Vietnam Plans For First Offshore Wind Power Project

In short: Explore Vietnam's offshore wind energy. To date, no wind power project licenses have been granted. It aims to produce 6,000 megawatts of offshore wind power capacity by 2030. Vietnam plans for the first offshore wind farm—construction to build and operate in 2027.

Vietnam is planning to build its first offshore wind farm, under the 8th National Power Development Plan (2021-2030), a significant milestone in its efforts to diversify its energy sources. The project is part of Vietnam’s broader strategy to use renewable energy to boost its economy while meeting its sustainable development goals.

The wind project, located off the coast of Binh Thuan province, is expected to have a capacity of several hundred megawatts, contributing to the national grid, creating green jobs and promoting technological advancements in the renewable energy sector.

Vietnam’s 8th National Power Development Plan (2021-2030)

Bruno Jaspert, Chair of EuroCham

Vietnam’s commitment to renewable energy took a major step forward with the approval of the 8th National Power Development Plan (Plan 8) in May 2023. The strategic plan places offshore wind power at the heart of the country’s transition to a green energy source. No offshore wind project licenses have been granted yet, and many investors have been led by the slow pace of growth and have exited the market.

At the 2024 Green Economy Forum and Exhibition, Bruno Jaspert, Chair of EuroCham, expressed concern at the lack of tangible progress, said, noting that only initial steps have been taken to establish a functioning offshore wind market. Cited, “European enterprises are facing difficulties in setting up their first offshore wind power projects in Vietnam. At this stage, these projects remain theoretical, with little to show in terms of actual development,” he commented.

The approval of Plan 8 highlights Vietnam’s ambitious goals to use offshore wind power to generate sufficient electricity and reduce carbon emissions. However, achieving these objectives requires rapid action to overcome existing obstacles and move from planning to actual implementation.

Jospert stressed the urgency: “The licensing must be finalized, and all obstacles must be overcome within the next six months to meet the target.” The Ministry of Industry and Trade (MOIT) has acknowledged the high initial investment costs and power generation costs associated with renewable energy compared to traditional sources. To facilitate this transition, the MOIT is drafting policies that will provide incentives and support for renewable energy that ensure a development strategy.

These proposed measures include establishing some agreements to guarantee production. One of them is the establishment of agreements between Electricity of Vietnam (EVN) and project developers to guarantee a minimum power output from each offshore wind farm. Additionally, MOIT suggested exemption from sea area rent and land use fees during the investment and construction phases until the wind farms start generating power. Other incentives include preferential corporate income tax rates and support for self-generated renewable energy systems.

Finally, MOIT stressed the need for a clear, coherent legal and regulatory framework as offshore wind power is a completely new industry for Vietnam. It is certain that with these coordinated efforts and targeted solutions, Vietnam will soon unlock the full potential of its offshore wind energy sector.

Vietnam Offshore Wind Power Goal (2030)

Vietnam aims an ambitious offshore wind power capacity 2030, Photo: Universal, Source: iStock

Vietnam has set a plan to significantly expand its offshore wind power capacity by 2030, focusing on harnessing the country’s abundant wind resources for sustainable energy development. The country’s government has set an ambitious target of installing 10 gigawatts (GW) of offshore wind power by the end of the decade. The initiative is part of Vietnam’s broader strategy to transition to renewable energy, reduce reliance on fossil fuels and meet growing electricity demand while addressing climate change concerns. Investment in infrastructure, technology and international cooperation will be key to achieving these goals and positioning Vietnam as a leader in renewable energy in the region.

How Does GWEC Appreciate Vietnam's Electricity Law and Offshore Wind Power Cooperation?

Let’s see what GWEC has to say. Mark Hutchinson from the Global Wind Energy Council praised the draft law on electricity, saying it was progressive.

He welcomed the idea of Vietnamese small and medium-sized enterprises collaborating with experienced international partners to develop offshore wind power. EuroCham Chair Jaspert emphasized the importance of SOEs (state-owned enterprises) in developing the first offshore wind power project in Vietnam, saying the government should allow SOEs to collaborate with international developers and approve the electricity law in the ongoing session of the National Assembly.

“International partners can provide professional knowledge, experience, technical capabilities, access to capital and supply chains, while Vietnamese businesses have the political and cultural understanding as well as the ability to build a domestic supply chain,” he said.

On the other hand, PetroVietnam Technical Services Corporation (PTSC) has suggested that Vietnam will consider the development model of COUKF Taiwan (China), under which offshore wind power will develop in three stages. The first stage is for pilot projects. The second stage is for state-supported development. The third stage is competitive market development.