Vietnam has abundant onshore wind energy resources and commits to expand its overall wind power capacity. (Photo: iStock)
To accelerate the development of the renewable energy industry, the Vietnamese government has introduced a new electricity decree, prioritizing the promotion of power generation projects using renewable energy sources such as solar and wind power, as well as energy storage systems.
Additionally, power developers using 100% green hydrogen or green ammonia can benefit from fee exemptions for up to 12 years.
Wind, solar take center stage in Vietnam’s energy plan
On March 3, the Vietnamese government issued Decree No. 58/2025/ND-CP, which stems from the 2024 "New Electricity Law." The decree covers industrial development strategies for large offshore wind and solar projects and took effect immediately upon issuance.
According to the decree, the government will prioritize the transmission of renewable energy to the national grid during peak electricity consumption periods, especially when combined with energy storage systems, but this does not include self-consumption users. Additionally, authorities will prioritize the review of technical development and research plans for projects involving solar panels, wind turbines, and power conversion equipment (PCE).
For projects that generate electricity through 100% green hydrogen, green ammonia, or a combination of both, and transmit power to the national grid, there is an opportunity to be exempted from maritime area use fees for three years during infrastructure development. Following that, a 50% reduction in the fees will apply for the next nine years.
Similarly, for land-based projects, there will be no land use nor land lease fees for three years. Afterward, the fees will be determined based on investment and relevant land usage regulations.
The Vietnamese government will offer infrastructure development incentives for projects generating electricity with 100% green hydrogen, green ammonia, or a combination of both, and supplying it to the national grid. (Image: EVN)
Vietnam mandates local involvement in offshore wind projects
A key point of focus is that the Vietnamese government requires domestic participation in offshore wind projects. Foreign investors must ensure that Vietnamese companies hold at least 5% of the shares in the overall project.
On the other hand, if the offshore wind project is aimed at exporting electricity, it must be entirely owned by Vietnamese enterprises, or the Vietnamese stakeholders must hold more than 50% of the shares.
In the "National Power Development Plan" (PDP8), Vietnam has set a target to increase offshore wind power capacity by 6 GW by 2030. However, the actual progress has been slow, and in February this year, the government delayed the implementation timeline. The new schedule envisions gradual operations between 2030 and 2035, with the goal of reaching 130 GW by 2050.
Source: Vietnam+, Baker McKenzie, The Investor
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