75% QC PROPOSAL – A STRATEGIC PUSH TO PAVE THE PATH FOR LNG ELECTRICITY IN VIETNAM
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The Ministry of Industry and Trade's proposal to increase the rate of long-term minimum contract power output (Qc) from 65% to 75% and extend the application period from 10 years to 15 years is considered a breakthrough step, helping to remove financial bottlenecks for a series of LNG gas power projects in Vietnam.

This is not just a technical adjustment. This is a strong signal that Vietnam is ready to build a mechanism attractive enough to attract tens of billions of dollars of investment in strategic energy infrastructure.

⚡ What is Qc and why is it important?

Qc is the rate of electricity output committed to by the buyer in a long-term contract. The higher the Qc, the more stable the project's cash flow and the easier it is for banks to approve loans.

| Target | Current regulations | New Proposal |
|---|---:|---:|
| Minimum Qc ratio | 65% | 75% |
| Application period | 10 years | 15 years |
| Ability to arrange capital | Average | Noticeably higher |
| Investment attractiveness | Limitations | Strong increase |

Direct impact on LNG projects

LNG gas power projects often have a total investment of billions of dollarsg international loans with repayment terms of 12–15 years. When the electricity output is guaranteed at a higher level, the investor will easily achieve Financial Close and put the project into practice.

Projects with major benefits include:
• Nhon Trach 3 and 4
• Quang Ninh LNG
• Hai Phong LNG
• LNG Quynh Lap
• O Mon I converted to LNG

Why do banks care about Qc?

International credit institutions not only look at technology, but most importantly the ability to create stable cash flow.

| Evaluation factors | Impact when Qc increases |
|---|---|
| Forecasted revenue | More stable |
| Ability to repay debt | Significant increase |
| Credit Rating | Improve |
| Ability to mobilize capital | More convenient |

The role of LNG in Power Planning VIII

LNG gas power is identified as a flexible base power source, helping to balance the system when wind and solar power fluctuates with the weather.

Outstanding advantages:
• Lower emissions than coal
• Quick start
• Flexible capacity adjustment
• Support renewable energy integration
• Contribute to ensuring national energy security

Macroeconomic significance

If the 75% QC mechanism is adopted, Vietnam can:
• Strongly attract FDI capital into the energy sector
• Speed up slow implementation projects
• Reduce the risk of telectrophilic period 2026–2035
• Developing LNG chains, seaports, logistics and technical services

⚠️ There are still challenges

Some experts believe that Qc 75% is a positive step but not enough. Many investors suggest 85–95% to meet the strict requirements of international banks. In addition, the electricity price mechanism, PPA contracts and payment guarantees still need to be completed synchronously. (https://petrotimes.vn/)

Overall rating

The 75% Qc proposal in 15 years is an important turning point in Vietnam's energy policy. This is the foundation to open up capital flows, promote a series of LNG projects and strengthen energy security in the context of rapidly increasing electricity demand and strong green transition.

When the policy is strong enough, capital will flow in. When capital is cleared, LNG gas power will become a strategic pillar for Vietnam's energy future.