HCMC – The Government of Vietnam has issued a decree that permits foreign investors to own up to 95% of offshore wind farm projects.
Decree 58/2025/ND-CP, which guides the execution of the Electricity Law, stipulates that foreign investors can invest in or bid for offshore wind projects if they have successfully completed at least one similar project.
Investment can be made directly or through capital contributions, with equity accounting for at least 20% of contributed capital.
For investors who do not contribute capital, eligibility requires demonstrated experience in project management, design, or construction. Foreign investors can form a consortium to develop offshore wind farms in Vietnam and their combined expertise will be taken into account.
Foreign investors are also required to prioritize using local labor, goods and services while ensuring competitive pricing, quality, and adherence to project schedules.
Vietnam mandates that foreign investors must allow at least one domestic company to get involved with a minimum stake of 5%. This entity must be either fully state-owned or at least 50% state-owned and must have experience developing at least one operational energy project in Vietnam or abroad.
Projects that meet specific criteria will be eligible for incentives, including priority investment approval before 2031 and inclusion in the Government’s approved 6,000 MW offshore wind power capacity for the national grid. Financial incentives include a three-year exemption from sea area usage fees, followed by a 50% reduction for the next 12 years. Land-use and lease fees will also be waived for the first three years, after which standard regulations will apply.
For projects supplying power to the national grid, the Government guarantees a minimum contractual electricity output of 80% during the debt repayment period, which can last up to 15 years, unless otherwise negotiated. However, this guarantee does not apply if a project fails due to internal issues, fluctuations in demand, or grid limitations.
After the incentive period, projects will be subject to prevailing regulations. Any projects approved after 2030 will receive the incentives in effect at the time of their approval.
