Why are solar projects a problem in Vietnam?

Solar projects have to compete with land designated for agriculture and aquaculture, which may complicate this process in areas such as the Mekong Delta, which produces over 90% of Vietnam’s rice exports, 50% of the rice for domestic consumption, and 90% of national aquaculture.

Are solar panels regulated in Vietnam?

Vietnam’s solar panel trade is regulated under Decree 26/2023/ND-CP, which outlines the Schedule of Export Tariffs and Preferential Import Tariffs. This decree, effective from July 15, 2023, sets specific import duties on goods, including solar panels and related components.

How much land does Vietnam need to build a solar power plant?

Most farmers in Vietnam have less than 1 ha (or 2.4 acres) of land, meaning that solar developers need to negotiate with multiple local farmers to build large-scale power plants.

Can agriculture and aquaculture be used under PV modules in Vietnam?

Vietnam already hosts numerous pilot projects aimed at testing agriculture and aquaculture viability under PV modules. A study in Can Tho found that nine agricultural and aquaculture products (rice, corn/maize, soybean, sesame, vegetables, cassava/starch roots, livestock, fish and shrimp) were suitable for solar dual-use.

Are rooftop solar projects violating land use plans?

This past December, the Government Inspectorate of Vietnam (GIV) identified numerous rooftop solar projects which violated land use plans because the projects benefited from FIT price mechanisms designed for rooftop solar despite being constructed on agricultural and forestry land.

How does Land Management affect the development of solar farms?

Even without considering land-use issues, fragmented land management can complicate development of large-scale solar farms. Land is in high demand in Vietnam, there generally are not large patches of land available in the areas with highest solar potential because rural land is distributed to individuals in small parcels.