Speaking at a conference on “investing in the power sector: opening up future markets and opportunities for foreign businesses”, Khu said Vietnam now has incentives for this sector like a policy to have the Electricity of Vietnam Group (EVN) buy all the electricity produced from renewable energy sources.

Additional incentives are the 10 percent corporate income tax applied to power projects in the first 15 years of operation and a preferential price list.

But there are still legal snags in investing in renewable energy projects, according to Vietnam’s Duane Morris LLP & Affiliate.

The 20/80 ratio of investor capital to loans is also a problem for investors.

The special price list currently applies only to projects with a capacity of over 30 megawatts. EVN cannot buy electricity from other projects because the current retail price of electricity does not reflect the production cost.