Vietnam retroactively cuts subsidies for some solar, wind farms, investors' letter says
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 22 2025
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Source: Reuters
Vietnam's Electricity Subsidy Cuts: Vietnam's state power utility has reduced previously agreed subsidized prices for electricity from solar and wind farms, putting many projects at risk of defaulting on bank debts due to cash shortages and breaches of commitments.
Impact on Renewable Energy Investments: The changes come amid a backdrop of significant renewable energy investments in Vietnam, which were initially driven by generous feed-in tariffs; however, authorities are now freezing or cutting subsidies due to alleged abuses and increasing losses for the utility.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
