Status Of Vietnam’s Offshore Wind Projects.

To date, that is through May 2025, about 150 onshore wind power projects (with a capacity of 8,000 MW) have signed power purchase agreements with EVN. In addition to these onshore wind projects, Vietnam has a plan to develop offshore wind power projects (“OWPPs”).  Vietnam has significant potential to generate energy from offshore wind. This is especially true in the southern regions, including the South, and South Central Coast. The government anticipates that 6,000 MW will be generated from OWPPs within the next five years. By 2050, the capacity of OWPPs is projected to be 115,000 MW, but for that to happen, several things have to occur first. 

However, to date, there is no detailed guidance on the development of OWPPs. This lack of clarity has led several companies to retrench and curtail their development activities. In response, the government has issued a new regulation–Decree 58[1]—which provides a framework for renewable energy projects, including OWPPs. This article outlines the key provisions of Decree 58 relevant to offshore wind development. 

1. Overview of Decree 58 

Decree 58 comprises 40 Articles across 50 pages. It provides general policies for the development of OWPPs.  On the surface, a number of positive changes have been included to address uncertainties in the latest draft decree[2] (“Draft Decree”). Even so, the political sensitivity of foreign offshore wind projects running up and down the coast is clear. For instance, foreign ownership in OWPPs, as contemplated in the original Draft Decree, was limited to 65%. This 65% cap has been increased to 95% under Decree 58.  Even so, foreign investors can create joint ventures only with state-owned or state-controlled enterprises. The Draft Decree required that the foreign investors’ total net assets during the last three years must be greater than the total investment capital of the project. This condition was removed by Decree 58. 

2. Conditions for Developing OWPPs 

Investment in OWPPs is categorized as “conditional” under the Investment Law, though the law itself does not specify those conditions. Decree 58 now provides detailed criteria. Notably, the conditions for foreign investors are more restrictive than those for domestic investors. For national security reasons, foreign investment in Vietnam’s adjacent waters is subject to careful review. Foreign investors must meet the following requirements and conditions: 

• Have implemented at least one OWPP in Vietnam or abroad, or have participated in the project management, design, or construction of OWPPs. In other words, experience is paramount. 

• Demonstrate financial capacity. Specifically, their participating interest must be at least 15% of total investment capital, and their equity must be at least 20% of that participating interest. 

• Establish a joint venture with a state-owned or state-controlled enterprise. As mentioned above, foreign ownership is capped at 95%. 

• Obtain approvals from the Ministry of National Defense (“MOND”), Ministry of Public Security (“MOPS”), and Ministry of Foreign Affairs (“MOFA”). 

• Commit to using local employees, goods, and services during project development and operation, subject to competitive pricing, availability, quality, and timelines. 

Additionally, both domestic and foreign investors must participate in a bidding process. The electricity price they offer for domestic consumption must not exceed the ceiling price set by the Ministry of Industry and Trade (“MOIT”), and the price for exports must not fall below that ceiling price. 

Exceptions to Bidding: The Prime Minister may directly appoint state-owned entities to develop OWPPs under the following conditions: 

• The project is proposed by a 100% state-owned enterprise (“SOE”); 

• The project is proposed by a subsidiary wholly owned by an SOE. 

Decree 58 also mandates that any transfer of interest in OWPPs involving foreign investors must be approved by MOND, MOPS, MOFA, and some other relevant authorities—a process that may be time-consuming. 

3. Selection of Survey Companies 

Previously, there was no guidance on selecting survey companies, resulting in the possibility of use of non-licensed survey firms. Decree 58 now requires all survey firms to be licensed, and it outlines the following conditions in order to be licensed: 

• The survey company must have a feasible and appropriate plan. 

• It must commit to using local employees, goods, and services under competitive terms. 

• It must waive any claim for reimbursement of survey costs. 

• It must demonstrate financial capacity or must partner with a qualified surveyor. 

• It must obtain approvals from MOND, MOPS, MOFA, and MOIT. 

• It must comply with the Law on Environmental Protection and the Electricity Law, particularly with regard to data protection, national defense, and maritime safety. 

4. Investment Incentives 

OWPPs are strongly encouraged by the government, and they can enjoy multiple incentives: 

• Corporate Income Tax: OWPPs are subject to a preferential tax rate of 10%. A tax holiday (up to four years) and a 50% tax reduction (up to nine years) are also available. 

• Import duty exemption. Goods imported to create fixed assets, and materials, raw materials imported and finished products which Vietnam does not produce, and which must be imported for OWPPs will be exempt from import duties. 

• Other Incentives: For OWPPs licensed before January 1, 2031, Decree 58 provides the following incentives: 

• Exemption from sea surface rental during the construction period (up to three years). 

• 50% reduction in sea surface rental for 12 years from the start of operations. 

• Exemption from land use levy and rent during construction; post-construction incentives are governed by land and investment laws. 

• Guaranteed purchase of at least 80% of generated electricity by the national power system during the loan repayment period (maximum 15 years), ensuring stable cash flow. 

5. Self-Production and Consumption 

OWPP owners may develop facilities for self-consumption, such as producing hydrogen for internal use. In such cases, they must inform the local Department of Industry and Trade (DOIT), providing details such as capacity, location, and construction timeline. 

If surplus electricity is available after self-consumption, owners may sell it to Vietnam Electricity (EVN) or its subsidiaries. However, EVN is only obligated to purchase up to 10% of the OWPP’s total capacity, and the purchase price will be based on the average market rate from the previous year. 

6. Obligation to Decommission OWPPs 

Upon termination of operations, OWPP owners must dismantle and remove their facilities within one to five years, depending on the nature and scale of the project. 

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Vietnam’s offshore wind power initiative supports both its commitment to reducing CO₂ emissions and its ambition to diversify its energy mix. The sector is expected to grow substantially over the next decade, driven by declining technology costs and the planned phase-out of coal power by 2045. The government projects that OWPPs will eventually supply 15% of national electricity capacity. 

Export opportunities for offshore wind-generated electricity offer strategic options for regional integration. Achieving its goals will require continued government support–particularly through favorable tariffs, financial guarantees, and early-stage subsidies. In return, Vietnam stands to gain a stable, sustainable energy source and reinforce its sovereignty over maritime zones where OWPPs are developed. 

[1] Decree 58/2025/ND-CP of the Government dated March 3, 2025 (“Decree 58”). 

[2] The latest draft decree is dated January 21, 2025. 

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