will enjoy tax exemption for imported equipment unproduced domestically and
land allocation incentives.

Provincial-level People's Committees were authorized to allocate land for
solar power projects. Compensation for site clearance will be conducted in
line with the current regulations. The construction of solar power projects
must be conducted in accordance with current regulations on investment,
building, fire prevention, environmental protection, and relevant others.

Numerous incentives will be offered for solar-power energy projects in
Vietnam, according to a recently-issued decision from Prime Minister Nguyen
Xuan Phuc that takes effective from June 1, 2017 - June 30, 2019. Any
organisations or individuals involved in solar power projects in Vietnam
will be eligible for the incentives.

The solar power output will be bought by the Electricity of Vietnam and its
authorised members. Organisations and individuals with licenses for
supplying power for the national grid can sell the power, or anyone who
wants to sell their unused solar power.

According to the decision, the buyer is required to buy all the output of
solar power projects, with 20-year contract terms.Solar power generating
projects will enjoy tax exemptions for importing goods for their fixed
assets. Solar power projects will also enjoy corporate income tax exemptions
and reductions.

For power grid-connected projects, the buyer shall buy all of the projects'
output at 2,086 VND (0.09 USD) per kWh (excluding VAT), and subject to
changes according to the VND/USD exchange rate. The Ministry of Trade and
Industry will annually issue the buying and selling prices of solar power
produced by roof-based solar power projects based on the VND/USD exchange
rate.

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Link to Original Article:
http://hanoitimes.com.vn/investment/on-going-projects/2017/04/81E0B117/new-p
roject-to-enhance-solar-power-development/

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com