Vietnam’s first grid-connected direct power purchase agreement (DPPA) is now live. 

The DPPA is between Samsung Electronics Vietnam Thai Nguyen (SVET) and TTC Duc Hue–Long An Power, developer of the 49 MW Duc Hue 2 solar power plant in Tây Ninh province, southern Vietnam.

Under the terms of the agreement, SVET’s smartphone factory, located in the Yen Binh Industrial Park in northern Vietnam, will receive approximately 70 GWh of solar electricity each year, equivalent to the annual power consumption of roughly 17,000 Vietnamese households. 

“Through this first DPPA contract, we hope to contribute to promoting the development of Vietnam’s renewable energy market, while actively supporting global efforts to address the climate change crisis,” commented Na Ki Hong, General Director of Samsung Vietnam.

Lam Pham, Energy Analyst, Asia, at Ember told pv magazine Vietnam’s first operational DPPA marks a pivotal moment for the country’s energy transition.

“For years, multinational corporations operating in Vietnam have faced structural bottlenecks in meeting their global RE100 commitments,” he said. “The project is proof that the regulatory framework is now viable in practice and will significantly enhance Vietnam’s attractiveness to green foreign direct investment.”

The legal framework for DPPAs in Vietnam first came into effect in July 2024, Pham said, initially with rigid eligibility conditions limited to large electricity users for production purposes. He explained this was replaced with an updated decree in March 2025, relaxing these conditions and introducing more detailed guidance on both physical private DPPAs and grid-connected DPPA contracts.

Pham added that he expects DPPAs to be a significant catalyst for solar deployment in Vietnam, particularly in the commercial and industrial sector. He said there are many multinational manufacturers operating in the country carrying corporate renewable energy commitments, including 159 with 100% renewable energy targets.

“The DPPA mechanism now gives them and future investors with green commitments a direct, bankable route to fulfil the target,” Pham explained. “This will unlock massive private investment into solar development that was previously constrained by the state utility model.”

Pham also said that looking ahead, Vietnam’s revised time-of-use tariff framework, which removes the morning peak and concentrates high tariffs in the evening, is likely to reshape how DPPAs are structured. 

“As midday solar generation no longer aligns with peak pricing, future deals will increasingly need to pair generation with storage or renewables that perform better in the evening such as wind power,” he told pv magazine. “This is likely to push the market toward more flexible, integrated energy sources.”

Vietnam’s solar capacity surpassed 19 GW by the end of 2025, with around 586 MW of solar added last year.