EnergyOMNI's Perspectives｜Vietnam's Deputy Prime Ministers Highlight Key Issues in Offshore Wind Development

Edited by EnergyOMNI

Vietnam released the revised Power Development Plan VIII (PDP VIII) in 2025, setting targets to develop 6–17 GW of offshore wind capacity between 2030 and 2035 and to reach 113–139 GW by 2050. At present, Vietnam has only 875 MW of nearshore wind power capacity (within six nautical miles of the coast) and has yet to develop any true offshore wind projects.

Offshore wind projects typically require long development timelines of six to eight years, covering site selection, wind resource assessment, environmental impact studies, financing arrangements, and construction. To date, no offshore wind project in Vietnam has received formal investor approval and advanced to the construction stage. The Global Wind Energy Council (GWEC), in its Global Offshore Wind Report, assessed that Vietnam's target of 6 GW of offshore wind capacity by 2030 is overly optimistic. GWEC expects that no commercial offshore wind farm will be operational before 2030, while approximately 4.5 GW of offshore wind capacity could be connected to the grid between 2031 and 2034. Local media outlet Vietnam Energy Review has likewise noted that achieving the 6 GW target by 2030 will be extremely challenging; if legal and regulatory frameworks continue to be delayed, meeting the target will become increasingly difficult.

With fewer than five years remaining until 2030, recent policy developments indicate that the Vietnamese government is seeking to accelerate offshore wind deployment by removing regulatory barriers. On May 19, Deputy Prime Ministers Le Tien Chau and Pham Gia Tuc convened a meeting to discuss draft policies related to energy development, with particular focus on offshore wind. The government emphasized two parallel objectives: accelerating offshore wind development to support energy security and economic growth, while maintaining robust regulatory oversight to avoid repeating the problems that emerged during previous periods of rapid renewable energy expansion. Vietnam Energy Review summarized the key discussion points regarding the emerging regulatory framework.

Balancing Investment Attraction and Anti-Speculation Measures

Offshore wind projects require substantial upfront development expenditures. Preliminary offshore surveys alone—including wind measurements, oceanographic studies, seabed geological investigations, and cable route assessments—can cost tens of millions of U.S. dollars. At the same time, Vietnam still lacks a comprehensive legal framework for offshore wind development, making policy uncertainty a major concern for international investors. The key challenge is therefore not only preventing speculation but also establishing an investment framework attractive enough to retain major developers in the Vietnamese market.

Survey Rights Should Not Automatically Lead to Investment Rights

Deputy Prime Minister Le Tien Chau delivered a key message during the meeting: approval to conduct offshore wind surveys (survey approval) should not automatically result in investor approval or grant development rights. In recent years, many companies have undertaken offshore wind surveys along Vietnam's coastline. Without adequate oversight mechanisms, developers could effectively use survey rights to reserve marine areas, secure strategic positions, and gain monopolistic advantages.

At the same time, offshore wind surveys require significant upfront investment. Without appropriate incentives and safeguards, developers may be reluctant to commit capital to long-term, high-risk projects.

Balancing Domestic Participation and Foreign Investment

Deputy Prime Minister Pham Gia Tuc emphasized that investor selection should be based on transparent criteria, including financial capability, technical expertise, project experience, and implementation commitments. He also stressed that domestic enterprises should be able to participate on an equal and competitive basis, rather than allowing the market to be dominated entirely by foreign developers.

Offshore wind development is not merely an energy policy issue; it is also an industrial policy opportunity. Beyond electricity generation, offshore wind can stimulate growth in mechanical engineering, port infrastructure, logistics, shipbuilding, and local supply chains, potentially becoming a new engine of industrial development for Vietnam.

Decree No. 58/2025 Strengthens Domestic Participation Requirements

Vietnam's Decree No. 58/2025/ND-CP, which regulates the development of renewable and new energy projects, officially entered into force on March 3, 2025. The decree explicitly provides that, for reasons of national security, foreign investment in offshore wind projects located in Vietnam's adjacent maritime areas will be subject to stringent review.

Foreign investors must satisfy several requirements to participate in offshore wind development in Vietnam. For example, they must have previously developed at least one offshore wind project in Vietnam or abroad, or have participated in the management, design, or construction of such a project. They must also demonstrate sufficient financial capability, including a capital contribution equal to at least 15% of the project's total investment value and equity accounting for no less than 20% of their project contribution. In addition, foreign investors are required to establish joint ventures with state-owned or state-controlled enterprises. Foreign ownership may not exceed 95%, while the state-owned partner must hold at least 5% of the project's equity.

Domestic investors seeking to develop offshore wind projects must also satisfy specific requirements. They must demonstrate financial capacity, including a project contribution equivalent to at least 5% of the estimated total project investment and equity accounting for at least 20% of their project contribution. They must also possess experience in investing in and developing at least one energy project that is already operational in Vietnam or another country.

Furthermore, offshore wind projects proposed and implemented by enterprises wholly owned by the State, or proposed by state-owned enterprises and implemented by their wholly owned subsidiaries, are exempt from competitive bidding procedures. In such cases, the Prime Minister may simultaneously grant both the Investment Policy Decision (approval of the project itself) and Investor Approval (approval of the project developer). These provisions demonstrate the government's intention to ensure meaningful participation by domestic developers in Vietnam's emerging offshore wind sector.