Decree 344: Incentives for Power Equipment Makers from 20 Oct

On 20 October 2026, Decree 344/2026/ND-CP on applying science and technology and developing manufacturing in the power sector takes effect. The Government issued the decree on 4 September 2026 to guide Article 8 of the Electricity Law, and on 5 October the Vietnam Lawyers Magazine published another summary of its policies. For companies that build electrical equipment, and for the fabrication shops that supply them, it is worth reading closely before the year-end tender season.

Enclosures, conductors and heat sinks are the fabrication shop's share of power equipment manufacturing — AI-generated illustration

What Decree 344 offers

According to summaries by the Industry and Trade Magazine, Cong Luan newspaper and LuatVietnam, the decree sets a list of important items, equipment and consulting services needed to keep power supply continuous and secure, with some stages required to be produced domestically. The focus is on transmission and distribution equipment, renewable energy and smart grids. The main policies are:

• State orders with price preference: domestic suppliers can be priced up to 10% above the cost of a similar imported product, and are exempt from experience requirements.
• Testing support: 50% of the cost of using state laboratories and testing, measurement and certification centres.
• Human resources: according to LuatVietnam, up to 70% of the cost of hiring experts and scientists for listed projects, subject to budget.
• Credit, tax and land: access to state investment credit, preferential loans from funds for R&D and prototype manufacturing, plus investment incentives on tax and land.

There are conditions. According to the Vietnam Lawyers Magazine, the order price is based on reasonable costs plus a reasonable profit, which suppliers must account for separately and have independently audited. Products must be tested or inspected to meet technical standards.

Where the reports differ

All reports agree on the 20 October effective date and the 10% price preference. The Industry and Trade Magazine mentions 50% testing support but not credit; Cong Luan and the Vietnam Lawyers Magazine mention credit without a rate. None publishes the full equipment list in clause 1 of Article 7, so companies should read the full decree before planning an application.

What this means for electrical equipment fabrication shops

Most incentives go to the company named on the final product. Domestic power equipment, however, pulls a chain of mechanical work behind it: enclosures, support frames, conductors, heat sinks and covers. Shops supplying makers of switchboards, transformers or renewable energy equipment in northern Vietnam should prepare in three ways.

1. Clear material records. When the final product must be tested and its price audited, customers will ask more about the origin and certificates of each sheet. Imported aluminum should come with a mill certificate stating the alloy, temper and mechanical properties of the lot.
2. The right aluminum alloy for each part. Outdoor enclosures, covers and vibration-loaded frames suit 5052 for strength and corrosion resistance. Conductors, power component bases and heat sinks should use 1050, since purer alloys conduct electricity and heat better. Formed parts in volume with low loads can use 3003. See our article on the physical properties of aluminum.
3. Work out costs early. The price preference is capped at 10% over imports, so material cost, cutting yield and supply stability will decide whether a shop keeps the order. Ordering sheet sizes close to the drawing, or slit strip to width, is the easiest way to cut scrap.

1050, 3003 and 5052 sheet is on our aluminum sheet page; for parts stamped from strip, see aluminum coil and slit strip.

References

• Vietnam Lawyers Magazine – Incentives for power sector manufacturing (5 October 2026, Vietnamese)
• Industry and Trade Magazine – Building manufacturing capacity for the power sector (Vietnamese)
• Cong Luan – Domestic electrical equipment gets price preference (Vietnamese)
• LuatVietnam – Summary of incentives under Decree 344/2026 (Vietnamese)

If you need 1050, 3003 or 5052 aluminum sheet or coil with mill certificates for enclosures, conductors or heat sinks, send your enquiry through our aluminum sheet and coil quotation page or call our hotline/Zalo 0904 678 236 (Sales Department) for advice on the right alloy and thickness.