Updated as of May 2025 – Decree No. 58/2025/ND-CP
As of May 2025, Vietnam has approximately 150 onshore wind power projects with a total installed capacity of around 8,000 MW that have signed Power Purchase Agreements (PPAs) with Vietnam Electricity (EVN). In addition to onshore wind, offshore wind power (OWP) has been identified as a strategic pillar in Vietnam’s national energy transition roadmap.
With its long coastline and stable wind conditions, Vietnam is considered one of the countries with the largest offshore wind potential in Southeast Asia, particularly in the Southern region and the South Central Coast. According to the Government’s orientation:
Within the next five years, offshore wind capacity is expected to reach 6,000 MW
By 2050, total offshore wind capacity is projected to reach 115,000 MW
Achieving these ambitious targets, however, requires a clear and consistent legal and regulatory framework.
Previously, the lack of detailed guidance caused many developers to scale back or suspend offshore wind project development activities. To address these issues, the Government issued Decree No. 58/2025/ND-CP dated 3 March 2025, establishing a legal framework for renewable energy projects, including offshore wind.
Decree 58 consists of 40 articles over 50 pages and introduces several notable changes compared to earlier drafts, including:
Increasing the foreign ownership cap in offshore wind projects from 65% (in earlier drafts) to up to 95%
Removing the requirement that the investor’s net assets over the past three years exceed the total project investment capital
Clearly regulating national security and defense considerations for projects involving foreign investors
Nevertheless, foreign investors are required to form a joint venture with a state-owned enterprise or a state-controlled enterprise.
Under the Law on Investment, offshore wind power is classified as a conditional business sector. Decree 58 now specifies these conditions in detail, with stricter requirements applied to foreign investors.
Foreign investors must satisfy the following key requirements:
Relevant experience: having implemented at least one offshore wind project in Vietnam or overseas, or having participated in the management, design, or construction of offshore wind projects
Financial capacity: contributed capital must be at least 15% of the total project investment, and the equity ratio in the contributed capital must be no less than 20%
Establish a joint venture with a state-owned or state-controlled enterprise, with foreign ownership capped at 95%
Obtain approvals from the Ministry of National Defense, Ministry of Public Security, and Ministry of Foreign Affairs
Commit to prioritizing the use of domestic labor, goods, and services on a competitive basis in terms of price, quality, progress, and availability
All investors are required to participate in a bidding process
Bid prices for domestic electricity sales must not exceed the price ceiling issued by the Ministry of Industry and Trade (MOIT)
Export electricity prices must not be lower than the prescribed price ceiling
Exception to bidding: The Prime Minister may designate a state-owned enterprise to implement an offshore wind project if the project is proposed by a 100% state-owned enterprise or its wholly owned subsidiary.
Any transfer of equity in offshore wind projects involving foreign investors must obtain approval from the relevant ministries, and the approval process may be time-consuming.
For the first time, Decree 58 provides specific guidance on the selection of offshore wind survey contractors:
The contractor must have a feasible and appropriate survey plan
Commit to using domestic human resources, goods, and services on a competitive basis
No reimbursement of survey costs may be required
Demonstrate financial capability or form a consortium with a qualified survey entity
Obtain approvals from the Ministry of National Defense, Ministry of Public Security, Ministry of Foreign Affairs, and MOIT
Comply with the Law on Environmental Protection and the Law on Electricity, particularly regarding data security, national defense, and maritime safety
To encourage offshore wind development, the Government offers various investment incentives:
Preferential Corporate Income Tax rate of 10%
CIT exemption for up to 4 years, followed by a 50% reduction for up to 9 subsequent years
Import duty exemptions for machinery, equipment, raw materials, and goods that cannot be produced domestically
(Applicable to projects licensed before 1 January 2031)
Exemption from sea surface rental fees during construction (up to 3 years)
50% reduction of sea surface rental fees for 12 years from the commencement of operation
Exemption from land use fees during construction
EVN guarantees the purchase of at least 80% of electricity output during the loan repayment period (up to 15 years), ensuring revenue stability
Offshore wind investors may develop power plants for self-consumption in their production and business activities (e.g., green hydrogen production). In such cases, investors are only required to notify the local Department of Industry and Trade of the capacity, location, and construction timeline.
Any surplus electricity may be sold to EVN or its subsidiaries. However, EVN is only obligated to purchase up to 10% of the project’s total capacity, with the purchase price based on the average market electricity price of the preceding year.
Upon project termination, investors are required to dismantle and remove all infrastructure within a period ranging from 1 to 5 years, depending on the project’s scale and characteristics, to ensure maritime safety and environmental protection.
This article is prepared based on the following key legal instruments:
Decree No. 58/2025/ND-CP dated 3 March 2025 of the Government on mechanisms and policies for renewable and new energy development
Law on Investment No. 61/2020/QH14, as amended by Law No. 03/2022/QH15
Law on Electricity No. 28/2004/QH11, as amended in 2012 and 2018
Law on Environmental Protection No. 72/2020/QH14 and its guiding documents
Power Development Plan VIII, approved under Decision No. 500/QD-TTg dated 15 May 2023 of the Prime Minister
Offshore wind power plays a critical role in Vietnam’s commitment to CO₂ emission reduction, energy diversification, and the gradual phase-out of coal-fired power by 2045. The Government projects that offshore wind will account for approximately 15% of total national power capacity in the long term.
In addition, exporting offshore wind power presents strategic opportunities for regional energy integration. To realize these opportunities, continued strong government support is required, particularly through preferential electricity pricing, financial guarantees, and early-stage subsidies.
If implemented effectively, offshore wind power will provide Vietnam with a stable and sustainable energy source, while also contributing to the protection of maritime sovereignty in offshore project areas.
TPM is proud to be an agency that provides full and excellent services in accounting, tax, HR & advisory services in Vietnam in nowadays business finance market.