By Nguyen Thanh Nghiep | April 2026

On March 30, 2026, Prime Minister Phạm Minh Chính signed Directive No. 10/CT-TTg on strengthening electricity conservation and rooftop solar development. This is the second energy directive issued within two weeks – following Directive 09/CT-TTg (March 19) on energy saving, energy transition, and electric vehicle development – signaling that the government views energy demand management as a national security priority, not merely an environmental aspiration.

While the rooftop solar targets have received the most coverage, this directive is far more comprehensive – it is effectively a master framework for restructuring how Vietnam produces, distributes, consumes, and finances electricity at every level of society. Let me walk through the key dimensions.

#Issue 2

“Solar-Ready” Building Codes: A Structural Shift

A provision that deserves more attention: the Ministry of Construction is tasked with reviewing and issuing regulations, standards, and technical codes requiring new buildings to be partially energy self-sufficient through rooftop solar and to meet “solar-ready” design requirements (yêu cầu thiết kế “sẵn sàng cho điện mặt trời”).

This means future building codes may mandate:

• Structural load capacity for solar panel installations
• Pre-wired electrical systems for PV integration
• Roof design specifications optimized for solar exposure
• Fire safety and building safety standards specifically for ĐMTMN and BESS installations

This is a structural market intervention — rather than incentivizing retrofits, the government is embedding solar readiness into the physical infrastructure pipeline. For real estate developers, construction companies, and building materials suppliers, this creates both compliance obligations and market opportunities. For BESS manufacturers, fire safety and installation standards will be critical gatekeeping factors.

DSM/DR: Demand-Side Management Goes Mainstream

One of the most operationally significant elements of Directive 10 is the formalization of Demand Side Management and Demand Response (DSM/DR) as a core grid management tool – not just a pilot program.

The directive mandates:

• Synchronized DSM/DR programs nationwide, targeting 3,000 MW of peak load reduction
• Manufacturing enterprises must proactively restructure production schedules, shift work patterns to avoid peak hours, and participate in load curtailment when requested by power utilities
• Commercial facilities (hotels, restaurants, office towers, shopping centers) must reduce outdoor advertising/decorative lighting by at least 50% during evening peaks upon utility request
• EVN must engage customers in signing load management commitments and coordinate backup generator mobilization plans

This represents a philosophical shift: the Vietnamese grid operator is moving from a supply-follows-demand model to an active demand management model. For industrial enterprises, participation in DR programs is no longer voluntary goodwill – it is becoming a regulated expectation tied to compliance monitoring.

The financial infrastructure to support this is also being built: the directive instructs the Ministry of Finance to develop mechanisms allowing EVN to account for DSM program costs in its tariff structure, effectively treating demand reduction as a dispatchable resource with legitimate cost recovery.

Public Lighting and Advertising: The 30% Target

Directive 10 imposes aggressive energy savings requirements on public lighting and outdoor advertising — a sector that has historically operated with minimal efficiency oversight:

• 30% minimum electricity savings across public lighting systems
• Complete shutdown of outdoor advertising and decorative lighting systems (with adjustments based on operational needs)
• Operating hour adjustments: Reduced power or shutdown in low-demand areas and after 23:00
• Smart lighting deployment: Provincial authorities must accelerate smart lighting systems in major urban areas
• Commercial compliance: Hotels, restaurants, shopping centers, and office buildings must cut advertising/decorative lighting by 50% during evening peaks when requested by local utilities

This provision is noteworthy because it targets a visible, high-waste category that directly affects peak evening load. In many Vietnamese cities, commercial lighting represents a significant and largely unmanaged load that coincides precisely with residential peak demand.

The mandate for smart lighting systems in major urban areas also creates procurement opportunities for IoT-enabled lighting infrastructure – dimming controls, motion sensors, centralized management platforms – that can deliver sustained savings beyond the immediate directive period.

Energy Efficiency Standards: Raising the Floor

The Ministry of Science and Technology receives a focused mandate:

• Raise minimum energy efficiency standards by over 5% across consumer equipment and appliances
• Develop a roadmap to increase electric motor efficiency to IE2–IE3 levels — a substantial upgrade from the current baseline that will affect every industrial facility in the country
• Phase out incandescent bulbs of 20W and above — a definitive market signal for lighting manufacturers and importers
• New efficiency standards for power conversion equipment: adapters, chargers, and EV charging stations

The motor efficiency upgrade is particularly impactful. Electric motors account for an estimated 60–70% of industrial electricity consumption globally. Moving Vietnam’s motor fleet from IE1 to IE2–IE3 could yield system-wide savings of 3–5% of industrial electricity demand – a figure that dwarfs many other individual measures.

For equipment suppliers, this creates a mandatory replacement cycle. For industrial enterprises, it means capital expenditure planning for motor upgrades needs to start now, ideally integrated with ESCO financing models.

Accountability: KPIs with Teeth

What distinguishes Directive 10 from previous energy-saving instructions is the accountability architecture:

• Energy savings results are linked to leadership performance evaluations (đánh giá mức độ hoàn thành nhiệm vụ) for heads of agencies, offices, and provincial authorities
• Heads of organizations bear personal responsibility for energy waste violations within their units
• Provincial leaders are accountable to the Provincial People’s Committee Chair and the Prime Minister if targets are not met
• Quarterly energy savings plans are required at agency level
• Regular and ad-hoc inspections with strict enforcement against violations
• Public disclosure of procedures and contact points — no hidden administrative barriers

This is a governance innovation. Previous energy directives have often lacked enforcement mechanisms. By tying energy performance to career evaluation metrics, the government is creating bureaucratic incentives that align with policy objectives. Whether this translates to genuine behavioral change or creative reporting remains to be seen – but the structural intent is clear.

EVN: Grid Modernization and the 6% Loss Target

EVN (Vietnam Electricity) receives a substantial mandate:

• Reduce total system power losses to below 6% – a target that requires continued investment in grid infrastructure, smart metering, and technical loss reduction
• Propose sandbox mechanisms for financial instruments incentivizing electricity savings
• Coordinate with the Ministry of Industry and Trade on MRV (Measurement, Reporting, Verification) methodology for electricity savings – to be completed in 2026
• Support customer RTS/BESS adoption through streamlined grid connection, advisory services, and technical assistance
• Engage large customers in load management commitments and backup generator coordination

The MRV methodology development is particularly important for market credibility. Without standardized methods for determining baselines, measuring savings, and verifying results, neither ESCO performance contracts nor DSM/DR program cost recovery can function reliably. The directive specifies that this methodology must clearly define baseline determination, calculation methods, verification procedures, and the responsibilities of all parties involved.

Industrial Compliance: Mandatory Savings for Large Consumers

For industrial enterprises, Directive 10 establishes a non-negotiable compliance floor:

• Facilities consuming 500,000 kWh/year or more must save at least 3% per unit of production or 3% of total consumption
• All manufacturing enterprises — especially those on the Key Energy Users list (cơ sở sử dụng năng lượng trọng điểm) — must develop annual energy efficiency plans integrated with production and energy management planning
• Enterprises must proactively prepare backup power plans, including on-site generators, integrated renewables (solar, wind), and BESS systems
• Priority use of high-efficiency labeled equipment across all operations
• Active participation in DSM/DR programs, with production schedule adjustments to avoid peak hours

This creates a dual compliance driver: enterprises face both the directive’s energy savings mandates and the broader regulatory framework under the 2024 Electricity Law and supporting decrees. For multinational companies with ESG reporting obligations, Vietnam’s tightening domestic requirements now align more closely with international disclosure standards.

Household Engagement: Beyond Awareness Campaigns

While previous energy directives have relied heavily on public awareness campaigns for household engagement, Directive 10 introduces concrete financial mechanisms:

• Direct budget support for household RTS and BESS installation (under development)
• Green credit/preferential loan access through designated banking channels
• Provincial support policies due by May 2026 — meaning localities will compete on the attractiveness of their incentive packages
• Encouragement of solar water heating systems and appropriate renewable energy solutions

The 10% annual household adoption target is ambitious. Vietnam has approximately 27 million households. Even if “10% annually” refers to incremental adoption rather than cumulative, the logistics of financing, installing, and grid-connecting millions of small-scale RTS systems — many with BESS — represent a massive market-creation exercise.

THE NUMBERS: Hard Targets with Hard Deadlines

Directive 10 sets quantified, time-bound targets that are unusually specific for a Vietnamese policy document:

• 3.0% minimum reduction in total national electricity consumption in 2026
• 10% minimum reduction during peak hot months (April–July)
• 3,000 MW of peak load reduction through DSM/DR programs during supply-demand imbalance
• 10% of public offices and 10% of households to install rooftop solar annually, or 20% of planned RTS capacity for 2026–2030
• 30% electricity savings in public lighting and outdoor advertising
• 50% reduction in outdoor advertising/decorative lighting during evening peak hours
• 3% minimum energy savings for facilities consuming over 500,000 kWh/year
• Below 6% total system power losses for EVN

These are not aspirational figures buried in a five-year plan. They are annual operational targets with specific ministerial and provincial accountability, due for reporting in Q4 2026.