Vietnam’s renewable energy landscape is undergoing a remarkable transformation, with offshore wind projects emerging as a cornerstone of the country’s sustainable future. As a nation blessed with over 3,000 kilometres of coastline, Vietnam is uniquely positioned to harness the power of offshore wind, setting the stage for a clean energy revolution that is capturing global attention.
Current State of Offshore Wind Projects in Vietnam
The offshore wind sector in Vietnam is experiencing unprecedented growth. As of 2024, The government also issued the long-awaited Power Development Plan VIII (PDP8), the target for offshore wind is 6GW by 2030 (with no installations currently), rapidly increasing thereafter to 91GW by 2050. Notable projects include the 3.4 GW Thang Long Offshore Wind Power project and the 3.5 GW La Gan Offshore Wind Power project, both located off the coast of Binh Thuan province.
Below are Offshore wind power projects in development with a capacity greater or equal to 1,000 MW (GEM, April 2024)
Source: Vietnam Offshore Wind Development
Advantages of Offshore Wind in Vietnam
Vietnam’s geographical position offers a perfect storm of advantages for offshore wind development:
- Consistent and strong wind resources, particularly in the South China Sea
- Relatively shallow waters in many coastal areas, reducing construction costs
- Proximity to major population centres and industrial zones, minimizing transmission losses
The economic potential is equally compelling. The World Bank estimates that offshore wind could generate up to $50 billion in investments for Vietnam by 2035, creating thousands of jobs and stimulating local industries.
Moreover, the environmental impact is significant. Offshore wind projects are expected to play a crucial role in Vietnam’s commitment to achieving net-zero emissions by 2050, potentially reducing millions of tons of CO2 emissions annually.
Challenges and Solutions
Despite the immense potential, Vietnam’s offshore wind sector faces several challenges:
- Infrastructure development: The need for specialized ports, vessels, and a robust supply chain
- Regulatory framework: Evolving policies and regulations to support large-scale offshore wind development
- Technology and expertise: Acquiring and developing the necessary technical know-how
To address these challenges, Vietnam is actively working on comprehensive solutions. The government is investing in port infrastructure upgrades, streamlining the regulatory process for offshore wind projects, and fostering partnerships with experienced international developers to facilitate knowledge transfer.
Government Initiatives and Policies
According to the Decision Approving the National Power Development Plan for the period 2021 – 2030, with a vision to 2050, the Vietnamese government has demonstrated a strong commitment to the development of offshore wind through various initiatives:
- Setting ambitious renewable energy targets, including 7 GW of offshore wind capacity by 2030
- Introducing feed-in tariffs and other financial incentives for offshore wind projects
- Streamlining the approval process for large-scale renewable energy projects
These policies have created a favourable environment for both domestic and foreign investors, positioning Vietnam as a leading destination for offshore wind development in Southeast Asia.
International Collaboration and Investment
Vietnam’s offshore wind sector has attracted significant international attention. Global players such as Ørsted, Copenhagen Infrastructure Partners, and Mainstream Renewable Power have already established partnerships with local entities, bringing world-class expertise to Vietnamese projects.
These collaborations extend beyond project development, encompassing technology transfer, capacity building, and workforce training. Such partnerships are crucial for developing a skilled local workforce capable of supporting long-term growth in the sector.
Future Outlook
The future of offshore wind in Vietnam looks exceptionally bright. Projections suggest that by 2035, offshore wind could account for up to 12% of Vietnam’s electricity supply. This growth is expected to have a transformative impact on the country’s energy sector, significantly reducing reliance on fossil fuels and positioning Vietnam as a regional leader in renewable energy.
The economic implications are equally promising. The offshore wind sector is poised to become a major contributor to Vietnam’s GDP, creating a new industry with the potential for exports of components and expertise to neighbouring countries.
Conclusion
Vietnam’s leadership in offshore wind projects marks a significant shift in its energy and sustainable development strategy. By leveraging its natural advantages and fostering international partnerships, Vietnam meets its energy needs while setting an example for the region.
As ongoing projects come online in the coming years, Vietnam will strengthen its position as a leader in offshore wind energy. For investors, policymakers, and environmental advocates, one message stands clear: Vietnam’s offshore wind sector is a key opportunity and a model for Southeast Asia’s renewable energy future.
Now is the time to engage with Vietnam’s offshore wind revolution. Through investment, partnership, or policy support, stakeholders have a unique chance to reshape the nation’s energy landscape.
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