Vietnam: Licensing rules and validity of an electricity license

Specifically, according to Circular No. 36/2018/TT-BCT of the Ministry of Industry and Trade of Vietnam, before the competitive electricity retail market runs, an electricity license is granted to engage in both electricity retailing and electricity distribution.

If an electricity generator applies for a license to retail electricity by using its own electrical grid without purchasing electricity supplied from the national electrical grid, an electricity license shall be granted to engage in both electricity retailing and electricity generation.

An electricity generation license shall be granted to the power plant’s owner to run only one power plant. If the owner of a power plant leases it out to a third party, or hires or authorizes a third party to manage and operate that power plant, the electricity license must contain particulars of the lessee or the unit in charge of managing and operating the power plant.

Maximum validity periods of electricity licenses are provided for in the following table:

Notably, an applicant may also apply for an electricity license whose validity period is shorter than the corresponding one prescribed in this Circular.

Moreover, based on the actual conditions of each electricity work item, the licensing authority may consider granting an electricity license with a validity period shorter than the corresponding one prescribed in this Circular.

View more details at Circular No. 36/2018/TT-BCT of the Ministry of Industry and Trade of Vietnam, effective from December 06, 2018.

-Thao Uyen-

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