I. Introduction
Vietnam is emerging as one of the leading countries in Southeast Asia in the field of renewable energy, particularly offshore wind power. With a total estimated potential exceeding 1,000 GW according to studies by the World Bank and the Vietnam Administration of Seas and Islands (2023), Vietnam’s offshore wind power market is considered one of the most promising in Asia.
Notably, Vietnam Electricity (EVN) has submitted to the Ministry of Industry and Trade a proposal for the electricity purchase price framework for offshore wind power projects, with the highest proposed price for the northern region being 3,975.1 VND/kWh (excluding VAT), according to the Investment Newspaper. This pricing proposal reflects an adjustment of electricity pricing policy in line with natural conditions, development costs, and the ability to attract investment capital in each region.
In this context, a systematic study of the legal framework and policies governing investment, construction, and operation of offshore wind power projects in Vietnam is essential for investors, financial institutions, and legal advisory firms. This document provides a comprehensive overview of the current legal mechanisms, procedural bottlenecks, as well as anticipated reforms for the 2024–2025 period.
II. Current Legal Framework
1. Law on Electricity 2024
Provides regulations on electricity planning and development, electricity saving, the electricity market, rights and obligations of organizations and individuals operating in or using electricity, protection of electrical equipment and works, and electrical safety.
2. Law on Investment (Law No. 61/2020/QH14)
Governs business investment activities in Vietnam and outbound investment activities from Vietnam.
3. Law on Environmental Protection (Law No. 72/2020/QH14)
Regulates environmental protection activities; rights, obligations, and responsibilities of state agencies, organizations, residential communities, households, and individuals in environmental protection.
4. Vietnam Maritime Law (Law No. 18/2012/QH13)
Stipulates the scope and legal regimes of Vietnam’s sea zones, including internal waters, territorial seas, contiguous zones, exclusive economic zones, and the continental shelf.
See also the article Regulations on Foreign Investors Providing Cloud Computing Services
III. Regulatory Authorities and Functions
- Ministry of Industry and Trade: The lead agency assisting the Government in unified state management of electricity.
- Ministry of Natural Resources and Environment: Manages marine resources, environmental impact assessments, and licensing of marine space use.
- Vietnam Electricity (EVN): Conducts electricity trading, manages the power grid, and negotiates power purchase agreements.
IV. Offshore Wind Power Project Development Process
The National Power Development Plan for the period 2021–2030, with a vision to 2050, was approved by the Prime Minister under Decision No. 500/QĐ-TTg dated 15 May 2023 (“PDP VIII”). It identifies renewable energy, including offshore wind power, as one of the key future electricity sources. The development of offshore wind power projects is prioritized to:
- Ensure national energy security.
- Reduce greenhouse gas emissions, contributing to the commitment to achieve net zero emissions by 2050.
- Develop the marine economy and create jobs for local communities.
PDP VIII encourages economic actors, particularly the private sector, to invest in power development through:
- Direct investment (FDI) in power projects.
- Public-private partnerships (PPP) in building and operating power plants and transmission grids.
- Equitization and socialization of investment in the electricity sector.
See also the article: Wind Power Plants in Vietnam: Opportunities and Challenges
1. Preparation Stage
- Site survey and wind potential assessment, including wind measurement and data analysis to determine the generation potential of the area under Article 27 of Decree 58/2025/NĐ-CP.
- Environmental Impact Assessment (EIA): Investors shall prepare environmental impact assessment reports in accordance with the Law on Environmental Protection.
- Marine space use licensing: According to Clause 1, Article 27 of the Law on Electricity 2024, offshore wind project surveys shall comply with maritime law, marine resource and environmental law, construction law, international treaties to which the Socialist Republic of Vietnam is a member, and international practices.
- Submission of investment policy proposal: Investors shall prepare dossiers to propose approval of investment policy for offshore wind power projects under Article 28 of the Law on Electricity 2024.
- Investment policy approval: Submit to the Provincial People’s Committee or the Ministry of Planning and Investment for issuance of an Investment Registration Certificate (IRC) under the Law on Investment 2014 and Decree 118/2015/NĐ-CP; and apply for an Enterprise Registration Certificate.
2. Implementation Stage
- Grid connection agreement according to Circular 25/2016/TT-BCT on the transmission power system.
- Electricity metering agreement under Circular 42/2015/TT-BCT and EVN’s decisions on metering point management.
- Negotiation of the Power Purchase Agreement (PPA) under Article 29 of Decree 58/2025/NĐ-CP on the development of renewable energy electricity.
- Technical design and construction permitting: Including construction drawings, turbine installation guidelines, protection systems, and telecommunications. Apply the Construction Law 2014 and Decree 59/2015/NĐ-CP; apply international or foreign standards in cases where Vietnam has not yet issued domestic standards pursuant to point b, clause 6, Article 26 of the Law on Electricity.
- Project execution must comply with the Law on Electricity, Vietnamese laws on maritime and equipment safety, and international treaties to which Vietnam is a member.
- Construction: Proceed with construction of project components according to the approved design.
- Grid connection: Complete procedures to connect the project to the national grid.
- Commercial operation: Begin commercial operation after construction and grid connection are completed.
- Installation and commissioning.
- Trial operation and official commissioning.
See also the article: Opportunities in Vietnam’s Offshore Wind Industry.
V. Electricity Pricing Policy and Proposed Price Framework
- According to Vietnam Electricity (EVN)’s proposal, the generation price framework for offshore wind power plants in the North (including Quang Ninh, Hai Phong, and Thai Binh) is the highest, at 3,975.1 VND/kWh. This price is calculated based on preliminary technical parameters from the Institute of Energy and the Vietnam–Denmark technology cooperation documents, according to baodautu.
- In comparison, the price framework for the South Central region (Binh Thuan) is 3,078.9 VND/kWh, and the Southern region (Ba Ria – Vung Tau) is 3,868.5 VND/kWh. Thus, the North has the highest proposed price.
- EVN is also consulting with foreign investors on the offshore wind power price framework to finalize an electricity pricing policy that reflects market realities and attracts investment. (https://baomoi.com)
See also the article: Trends and Forecasts of Vietnam’s Solar Industry.
VI. Opportunities and Challenges
- Vietnam’s offshore wind power sector is facing major opportunities but also significant challenges.
Key opportunities include abundant offshore wind resources, especially in the Central and Southern coastal regions – areas with favorable natural conditions for large-scale project development. In addition, the Government’s strong commitment to promoting renewable energy and reducing greenhouse gas emissions serves as a major driving force for the industry. Alongside, an increasingly refined legal framework contributes to creating a more transparent and favorable investment environment for both domestic and foreign enterprises.
- However, the challenges remain substantial. The initial investment cost for offshore wind power is very high, while the capital recovery period is long, requiring investors to carefully consider their financial plans.
- Moreover, the current power grid infrastructure is not yet synchronized, requiring large investments for upgrades to ensure the ability to receive and transmit power from offshore projects. Equally important, licensing and administrative procedures remain complicated, prolonging implementation time and reducing project appeal.
- Removing these barriers will be key to unlocking strong growth in the offshore wind power industry, helping Vietnam move closer to its sustainable energy transition goals.
VII. Conclusion
Vietnam is opening many opportunities for investors in the offshore wind power sector thanks to its abundant wind potential and strong government support policies. Particularly, the Central and Southern coastal regions are considered to have favorable natural conditions for large-scale project development.
In addition to an increasingly refined legal framework, the establishment of an electricity price framework and the clear orientation in PDP VIII also contribute to a favorable investment environment. However, to succeed, investors must thoroughly understand legal procedures and be well-prepared in terms of finance, technology, and implementation capacity, as this is a capital-intensive and highly technical field.
Thorough preparation will be the key to turning potential into reality and helping Vietnam move closer to its sustainable energy transition goals.
Harley Miller Law Firm
Email: info@luatminhnguyen.com/miller@hmlf.vn
Website: luatminhnguyen.com or hmlf.vn
Hotline: +84 9372 15585
