Inside Vietnam’s First DPPA: Why 70 GWh of Solar Could Change Corporate Power Procurement

Vietnam has reached a significant milestone in its renewable energy transition with the launch of the country’s first grid-connected direct power purchase agreement (DPPA), potentially opening a new channel for corporate investment in solar power.

The agreement connects Samsung Electronics Vietnam Thai Nguyen (SEVT) with TTC Duc Hue–Long An Power, the developer of the 49 MW Duc Hue 2 solar power plant in Tây Ninh province in southern Vietnam.

Under the agreement, Samsung’s smartphone manufacturing facility at Yen Binh Industrial Park in northern Vietnam is expected to receive approximately 70 GWh of solar electricity annually. This volume is equivalent to the annual electricity consumption of roughly 17,000 Vietnamese households.

The agreement represents the first operational grid-connected DPPA in Vietnam and could provide an important reference point for multinational companies seeking to meet corporate renewable energy commitments through direct access to renewable electricity.

Na Ki Hong, General Director of Samsung Vietnam, said the company hopes the agreement will contribute to the development of Vietnam’s renewable energy market while supporting global efforts to address climate change.

DPPA Could Unlock Corporate Solar Investment

According to Lam Pham, Energy Analyst for Asia at Ember, Vietnam’s first operational DPPA marks an important development for the country’s energy transition.

For multinational corporations operating in Vietnam, meeting global renewable energy commitments has historically faced structural constraints. The introduction of an operational DPPA mechanism could provide companies with a more practical route to securing renewable electricity while potentially strengthening Vietnam’s attractiveness to green foreign investment.

Vietnam’s DPPA framework originally came into effect in July 2024, initially imposing relatively strict eligibility requirements focused on large electricity consumers using power for production purposes.

The framework was subsequently updated in March 2025, with eligibility conditions relaxed and additional guidance introduced for both physical private DPPAs and grid-connected DPPA contracts.

The first operational agreement now provides an opportunity to demonstrate how the mechanism can function in practice.

Pham expects DPPAs to become a significant catalyst for further solar deployment in Vietnam, particularly within the commercial and industrial (C&I) sector.

The country is home to a growing number of multinational manufacturers with corporate renewable energy commitments. According to Pham, 159 multinational companies operating in Vietnam have 100% renewable energy targets, creating a potentially significant pool of future corporate renewable electricity demand.

The DPPA mechanism could provide these companies, as well as future investors with similar sustainability commitments, with a more direct and potentially bankable route to procuring renewable electricity.

This could help unlock additional private-sector investment in solar development that has historically been more constrained by Vietnam’s state utility-centred electricity market.