Up to 95% foreign ownership of offshore wind projects allowed

The Hanoi Times — Foreign investors may enter into joint ventures in offshore wind projects, but their participation cannot exceed 95% of the total contributed capital, according to a government decree.

Foreign enterprises will be permitted to invest in and participate in bidding for offshore wind power projects, according to Decree 58/2025, which guides the implementation of the amended Electricity Law.

However, eligibility comes with a key requirement: international investors must demonstrate prior experience in developing at least one offshore wind power project.

For certain projects, foreign investors may contribute a minimum of 15 percent of the total investment capital, with at least 20 percent coming from equity. Alternatively, they may choose to invest directly. If they do not provide financing, they are required to demonstrate experience in project management, design, or construction. In cases where a consortium of investors is established, the experience requirement will be assessed based on the collective experience of all members.

Foreign investors seeking to develop offshore wind projects must also commit to using domestic labor, goods, and services. This requirement is intended to ensure competitiveness in terms of price, quality, and project timelines.

In addition, offshore wind projects in Vietnam must have domestic firms holding at least 5% of the charter capital. These domestic companies must either be wholly owned by the state or have at least 50% state ownership. They must also have experience in developing at least one energy project in Vietnam or other countries.

Offshore wind projects are significant investments with substantial risks. Experts believe that the involvement of foreign partners helps to mitigate the risks of pilot projects.

In recent years, several foreign renewable energy investors have expressed interest in developing offshore wind projects in Vietnam. Denmark's Copenhagen Infrastructure Partners (CIP) plans to develop the 3.5 GW La Gan offshore wind project in Binh Thuan province. Meanwhile, Germany's PNE Group has proposed a US$4.6 billion project in the central coast province of Binh Dinh.

Many experts suggested that reputable foreign partners can bring in necessary capital and expertise, help domestic companies mitigate risks, build a local supply chain, and negotiate with global suppliers. In addition, foreign companies involved in Vietnam's offshore wind projects can transfer knowledge and the latest technologies.

According to the Power Development Plan VIII (PDP8), Vietnam aims to develop 6,000 MW of offshore wind power capacity by 2030. However, no projects have yet been approved or investment allocated.

In the revised draft of PDP8, the Ministry of Industry and Trade (MoIT) proposes to expand offshore wind power development beyond 2030, targeting 17,000 MW by 2035. Over the next five years, Vietnam will focus on increasing onshore and nearshore wind power capacity to between 27,791 MW and 34,667 MW, about 15% higher than the current plan.

Under the decree, offshore wind power projects will be guaranteed 80% of their electricity output purchases for up to 15 years if they sell power to the national grid.

To qualify for this incentive, projects must obtain investment approval from the relevant authorities before January 1, 2031. Additionally, they must be part of the 6,000 MW of offshore wind capacity approved in the national power development plan.

In terms of electricity pricing, Decree 58 states that the ceiling price in the bidding documents will be set at the maximum threshold of the MoIT's Offshore Wind Tariff Framework. The winning bid price will be the maximum price that the buyer, Vietnam Electricity (EVN), will negotiate with investors.

For projects that export electricity without connection to the national grid, where domestic investors hold at least 50% of the charter capital or fully finance the project, the export price must not be lower than the MoIT's maximum threshold.