Vietnam energy decree creates offshore wind investment opportunities

Decree No. 58/2025 will provide incentives for offshore wind projects approved by authorities before January 2031, including exemption from maritime area use fees for the first three years of construction followed by a 50% reduction for the next 12 years, and a commitment from the Vietnamese government to purchase at least 80% of eligible offshore wind project’s output for 15 years, unless buyers and sellers have other agreements in place.

Vietnam currently has no offshore wind power projects and is aiming to add 6000 megawatts (MW) of the renewable energy source by 2030 with an ultimate aim of achieving over 113,500MW of wind power by 2050.

Offshore wind projects in Vietnam are required to have at least a 5% stake owned by a state-owned enterprise.

Several companies are also currently developing wind farms in Vietnam to export electricity to Singapore after receiving approval from Singapore’s Energy Market Authority in 2023.

Bryan Chapman, an expert in energy projects, said: "The added detail contained in Decree No. 58/2025 will be welcomed by investors interested in the offshore wind market in Vietnam."

"Investors will need to move relatively quickly with respect to site surveys and general project development to meet 1 January 2031 deadline for obtaining investment policy approval in order to obtain the incentives provided for under the new regulation," he said.

Vietnam’s energy mix is still dominated by coal, gas and large hydro projects, however, in recent years there has been increased investment in renewables to meet a emissions reduction target of 43.5% by 2030 and net zero emissions by 2050.

28 developers recently signed a letter pushing back on a change in the pricing framework for solar and wind projects in Vietnam, arguing it may impact US$13 billion worth of investment in renewables.

The letter took aim at the government’s decision to roll back an offered 20-year power purchasing agreement with attractive feed in tariffs for solar projects that commenced operation by December 2020 and wind projects that came into operation before November 2021, that resulted in increased losses for Vietnam’s only offtaker, the state-owned power utility EVN.

The letter said that EVN was already delaying or only partially paying for electricity generated after authorities have repeatedly tried to reduce the tariffs and are now considering a retroactive review of the criteria required to access the scheme.

Will Stroll, an expert in energy and infrastructure transactions, said: “Vietnam continues to provide investors with an intriguing investment opportunity for renewable energy.”

"The well-documented high potential for offshore wind in Vietnam has led to domestic and international interest for many years, however, the lack of clear regulations has held the market back," he said.

"The new Decree should provide investors with more certainty to build their investment cases which will hopefully see more offshore wind projects being announced, developed and constructed in order to meet the country’s renewable energy goals and further develop the regional offshore wind market. Investors may however be concerned with the recent announcements regarding the feed in tariffs for renewable projects in Vietnam and will monitoring how this develops closely."