Vietnam’s transition toward cleaner forms of energy has brought a greater risk of disputes distinctive to renewable energy projects, Vietnam News reported on Friday.
The Vietnam International Arbitration Centre, VIAC, had recorded the increased risk of disputes arising from the sophistication of renewable projects, possibly resulting in disputes across several business activities.
In the cases of large projects, disputes not only had a large impact on the local community but also the entire energy sector as a whole and the country’s energy stability and sustainability, VIAC said.
The disputes in the renewable industry during the 2013-2022 period amounted to total arbitral awards of more than 300 million U.S. dollars, the average time required to settle a dispute of up to seven months, said Chau Viet Bac, deputy secretary-general of the VIAC.
Changes to state policy and financial incentives had continued and would continue to lead to significant disputes between foreign investors and state organisations.
Such disputes must be resolved through Vietnamese courts or arbitration bodies with the exceptions of contractual agreements and international treaties of which the country is a signatory.
But received different provisions, said Vu Thi Chau Quynh, deputy head of the legal affairs department under the Ministry of Planning and Investment.
She added that given the nature of energy projects which often required large capital investment, prolonged implementation processes and involved multiple stakeholders, investors were faced with substantially higher risks.
Vietnam’s pivot toward a clean economy was forecast to fuel environmentally-focused products and services, which could be worth 300 billion dollars to its gross domestic product by 2050, up from only 6.7 billion in 2020.
This was according to industry experts.
Xinhua/NAN
