Examining Vietnam’s First BESS Pricing Framework: Circular 62

Circular 62/2025/TT-BCT (“Circular 62”) introduces Vietnam’s first official pricing framework for standalone, grid-connected battery energy storage systems (BESS). This represents meaningful regulatory progress, but it still leaves practical uncertainties that will influence whether utility-scale storage becomes commercially viable.

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Effective January 26, 2026, Circular 62 applies to projects connected to the national power system at voltages of 110 kilovolts (kV) or higher and capacities of 10 megawatts (MW) or more.

For investors and developers, the importance of Circular 62 lies not only in the formulas it establishes but also in what it indicates about the next phase of Vietnam’s storage market: clearer pricing rules, yet persistent implementation risks.

Circular 62 marks a new phase for Vietnam’s storage market

Vietnam is moving beyond broad policy signaling toward more practical rulemaking for energy storage. In this context, Circular 62 is significant because it gives standalone storage an initial formal pricing basis within the emerging market framework.

At the same time, its scope is narrower than the wider storage market: the pricing methods and power purchase agreement (PPA) contents do not apply to BESS integrated with renewable energy plants under Circular 12/2025/TT-BCT or to BESS invested by Power Corporations under Circular 17/2025/TT-BCT.

Together, these mechanisms show that Circular 62 is beginning to turn storage policy into a workable commercial framework for standalone projects.

The pricing framework sets the core commercial mechanism

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Circular 62 creates the first formal basis for pricing standalone, grid-connected battery energy storage systems in Vietnam. It applies to projects that meet the required voltage and capacity thresholds, giving investors a clearer sense of which projects fall within the framework.

At the center of the regime is an annual regulated electricity-generation price bracket ranging from 0 VND/kWh to a maximum price. That maximum is calculated through a formula combining the average fixed price, variable price, and fixed operation and maintenance costs.

The methodology is also highly standardized, using fixed assumptions on project life, discharge duration, discharge cycles, capacity loss, and charge-discharge efficiency. In practical terms, this moves storage pricing away from ad hoc assumptions and toward a more transparent basis for negotiation and project-level price formation.

Bankability and project economics come into sharper focus

Circular 62 improves visibility for investors because it links price formation to recognized cost-recovery principles.

That matters in a sector where project viability depends not only on technical performance, but also on whether capital costs, operating expenses, and acceptable returns can be reflected in revenue assumptions.

The circular also gives lenders and sponsors a more structured basis for modeling project economics. The 12 percent internal rate of return (IRR) cap signals the return level the framework considers acceptable, while the model PPA gives developers and off-takers a more standardized starting point for negotiations.

Another practical feature is the ability to adjust fixed operation and maintenance prices for inflation and foreign exchange movements. For investors, that does not eliminate risk, but it does improve long-term revenue visibility.

Implementation gaps still limit full market certainty

Although Circular 62 provides an important starting point for Vietnam’s standalone BESS market, important implementation gaps remain.

Annual price brackets still depend on formal review and approval procedures, while operational planning and dispatch arrangements are not fully resolved within the circular itself.

As a result, market rollout will depend not only on the pricing framework on paper, but also on how effectively it is applied in practice. The regime is therefore significant, but not yet fully complete.

For investors, the key message is that regulatory clarity is improving, but commercial certainty will still depend on how these rules are applied across real projects.

Early opportunities will depend on regulatory follow-through

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Early commercial opportunities under Circular 62 are likely to emerge first in utility-scale standalone BESS projects, which now have a clearer pricing and contractual reference point than before.

For investors, the key question will be whether implementation supports viable project economics and credible bankability in practice. Renewable energy developers, industrial park operators, and large power users should also monitor whether future rules broaden the practical use of storage frameworks beyond standalone utility-scale projects.

In this sense, Circular 62 creates an opening, but commercial momentum will depend on how effectively the framework is executed.

Key takeaway

Circular 62 gives Vietnam’s battery energy storage systems market a regulatory foundation it previously lacked. For investors, that is important because it signals that Vietnam is moving from policy intent toward a more workable commercial structure for utility-scale standalone storage.

At the same time, the circular should not be read as a complete rulebook for all storage applications. Its immediate value lies in creating a clearer starting point for pricing, contracting, and project evaluation, while leaving implementation issues such as annual price approval, dispatch planning, and market execution to determine whether momentum translates into bankable projects.

Setting up a business in Vietnam requires navigating company registration, local approvals, and work permit processes. We help FDI companies by preparing and submitting documentation, coordinating with authorities, and ensuring compliance, so they can start operations smoothly and focus on growth.

Tam Nguyen

Senior Manager

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