Foreign Investors Warn of Legal Action on Vietnam Power Dispute

Foreign investors have urged Vietnam’s government to resolve a long-running dispute over payments to solar and wind power projects, warning that producers may pursue legal action if agreed terms are not honored.

A letter sent to the government on Thursday sets out investor concerns over reduced payments under power purchase agreements tied to projects with a combined capacity of 12 gigawatts. If obligations are not met “sellers may seek to enforce remedies including pursuing dispute resolution in Vietnam or other jurisdictions,” the letter, which is signed by five chambers of commerce, states.