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| An automated electrical equipment manufacturing system of MPE Smart Factory, Tay Ninh province__Photo: thanhnien.vn |
The Government has recently introduced a number of incentives and support measures to promote domestic electrical equipment manufacture, advance technological development and increase the capacity of Vietnamese enterprises operating in the power sector, with the aim of ensuring national energy security.
Under Decree 344/2026/ND-CP dated September 4, support measures include providing investment incentives, adopting procurement-ordering mechanisms, and promoting product testing, research and development, digital transformation, credit access and high-quality workforce development. These policies are intended to gradually build a domestic manufacturing ecosystem serving the power sector.
Under the decree, enterprises manufacturing electrical equipment on the list of important products, equipment and consultancy services necessary to maintain a continuous power supply and ensure national energy security must carry out specified stages of production or service provision in Vietnam.
For products, equipment and consultancy services that are encouraged for domestic manufacture or supply, enterprises may enjoy incentives applicable to the production of key mechanical products in accordance with the laws on investment, taxation, land, accounting, etc.
Notably, investment projects involving the manufacture of electrical equipment on those lists will also be entitled to special investment incentives and support if they satisfy conditions on investment scale, disbursement progress, high technology, technology transfer, and participation in domestic production value chains.
Regarding an ordering mechanism for important products and equipment serving the power system, important products, equipment and consultancy services that are required to maintain a continuous power supply and ensure national energy security, and for which certain stages of production or supply must be carried out domestically, may be procured through an ordering mechanism under bidding regulations when they are manufactured or supplied in Vietnam for the first time.
The State may consider placing orders with entities and individuals that manufacture those products domestically and comply with relevant standards, technical regulations, safety requirements and environmental protection rules.
Suppliers selected under the ordering mechanism are also entitled to a price preference. The ordering price may be up to 10 per cent higher than the price of a similar imported product.
The decree further provides exemption from administrative, civil and criminal liability for suppliers in case losses are caused to the State although the suppliers have fully complied with regulations on scientific and technological research and the ordering mechanism, have no profit-seeking or fraudulent intent, and do not deliberately violate law.
The State will also support the establishment of energy industry and service complexes to develop ecosystems for science and technology research, development and application, commercialisation of products, and provision of supporting services in the power sector.
Enterprises manufacturing electrical equipment classified as important or encouraged for domestic production are eligible for preferential loans.
They will also be given priority access to loans from investment support funds and science and technology support funds for research, development and pilot manufacturing projects involving electrical equipment.- (VLLF)
