Foreign Investors Drawn to Vietnam’s Booming Offshore Wind Market

February 2023

Vietnam is registering a growing interest from foreign investors in the offshore wind industry. In order to achieve net zero emissions by 2050, the nation is currently developing a new Power Development Plan (PDP) that places an emphasis on switching from coal to renewables and gas.

The energy transition includes the use of Vietnam’s enormous offshore wind potential, and the plan calls for at least 3-5 gigawatts (GW) of offshore wind in 2030 and 9-11 GW in 2035. Its wind capacity can be up to 500 GW due to its extensive 1800-mile coastline and average winds of over 13 knots in several coastal regions. This is the main draw for foreign investors in Vietnam’s offshore wind energy, especially European and Japanese players.

Denmark’s energy giant Orsted is one of the European companies spearheading developments in the offshore wind market in Vietnam. In order to build a power plant with a 2 GW total output by 2030, Orsted and the Vietnamese corporation T&T signed a memorandum of agreement (MoU) in 2021. Additionally, in anticipating a booming offshore wind market in Vietnam, Orsted opened an office in Hanoi in 2021.

Meanwhile, Japan’s Sumitomo Corp. has recently started developing an offshore wind farm in southern Vietnam with a capacity of 500 megawatts to 1 GW by 2030. Other than Vietnam, the corporation has experience in developing offshore wind projects in Belgium, France and the U.K.

Another Japanese company, Renova, signed an MoU with the state-owned oil company PetroVietnam Group with plans to develop a 2 GW power plant in southwest Vietnam. Renova is participating in renewable energy projects in other nations, including the Philippines and South Korea.

(Source: VietnamPlus, The Maritime Executive)

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