A FRAMEWORK FOR PRIVATE SECTOR-LED OFFSHORE WIND PROJECTS IN VIET NAM Next Steps for Advancing Viet Nam’s Offshore Wind Journey REPORT JUNE 2025 A FRAMEWORK FOR PRIVATE SECTOR-LED OFFSHORE WIND PROJECTS IN VIET NAM Next Steps for Advancing Viet Nam’s Offshore Wind Journey REPORT JUNE 2025 SUPPORTED BY: ABOUT ESMAP The Energy Sector Management Assistance Program (ESMAP) is a partnership between the World Bank and over 20 partners that helps low- and middle-income countries reduce poverty and boost growth through sustainable energy solutions. ESMAP’s analytical and advisory services are fully integrated within the World Bank’s country financing and policy dialogue in the energy sector. Through the World Bank Group (WBG), ESMAP works to accelerate the energy transition required to achieve Sustainable Development Goal 7 (SDG7) to ensure access to affordable, reliable, sustainable, and modern energy for all. 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If you wish to reuse a component of the work, it is your responsibility to determine whether permission is needed for that reuse and to obtain permission from the copyright owner. Examples of components can include, but are not limited to, tables, figures, or images. Designer | Hue Communications Cover Image | Ian Dyball / Shutterstock.com Back Cover Image | Burbo Bank Extension offshore wind farm/© Vestas All images remain the sole property of their source and may not be used for any purpose without written permission from the source. CONTENTS ACKNOWLEDGMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VIII EXECUTIVE SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X 1. VIET NAM’S CURRENT OFFSHORE WIND POLICIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.1 Offshore Wind Targets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1.2 Marine Spatial Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 1.3 Grid and Harbour Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 1.4 The Legal Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 1.5 Project Financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 1.6 SOE-led Front Runner Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 2. GLOBAL OFFSHORE WIND FRAMEWORKS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 2.1 Key Development Steps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 2.2 Models For Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 2.3 Project Development Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 2.4 Pilot Project Schemes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 3. PROPOSED FRAMEWORK FOR PRIVATE SECTOR-LED DEVELOPMENTS IN VIET NAM 20 Capacities for private sector-led projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Overview of the proposed framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 3.1 The Planning Stage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 3.2 Stage 1 Survey License Approval Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 3.3 Early Development Stage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 3.4 Stage 2 Price Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 3.5 Late Development Stage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 3.6 Permitting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 3.7 Summary of Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 4. PROPOSED REGULATORY UPDATES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 4.1 Authority Roles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 4.2 Regulatory Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 4.3 Improving PPA Bankability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48 5. DELIVERY TIMELINE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 APPENDIX A — PROPOSED VIET NAM OFFSHORE WIND SITES . . . . . . . . . . . . . . . . . . . . . . . . 52 Contents V FIGURES Overview of proposed offshore wind framework. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . XII Illustrative timeline to deliver the first 6 GW of projects supplying domestic power demands by 2030 to 2035 (and 114 to 139 GW by 2050) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . XIII Figure 1.1. Technical Potential of Offshore Wind in Viet Nam . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Figure 2.1. Comparison of the one-and two-stage competition models . . . . . . . . . . . . . . . . . . . . . . . . 18 Figure 3.1. Overview of proposed offshore wind framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Figure 3.2. Key activities in the Planning Stage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Figure 3.3. Overview of the proposed Stage 1 Survey License Approval process . . . . . . . . . . . . . . . . 29 Figure 3.4. Overview of the Stage 2 Price Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Figure 5.1. Illustrative timeline to deliver the first 6 GW of projects supplying domestic power demands by 2030 to 2035 (and 114 to 139 GW by 2050) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 TABLES Table 1.1. Viet Nam offshore wind related targets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Table 1.2. Proposed offshore wind sites to support 6 GW target . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Table 3.1. Suggested timeline for the Round 1 — Stage 1 survey license approval process . . . . . . . . . . . . 32 Table 3.2. Suggested timeline for the first Round 1 — Stage 2 price competition . . . . . . . . . . . . . . . 39 Table 4. Summary of framework stages, responsible authorities and regulatory changes required . . . 45 Table A1. Proposed offshore wind sites to support 17 GW by 2035 target . . . . . . . . . . . . . . . . . . . . . 52 Table A2. Potential renewable energy sites (including offshore wind) for power export . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 VI A Framework for Private Sector-led Offshore Wind Projects in Vietnam GLOSSARY Acronym Definition CAPEX Capital Expenditure COD Commercial Operations Date DEVEX Development Expenditure EAV Electricity Authority of Viet Nam (Formerly EREA & ERAV combined within MOIT) ESG Environmental, Social and Governance EVN Electricity of Viet Nam FC Financial Close FID Financial Investment Decision FiT Feed-in Tariffs LCOE Levelized Cost of Energy MOF Ministry of Finance (Merged with former Ministry of Planning & Investment) MOIT Ministry of Industry and Trade MOAE Ministry of Agriculture and Environment (Formerly MONRE) MSP Marine Spatial Plan OSW Offshore Wind OWSP Offshore Wind Sector Plan PDP Power Development Plan PM Prime Minister PPA Power Purchase Agreement PPC Provincial People’s Committee RE GENCO Renewable Energy Power Generation Company SOE State Owned Enterprise VASI Viet Nam Administration of Sea and Islands Disclaimer: throughout this report, we consider ‘offshore wind’ as being wind turbines that are installed further than 6 nautical miles (NM) from shore — as per the recommendation in the Danish Energy Agency’s work adapted to the existing regulatory framework in Viet Nam. This is a reasonable definition, as in almost all cases, it enables the use of conventional offshore wind technology and reduces many of the environmental and social impacts considerably. This is also in line with Viet Nam’s 2024 Electricity Law’s definition of offshore wind power projects. Glossary VII ACKNOWLEDGMENTS This report is funded by the Energy Sector Management Assistance Program (ESMAP) and the Australian Government’s Department of Foreign Affairs and Trade (DFAT) through the Australia-World Bank Australia-World Bank Strategic Partnership Program Phase 2 (ABP2) Program Phase 2 (ABP2). The report was prepared in close collaboration with the International Finance Corporation (IFC). The World Bank team gratefully acknowledges the cooperation with the Ministry of Industry and Trade (MoIT), and the Ministry of Agriculture and Environment (MAE) of the Government of Viet Nam. The World Bank team was led by Chiara Rogate (Senior Energy Specialist) and included Thi Ba Chu (Senior Energy Specialist), Maya Malik (principal author of this paper — Advisor, ESMAP), Mark Leybourne (Advisor, ESMAP), Gregory Scopelitis (Advisor, ESMAP), Sean Whittaker (Offshore Wind Development Program Co-Lead, ESMAP-IFC), Anh Hoang Le (Energy Consultant), and Khanh- Linh Thi Le (Program Assistant). The team is grateful for the technical support received by Rahul Kitchlu (previous Program Leader for Infrastructure) and Zayra Romo (current Program Leader for Infrastructure), and the guidance of Jie Tang (Practice Manager, Energy, East Asia and Pacific). The team appreciates the valuable comments received during the virtual peer review from Hang Thi Thu Tran (Senior Investment Officer, IFC), Debabrata Chattopadhyay (Senior Energy Specialist, ESMAP), and Ayse Yasemin Orucu (Senior Climate Change Specialist). The report was prepared with support from consultants contracted by the World Bank, including BVG Associates led by Neil Douglas and Baker McKenzie led by Thanh Hai Nguyen. Thanks to Alex Finlayson for his editorial and communication support, and to Hue Communications for their design and publishing work. VIII A Framework for Private Sector-led Offshore Wind Projects in Vietnam EXECUTIVE SUMMARY Photo: Vestas Executive summary IX EXECUTIVE SUMMARY This report aims to inform industry stakeholders about Viet Nam’s current offshore wind policies and regulations while providing recommendations to the government for framework improvements that will support project success and help achieve national targets. For Viet Nam to realize its offshore wind potential and meet national energy targets, a balanced approach that leverages both state and private sector capabilities while providing a stable, attractive investment environment is essential. KEY PRINCIPLES The key principles behind the recommendations proposed in this report are to: 1. Ensure an attractive investment environment for investors and lenders 2. Ensure a sustainable project award process that allows Viet Nam to achieve its long-term energy targets, drawing on international best practice 3. Incorporate a 2-stage award process — (1) site exclusivity and (2) offtake price — to encourage early-stage investment and ensure the lowest electricity price for end consumers 4. Minimise changes to existing regulations where possible VIET NAM’S OFFSHORE WIND JOURNEY — THE STORY SO FAR Viet Nam’s rapidly growing economy has created increasing energy demands, with significant untapped offshore wind resources located in shallow waters near population centers. While several near-shore projects were previously developed under a Feed-in-Tariff system, no far-shore installations exist yet. Despite initial interest from international developers, many investors withdrew while awaiting policy clarity. Recent regulatory updates in late 2024 and early 2025 have established a clearer route for offshore wind development. The revised PDP8 (2025) sets ambitious targets for offshore wind: 6-17 GW by 2030-2035 and up to 139 GW by 2050, representing 15% of Viet Nam’s power generation. Impressively, the 17 GW target in the Revised PDP8 is supported by specific site locations and grid connection planning . The new regulations create a favorable path for projects led by State Owned Enterprise. These projects will face fewer hurdles and play a key role in establishing the industry. However, achieving Viet Nam’s long-term targets will ultimately require substantial private sector involvement. Therefore, developing a clear, sustainable framework for private sector participation is essential for Viet Nam to reach its national energy goals. X A Framework for Private Sector-led Offshore Wind Projects in Vietnam CURRENT FRAMEWORK AT A GLANCE Key Regulations ■ Revised PDP8 (April 2025) and National Marine Spatial Plan (June 2024) ■ Electricity Law (November 2024) ■ Decree No. 58/2025/ND-CP supplementing the 2024 Electricity Law on renewable and new energy development ■ Decree No. 65/2025/ND-CP amending Decrees 40/2016/ND-CP and 11/2011/ND-CP, covering site surveys and sea area allocation Key Project Agreements ■ Private Sector-Led Projects 1. Survey Rights (implied site exclusivity) • Awarded by: Ministry of Agriculture and Environment (MOAE) • Process: Application-based with merit criteria for resolving overlaps • Duration: Three-year site exclusivity is implied upon Survey License award 2. Investor Approval and Offtake Price • Awarded by: Ministry of Industry and Trade (MOIT) • Process: Competitive bidding for PPA tariff • Outcome: Investment Agreement awarded to winners 3. Grid Connection • Initial Assessment: Managed within Investment Policy approval process • Final Agreements: Awarded by Electricity Viet Nam (EVN) during later development phases 4. Development, Construction and Operating Permits • Investment Policy (Pre Feasibility Study)approval required before Investor Approval • Other permits granted by various government agencies after Investment Agreement award ■ State Owned Enterprise (SOE)-Led Projects: • Survey rights and Investor Approval granted simultaneously by the Prime Minister • Offtake prices negotiated directly with EVN • Streamlined process positions SOEs to implement initial projects and establish the industry Executive Summary XI PROPOSED FRAMEWORK FOR PRIVATE SECTOR-LED OFFSHORE WIND PROJECTS IN VIET NAM Of the initial 6 GW of projects, approximately 2 GW (via two projects) are expected to be led by SOEs. Therefore around 4 GW should be led by the private sector. It is recommended that at least 8 GW of Survey Licenses (implied site exclusivity) be awarded to private sector projects as soon as possible to install at least 4 GW by 2030 to 2035. The proposed framework consists of: ■ A pre-award planning process (the Planning Stage) led by government to identify the first 8 GW of offshore wind Development Blocks for private sector-led projects, in addition to the 2 GW area allocated for SOE-led projects. ■ A two-stage process to award blocks and tariffs to developers: • Stage 1 Survey License Approval to award 8 GW of Survey Licenses (implied site exclusivity) • Stage 2 Price Competition to award 4 GW of Investment Agreements (PPA tariff) ■ Survey Licenses granted by MoAE in line with latest regulations. ■ Permitting for development and construction in line with existing practices This cyclical process would repeat approximately every two years, with adjusted volumes to align with Viet Nam’s long-term installation targets. OVERVIEW OF PROPOSED OFFSHORE WIND FRAMEWORK. Key steps to award and realize the first 4GW1 of private sector led offshore wind projects Stage 1 Survey Stage 2 1st projects reach 1st projects License Approval Price Competition Financial Close complete Site exclusivity Investors selected & PPA Construction (capex) construction (Survey License3) tariff agreed (Investment funds mobilized for First projects awarded for 8GW Agreement) for 4 GW first projects operational North 4GW North 2GW 8GW2 4GW1 South 4GW South 2GW 1 YEAR 2 YEARS 3 YEARS 2-3 YEARS 30 YEARS PLANNING STAGE EARLY DEVELOPMENT LATE DEVELOPMENT CONSTRUCTION OPERATIONS • Offshore wind sector • Developers conduct technical • Developers • Fabrication • Operations and grid plans studies, site investigations & complete detailed • Onshore and • Planned and • BGW Development Blocks procurement activities site investigations, offshore installation unplanned identified • Developers complete Pre F5 design, certification & • Grid connection maintenance • Development Blocks and and obtain Investment procurement • Commissioning • Decommissioning high-level timeline for Survey Policy Approval4 • Developers obtain License Approval process • Stage 2 competition rules F5, other permits announced announced and leases • Stage 1 award and • Developers prepare for • Developers and EVN Stage 2 competition Stage 2 competition negotiate and execute principles announced (proposal + bid price) final PPA5 • Developers prepare • Developers secure proposals for Stage 1 project financing Survey License Approval 1. 4GW is aligned with Vietnams PDP8 target to install an initial 6GW of offshore wind projects connecting to the national power system by 2030 to 2035. It is assumed that 2GW will be implemented through pilot projects owned by SOEs, and 4GW will be implemented through the private sector 2. 8GW is recommended to be awarded in the Stage 1 Survey License Approval process to ensure sufficient competition in the Stage 2 Price Competition (which will award 4GW of Investment Agreements) XII A Framework for Private Sector-led Offshore Wind Projects in Vietnam 3. Site exclusivity is implied. Current regulations state that in the case overlapping applications, the competent authority will select a preferred developer on a merit basis 4. The Investment Policy (Pre-FS) approves the key traits of the project (but not the developer, which is formally assessed as part of the Stage 2 Price Competition) 5. Under the current framework, there is a long period between the Stage 2 Price Competition and Financial Close – during this period there is a risk that business case assumptions will change, impacting deliverability. Current adjustment mechanisms should be reviewed as they only apply in favour of the offaker. TIMELINE To establish Viet Nam as a reliable, long-term investment destination for offshore wind development, clear and well-communicated timelines are essential for engaging the private sector effectively. A comprehensive overview of competition rounds — particularly focusing on the first 6 GW of projects (including 4 GW of private sector-led projects in Round 1) — should be published promptly. The illustrated timeline demonstrates how multiple gigawatts can be awarded by the mid-2030s, with flexibility to align with any long-term offshore wind targets. This timeline represents the minimum duration required to design and implement Viet Nam’s offshore wind framework and initial projects. Aligning with this schedule would enable achievement of the PDP8 target of 6 GW installed capacity between 2030 and 2035. ILLUSTRATIVE TIMELINE TO DELIVER THE FIRST 6 GW OF PROJECTS SUPPLYING DOMESTIC POWER DEMANDS BY 2030 TO 2035 (AND 114 TO 139 GW BY 2050) This framework can be tailored to suit any long-term GW target 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Competition Rounds R1 Stage 1 R2 Stage 1 R3 Stage 1 R4 Stage 1 R4 Stage 1 Round 1: R1 Stage 2 R2 Stage 2 R3 Stage 2 R3 Stage 2 8 GW Survey Round 1: Round 2: Round 3: Round 4: License Approval 4 GW Price ~2 GW Price ~2 GW Price ~2 GW Price Competition Competition Competition Competition Grid studies Round 1 (R1) Marine Spatial Plan and Offshore wind sector plan (MSP Implementation Plan) Planning Stage 2GW pilot project sites confirmed 8GW Development Blocks for private sector projects confirmed Drafting of application process (aligned with Decrees 58 on offshore wind project procurement and 65 on Survey Licenses) R1 Stage 1 Final application process announced Survey License Approval Pre-qualification complete Proposal review, overlap resolution and award of exclusive Survey Licenses for up to 8 GW Development of bankable template offshore wind PPA R1 Stage 2 Drafting of price competition rules and Investment Agreement Price Competition Price competition rules announced Award of Investment Agreements for 4 GW (private sector projects) First surveys First Private sector First private sector-led projects reach Final Investment commence investors approved & Decision or Financial Close (private sector) PPA tariffs confirmed First SOE-led pilot projects complete construction Project First private sector- Implementation led projects complete construction 6 GW construction 2 GW 2 GW 2 GW complete by 2035 Executive Summary XIII SUMMARY OF REPORT RECOMMENDATIONS To improve the foundation for Viet Nam’s offshore wind industry, this report recommends the following actions: 1. Establish long-term plan for award capacities and competitions • Perform high level planning of target capacities and timelines for Stage 1 Survey License Award and Stage 2 Price Competition cycles. This should include capacities to be awarded and frequency of competitions (a 10 year lookahead is recommended). 2. Appoint an offshore wind coordination body • Establish cross-ministerial oversight to coordinate framework implementation across all government departments and ensure projects are progressing 3. Align and announce the first 10GW of development blocks • Align the granting of exclusive survey rights with the investor selection and price competition process. Update the MSP to include the first 10 GW of seabed areas (Development Blocks) for offshore wind development, specifying the first 2 GW allocated to SOE-led projects. Then, announce the first 10 GW of Development Blocks and 6 GW of grid connections. Align with PDP8 as necessary. 4. Streamline survey rights award process • Announce intentions to release the 8 GW area for private sector-led surveys simultaneously via an open, time-controlled process. Establish and announce a simple pre-qualification criteria for survey permissions, with all developers meeting the criteria allowed to submit applications 5. Review capacity density limits • Update regulations on minimum capacity density limits to align with international benchmarks and allow less dense sites, which will support lower Levelised Cost of Energy (LCOE): • Pre-survey stage: Change minimum limit from 5 MW per km2 to 3 MW per km2 • Pre construction stage: Change minimum limit from 20 MW per km2 to 6 MW per km2 6. Plan grid and harbour infrastructure • Perform detailed planning and funding of grid and harbour upgrades required to support target capacities and connection timelines. 7. Review Survey License period and reporting timeframes Update survey related regulations to encourage investment in high-cost surveys: • Extend survey license period from three years to five years with at least one extension period granted upon MoAE’s discretion, which would only be granted if satisfactory progress has been made. • Amend the survey data reporting milestone from Investment Policy (Pre-FS) approval to Investment Agreement award. Data should only be required to be reported once the information is no longer commercially sensitive. XIV A Framework for Private Sector-led Offshore Wind Projects in Vietnam 8. Detail the Stage 1 Survey License Approval process Prepare for Stage 1 Survey License Approval process, including detailed drafting of: • Pre-qualification criteria • Area caps • Application templates • Assessment criteria and score sheets in case of overlapping applications 9. Improve PPA bankability Improve bankability of the model PPA. focusing on: • Dispatch, connection and transmission risk • Foreign exchange risk • Change in law / tax risk • Dispute resolution • Termination events • Termination compensation • Offtaker guarantee • Force Majeure 10. Detail the Stage 2 Price Competition rules Draft competition rules for the Stage 2 Price Competition, including: • Pre-qualification criteria. • Assessment score sheets. • Structure and details of content required in developer proposals. • Evaluation of an appropriate bid price cap value. 11. Review permitting processes • Investigate regulatory amendments required to approve foreign investors and issue permits including Feasibility Study approvals, seabed and onshore land leases, grid and construction permits 12. Mitigate bid price delivery risk • Address bid price delivery risk due to long lead time between price bid and Financial Close. Revisit regulations on PPA price adjustment mechanisms The above recommendations and justifications are discussed in detail throughout Section 3. As a principle, this report aims to minimise regulatory updates, however, some changes are proposed. These are discussed in further detail in Section 4. Executive Summary XV 1. VIET NAM’S CURRENT OFFSHORE WIND POLICIES Viet Nam has a significant offshore wind resource located close to its shores and population centres within relatively shallow water. Viet Nam’s offshore wind technical potential is estimated at about 600 GW (of which 260 GW is fixed-bottom technology and 340 GW is floating). This sizable resource offers Viet Nam an opportunity to develop large-scale, affordable clean power generation to help meet its future electricity demand needs and target of net-zero by 2050. The Viet Nam market presents the following features: ■ Offshore wind targets and preliminary development areas in the national Power Development Plan version 8 (PDP8) and the PDP8 Implementation Plan ■ Offshore wind specific regulations ■ Interest from internationally active offshore wind developers ■ A 2050 net-zero target ■ A fast growing economy and high power demand growth ■ A strong industrial base and manufacturing capabilities which are already supplying the international offshore wind sector FIGURE 1.1. TECHNICAL POTENTIAL OF OFFSHORE WIND IN VIET NAM Note: This map shows the estimated technical potential for fixed and floating offshore wind in Viet Nam within 200 km of the shoreline. Source: ESMAP. 2021. Going Global: Expanding Offshore Wind to Emerging Markets. 1 A Framework for Private Sector-led Offshore Wind Projects in Vietnam 1.1 OFFSHORE WIND TARGETS Offshore wind targets appeared for the first time in the February 2022 version of the draft PDP8, and have featured in all subsequent versions since then. The integration of offshore wind targets into the draft PDP8 was followed by the signing by the Prime Minister of the Coal to Clean Power Transition statement on the side-lines of the 2021 United Nations Climate Change Conference of the Parties (COP26), and a related announcement to phase out coal by the 2040s and achieve net zero emissions by 2050. At COP27 in 2022, the country reiterated its commitment to achieve these targets, requesting international support for technology transfer and finance mobilization. At COP28 in 2023 it presented a national plan to mobilise resources for its transition. The Government of Viet Nam continues to recognize the important contribution of offshore wind to energy security and emissions abatement, as reflected in the latest version of the Power Development Plan. The Power Development Plan Version 8 (PDP8) Viet Nam’s latest strategic power plan was approved in May 2023 and is being updated in 2025. At the time of this report in June 2025, the updated version of PDP was recently approved. The latest PDP8 and related proposals aim to maximize the offshore wind potential of Viet Nam, stating: ■ The total offshore wind power capacity serving domestic power needs should be 6 GW to 17.032 GW by the period 2030 to 2035. The first 6 GW of offshore wind should be delivered by 2030. Target timelines may be accelerated if conditions and prices are favourable. By 2050 the target is 113.503 GW to 139.097 GW. ■ The offshore wind power capacity for new energy production (i.e. hydrogen-based products) should be 15 GW by 2035 and 240 GW by 2050. ■ Offshore wind should be combined with other types of renewable energy such as solar, onshore wind, and nearshore wind to produce new energy (hydrogen based products such as green hydrogen, green ammonia, etc.) to meet domestic needs and for power export. Approximately 21 GW to 32 GW of renewable energy (including offshore wind) projects are proposed for new energy and power export. TABLE 1.1. VIET NAM OFFSHORE WIND RELATED TARGETS   2030 to 2035 By 2050 Target, GW – domestic power supply from offshore wind 6 to 17 GW 113 to 139 GW Target, GW – new energy (hydrogen based products) from ~15 GW ~240 GW offshore wind Target, GW – power export from renewable energy sources 5 to 10 GW or higher 10 GW or higher including offshore wind (subject to demand) (subject to demand) Source: Revised PDP8 approved on April 15, 2025. If the 2050 offshore wind target for domestic supply of 113,503 to 139,097 GW is achieved, offshore wind will account for 14.7 to 16.6% of Viet Nam’s energy mix. 1. Viet Nam’s Current Offshore Wind Policies 2 In the latest PDP8, the above targets are further supported by proposed offshore wind sites and grid connections points. The proposed initial 6 GW of offshore wind sites are provided in the table below. Proposed sites supporting the full 17 GW target and potential power export projects are provided in Appendix A. TABLE 1.2. PROPOSED OFFSHORE WIND SITES TO SUPPORT 6 GW TARGET Proposed OSW Proposed Proposed offshore wind sites No. development clusters capacity (MW) Project name Capacity (MW) Northern 1.1 OSW 500 1 Northern 1 OSW 1,500 Northern 1.2 OSW 500 Northern 1.3 OSW 500 2 Northern 2 OSW (*) 500 Northern 2 OSW 500 3 Northern 3 OSW 500 Northern 3 OSW 500 South Central 1.1 OSW 500 4 South Central 1 OSW 1,500 South Central 1.2 OSW 500 South Central 1.3 OSW 500 5 South Central 2 OSW 500 South Central 2 OSW 500 6 Southern 1 OSW (*) 500 Southern 1 OSW 500 7 Southern 2 OSW 500 Southern 2 OSW 500 8 Southern 3 OSW (**) 500 Southern 3 OSW 500 Northern region 2,500 MW South Central region 2,000 MW Total Southern region 1,500 MW TOTAL 6,000 MW Viet Nam’s efforts to clearly lay out its short and long term offshore wind targets, supported by proposed sites and grid connections is highly commendable and provides a level of clarity not seen in many other offshore wind markets. 1.2 MARINE SPATIAL PLANNING Controlling and planning the deployment of offshore wind projects reduces cost and risk, and ensures that private sector activities are aligned with the country’s overarching power plan. In early 2024, the World Bank Group completed an Offshore Wind Sector Plan (OWSP) which identifies priority areas for 12 GW of potential offshore wind sites, supporting a target of 6 GW installed by 2030 to 2035. The OWSP includes assessment of technical, environmental, and social data alongside stakeholder engagement to identify potential key issues and any knowledge gaps. It also considers the grid development plan alongside area identification to ensure that priority areas will have a grid connection available. The output of this work includes sensitivity maps (based on environmental and social factors), Levelised Cost of Electricity (LCOE) heat maps and proposed areas for Viet Nam’s first offshore wind projects. In June 2024, the Ministry of Agriculture and Environment (MoAE), previously the Ministry of Resources and Environment (MONRE) finalised Viet Nam’s first National Marine Spatial Plan (MSP) for the period of 2021 to 2030 with a vision to 2050. Within the MSP, wind power development is earmarked in five regions. 3 A Framework for Private Sector-led Offshore Wind Projects in Vietnam In April 2025, as part of the revised PDP8, the Ministry of Industry and Trade (MOIT) proposed the first 17 GW offshore wind projects/blocks and intended grid connections. At the time of this report, the blocks are not yet integrated into the MSP. The next step is for the MoAE to align with the MOIT and finalise the designation of offshore wind blocks for the State Owned Enterprise (SOE) led pilot projects and private sector development, which is discussed later in this report. 1.3 GRID AND HARBOUR PLANNING Market soundings conducted by the World Bank Group have consistently found that grid risk is perceived as a major issue in Viet Nam. The recent, rapid expansion of solar capacity in Viet Nam caused numerous grid connection issues including frequent curtailment of power output.1 The congestion on the grid, particularly in South-East Viet Nam where wind and solar developments are concentrated, illustrates the critical need of adequate top-down multi-sectoral planning integrating site identification with existing grid capacity and planned investment. Positively, in the revised PDP8 of April 2025, the Ministry of Industry and Trade (MOIT) has proposed the first 17 GW of offshore wind blocks and grid connections, suggesting intentions to upgrade the grid network to support Viet Nam’s offshore wind targets. Harbour infrastructure is also essential for the construction and operation offshore wind projects. Due to its strong industrial base, Viet Nam already has number of major harbours, however, further upgrades will be required to support large-scale offshore wind development. 1.4 THE LEGAL FRAMEWORK In November 2024 Viet Nam’s new Electricity Law was approved, which includes a section on offshore wind. The law covers a number of areas including site surveys, master planning, investor selection, investment approval and implementation phase requirements. Under the 2024 Electricity Law, the approval framework for offshore wind projects includes the following key stages: ■ Approval for site investigations ■ Project approval (‘Investment Policy’ or 'Pre-Feasibility Study (Pre-FS)' approval) ■ For State Owned Enterprises: Granting of Investment Policy and Investor Approvals concurrently ■ For private investors: Granting Investor Approval and an offtake price through a competitive bidding process ■ Establishment of a project company ■ PPA finalisation Following the approval of the 2024 Electricity Law, the government, the MOIT and the MoAE issued the following key offshore wind relevant regulations, among others: 1 On average, curtailment currently ranges at 20/25 percent. In the Southern regions it can reach 80 percent. 1. Viet Nam’s Current Offshore Wind Policies 4 ■ Decree No. 56/2025/ND-CP regulating power development, power supply grid development planning, power plan investment and development and bidding for investor selection of power investment projects. ■ Decree No. 57/2025/ND-CP regulating the mechanisms for Direct PPAs (DPPAs) between renewable energy generation companies and large power consumers. ■ Decree No. 58/2025/ND-CP supplementing the 2024 Electricity Law on the development of renewable energy and new energy. ■ Decree No. 65/2025/ND-CP supplementing and amending a number of articles of Decree No. 40/2016/ND-CP and Decree No. 11/2011/ND-CP, including certain provisions on site surveys and sea area allocation. Note that in relation to bidding for greenfield utility-scale energy projects in Viet Nam, the government has issued Decree No. 115/2024/ND-CP on Bidding for Selection of Investors for Land-using Investment Projects and Circular No. 27/2024/TT-BCT on the criteria for evaluating bidding documents and guidelines for preparing bidding documents to select investors for power projects. However, offshore wind projects are exempted from these regulations. Regulatory principles The following themes are consistent across the current regulations: ■ Offshore wind definition. The 2024 Electricity Law defines “Offshore wind power projects” as those wind projects with all turbines built beyond six nautical miles from the lowest average sea level line. ■ Prioritization of certain project categories. The planning, investment in and the development of offshore wind power projects are prioritized in the following order: • Projects supplying to the national electricity system, with State Owned Enterprise (SOE)-led projects being the first priority. • Self-produced and self-consumed power projects or power projects for the production of green hydrogen, green ammonia for domestic needs; • Projects for power export ■ State Owned Enterprise (SOE)-led projects. SOEs may partner with foreign developers for their first project providing they maintain a 51% or more equity share, where they lack technical or financial capabilities. SOE-led projects will be exempt from certain Investment Law requirements. ■ Transfer of shares. Any equity transfer involving foreign investors or foreign-invested economic organizations requires the approval of the MOND, the MPS, the MOIT, the MOFA and relevant agencies. ■ National defense and security. There is a strong focus on projects complying with defense, security and data management laws. 5 A Framework for Private Sector-led Offshore Wind Projects in Vietnam ■ Health, safety and quality. There is an emphasis on projects complying safety and quality related standards and laws. Where local standards do not exist, developers must perform works to international standards. ■ Rights over survey data. Private sector projects must submit their survey data to relevant agencies and be subject to confidentiality requirements. Developers may only use survey data for the purpose of developing their projects. ■ Permissions for conducting site investigations. Permissions are granted for an area for a period of 3 years. SOEs will be prioritized for conducting site investigations. Such enterprises may submit a proposal and the Prime Minister may approve it based on the recommendation of the MoAE. Other entities may conduct site surveys upon approval of applications by the MoAE. Site exclusivity is implied — any overlapping applications will be decided based on developer merit. ■ Investor selection and price bidding. A price-based competitive process will be used to select developers, except for a few specific cases. Exceptions include projects exempt from bidding due to national defence and security reasons, emergency projects and projects SOE-led projects. In the bidding process, the bid ceiling price must not exceed the upper price bracket set by the MOIT. The winning bid price will be the maximum electricity price for the buyer. Project award for offshore wind projects Under the 2024 Electricity Law, Decrees 58 and 65, private sector-led projects may be awarded offshore wind project rights as follows: ■ Survey Rights – Awarded by MoAE via an application process with overlaps resolved based on merit criteria. Site exclusivity is implied for three years upon award of a Survey License. ■ Developer approval and offtake price – For private sector-led projects, the Investor Approval and PPA tariff is awarded via a competitive process by the MOIT. An Investment Agreement is awarded to winners. The final PPA price may be renegotiated at a later stage, in favour of the offtaker EVN. ■ Grid connection – The viability of a project, including its grid connection, is assessed through an Investment Policy approval process by MOIT. Final grid connection agreements are awarded later in the development phase by EVN. ■ Development, construction and operating permits – The Pre-Feasibility Study (Pre-FS) and Investment Policy Approval for a project must be obtained prior to the Investor Approval and price competition. The award of other development, construction, and operating permits are granted by various government agencies, after the award of the Investment Agreement by MOIT. For SOE-led projects, seabed rights and developer approvals are granted simultaneously by the Prime Minister and offtake prices are negotiated bilaterally with EVN, the national grid operator. 1. Viet Nam’s Current Offshore Wind Policies 6 Key authorities The key energy authorities in Viet Nam and their responsibilities are as follows: ■ Ministry of Trade and Industry (MOIT): The National-level government agency in charge of the energy sector. MOIT’s duties for the power sector include preparing the sector development strategy, planning, regulating operations and overseeing sector reforms are primarily discharged through two agencies: MOIT is responsible for preparing the National Power Development Plans (PDPs) every 5 years, covering a 10-year period, and setting national targets. MOIT is also responsible for monitoring and ensuring adequate supply-demand balance in all regions of the country. ■ Electricity Authority of Viet Nam (EAV): A new department responsible for management and law enforcement of electricity regulations, including: planning for electricity development, investment in electricity projects; development of renewable energy, new energy; competitive electricity market, electricity prices and electricity trading activities; dispatching and operating the national electricity system; licensing electricity activities; organizing and managing public service activities within the scope of its management according to legal regulations and the delegation and authorization of the Minister of MOIT. ■ National Electricity System and Market Operator (NSMO): The system and market operator. NSMO operates the national power system with the goal of safety, stability and reliability and manages market transactions. ■ Electricity of Viet Nam: The national Electricity corporation of Viet Nam (EVN) owns most of the power generation assets in Viet Nam. Relevant organizations under its control include: (3) Power generation corporations (GENCO1, 2 and 3) • Electric Power Trading Company (EPTC): Sole purchaser of all generated energy. EPTC negotiates and signs PPAs. It then sells the energy to the five power corporations for further sale to end-consumers. • National Power Transmission Corporation (NPT): Responsible for managing and operating the nationwide power transmission system (voltages 110 kV and above). This includes transmission cables, transformer stations and switchgears. • Distributors (5): The five regional power corporations for distribution are North Power Corporation, Central Power Corporation, South Power Corporation, Hanoi Power Corporation, and Ho Chi Minh City Power Corporation. ■ Ministry of Agriculture and Environment (MoAE): A new department created through the merger of the Ministry of Agriculture and Rural Development (MARD) and the Ministry of Natural Resources and Environment (MONRE). The MoAE is responsible for the management, surveying, and mapping of the environment and natural resources in Viet Nam. Relevant agencies under its control includes: • Viet Nam Agency of Seas and Islands (VASI): VASI is responsible for the management of offshore natural resources, marine and island environmental protection. It is responsible for the National Marine Spatial Plan and for implementing policies, strategies, and regulations relating to seas and islands. 7 A Framework for Private Sector-led Offshore Wind Projects in Vietnam • Viet Nam Environment Agency (VEA) The VEA is responsible for organizing the appraisal of the strategic environmental assessments (SEAs); and assessing environmental impact assessments (EIA) for investment projects. ■ Ministry of Finance (MOF): A new department created through the merger of MPI and the former MOF. The new MOF manages socio-economic development strategies, domestic and foreign direct investment in Viet Nam. It is responsible for Investment Registration Certificates and focal point for overseas development assistance (ODA), concessional loans and non-refundable aid. Relevant agencies under its control includes: • The Investment Department assists the Minister in supervising investment activities, appraisal, verification and evaluation of investment projects. • The Department of Debt Management and External Economic Relations assists the Minister in monitoring the external economy, state management of ODA, concessional loans, foreign non-governmental aid, and relations with foreign partners. ■ Ministry of Construction (MoC): MOC manages construction planning and investment activities. It issues work construction permits, policies implementation of regulations, construction works and management of construction investment costs. Relevant agencies under its control includes: • The Department of Economics and Construction Investment Management assists the Minister in state management and law enforcement for construction activities. • The State Department of Construction Quality Assessment advises the Minister on laws and issues relating to the quality of construction works. Site investigation approvals The 2024 Electricity Law makes several prescriptions in relation to site investigations for offshore wind projects. In March 2025, the Government issued Decree No. 65/2025/ND-CP supplementing and amending a number of articles of Decree No. 40/2016/ND-CP and Decree No. 11/2011/ND-CP, including certain provisions on site surveys and sea area assignment. Sea areas beyond the 6 NM line are confirmed to be under the authority of the MoAE. Decree 65 also sets out the circumstances under which private developers may perform site surveys. Survey activities do not require a seabed lease but they do require government approval. Decree 65 states the following requirements for site surveys: 1. Offshore sea site surveys are subject to procedures for assignment of sea areas 2. The duration of the survey approval shall not exceed 3 years. Survey approvals may not be amended, supplemented or extended. Upon expiry, if the applicant wishes to continue carrying out surveys, they must reapply. 3. An application dossier requesting the assignment of sea areas for offshore surveys must include the following documents: • an application document made according to a prescribed format • a written explanation of activities of offshore sea site survey, made according to a prescribed format • for foreign entities, a document confirming its legal status in accordance with the laws of the country where the entity is registered 1. Viet Nam’s Current Offshore Wind Policies 8 4. A map of the proposed survey area, including details such as coordinates, area size, water depth and elevations 5. The authorities will assess the following: • completeness of form, composition, contents and accuracy of information in the dossier • suitability of the purpose and content of the survey • alignment of survey areas with the relevant master plans • any contradictions and conflicts between the activities expected to be carried out • impacts on the environment and environmental mitigations applied • impacts on national defense, security and maritime traffic; protection of sovereignty, sovereign rights, jurisdiction and national interests at sea and people’s access to the sea 6. The awarded developer must: • within 60 days from the date of completion of the site survey, send an overview report of survey results to the State agency that has assigned the sea area (MoAE for offshore wind) • within 10 days of the Investment Policy (Pre FS) Approval of the proposed offshore wind project (by the Prime Minister for OSW), send the detailed results of any seabed surveys to VASI and MoAE; • within 30 days from the date of survey, except for force majeure events, all equipment must be removed from the survey area 7. The authority (MoAE in the case of offshore wind projects) decision on the assignment of sea areas for surveys must be made according to a prescribed form, which contains information such as the name of the developer, the purpose of the project, the details of the sea area assigned, the equipment and methodology used, the activities to be carried out, the timing of site surveys and any sea area rental fee to be paid. Additional requirements for foreign investors It should be noted that Decree No. 58 further regulates site surveys for offshore wind power projects. In particular, private sector investors conducting offshore wind surveys must meet several conditions and capabilities, including obtaining approvals from the Ministry of National Defense, the Ministry of Public Security (“MPS”), the Ministry of Industry and Trade (“MOIT”), and the Ministry of Foreign Affairs (“MOFA”). Survey areas and minimum capacity densities In relation to survey areas and capacity densities, Decree 58 specifies that: ■ The maximum sea area used for offshore wind power site surveys is 20 hectares per 1 MW (i.e. a minimum ‘pre-survey’ capacity density of 5 MW per 1 km2); and ■ The maximum sea area used for implementing offshore wind power projects is 5 hectares per 1 MW (i.e. a minimum ‘pre-construction’ capacity density of 20 MW per 1 km2). 9 A Framework for Private Sector-led Offshore Wind Projects in Vietnam Site Exclusivity In relation to site exclusivity, Decree 65 provides that: in case two or more developers submit proposals for similar surveys (for instance, offshore wind surveys) in the same sea area, authorities must evaluate and select the preferred developer. This implies that survey permissions will be granted exclusively, providing site exclusivity for the period the survey permissions remain valid. In the case of overlapping applications, selection of the preferred developer will be based on the following: ■ Financial capacity, human resources, expertise and experience of applicants for implementing the proposed survey (for instance, offshore wind measurement and geological surveys) ■ Proposed plans for survey implementation ■ The financial capacity, human resources, expertise and experience of applicants for activities expected to be carried out after completion of site surveys (for instance, the development and construction of OSW projects); the socio-economic efficiency of the longer term project. Investment policy and investor approvals The 2024 Electricity Law makes various prescriptions in relation to the project (investment policy) and investor approvals for offshore wind projects. These are summarised below: 1. In relation to project (investment policy) and investor approval application dossiers: • State Owned Enterprises may submit application dossiers for project and investor approvals concurrently. • Providing the location and scale of a project is consistent with the national power masterplan, private investors who have been granted a survey permit may submit their dossier for project approval. Once approved they may apply for investor selection through a bidding process 2. The contents of the dossiers must comply with the relevant provisions of the Law on Investment, the Law on Public Investment, or the Law on Investment in the form of public-private partnership (if relevant) and include the following: • Intended location, coordinates and sea area • Estimated duration of use of the sea area. 3. When reviewing applications for investment policy approvals, the Prime Minister, as the competent authority, must consult the following agencies: • The Ministry of National Defence, the Ministry of Public Security, the Ministry of Foreign Affairs, the Ministry of Agriculture and Environment, the Ministry of Construction and other ministries and branches as assigned by the Government; • People’s Committees of coastal provinces where the offshore wind power project is being implemented. 1. Viet Nam’s Current Offshore Wind Policies 10 The Prime Minister shall issue the investment policy decision and investor approval concurrently in the following cases:2 ■ Offshore wind power projects proposed by enterprises with 100% charter capital held by the State for self-implementation; and/or ■ Offshore wind power projects proposed by enterprises with 100% charter capital held by the State for their wholly-owned subsidiaries’ implementation; ■ In case where financial and technical expertise must be supplemented, an enterprise specified in points (i) and (ii) above may form a joint venture or association with other investors to implement their first offshore wind power project, but must ensure the proportion of shares and capital contributions held by the enterprise (i.e. the SOE) in the project entity must be more than 50%. Investor selection and price bidding Developers must pass an Investor Selection process to be eligible to compete in the price bid, receive an Investment Agreement and obtain project approvals. The 2024 Electricity Law provides for the following regulations on the selection of investors for offshore wind projects. (a) The selection of investors for offshore wind power projects will be implemented as follows: • public projects must be implemented in accordance with the Law on Public Investment; • public-private partnerships (PPP) projects must comply with the Law on PPP Investment; • other business investment projects must comply with the Law on Investment (b) The Prime Minister will have the authority to grant investment policy and investor approvals concurrently for the following offshore wind projects: • Projects that are not subject to investor selection bidding due to defense and security reasons • Projects that are 100% owned by State Owned Enterprises (c) Other projects supplying the national grid must comply with the provisions of the Law on Electricity and the Law on Bidding. The ceiling price in the bid dossier must not be higher than the maximum price bracket issued by the MOIT. The bid dossier shall comply with the following: • The draft power purchase agreement (PPA) agreed upon by the bidding agency and the electricity buyer; • Mechanisms and policies under the 2024 Electricity Law. (d) The government will provide further details on: • Conditions for investors to participate in bids; • The selection of offshore wind investors; • PPA terms for projects connecting to the main grid 2 Decree No. 58/2025, Article 30 11 A Framework for Private Sector-led Offshore Wind Projects in Vietnam 1.5 PROJECT FINANCING To deliver at least 6 GW of offshore wind by 2035 (for domestic power supply only), it is expected that over US$20 billion of capital investment will be required.3 To achieve the 2050 target of 114 to 139 GW, much larger amounts will be needed. Offshore wind cost trends Globally, the offshore wind industry has experienced increasing costs due to rising interest rates, unstable commodity prices (e.g. steel, copper) and supply chain pressures. This has led to a number of cancelled projects and lower participation rates in government auctions in countries such as the UK and US. The situation has started to stabilise, with auction price caps adjusted to reflect current higher costs. In the medium term, upon stabilisation of the European supply chain and maturing of the Asian supply chain, costs are expected to reduce once more, as they did in the solar industry when more suppliers entered the global market. The construction costs (capex) for offshore wind projects are expected to be higher for the first projects in a new market, decreasing significantly as the market matures. When target capacities are high and project pipelines are supported by stable offtake and consenting regimes, large benefits from economies of scale can be gained. Such benefits derive from (i) Increased manufacturing and process efficiency, (ii) Increased buying power and focus on cost reduction, (iii) Efficiencies from investments into base infrastructure such as harbours and supplier facilities, and (iv) Industry learnings and a more skilled local workforce. The positive impact of market scale on the Levelised Cost of Energy (LCOE) has been well demonstrated globally. For example, as of 2024 China has installed 47 GW of offshore wind projects. Across several years the LCOE of Chinese offshore wind projects have reduced from approximately US$190/MWh for initial projects to US$50/MWh for recent projects.4 The trajectory of Viet Nam’s offshore wind LCOE from 17 GW in 2035 to 114 to-139 GW in 2050 is expected to follow a similar trend, starting high and reducing dramatically as more wind farms are installed. Financing offshore wind in Viet Nam The financing needs to support offshore wind targets are large and are unlikely to be met with domestic lending only. Currently, annual power sector investments are in the range of US$7-8 billion per year. The implementation of PDP8 will raise this to US$12 billion per year by 2030 to 2035 and furthermore by 2050.5 The Vietnamese onshore renewable sector has been financed by local banks, mostly with the balance sheet support of local companies and developers. This approach has been successful in delivering renewables at scale quickly but is unlikely to be replicated in offshore wind. 3 Using cost assumptions in 2021 Offshore Wind Roadmap for Vietnam. 4 Wood Mackenzie, figures in real 2023 5 The approved PDP8 (PM Decision No.500/QD-TTg dated May 15, 2023). 1. Viet Nam’s Current Offshore Wind Policies 12 Offshore wind developers typically do not finance projects on balance sheet, while Vietnamese banks have limited experience in large-scale non-recourse project financing. The volume and complexity of non-recourse project financing for offshore wind is bound to require the participation of international financiers and banks who can bring knowledge and potentially larger amounts of hard currency financing.6 The participation of international financiers, however, will require the adoption of international bankability standards, requiring a transparent framework for: (i) procurement, and (ii) contractual agreements. They will also require global standards to be met on technical design, and environmental and social aspects of the project. Concessional finance may play a key role to mitigate the effects of global tighter access to finance and lower the cost of financing, as well as supporting more broadly the overall country market development needs with knowledge transfer and capacity building. Power purchase agreements Viet Nam’s existing PPAs are tailored to domestic investors. To facilitate international financing, key challenges relating to bankability need to be addressed. The current Model PPA gaps are further discussed in Section 4. PPA ceiling price Under the 2024 Electricity Law, the MOIT Minister is required to issue PPA ceiling prices for offshore wind. A circular has been issued outlining price ceilings for onshore and nearshore wind but not offshore wind. However, MOIT has issued Circular No. 12/2025/TT-BCT on the methodology for calculating PPA ceiling prices. The Circular 12 principles are outlined below: ■ A financial internal rate of return not exceeding 12%; ■ The price will consist of a fixed price and a variable price, of which: (1) the fixed price is set to allow the recovery of the total investment capital of the project and operational costs, and (2) the variable price is calculated based on the average cost for primary fuel. For a wind power plant: the variable price (PBĐ) is equal to 0 (zero). 6 According to Fitch (2022), Vietnam’s banking system is thinly capitalised relative to operating environment risks and international peers. The average capital adequacy ratio of Basel II compliant state-owned and private-sector banks stood at 9.2 percent and 11.4 percent, respectively, at end-3Q21. This was much lower than the weighted average of 19.4 percent for banks in other major south-east Asian markets. The capital gap expands when additional credit provisions against problem loans are factored in. Fitch estimates that the banking system would require up to US$10.7 billion (2.9 percent of GDP) in additional capital to ensure loan- loss reserves covered potential losses from all problem loans, while simultaneously maintaining a Capital Adequacy Ratio (CAR) of 10 percent. The state banks drive much of the shortfall, due to their lower capital position. There is an ongoing effort to increase charter capital, although the outcomes cannot be sized yet. 13 A Framework for Private Sector-led Offshore Wind Projects in Vietnam Direct PPAs Globally there has been increased interest in Direct PPAs as a revenue stream for offshore wind projects. In Taiwan, a number of large offshore wind projects with Direct PPAs have secured financing and are being constructed. In July 2024 the government issued Decree No. 80/2024/ND-CP on DPPA mechanisms between power generation companies “RE GENCOs” and large power consumers. Subsequently, Decree No. 57/2025/ND-CP was issued to replace Decree 80. Decree 57 was a significant milestone permitting RE GENCOs and consumers to directly sell and purchase renewable energy power with each other. Two models are supported: (1) Model 1 for physical DPPAs via private wires “behind the meter” and (2) Model 2 for financial/synthetic DPPAs “via the grid”: ■ Under Model 1 “behind the meter”, the participants are the RE GENCOs and Consumer. In this Model, the RE GENCO and the Consumer enter into a PPA. The Consumer remains entitled to purchase power from EVN or other power retailers. ■ Under Model 2 “via the grid”, the participants include RE GENCOs, Consumers, and/or Power retailers in cluster parks (“Authorized Power Retailers”) as well as EVN. In this Model, (1) the RE GENCO and EVN enter into a spot market/wholesale PPA, (2) the Consumer or Authorized Power Retailer enters into a PPA with EVN to purchase power at the spot tariff plus additional charges (for the use of EVN power system’s services), and (3) the RE GENCO and Consumer or Authorized Power Retailer enter into a Contract for Differences (CfD) or a forward price contract. 1.6 SOE-LED FRONT RUNNER PROJECTS The 2024 Electricity Law and related decrees allow enterprises with 100% of charter capital owned by the state, or State-Owned Enterprises (SOEs) to develop offshore wind projects with lower regulatory hurdles compared to private sector-led projects. SOE-led projects (projects with at least 51% equity held by SOEs) will not be required to participate in a competitive process to secure an offtake agreement. Therefore, they are well positioned to implement the first offshore wind projects and kickstart the industry. For this reason, they have been referred to as Viet Nam’s ‘pilot’ projects. SOE-led projects commence with the submission of an investment proposals to the Prime Minister. If approved, the project can obtain survey permissions, enabling site investigations and other development activities to commence. SOE-led projects will be instrumental in trouble-shooting the regulatory framework and support the role out of private sector projects. It is expected there will be at least two SOE-led projects, each of a commercial scale in the region of 1 GW. The projects will be expected to meet the same standards as the private sector-led projects, including health and safety, environmental and social, and commercial viability. 1. Viet Nam’s Current Offshore Wind Policies 14 Financing SOE-led projects The SOE-led projects are expected to be of a commercial scale with development costs likely to be funded by equity from the project owners. Post development, the projects will need to secure multiple USD billions of construction capital. There are two approaches to construction financing: on balance sheet or using non-recourse (or limited recourse) project financing. Funding on balance sheet Project owners use their own financial resources to fund the construction costs of the projects. They may raise additional capital onto their corporate balance sheet if they can convince investors and capital providers that their company is sufficiently robust. Developers would typically borrow from their commercial banks or issue corporate bonds. This approach was most common in the early days of offshore wind when the industry was perceived as high-risk. Today some developers still use this approach, using their strong balance sheet to access cheaper corporate capital. However, most developers prefer to minimize impact on their financial strength and balance sheet. In Viet Nam, most of the onshore renewable sector has been financed this way. SOEs also routinely fund their investments on balance sheet, working with the local banking and bond market to access the necessary capital. Regulatory requirements impose limits on the credit exposure that banks can have to an individual company, including to SOEs. Therefore, SOEs have constraints on the amount of capital they can raise on their balance sheet and need to prioritize this capital across their overall investment program, beyond the offshore wind pilot projects. For SOEs, finding sufficient liquidity in the local capital and banking market could be a challenge. SOEs access to Overseas Development Aid is constrained in Viet Nam which restricts the ability of SOEs to access international pools of capital. Non-recourse or limited recourse financing This approach is the most common in offshore wind today though there is limited precedence in Viet Nam. Under this method of financing, lenders lend against the expected project cash flows without the ability (or with limited ability) to claim against the project owners if the project has difficulty meeting its debt service. Typically, 70-80% of the construction capital can be provided by lenders to the project company and the remaining capital is provided by the project owners. For example, on a US$3 billion wind farm, the pressure on the SOE’s balance sheet is reduced from US$3 billion to US$600-900 million, leaving more financial capacity to support other projects. Should SOE-led projects secure international financing, it will set a strong and important precedent for subsequent private sector-led projects in Viet Nam. Such projects would establish an acceptable risk allocation for capital providers. For Viet Nam, unlocking access to non-recourse project financing and large pools of international capital will be key to delivering its long-term offshore wind targets. 15 A Framework for Private Sector-led Offshore Wind Projects in Vietnam 2. GLOBAL OFFSHORE WIND FRAMEWORKS 2.1 KEY DEVELOPMENT STEPS The development of an offshore wind project comprises a series of steps and milestones required to enable investments, construction, and operation. The largest investment commitment comes at a key project milestone known as Financial Close. This (FC) is the point at which all development activities have been completed, the project’s design is finalised, and financing and procurement agreements are executed. The development activities that occur before FC typically take 6+ years to complete and will often require ~US$100 million of investment. Throughout development, the project’s design is gradually advanced and optimised. Some of the main project development steps and milestones relevant to the overall framework include: ■ Planning – Typically Government led identification and selection of suitable zones for offshore wind development ■ Site investigations – Developer-led collection of wind, seabed, and environmental and social data to inform and refine the project design and cost models ■ Project agreements – the main agreements include: • Seabed rights – Award of exclusive rights to a specific seabed area to develop a project • Offtake – Award of a long-term power offtake agreement (e.g. PPA) with a stable tariff • Grid connection – Award of a point of connection to transmission grid • Permitting – Award of development, construction, and operating rights, including the approval of the environmental and social impact assessment. The overall framework to enable these development steps can vary across offshore wind markets and depends on the maturity and the scale of each market, as well as the country’s typical approach to delivering infrastructure and energy projects. The World Bank Group’s report Key Factors for Successful Development of Offshore Wind in Emerging Markets7 (herein the Key Factors report) discusses these issues in more detail and should be read in conjunction with this section. 7 World Bank Group. Key Factors for Successful Development of Offshore Wind in Emerging Markets (April 2025). ESMAP, World Bank, Washington, DC. 2. Global Offshore Wind Frameworks 16 2.2 MODELS FOR DEVELOPMENT The arrangement of competitive frameworks for awarding seabed rights (or site exclusivity) and awarding offtake agreements (e.g. PPAs, FiTs, etc.) are the most important development features to consider in a new market. There are two models that can be adopted: 1. One-stage competition model: This model is government-led and is used by countries including Denmark, Germany, and Netherlands. In these markets, the government identifies specific project sites and conducts early-stage project development, site investigation and permitting. These governments provide a detailed information package (a data room containing feasibility study information) to developers who then bid a price8 per MWh at which they would be prepared to develop, construct, and operate the project. The winning bidder is awarded the seabed rights and an offtake agreement. The winner may also be required to repay the early-stage development costs to the government. This approach requires significant government investment (US$10- 20 million per typical project site of 500-1000 MW), and requires well-organized, proactive government entities with strong technical capabilities. The winning bidder is often selected on price alone, though it is becoming more common to see other scoring criteria being included. It should be noted that markets such as Taiwan, China and Japan implement a slightly different version of the one-competition framework. In these markets, the government requires developers to conduct development, site investigations and permitting prior to a combined competition for seabed rights, grid connection and PPA award. Sites can be either predefined by government or selected by developers. Multiple developers can survey and develop the same block or area. This approach requires less investment and technical competence from government but puts high risk on industry. This can have the effect of reducing competition due to high developer costs prior to site exclusivity. It is also seen as less efficient, as one site can be surveyed several times by different developers. 2. Two-stage competition model: This model is developer-led and is used by countries including the United Kingdom and United States. More recently Australia and India have adopted this model. Under this model developers compete for seabed rights at the start of the development process, typically with some strategic locational guidance from the government. The site exclusivity provided to developers under the first competition enables them to invest in the surveys and development activities needed to obtain permits, complete design and procurement, and prepare a competitive bid for a power offtake agreement. It should be noted that South Korea and the Philippines implement a different version of this model where the first stage is not competitive but on a ‘first come first serve’ basis. The two-stage model requires less government investment and technical capability. However, it places more risk on industry. Therefore, industry often requires confidence on the future market and competitive processes that offer a stable, long-term offtake revenue. 8 Following a prequalification stage, bidders will typically be evaluated only on price, however in some markets this is changing to include non-price criteria. 17 A Framework for Private Sector-led Offshore Wind Projects in Vietnam Either of these procurement models can work successfully if they have sufficient management and resourcing. Further information on the two models and their applications can be found in the World Bank Key Factors for Successful Development of Offshore Wind in Emerging Markets report. Figure 2.1 provides a comparison of these two typical approaches.9 FIGURE 2.1. COMPARISON OF THE ONE-AND TWO-STAGE COMPETITION MODELS Source: 2025 Key Factors for Successful Development of Offshore Wind in Emerging Markets, World Bank Group 2.3 PROJECT DEVELOPMENT AGREEMENTS There are four key project agreements to be obtained in the project development phase: seabed rights (site exclusivity), offtake, grid connection, and permits (for development, construction, and operation). In established markets, two of these, being seabed rights (site exclusivity) and offtake agreements, are normally awarded under competitive processes.10 There are three models for awarding seabed rights (site exclusivity): (i) open door (first-come-first- serve), (ii) sole sourcing/direct award, and (iii) competitive selection. Similarly, there are three models that governments use to award offtake: (i) bilateral negotiation, (ii) feed-in-tariff, and (iii) price competitions or auctions. Competitive models for awarding seabed rights and offtake agreements tend to be preferred by governments as they can: ■ Provide a level playing field for developers ■ Ensure capable developers are selected ■ Ensure lowest pricing for end consumer 9 Also see Key Factors report for further information about the approaches taken in different offshore wind markets. 10 For further information on permitting and grid connection, see Key Factors report and sections 13 and 17 in the Offshore Wind Roadmap for Vietnam. 2. Global Offshore Wind Frameworks 18 As discussed in section 2.2, seabed rights and offtake agreements can either be awarded at the same time under a one-competition model, or separately under a two-competition model. Generally, in new markets, two-competition models are recommended as they: ■ Provide project developers with early certainty over their site, which enables them to invest in costly surveys and ramp-up their local organizations ■ Allow project developers time to collect data, understand site/country conditions, and conduct procurement, which enables them to de-risk their revenue and cost estimates, and submit a more competitive bid price ■ Reduce the cost, liability, and workload for government, as developers collect their own site data and do their own early-stage development. 2.4 PILOT PROJECT SCHEMES Pilot project schemes have been applied prior to commercial scale processes in almost all offshore wind markets. These projects can be effective to test and troubleshoot new technologies, local regulations, consenting frameworks, supporting infrastructure such as harbours, construction logistics, as well as identify gaps in skills and supply chains. Pilot projects can be useful for de-risking the roll-out of large-scale infrastructure, however, to maximise the benefits of pilots, it is important to clearly define the objective of the scheme. For instance, what risks are specifically being targeted and how will a pilot be used to improve future projects, or demonstrate that the risks are less material than initially perceived? The subsequent ramp-up of commercial scale projects is typically the main objective of pilot projects. The key pillars of pilot project schemes are summarised below: Key Pillars of Pilot ATTRACT KEY Project Schemes PARTICIPANTS BUILD ON EXPERIENCE There are a limited number of developers and suppliers ENABLE with the experience, Pilots should prioritise learning and knowledge resources and skills to deliver TEST & INFORM transfer rather than projects. They are also being Pilots should be re-inventing solutions. increasingly selective on transparent and have There is a vast amount of which markets they enter. REPLICATE strong communication A key benefit of a pilot is to knowledge and experience Attracting their participation channels with ministries, test the limitation and gaps that has been gained over on pilots will encourage them regulators, grid operators, of existing regulations and 30 years of offshore wind to build project pipelines and The standards of a pilot harbour owners and to inform the government on development. International make further investments. should replicate as close other stakeholders so all the design of the framework. experience is key to avoid It will also attract other as possible to what would parties can troubleshoot However, where large gaps many known pitfalls experienced developers and be expected in a mature their issues, plan for exist, pilot projects can that hinder development, suppliers. In most markets project. For instance: resources, and maximise face significant delays and investment or financing of it is private developers and • The technology used their ‘learning-by-doing’ increased costs. To ensure offshore wind. private capital that lead for a pilot should be the experience. success there should be the offshore wind industry same as a commercial a mechanism in place to — bringing them in at the scale project. expedite regulatory hurdles onset establishes favourable • The developers for pilots. grounds for scale-up. implementing a pilot should have the same competencies as those developing commercial scale projects. 19 A Framework for Private Sector-led Offshore Wind Projects in Vietnam 3. PROPOSED FRAMEWORK FOR PRIVATE SECTOR-LED DEVELOPMENTS IN VIET NAM This section outlines a potential framework for private sector-led developments in Viet Nam. The proposed framework is based on international best practice and is designed to deliver the PDP8 domestic power supply target of 6 GW by 2030 to 2035. As outlined in section 2, there are a number of options available when designing frameworks for offshore wind. Based on lessons learned in other markets, the current global investment climate and the local context of Viet Nam, a 2-stage project award framework is proposed, which is supported by current regulations. The framework proposed in this report aims to minimise regulatory changes. CAPACITIES FOR PRIVATE SECTOR-LED PROJECTS Of the initial 6 GW of projects, approximately 2 GW (via two projects) are expected to be led by SOEs. Therefore around 4 GW should be led by the private sector. To achieve an installation of 6 GW: ■ SOE-led pilot projects: In line with current regulations, it is expected that two Survey Licenses or around 2 GW of seabed area will be awarded to SOE-led projects upon approval by the Prime Minister. These projects will not be required to participate in a price competition. ■ Private sector-led projects: It is recommended that at least 8 GW of Survey Licenses (with implied site exclusivity) be awarded to private sector projects as soon as possible to install at least 4 GW by 2035. Having sufficient overcapacity will allow for some attrition and ensure sufficient competition during bidding. It will also establish a project pipeline to deliver projects beyond 2035. To support longer term targets, it is recommended that high-level planning is conducted to define capacities for future competition cycles. RECOMMENDATION 1 Perform high level planning of target capacities and timelines for Stage 1 Survey License Award and Stage 2 Price Competition cycles. This should include capacities to be awarded and frequency of competitions (a 10 year lookahead is recommended). 3. Proposed Framework for Private Sector-led Developments in Viet Nam 20 OVERVIEW OF THE PROPOSED FRAMEWORK The key aspects of the proposed framework for private sector-led projects are as follows: ■ A pre-award planning process (the Planning Stage) led by government to identify the first 8 GW of offshore wind Development Blocks for private sector-led projects, in addition to the 2 GW area allocated for SOE-led projects. As outlined in Section 1, 17 GW of offshore wind areas for domestic power supply have been proposed under the revised PDP8 and related correspondence. These areas would include the 8 GW of initial Development Blocks proposed in this report. ■ A two-stage process to award blocks and tariffs to developers: • Stage 1 Survey License Approval to award 8 GW of Survey Licenses (implied site exclusivity) • Stage 2 Price Competition to award 4 GW of Investment Agreements (PPA tariff) ■ Survey Licenses granted by MoAE in line with the new Decree No. 58/2025/ND-CP (on OSW) and the new Decree No. 65/2025 amending Decree 11/2021. Viet Nam regulations currently state that, in case two or more developers submit proposals for similar surveys (for instance, offshore wind surveys) in the same sea area, authorities must evaluate and select the preferred developer based on certain factors. Therefore, site exclusivity is implied upon the granting of survey rights, for the period those survey rights remain valid. Given high survey costs and a constrained investment climate, it is recommended that offshore wind Survey Licenses remain valid for five years, with at least one renewal permitted upon approval by MoAE. Viet Nam regulations currently limit license periods to 3 years. ■ Permitting for development and construction, which could broadly follow existing practices for power projects, although supplements may be required to make the process more efficient. The overall process is summarized in Figure 3.1, covering the first 4 GW of private sector-led projects. It is intended that subsequent Stage 1 Survey License Approval and Stage 2 Price Competitions will follow every two years or so, with volumes adjusted to deliver long-term installation targets. 21 A Framework for Private Sector-led Offshore Wind Projects in Vietnam FIGURE 3.1. OVERVIEW OF PROPOSED OFFSHORE WIND FRAMEWORK Key steps to award and realize the first 4GW1 of private sector led offshore wind projects Stage 1 Survey Stage 2 1st projects reach 1st projects License Approval Price Competition Financial Close complete Site exclusivity Investors selected & PPA Construction (capex) construction (Survey License3) tariff agreed (Investment funds mobilized for First projects awarded for 8GW Agreement) for 4 GW first projects operational North 4GW North 2GW 8GW2 4GW1 South 4GW South 2GW 1 YEAR 2 YEARS 3 YEARS 2-3 YEARS 30 YEARS PLANNING STAGE EARLY DEVELOPMENT LATE DEVELOPMENT CONSTRUCTION OPERATIONS • Offshore wind sector • Developers conduct technical • Developers • Fabrication • Operations and grid plans studies, site investigations & complete detailed • Onshore and • Planned and • BGW Development procurement activities site investigations, offshore installation unplanned Blocks identified • Developers complete Pre design, certification & • Grid connection maintenance • Development Blocks and F5 and obtain Investment procurement • Commissioning • Decommissioning high-level timeline for Survey Policy Approval4 • Developers obtain License Approval process • Stage 2 competition F5, other permits announced rules announced and leases • Stage 1 award and • Developers prepare for • Developers and EVN Stage 2 competition Stage 2 competition negotiate and execute principles announced (proposal + bid price) final PPA5 • Developers prepare • Developers secure proposals for Stage 1 project financing Survey License Approval 1. 4GW is aligned with Vietnams PDP8 target to install an initial 6GW of offshore wind projects connecting to the national power system by 2030 to 2035. It is assumed that 2GW will be implemented through pilot projects owned by SOEs, and 4GW will be implemented through the private sector. 2. 8GW is recommended to be awarded in the Stage 1 Survey License Approval process to ensure sufficient competition in the Stage 2 Price Competition (which will award 4GW of Investment Agreements) 3. Site exclusivity is implied. Current regulations state that in the case overlapping applications, the competent authority will select a preferred developer on a merit basis 4. The Investment Policy (Pre-FS) approves the key traits of the project (but not the developer, which is formally assessed as part of the Stage 2 Price Competition) 5. Under the current framework, there is a long period between the Stage 2 Price Competition and Financial Close – during this period there is a risk that business case assumptions will change, impacting deliverability. Current adjustment mechanisms should be reviewed as they only apply in favour of the offtaker. The location of the first 6 GW of projects should be dictated via availability of grid connection points and be informed by Marine Spatial Planning (MSP) works. To avoid supply chain bottlenecks, the grid connection dates of the first 6 GW of projects should be staggered over 2 to 3 years. Developers who secure blocks in the Stage 1 Survey License Approval are likely to enter the next available Stage 2 Price Competition, but this is not essential. A pool of projects in development will be established that will progress through Stage 2 Price Competitions in due course. Key principles The key principles of the proposed framework are summarized below: ■ Ensure an attractive investment environment for developers and suppliers. ■ Establish a sustainable project award process that supports both short and long-term targets. ■ Ensure a transparent, level playing field for developers and allows government to select the best projects and most competent developers, while achieving the lowest price for end consumers. 3. Proposed Framework for Private Sector-led Developments in Viet Nam 22 ■ Support a realistic, yet expedited path and timeline to achieve Viet Nam’s offshore wind targets. ■ Identify seabed areas that are aligned with availability of grid connections, have minimal conflicts with other users, and have minimal environmental and social impact. ■ To the extent possible, align with existing practices and minimizes regulatory changes. 2-stage vs 1-stage competition Section 2 outlines two main models for the competitive award of projects. In Viet Nam, the two-stage competitive approach is recommended as it provides better continuity with activities to date and limits reliance on government investment. It also avoids the government taking liability for the timing, cost, and quality of early-stage development and site data collection. Without the burden of managing development works and site surveys, government can focus on developing supporting infrastructure and establishing the new processes, infrastructure upgrades and regulations updates that will be required to support the industry. Early award of site exclusivity will support Viet Nam to retain and attract competent developers. With exclusivity over their sites, developers can invest the several millions of USD required to carry out development works and conduct site investigations before a price competition. Acquiring site specific data will enable developers to better estimate the lifetime costs and submit a more competitive price. The two-stage approach proposed in this report could be implemented with minimal regulatory changes. 3.1 THE PLANNING STAGE The planning stage must be primarily led by government. Currently MoAE is responsible for Marine Spatial Planning, EVN is responsible for grid connection planning and MOIT is responsible for targets, the price competition design, and the overall program. Provincial governments and other ministries are consulted and may support or complete certain activities where appropriate. The key activities in the Planning Stage are the MSP, grid connection studies, and preparation for awarding survey permissions, which provide developers with implied site exclusivity. This report proposes that the main outputs should be the identification of the first 6 GW of grid connections and the corresponding seabed areas suitable for development (the Development Blocks — 2 GW SOE-led, and 8 GW private sector-led). The 6 GW of projects and grid connections will be included in the Power Development Plan (PDP), which will allow for existing grid capacities to be reserved and future grid and harbor upgrade planning works to commence. The key steps of the planning stage are summarized in Figure 3.2: 23 A Framework for Private Sector-led Offshore Wind Projects in Vietnam FIGURE 3.2. KEY ACTIVITIES IN THE PLANNING STAGE The Planning Stage can be broadly broken down into the following steps: Stage 2 1st projects 1st projects Stage 1 Survey Price reach Financial complete License Approval Competition Close construction C C 1 YEAR 2 YEARS 3 YEARS 2-3 YEARS 30 YEARS PLANNING STAGE Round 1 Development Blocks announced Stage 1 Survey (2GW seabed area reserved for SOE-led projects) License Approval SGW or ~2,400 km2 1 seabed area allocated for private Survey Licenses (site exclusivity) sector-led projects awarded to private sector-led projects for 8GW Preliminary grid connection locations & timelines MOIT led: 8GW • Offshore wind target capacities (PDP targets) • Offshore wind blocks and grid connections (PDP Implementation Plan) EVN led: • Grid connection studies (6GW) MoAE led: MoAE led: • Marine Spatial Planning • Stage 1 Survey License Approval preparation: – Drafting of pre-qualification requirements, assessment criteria and overlap resolution process – Announcement of eligible blocks, application rules and timelines • Assessment of Survey License proposals including resolution of developer overlaps 1. A conservative density of 3MW/km2 is recommended by amending Decree No. 58/2025/ND-CP )Article 27.5). Regulations currently state a minimum density of 5MW/km2 (20 ha/MW) for Survey License plots and 20MW/km2 (5 ha/ Developers: MW) for construction plots, which are above global benchmarks • Proposal preparation for offshore wind projects. 3. Proposed Framework for Private Sector-led Developments in Viet Nam 24 Identification of development blocks A Development Block should be large enough to support a single project. A block is not a guaranteed project area — it merely sets the boundaries for initial development activities to be undertaken in order to determine a final project area. It is envisaged that developers may develop neighboring blocks to form larger sites if desired. At the time of drafting this report, various activities are underway to support the specification of Development Blocks: ■ MoAE has completed its first Marine Spatial Plan (MSP), though it does not specifically identify offshore wind zones. ■ The World Bank completed an Offshore Wind Sectoral Plan to help inform the MSP and support the identification of the first offshore wind development areas. ■ As outlined above and in Section 1.2, 17 GW of offshore wind areas for domestic power supply have been proposed under the under the revised PDP8 of April 2025. These areas could include the 8 GW of initial Development Blocks proposed in this report. The next step would be for MoAE to formally incorporate offshore wind Development Blocks into the national MSP. This should then inform MOIT’s update of the PDP8 Implementation Plan, confirming the first 10 GW of blocks or more. Once the boundaries of the 10 GW of Development Blocks have been confirmed, they should be announced. It should be made clear which 2 GW of blocks are allocated to SOEs, and which 8 GW of blocks are available for development by the private sector. RECOMMENDATION 2 Establish cross-ministerial oversight to coordinate framework implementation across all government departments and ensure projects are progressing. RECOMMENDATION 3 Align the granting of exclusive survey rights with the price competition process. Update the MSP to include the first 10 GW of seabed areas (Development Blocks) for offshore wind development, specifying the first 2GW allocated to SOE-led projects. Then, announce the first 10 GW of Development Blocks and 6 GW of grid connections. Align with PDP8 as necessary. RECOMMENDATION 4 Announce intentions to release the 8GW area for private sector-led surveys simultaneously via an open, time-controlled process. Establish and announce pre-qualification criteria for survey permissions, with all developers meeting the criteria allowed to submit applications. 25 A Framework for Private Sector-led Offshore Wind Projects in Vietnam Capacity densities for offshore wind projects To convert planned project capacities into survey areas, appropriate capacity densities must be applied. The capacity density of a wind farm is the ratio of the wind farm’s rated capacity to its seabed area. Capacity density is expressed in megawatts per square kilometer (MW per km2). Capacity densities are typically lower during early stage development — as more site data is gathered and constraints are identified, the site boundary reduces, which has the effect of increasing the capacity density. Capacity density is not purely a technical or commercial decision — it is often driven by regulatory limits. Limits are set to either incentivize high energy production (high minimum density) or low LCOEs (low minimum density). In Europe, the area weighted average capacity densities for constructed windfarms are 6.0 MW per km2 for the North Sea and 5.5 MW per km2 for the Baltic Sea.11 In Viet Nam, regulations currently set very high minimum densities of 5 MW per km2 at the early development (pre-survey) stage, and 20 MW per km2 at the late development (pre-construction) stage. To encourage lower LCOEs, it is recommended that minimum capacity densities be reduced to 3 MW per km2 at the pre-survey stage and ~6 MW per km2 at the pre-construction stage. RECOMMENDATION 5 Decrease current capacity density limits to align with international benchmarks and allow less dense sites, which will support lower Levelised Cost of Energy (LCOE): ■ Pre-survey stage: Change minimum limit from 5 MW per km2 to 3 MW per km2 ■ Pre construction stage: Change minimum limit from 20 MW per km2 to 6 MW per km2 This change would require Decree No. 58/2025/ND-CP be amended by another new decree. Grid planning and funding Upon confirmation of the 10 GW Development Blocks and their boundaries, detailed planning and fund raising for the first 6 GW of grid connections should be undertaken by EVN. RECOMMENDATION 6 Develop detailed technical and funding plans for grid and harbour upgrades required to support target capacities and connection timelines. 11 Deutsche WindGuard GmbH — Capacity Densities of European Offshore Wind Farms 3. Proposed Framework for Private Sector-led Developments in Viet Nam 26 Stage 1 process preparation For the first 8 GW of blocks for private sector development, it is recommended that MOIT and MoAE make an announcement of eligible blocks and invite all Survey License applications to be submitted at the same time. This will enable MoAE to compare applicants and ensure the most technically and financially capable developers are prioritised. In parallel to the above, MoAE should: ■ Draft timelines for the Stage 1 Survey License Approval process, in consultation with developers ■ Publish any supplementary rules, including developer pre-qualification requirements and maximum area caps ■ Prepare application templates ■ Prepare an assessment and selection criteria scoresheet, in case multiple developers apply for the same block ■ Amend regulations where required. The following adjustments are recommended: • adjust the offshore wind Survey License period from 3 to 5 years, extendable once at MoAEs discretion. This will be necessary to support the 1 to 2 year survey data collection periods, and incentivise investors to obtain the data • amend the milestone for developers to submit survey results and data to authorities. Data should be reported once a developer wins a price competition and is awarded an Investment agreement, when the data is no longer commercially sensitive. This will provide developers with a stronger incentive to invest the millions of dollars and years required to conduct survey activities. It will also encourage high quality bids backed with real site data vs speculative bids. • adjust the minimum Survey License area density from 5 MW per km2 (20ha/MW) to 3 MW per km2, which is in line with international offshore wind benchmarks for early-stage development projects. RECOMMENDATION 7 Change survey related regulations to encourage investment in high-cost surveys: ■ Extend survey license period from three years to five years with at least one extension period granted upon MoAE’s discretion, which would only be granted if satisfactory progress has been made. ■ Change the survey data reporting milestone from Investment Policy (Pre-FS) approval to Investment Agreement award. Data should only be required to be reported when the information is no longer commercially sensitive. These changes would require Decree No. 65/2025/ND-CP to be amended by a new decree. 27 A Framework for Private Sector-led Offshore Wind Projects in Vietnam RECOMMENDATION 8 Prepare for Stage 1 Survey License Approval process, including detailed drafting of: ■ Pre-qualification criteria ■ Area caps ■ Application templates ■ Assessment criteria and score sheets in case of overlapping applications. Developer proposal preparation Once the Development Blocks and corresponding grid connection locations/timelines are announced, developers can select their preferred Blocks and begin preparations for the Stage 1 Survey License Application. Developers may select several sites and several developers may be interested in the same site. Developers will: ■ Select their priority Development Blocks, based on desktop data and modelling ■ Scope out the likely technical, permitting, environmental and social risks related to the offshore site and transmission routes ■ Develop high level project concepts and detailed survey delivery programs ■ Prepare a proposal for each block application On completion of this stage the developers will have selected their blocks and completed preparations for the Stage 1 Survey License Approval process. 3.2 STAGE 1 SURVEY LICENSE APPROVAL PROCESS To date, in Viet Nam, three survey licenses have been awarded through legacy processes. In addition, several applications have been submitted and are pending approval. Several survey license applications were submitted before completion of the PDP8, and may not align with the latest offshore wind areas defined by government. Recently, regulations in Viet Nam (Decree 65) have been approved for the MoAE to grant developers survey rights for three years to conduct site investigations with implied exclusivity. Under the new regulations, no areas or caps are defined to limit where, and how big, the area developers can apply for a license. This process is independent of the price competition defined under other regulations (Decree 58). 3. Proposed Framework for Private Sector-led Developments in Viet Nam 28 The Stage 1 Survey License Approval process proposed in this report targets to award site exclusivity for 8 GW equivalent area for private sector-led projects. This report recommends that all developers who meet the pre-qualification criteria be given the opportunity to apply for the 8 GW of Survey Licenses, with overlapping applications resolved on a developer merit basis. The reason for recommending 8 GW is to ensure sufficient competition in the Stage 2 Price Competition, which aims to award 4 GW of Investment Agreements. Combined with the 2 GW of pilot projects, the total 6 GW figure is aligned with Viet Nam's current PDP8 target to install at least 6 GW of offshore wind projects for domestic power supply by 2030 to 2035. The key steps of the Stage 1 Survey License Approval process are summarized in Figure 3.3: FIGURE 3.3. OVERVIEW OF THE PROPOSED STAGE 1 SURVEY LICENSE APPROVAL PROCESS Stage 2 1st projects 1st projects Stage 1 Survey Price Reach Financial Complete License Approval Competition Close Construction C C 1 YEAR 2 YEARS 3 YEARS 2-3 YEARS 30 YEARS Stage 1 Survey License Approval Pre-qualification Proposal submission Assessment & award Developers must pass a Developers must submit a proposal, Proposals are assessed. pre-qualification step to outlining their credentials, proposed Winners are granted a Survey License, which be eligible project and survey activities gives site exclusivity for 5 years2. Winners are eligible to conduct surveys and apply for Investment Policy Approval Pre-qualification criteria Project proposal content Selection criteria Overlap, award and caps To qualify, applying entities Developer proposals will In case of overlapping Overlap resolution: must meet a minimum need to include: applications, the proposals In case of overlap, benchmark for: will be evaluated on: developer with highest • Proposed project block/ • Energy/infrastructure merit will be prioritized survey area • Project proposal experience • Developer credentials - Alignment of project Award: • Financial worth • Development concept with energy Successful developers will Scoring is on a Pass or organization masterplan be granted an exclusive Fail basis • Project concept - Quality of survey plan Survey License for their • Detailed survey plan area, which is valid for Developers that Pass are • Developer credentials & methodology 5 years2 and is extendable eligible to submit a proposal - Trade record in offshore at least once for the Stage 1 Survey wind and/or Viet Nam License Approval energy projects Developer cap: - Financial strength To ensure diversity - Availability of and avoid gaming, it is management, technical recommended to cap and commercial the maximum area resources specific to awarded to a single the country and project developer, within a single round and region to ~2GW1 1. A conservative density of 3MW/km2 is recommended by amending Decree No. 58/2025/ND-CP (Article 27.5). Regulations currently state a minimum density of 5MW/km2 (20 ha/MW) for Survey License plots and 20MW/km2 (5 ha/MW) for construction plots, which are above global benchmarks for offshore wind projects. 2. Regulations currently state that, in case two or more developers submit proposals for similar surveys (eg, offshore wind surveys) in the same sea area, authorities must select the preferred developer based on certain factors. Therefore, site exclusivity is implied for the period those survey rights remain valid. Survey rights are currently valid a period of 3 years – developers must reapply upon expiry. A 5-year license period with at least 1 extension allowance is recommended by amending Decree No. 65/2025/ND-CP (Article 2.14 adding Article 14a to Decree No. 11). It is also recommended to adjust the milestone when developers are required to disclose survey data from Investment Policy approval to Investor Agreement award, when the data is no longer commercially sensitive. 29 A Framework for Private Sector-led Offshore Wind Projects in Vietnam Pre-qualification It is recommended that the MoAE sets a pre-qualification stage for developers to apply for Survey Licenses. It is proposed that MoAE: ■ Announces the Prequalification Criteria ahead of receiving applications. The criteria should be focused on technical experience and financial worth. ■ Request developers to submit evidence of meeting the criteria when submitting Survey License applications. ■ Evaluate developers against the Prequalification Criteria. Scoring is on a pass or fail basis. ■ Continue to evaluate Survey License applications for those who pass. The pre-qualification should be assessed on a project basis, with a named developer that can be an individual organization or joint venture. The pre-qualification process primarily assesses the developer’s capabilities. To pre-qualify, a developer should demonstrate experience in offshore wind or energy project delivery, financial worth, and a good ESG track record. Scoring is on a pass or fail basis. Developers that receive a pass are eligible to enter the Stage 1 Survey License Application process. Stage 1 survey license application process In the Stage 1 Survey License Application process MoAE should: ■ Request developers to submit an application for each Survey License, as specified under the current regulations. ■ In case multiple developers apply for the same block, MoAE should assess proposals against a scoring framework, as outlined under current regulations. The following focus areas are suggested: • Project plan quality – Project concept, including alignment with Viet Nam’s energy masterplan – Survey plan, including maturity of contracting and readiness to conduct surveys • Developer capability – Track record in offshore wind and in Viet Nam energy projects – Financial strength of developer – Development organization, including the availability of management, technical and commercial resources specific to the project ■ Successful developers will be awarded a Survey License, which ideally is valid for five years and can be renewed once at the MoAE’s discretion. In principle the renewals should be granted, providing developers have made progress and delivered their survey plans according to their original proposals. ■ Successful bidders will obtain the data necessary to participate in future Stage 2 Price Competitions. 3. Proposed Framework for Private Sector-led Developments in Viet Nam 30 ■ At the conclusion of this stage developers will hold a Survey License with implied site exclusivity. After completing the necessary surveys, they may also commence permitting works by completing a Pre-Feasibility Study (Pre-FS) and obtaining an Investment Policy Approval, which is required to participate in the Stage 2 Price Competition. ■ The Stage 1 Survey License Approval process should be repeated every 2-3 years to maintain a pipeline that can support the Stage 2 Price Competitions and national targets beyond 2035, keeping a smooth pipeline of projects for the supply chain. ■ Developers should be able to submit proposals for multiple blocks and express their ranked preference. Caps One cap should apply to each Stage 1 Survey License Approval round: ■ Cap on GW volume awarded to each developer It is recommended to set an owner cap to limit the maximum capacity and corresponding number of blocks or area that can be granted to any one developer. This helps to increase the likelihood of successful delivery should a project be cancelled or a developer exits the market. It will also promote competition in the Stage 2 Price Competition by ensuring multiple developers are able to participate. An owner cap of 2 GW or an equivalent area of ~650 km2 (applying a density of 3 MW per km2) across all applications is suggested as a volume cap for the first round. This will help ensure at least four independent private sector developers will operate in Viet Nam to help kick off of the industry. Success factors In order to ensure a successful process, the following commitments are recommended: ■ Visibility of national targets and timelines, not just for the current round but for future rounds as well. Visibility of timing of at least three future rounds. ■ Communication on government initiatives to address key risks such as timely grid and harbor upgrades, and bankability of the PPA. ■ Timely announcements of competition timetable for current round. ■ Extensive consultation with industry. ■ Clear documentation on pre-qualification criteria and scoring criteria for overlap resolution. ■ Clear explanations on developer caps. ■ Well-resourced departments within MoAE with the capability to deliver to the timetable. 31 A Framework for Private Sector-led Offshore Wind Projects in Vietnam Timing Based on international experience, site exclusivity and tariff auctions could be held as often as every two years. In some markets they are held every year. The following factors should be considered when designing a timeline: ■ Sufficient forward planning time for project developers. ■ Sufficient time to collect site information. ■ Sufficient time to develop frameworks and update regulations, where required. ■ A smooth pipeline of projects that can support and sustain supply chains through development, manufacturing, and construction phases ■ Manageable workload for government and other stakeholders to ensure efficient processing of permitting, grid and offtake activities ■ Consider the results of one competition to be reviewed prior to establishing the next. A suggested timeline for the Stage 1 Selection Competition is presented in Table 3.1: TABLE 3.1. SUGGESTED TIMELINE FOR THE ROUND 1 — STAGE 1 SURVEY LICENSE APPROVAL PROCESS Month from award Activity • Announcement of the initial 10 GW Development Blocks and first 6 GW of -9 to -6 grid connections • Approval of first 2 (total 2 GW) SOE-led pilot project blocks by the Prime Minister Announcement by MoAE of: • Round 1 Survey License Approval timeline (as well as indicative timing of the next 2 ‘Rounds’) -6 • Detailed Round 1 Stage 1 Survey License Approval process, application templates, timeline and pre-qualification • Cap on GW volume area awarded to a single developer -6 to -3 Developers choose their preferred blocks and submit applications for Survey Licenses -3 Closing date for applications to MoAE for applications -3 to -2 Pre-qualification criteria assessed by MoAE Notification by MoAE to applicants confirming that they met / did not meet -2 Pre-qualification criteria -2 to 0 MoAE reviews developer proposals and resolves overlapping applications Provisional award advised to successful entries by MoAE privately, then announced 0 publicly, including (for each successful entry) • Developer name, project name, location and size Award Survey Licenses awarded and issued by competent authority It is recommended that the Round 1 Development Blocks and draft Stage 1 Survey License Approval process are announced in mid-2025, with the first 8 GW of Survey Licenses (site exclusivity) awarded in early 2026 (two years before the first Stage 2 Price Competition in 2028). 3. Proposed Framework for Private Sector-led Developments in Viet Nam 32 3.3 EARLY DEVELOPMENT STAGE The early development stage should be led by developers. In this stage, each developer gathers more information on its sites and refines project designs and understanding of project economics and financing arrangements, in preparation for the price competition, as well as progressing some permitting activities such as completion of the Pre-FS and obtaining the Investment Policy Approval. Developers will: ■ Commence site investigations, including: • offshore wind and metocean measurements • environmental and social surveys to inform environmental and social impact assessment (ESIA) • preliminary seabed surveys (geophysical and geotechnical) to inform design and turbine micro-siting • conduct land studies and cable routing feasibility studies ■ Complete the Pre-FS and obtain Investment Policy Approval. ■ Carry out grid studies. ■ Develop a base case layout and design concept. ■ Develop supply chain and financing concepts. ■ Conduct initial procurement activities. ■ Complete development, construction, operations and financial assumptions. ■ Develop a financial model to inform tariff pricing. At the end of this stage developers will have the data and understanding of their site required to participate in the Stage 2 Price Competition. However, due to the design of Viet Nam regulations, developers can only make limited progress on their consenting program prior to winning a price competition and being awarded an Investment Agreement. This means that a bulk of consenting activities and at least 3 years of development activities will need to occur after the Stage 2 Price Competition. 33 A Framework for Private Sector-led Offshore Wind Projects in Vietnam Stage 2 preparation In parallel to the above activities, MOIT should: ■ Expedite any changes or supplements to regulations required to implement the Stage 2 Price Competition. ■ Draft detailed rules for the Stage 2 Price Competition, in consultation with developers. ■ Clarify PPA bankability issues, in consultation with developers. ■ Calculate the tariff price cap, in consultation with developers. ■ Publish the final rules of the competition, including scoring criteria, the template Investment Agreement, PPA terms and any bonds payable. RECOMMENDATION 9 Improve bankability of the Model PPA, focusing on: ■ Dispatch, connection and ■ Termination events transmission risk ■ Termination compensation ■ Foreign exchange risk ■ Offtaker guarantee ■ Change in law / tax risk ■ Force Majeure ■ Dispute resolution (See section 4 for further details). RECOMMENDATION 10 Draft competition rules for Stage 2 Price Competition, including: ■ Pre-qualification criteria. ■ Assessment score sheets. ■ Structure and details of content required in developer proposals. ■ Evaluation of an appropriate bid price cap value. 3. Proposed Framework for Private Sector-led Developments in Viet Nam 34 RECOMMENDATION 11 Investigate regulatory amendments required to approve foreign investors and issue permits including Feasibility Study, seabed and onshore land leases, grid and construction permits. Bid price delivery risk It should be noted that due to the design of Viet Nam’s regulatory framework, there is a long period between the Stage 2 Price Competition and the signing of construction contracts and loan agreements (3+ years). During this period several business case drivers could fluctuate and impact a developer’s ability to deliver on their bid price, including: ■ Interest rates ■ Commodity prices ■ Foreign exchange rates ■ Supply chain availability ■ Inflation Current regulations address scenarios where costs decrease, in favour of the offtaker EVN. However, there are no mechanisms to deal with a scenario where costs go up. This takes away developer up-sides without removing any downsides, which could undermine the bidding process and deter investors. A fair and clear mechanism should be put in place to address the risk of deliverability against the bid price, due to price competitions occurring early in the development program. RECOMMENDATION 12 Address bid price delivery risk due to long lead time between price bid and Financial Close. Revisit regulations on PPA price adjustment mechanisms. 35 A Framework for Private Sector-led Offshore Wind Projects in Vietnam 3.4 STAGE 2 PRICE COMPETITION The Stage 2 Price Competition aims to formally approve the developer and award a fixed price, long-term PPA tariff (for 4 GW of connected capacity in the first competition). The reason for recommending 4 GW is to align with Viet Nam’s current draft PDP8 target to install 6 GW of offshore wind projects by 2030 to 2035 (2 GW SOE-led and 4 GW private sector-led projects). The key steps of the Stage 2 Price Competition are summarized in Figure 3.4: FIGURE 3.4. OVERVIEW OF THE STAGE 2 PRICE COMPETITION Stage 2 1st projects 1st projects Stage 1 Survey Price Reach Financial Complete License Approval Competition Close Construction C C 1 YEAR 2 YEARS 3 YEARS 2-3 YEARS 30 YEARS Stage 2 Price Competition Pre-qualification Proposal & bid price submission Assessment & award To qualify, applying Developers must submit a bid Scores are tallied and projects are ranked entities must have met price $/MWh and a proposal, Winners receive an Investment Agreement, certain conditions, such as: outlining the project status and which gives a guaranteed grid connection and • An Investment Policy maturity of development right to a 20yr PPA at the submitted bid price Approval Pre-qualification criteria Project proposal content Selection criteria Award and caps To qualify, applying entities Submissions will need to The scoring framework Award: must have met certain include: will evaluate proposals on Successful bidders will be conditions, such as: 3 main areas: awarded an Investment • A bid price ($ per kWh) Agreement, which gives a • An Investment • Ownership and • Tariff price guaranteed grid connection Policy Approval funding strcture2 - Price in $ per kWh and a right to a 20yr PPA, • A Survey License • Developer experience, • Developer capability2 subject to permits being for the project area and capabilities2 • Project maturity obtained. A bond will be • Organization plan - Strength of payable against project • Project plan and status in-country team delivery milestones. — focusing on maturity of development - Project progress, 3 caps are suggested: measured by activities • Cap on bid price delivered and site data • Cap on volume by acquired to date geographical area or - Maturity of design, grid connection point supply chain • Cap on overall engagement & business power purchase case assumptions - Deliverability of development and construction schedule 1. As part of the Investment Policy Approval process, project features such layout, capacity, grid connection point, financials etc will be submitted and reviewed/approved (Pre FS approval). 2. The key purpose of the Investment Agreement process is to approve the developer, therefore an ownership review is included as part of the Stage 2 competition. 3. Proposed Framework for Private Sector-led Developments in Viet Nam 36 Pre-qualification Only developers and projects successful in the Stage 1 Survey License Approval process should be eligible to participate in the Stage 2 Competition. Other certain conditions should be made clear prior to the Stage 2 Competition, for instance: ■ The project must complete a Pre-FS and have obtained an Investment Policy Approval. The Investment Policy Approval process is defined under Viet Nam regulations and focuses on assessing the technical aspects of a project, such as: • Project connection capacity (MW), connection location(s) and connection date • Project concept and layout • Project implementation plan • Supply chain plan • Financial plan • Project schedule • Alignment of the project with the PDP ■ The project must have obtained a Survey License for the project area. Stage 2 competition process MOIT should: ■ Request bidders to submit the following: • A bid price ($ per MWh) • Ownership and funding structures • Developer experience and capabilities • Developer organisation plan • Project benefits • Project plan and status — focusing on maturity of development ■ Evaluate submissions against a scoring framework designed to evaluate two main criteria, developer capability and tariff price in $ per MWh. It is noted that current Viet Nam regulations suggest that Developer Capability will be assessed first — all projects must meet a certain capability threshold to be awarded an Investment Agreement. If met, the projects will then be ranked based on price only. The same principle could be applied for offshore wind. The following focus areas are suggested: • Developer capability – Historical track record of the owners in offshore wind and Viet Nam energy infrastructure – Financial strength of the owners – Strength and experience of in-country project team – Project progress, measured by activities delivered and site data acquired to date 37 A Framework for Private Sector-led Offshore Wind Projects in Vietnam – Maturity of design concept – Extent of supply chain engagement – Deliverability of development and construction schedule – Maturity of business case assumptions • Tariff price – Price in $ per MWh ■ The bids should be ranked and screened according to their requested grid connection points. Once the available connection capacity is consumed, lower ranking bids will be automatically ruled out. ■ Successful bidders will be awarded an Investment Agreement, which should provide a guaranteed grid connection and a right to a PPA tariff at the submitted bid price, subject to obtaining the pre-requisite permits. ■ Successful bidders will be required to pay a bond, and commit to achieving key milestones such as Financial Close and construction completion by a certain date. Caps Three caps are recommended: i) Cap on GW volume by geographical area – This cap ensures the offshore wind pipeline does not significantly exceed future demand and is aligned with available grid capacity and future planned grid upgrades. It gives the government flexibility to manage competitions based on market activity and changes between competitions. Ongoing good communication is needed regarding this cap, as any limitation is likely to have an impact on competition As stated earlier in this report, it is recommended that the site planning process considers this in the release of the Development Blocks. It is also important that industry is well informed of the big picture, before specific caps are set. ii) Cap on bid price – This cap already exists under current regulations and is to ensure value for money for consumers. It is likely to be lowered steadily over time, with the level set in expectation that a range of competitive bids are received that are under this level. The cap will be developed by government by modelling expected energy production, development, construction and operational costs. It is important that the cap is published for developer comments prior to being finalized. iii) Cap on overall power purchase net cost – This cap is designed to reward industry with more offshore wind capacity if the net cost of contracts is reduced through lower bid prices, and to limit overall value of PPAs. This allows the government to set an overall budget for offshore wind PPAs that cannot be exceeded. 3. Proposed Framework for Private Sector-led Developments in Viet Nam 38 Success factors In order to ensure a successful competition, the following is required: ■ Timely announcements of competition timetable. ■ Extensive consultation with industry. ■ Clear documentation and justification of caps. ■ Clear documentation of assessment criteria and any competition conditions. ■ Provision of a draft PPA or terms that address bankability issues for offshore wind projects in Viet Nam. ■ Well-resourced departments within MOIT with capability to deliver to the timetable. Timing Stage 2 Price Competitions should be repeated every 2-3 years to maintain a pipeline that feeds industry and supports national targets beyond 2035. A suggested timeline for the first Stage 2 Price Competition is presented in Table 3.2. TABLE 3.2. SUGGESTED TIMELINE FOR THE FIRST ROUND 1 — STAGE 2 PRICE COMPETITION Month from award Activity Announcement by MOIT of draft: • Detailed Round 1 Stage 2 competition timeline, competition rules, award criteria and bonds • Available grid connection capacities, locations and connection dates -12 • Project delivery requirements, such as FID / FC and construction completion milestones • Caps on bid price, GW by geographical area and overall power purchase net cost • Investment Agreement template • Offshore wind PPA template Announcement by MOIT of final: • Detailed Round 1 Stage 2 competition timeline, competition rules, award criteria and bonds • Available grid connection capacities, locations and connection dates -6 • Project delivery requirements, such as financial close and construction completion milestones • Caps on bid price, GW by geographical area and overall power purchase net cost • Investment Agreement template • Offshore wind PPA template 39 A Framework for Private Sector-led Offshore Wind Projects in Vietnam Month from award Activity -3 Closing date for bids -3 to -1 Bids assessed by MOIT -1 Provisional award notification to winning bidders by MOIT -1 to 0 Finalization of Investment Agreement between developer and MOIT Investment Agreement signed, including the information below: • Grid connection capacity, connection point and date Award • PPA tariff price (equivalent to bid price) • PPA template • Bond conditions Post Award Grid agreements and PPA signed in line with Viet Nam permitting requirements It is suggested that the draft Round 1 Stage 2 competition rules are announced in 2027, with the first 4 GW Investment Agreements for private sector-led projects awarded in 2028 (two years after the first Stage 1 Survey License Approval process). 3.5 LATE DEVELOPMENT STAGE The late development stage is led by developers. In this stage each developer will continue developing their projects, obtaining permits, and reaching a final investment decision or financial close prior to commencing project construction. The confirmation of a PPA price provides the certainty needed to spend the remaining development budget, however, in the period between the price competition and financial close, many things can impact deliverability of the project at the price promised. After the price competition developers will: ■ Complete site investigations, in particular more detailed geological surveys. ■ Obtain full ESIA approvals, Feasibility Study approvals, grid connection agreements and other permits. ■ Obtain necessary landowner approvals, land leases and harbor leases. ■ Finalize detailed project design and certification processes. ■ Finalize procurement. ■ Conduct early-works where possible. ■ Secure financing. At the end of this stage developers will commence construction of the offshore wind farm. 3. Proposed Framework for Private Sector-led Developments in Viet Nam 40 3.6 PERMITTING A key deliverable of the development phase is to secure all the required permits to start construction of the offshore wind farm. It is expected that offshore wind projects will need to obtain the standard permits required of Vietnamese power projects, namely: ■ Survey license (awarded via Stage 1 process). ■ Pre-Feasibility Study (Pre-FS) & Investment Policy approval. ■ Investment Agreement (awarded via Stage 2 competition). ■ Environmental approvals. ■ Onshore, nearshore, and offshore land use rights (as relevant). ■ Feasibility Study (FS) approval. ■ Grid related agreements (grid connection capacity, location & date awarded via Stage 2 competition). ■ PPA approvals (tariff price awarded via Stage 2 competition). ■ Technical design approvals. ■ Construction permit. ■ Electricity generation permit. 3.7 SUMMARY OF RECOMMENDATIONS In order to implement the above framework and ensure a successful start for the offshore wind industry, it is recommended that the government prioritizes the following: 1. Perform high level planning of target capacities and timelines for Stage 1 Survey License Award and Stage 2 Price Competition cycles. This should include capacities to be awarded and frequency of competitions (a 10 year lookahead is recommended). 2. Establish cross-ministerial oversight to ensure the framework is implemented across all government departments and projects are progressing. 3. Align the granting of exclusive survey rights with the price competition process. Update the MSP to include the first 10 GW of seabed areas (Development Blocks) for offshore wind development, specifying the first 2GW allocated to SOE-led projects. Then, announce the first 10 GW of Development Blocks and 6 GW of grid connections. Align with PDP8 as necessary. 4. Announce intentions to release the 8 GW area for private sector-led surveys simultaneously via an open, time-controlled process. Establish and announce a simple pre-qualification criteria for survey permissions, with all developers meeting the criteria allowed to submit applications. 41 A Framework for Private Sector-led Offshore Wind Projects in Vietnam 5. Update regulations on minimum capacity density limits: a. Pre-survey stage: Change minimum limit from 5 MW per km2 to 3 MW per km2 b. Pre construction stage: Change minimum limit from 20 MW per km2 to 6 MW per km2 6. Perform detailed planning and funding of grid and harbour upgrades required to support target capacities and connection timelines. 7. Update survey related regulations to encourage investment in high-cost surveys: • Extend survey license period from three years to five years with at least one extension period granted upon MoAE’s discretion, which would only be granted if satisfactory progress has been made. • Amend the survey data reporting milestone from Investment Policy (Pre-FS) approval to Investment Agreement award. Data should only be required to be reported once the information is no longer commercially sensitive. 8. Prepare for Stage 1 Survey License Approval process, including detailed drafting of: a. Pre-qualification criteria b. Area caps c. Application templates d. Assessment criteria and score sheets in case of overlapping applications 9. Ensure bankability of the model PPA focusing on: a. Dispatch, connection and transmission risk b. Foreign exchange risk c. Change in law / tax risk d. Dispute resolution e. Termination events f. Termination compensation g. Offtaker guarantee h. Force Majeure 10. Draft competition rules for the Stage 2 Price Competition, including: a. Pre-qualification criteria b. Assessment score sheets c. Structure and details of content required in developer proposals d. Evaluation of an appropriate bid price cap value 11. Investigate regulatory amendments required to approve foreign investors and issue permits including Feasibility Study approvals, seabed and onshore land leases, grid and construction permits. 12. Address bid price delivery risk due to long lead time between price bid and Financial Close. Regulations may need to be changed to incorporate PPA price adjustment mechanisms. 3. Proposed Framework for Private Sector-led Developments in Viet Nam 42 4. PROPOSED REGULATORY UPDATES The offshore wind framework proposed in this report aims to minimise regulatory updates. This section outlines key areas that will need to be addressed to ensure the framework can be implemented. 4.1 AUTHORITY ROLES To enable the framework proposed in this report to function smoothly, updates to the roles and responsibilities of authorities and existing regulations will be required. The key principles behind the proposed allocation of roles and responsibilities are outlined below: (i) Central Planning Authority: while PDP8 provides national targets across generation technologies, the development of a complementary generation rollout plan is needed to avoid curtailment, follow least-cost planning principles, and transparently signal the location of new generation capacity to private investors. Experience in the power sector has demonstrated the inefficiencies which stem from the adoption of ad hoc bottom-up generation developments rather than a centrally coordinated top-down approach. Central planning should: (i) establish yearly targets for generation, (ii) match the location of new generation with grid network capacity to avoid curtailment risk, and (iii) avoid sub- optimal power plants development to prevent the duplication of associated infrastructure needs. (ii) Central Procurement Authority: the efficient and transparent procurement of new generation capacity would require a centralized approach led by sector relevant institutions with standard: (i) procurement processes with clear roles and responsibilities of sector institutions, (ii) suitable selection criteria, (iii) tender documents, (iv) PPAs. Central procurement will ensure a consistent, technically driven, approach to selection of investors in new generation capacity and minimize the risks for EVN as the off taker, in the past which has led to significant delays to the signing of the PPA. It will also support a least-cost approach to power procurement to maximize value for money and minimize the impact on the tariff and consumer affordability. Such features will attract both domestic and international investors, state-of-the-art know-how and develop a competitive market for price discovery. This includes detailing clear risk allocation, termination provisions, arbitration processes measures. Further, while the tender and PPAs documents should be standardized, they should also be tailored to their specific technologies, sector stakeholders, and national strategic relevance. 43 A Framework for Private Sector-led Offshore Wind Projects in Vietnam (iii) Consensus based system: The many different parties involved (i.e. MOIT, provinces, EVN, and MoAE at a minimum) should be consulted and engaged across the procurement process under the leadership and coordination of the Central Authority to gather feedback and ensure consensus. Under the 2024 Electricity Law, the government will detail a process for coordination between ministries, ministerial-level agencies, provincial-level People’s Committees with seas and other relevant agencies. This gives a legal basis for the government, MOIT, MoAE and relevant ministries and agencies to develop a coordination mechanism in further detail to ensure effective implementation. (iv) Oversight committee: As the achievement of the 6 GW target is highly time constrained, it is recommended to establish an executive committee for managing the implementation of the procurement framework. This could take the shape of a cross-Ministerial and Authorities Working Group under the leadership of the PM. Its main objectives would be to ensure steady progress from all relevant parties and increase the efficiency of each step of the procurement process. 4. Proposed Regulatory Updates 44 4.2 REGULATORY CHANGES A summary of the key framework steps, proposed responsible authorities and recommended regulatory updates are presented in Table 7.1. TABLE 4. SUMMARY OF FRAMEWORK STAGES, RESPONSIBLE AUTHORITIES AND REGULATORY CHANGES REQUIRED Framework stage Lead Agency Responsibility Main output Required regulatory changes Marine Spatial Plan Ministry of Following MSP approval under NA Offshore wind None, provided that all works are captured under current “MSP” and MSP Agriculture and Resolution 139 of 28 June 2024 and development areas regulations without changing existing process and Implementation Plan Environment MSP Implementation Plan under GoV responsibilities of involved parties, including: MoAE, PPC, (MoAE) Resolution 37 of 27 Feb 2025, MoAE MOIT, and EVN and to the extent relevant, MND, MPS, will lead the implementation of the MOFA, MOF (incorporating MPI). MSP in consultation with the MOIT and relevant authorities Offshore wind MOIT / MoAE MOIT will lead the selection and release  10 GW offshore wind None – following Government’s new Decree 58 (as drafted development blocks of offshore wind blocks in consultation Development Blocks (2 by MOIT) detailing procurement procedures for offshore with MoAE, EVN and other relevant GW for SOE-led pilots and wind projects led by private sector. authorities 8 GW for private sector- Revised PDP8 / implementation plan to approve offshore led projects) wind development capacity and blocks (aligned with MSP Implementation Plan). Process for Stage 1 MOIT / MoAE MOIT and MoAE will lead the Final rules, timelines and Higher minimum site densities of 3 MW/km2(pre-survey) Survey License Approval development of competition assessment criteria and 6 MW/km2 (pre-construction) is recommended by (site exclusivity) rules, timelines, prequalification amending Decree No. 58/2025/ND-CP (Article 27.5). requirements, caps, overlap resolution Regulations currently state minimum densities of 5 process and scoring criteria MW/km2 (20 ha/MW) for pre-survey areas and 20 MW/ km2 (5 ha/MW) for construction areas, which are above global benchmarks for offshore wind projects. No other updates are required following Government’s new decree 58 (as drafted by MOIT) detailing procurement procedures for offshore wind projects led by private sector and new decree 65 (as drafted by MoAE) related to sea area allocation for survey. 45 A Framework for Private Sector-led Offshore Wind Projects in Vietnam Framework stage Lead Agency Responsibility Main output Required regulatory changes Survey rights MoAE MoAE will coordinate to lead the Survey permissions A 5 year license period with at least 1 discretional approval of Survey License award to extension period is recommended by amending Decree developers. Survey Licenses will be No. 65/2025/ND-CP (Article 2.14 adding Article 14a to awarded on an exclusive basis. MoAE Decree No. 11). Regulations currently state a period of 3 / VASI will administer the process of years — developers must reapply upon expiry. It is also allocating offshore areas for Survey recommended to adjust the milestone when developers Licenses as approved by MoAE are required to disclose survey data from Investment Policy approval to Investor Agreement award. No other updates are required following Government’s new decrees 56/2025 and 58/2025 implementing the 2024 Electricity Law and/or Bidding Law, Investment Law or otherwise (as drafted by MOIT) and Decree 65/2025 on site survey (as drafted by MoAE). Upon receipt of application from Investment Policy None – following Government’s new decrees 56/2025 and relevant applying investors or Approval for the project 58/2025 implementing the 2024 Electricity Law and/or PM / authorities’ proposal, the PM / MOF Investment approval Bidding Law, Investment Law or otherwise (as drafted by MOF / or MOIT or PPCs (to be determined for the project MOIT) and Decree 65/2025 on site surveys (as drafted by MOIT on a project by project basis) will lead MoAE). granting Investment Policy Approval for the project Bid price cap MOIT MOIT will issue a Circular (drafted by Ceiling price to be None – following MOIT new Circular 09/2025/TT-BCT Electricity Department) determining applied in Stage 2 Tariff dated 1 Feb 2025 on power generation price bracket / regulations of offshore wind tariff Competition ceiling , MOIT to issue an MOIT decision on new ceiling setting through setting of a ceiling tariff for OSW (specific to offshore wind).  price for OSW in each relevant year in compliance with existing laws. Competitive process MOIT/EVN MOIT/EVN will lead development of Final competition rules, None – following Government’s new Decree 58 (as drafted for Stage 2 Price competition rules, timelines, caps, caps, timelines and by MOIT) detailing procurement procedures for offshore Competition and scoring criteria, in consultation scoring criteria wind projects led by private sector. (PPA tariff with other relevant Ministries and Clarity will be required on flexibilities and terms for confirmation & Authorities negotiating PPAs with EVN following the award of the investment Investment Agreement. Under current regulations, there agreement award) is a long period between the Stage 2 Price Competition and Financial Close — during this period there is a risk that business case assumptions will change, impacting developer bid prices. Relevant adjustment mechanisms may need to be developed for this scenario within regulations such as Decree 115/2024, Decree No. 58/2025, Circular No. 12/2025/TT-BCT, Circular 27/2024/TT-BCT 4. Proposed Regulatory Updates 46 Framework stage Lead Agency Responsibility Main output Required regulatory changes Other permits Several Agencies EIA approval: MoAE/PPC/DoAE Construction & The new Electricity Law amends the Construction Law FS approval: MOIT Operations approval (Article 89.2) to include “Offshore works belonging to Seabed lease: MoAE; VASI; PPCs offshore wind power projects that have been assigned sea areas by competent authorities for project implementation” Interconnection Agreement: NPT as an additional case eligible for exemption from a SCADA Agreement: EVN / NSMO construction permit. Protective Relay System Agreement: None – following Government’s new Decree 58 (as drafted EVN / NSMO by MOIT) detailing procurement procedures for offshore Metering Agreement: EPTC wind projects led by private sector, and new decree 65 (as PPA: EVN/EPTC drafted by MoAE) related to sea area allocation for survey. Construction Permit: MOC / DOC Further updates may be necessary in other relevant laws Operation License for Individual for smoother implementation of offshore wind. Operators: NSMO Electricity Operation License: MOIT / Electricity Department 47 A Framework for Private Sector-led Offshore Wind Projects in Vietnam 4.3 IMPROVING PPA BANKABILITY Viet Nam’s existing PPAs are tailored to domestic investors. To facilitate international funding, key challenges relating to bankability need to be addressed. At the time of this report, the document to reference is the Model power PPA for wind power projects (“Model Wind PPA”) under Circular No. 02/2019/TT-BCT (Circular 02), which was amended by Circular No. 01/2023/TT-BCT annulling some provisions of Circular 02, in particular provisions on power tariffs under the Model Wind PPA, and Circular No. 12/2025/TT-BCT setting forth tariff determinations and main provisions of PPAs. The amended Circular 02 does not differentiate between onshore/nearshore and offshore projects. Although there has been some experience in the country with onshore and nearshore wind developments, regulated up to December 2021 by a FiT regime, there is lack of commercial clarity for specific offshore wind contractual arrangements. Such challenges are best addressed through dialogue with industry and with an understanding of international good practice. The main aspects to be addressed include: Dispatch, transmission, and connection risks Under the 2024 Electricity Law, offshore wind power projects are entitled to “minimum long-term contracted electricity output for projects selling electricity to the national power system” under conditions and timelines to be prescribed by the Government. The current Model Wind PPA does not adopt the concept of the availability or deemed energy charge/deemed commissioning to allow for payments in the event the facility or a section are operational, and the grid network is not ready or does not have the necessary dispatch and transmission capacity to integrate energy variability. This leaves uncertainties as to whether the power seller can be able to cover certain fixed costs (including debt service and fixed operating costs) as well as some return on equity. Alternatively, a “take if delivered” model would mitigate the risk of a low offtake commitment. A “take if delivered” model requires the power purchaser to take all electricity generated by the project, subject only to the right of the power purchaser to curtail the project if it is instructed to do so by the regulator. The “take or pay” approach sees the power purchaser paying (i) an “availability” or “deemed energy charge,” which is a fixed amount that is paid regardless of whether the facility is dispatched so long as the plant is available at the agreed minimum level; and (ii) an “output” or “energy charge,” which is an amount paid in respect of energy delivered. Typically, the lenders will need to be reasonably comfortable in considering (i) resource risk, (ii) current supply and demand curves, and (iii) the competitiveness of the price. Note that in some markets, lenders sensitivity to curtailment risks has been mitigated by high grid availability statistics, lack of curtailment precedent, and by despatch rules that prioritise the despatch of renewable energy. Further, the PPA should indicate which party bears the risk of connecting the facility with the grid and transmitting power to the nearest substation. The more significant these risks (due to terrain, distance, populated areas), the more the lenders will require the off taker to bear all or a significant portion thereof. 4. Proposed Regulatory Updates 48 Foreign exchange risk It is important that the revenue of any PPA, whether “take or pay” or “take and pay,” be a fixed amount per kWh generated to adequately cover the cost of operating the facility, repay the debt and provide a reasonable return on equity. Given the lack of legal framework to determine the tariff applicable to offshore wind power projects after the expiration of FiT deadline (applicable only to near shore projects), under the current regulations on foreign exchange, within the territory of Viet Nam, all transactions and payments must not be conducted in foreign exchange except for cases permitted by State Bank of Viet Nam.12 Under the past FiT program, the FiT could be adjusted according to the VND-US$ exchange rate fluctuation at the time of payment. The Model Wind PPA reflects the specific formula for calculation of the power purchase price in alignment with Circular No. 02. Accordingly, the exchange rate applicable to power purchase price shall be the central VND-US$ exchange rate fluctuation announced by the State Bank of Viet Nam on the date the power seller issues invoice. However, for offshore wind projects, it remains unclear if there would be an indexation to US$ for the tariff of offshore wind projects. Change in law or change in tax risk The Model Wind PPA and Circular No. 02 do not include any specific provision addressing the risk of changes in law after the date of the PPA in such a way as to diminish the economic returns of the transaction for the power seller. Lenders may seek a PPA that ensures that the power purchaser takes the risk of the law or tax regime changing after the date of the agreement in such a way as to diminish the economic returns of the transaction for the power seller. Lenders may require the power purchaser to take this risk (usually in the form of supplemental tariffs). Dispute resolution Under the Model Wind PPA, disputes over the PPA can be resolved by negotiation, and dispute resolution. Although the Model Wind PPA generally allows the parties to resolve disputes “in accordance with the laws” (i.e. using offshore/international arbitration), this vague wording does not oblige EVN to agree on the use of international or foreign arbitration. To mitigate the risk of undue influence by the government in proceedings, international lenders typically require arbitration in a foreign, typically neutral, venue, under rules generally acceptable to the international community (e.g. UNCITRAL or LCIA or ICC). Termination events The PPA should set out clearly the basis on which either party may terminate the PPA. Termination by the off taker may leave the project without access to the market and thus be limited to significant events. Under the Model Wind PPA, the scope of the power seller’s breaches that grant EVN the rights to unilaterally terminate the PPA is quite broad and should be carefully detailed. For example, EVN has right to unilaterally terminate the PPA in case the power seller fails to comply with (any) contents of the PPA within 60 (sixty) days of EVN’s written notice (with a grace period of up to one year). 12 Article 22 of Ordinance No. 28/2005/PL-UBTVQH11 of the Standing Committee of National Assembly on Foreign Exchange (as amended). 49 A Framework for Private Sector-led Offshore Wind Projects in Vietnam Termination compensation payments The agreement should provide that if the PPA is terminated for any reason, then in case of transfer of the facility to the off taker, the off taker shall provide a termination payment at least equal to the full amount of the power producer’s outstanding bank debt, and in the case of the off-taker’s default, a return on equity. Under the Model Wind PPA, upon termination of the PPA, the non- defaulting party can make a claim to the defaulting party for compensation of direct and actual damages. The non-defaulting party must prove any such damages caused by the defaulting party and any direct benefits that the non-defaulting party would have been entitled to in cases where there is no such default by the defaulting party. Under the Model Wind PPA, it remains unclear and uncertain as to the level and components of termination amounts in the event of termination of the PPA (whether EVN will compensate an amount that is sufficient to cover outstanding debts and/or incurred investment costs). Offtaker guarantee Depending upon the size of the project and the creditworthiness of the off taker and the development of the energy sector in the country, short term liquidity instrument, a liquidity facility and/or a sovereign guaranty will be required to support the off-taker’s payment obligations. Guarantees may cover for foreign exchange risk and termination risk. Force majeure The agreement should excuse the power producer from performing its obligations if a force majeure event (an event beyond the reasonable control of such party) prevents such performance. The allocation of costs and risk of loss associated with a force majeure event will depend on the availability of insurance and in some cases the degree of political risk in the country/region. 4. Proposed Regulatory Updates 50 5. DELIVERY TIMELINE To signal to investors that Viet Nam offers reliable, long term investment opportunities in offshore wind, it is key to have medium-term deployment targets and a long-term vision, with clear timelines for securing competitions every two to three years that are well communicated to the private sector. These targets and timelines must be accompanied by a comprehensive and clear legal framework that can create bankable projects and allows investors to foresee matters or risks related to the projects. For Viet Nam, it is recommended that Stage 1 Survey License Approval and Stage 2 Price Competition rounds are held every 2 to 3 years. An overview of competition rounds, focusing on delivery of the first 6 GW of projects, or first 4 GW of private sector-led projects (Round 1), should be released as soon as possible. An overview to support the award of multiple GW by the mid 2030s is illustrated below. The program can be tailored to suit any long-term offshore wind target: FIGURE 5.1. ILLUSTRATIVE TIMELINE TO DELIVER THE FIRST 6 GW OF PROJECTS SUPPLYING DOMESTIC POWER DEMANDS BY 2030 TO 2035 (AND 114 TO 139 GW BY 2050) THIS FRAMEWORK CAN BE TAILORED TO SUIT ANY LONG-TERM GW TARGET 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Competition Rounds R1 Stage 1 R2 Stage 1 R3 Stage 1 R4 Stage 1 R4 Stage 1 Round 1: R1 Stage 2 R2 Stage 2 R3 Stage 2 R3 Stage 2 8 GW Survey Round 1: Round 2: Round 3: Round 4: License Approval 4 GW Price ~2 GW Price ~2 GW Price ~2 GW Price Competition Competition Competition Competition Grid studies Round 1 (R1) Marine Spatial Plan and Offshore wind sector plan {MSP Implementation Plan) Planning Stage 2GW pilot project sites confirmed 8GW Development Blocks for private sector projects confirmed Drafting of application process (aligned with Decrees 58 on offshore wind project procurement and 65 on Survey Licenses) R1 Stage 1 Final application process announced Survey License Approval Pre-qualification complete Proposal review, overlap resolution and award of exclusive Survey Licenses for up to 8 GW Development of bankable template offshore wind PPA R1 Stage 2 Drafting of price competition rules and Investment Agreement Price Competition Price competition rules announced Award of Investment Agreements for 4 GW (private sector projects) First surveys First Private sector First private sector-led projects reach Final Investment commence investors approved & Decision or Financial Close (private sector) PPA tariffs confirmed First SOE-led pilot projects complete construction Project First private sector- Implementation led projects complete construction 6 GW construction 2 GW 2 GW 2 GW complete by 2035 A more detailed overview of timelines to prepare for the Stage 1 Survey License Approval and Stage 2 Price Competition processes are presented in Tables 5.1 and 5.2 respectively. The above timeline reflects the minimum time required to design and implement Viet Nam’s offshore wind framework and initial projects. From the above timeline, it is achievable to see the PDP8 target of 6 GW installed from 2030 to 2035. 51 A Framework for Private Sector-led Offshore Wind Projects in Vietnam APPENDIX A — PROPOSED VIET NAM OFFSHORE WIND SITES TABLE A1. PROPOSED OFFSHORE WIND SITES TO SUPPORT 17 GW BY 2035 TARGET Proposed Offshore wind blocks Proposed grid No. OSW development clusters capacity Capacity Completion Project name connection point (MW) (MW) I Northern region 11,200 MW Northern 1.1 (*) 500 BB 1 Substation 2030 Northern 1.2 (*) 500 BB 1 Substation 2030 1 Northern 1 2,200 Northern 1.3 (*) 500 BB 1 Substation 2030 Northern 1.4 700 BB 1 Substation 2035 Northern 2.1 (*) 500 BB 1 Substation 2030 2 Northern 2 1,000 Northern 2.2 500 BB 1 Substation 2035 Northern 3.1 (*) 500 BB 3 Substation 2030 3 Northern 3 1,000 Northern 3.2 500 BB 3 Substation 2035 4 Northern 4 1,000 Northern 4 1000 BB 2 Substation 2035 5 Northern 5 1,000 Northern 5 1000 BB 2 Substation 2035 6 Northern 6 1,000 Northern 6 1000 BB 2 Substation 2035 7 Northern 7 1,000 Northern 7 1000 BB 2 Substation 2035 8 Northern 8 1,000 Northern 8 1000 BB 3 Substation 2035 9 Northern 9 1,000 Northern 9 1000 BB 4 Substation 2035 10 Northern 10 1,000 Northern 10 1000 BB 4 Substation 2035 II South Central region 4,300 MW South Central 1.1 (*) 500 NTB1 Substation 2030 South Central 1.2 (*) 500 NTB1 Substation 2030 1 South Central 1 2,000 South Central 1.3 (*) 500 NTB1 Substation 2030 South Central 1.4 500 NTB1 Substation 2035 South Central 2.1 (*) 500 NTB2 Substation 2030 2 South Central 2 1,000 South Central 2.2 500 NTB2 Substation 2035 3 South Central 3 1,300 South Central 3 1300 NTB3 Substation 2035 III Southern region 1,500 1 Southern 1 500 Southern 1 (*) 500 NB1 Substation 2030 2 Southern 2 500 Southern 2 (*) 500 NB2 Substation 2030 3 Southern 3 500 Southern 3 (*) 500 NB3 Substation 2030 Northern region 11,200 MW South Central region 4,300 MW Total Southern region 1,500 MW TOTAL 17,000 MW Appendix A — Proposed Viet Nam Offshore Wind Sites 52 TABLE A2. POTENTIAL RENEWABLE ENERGY SITES (INCLUDING OFFSHORE WIND) FOR POWER EXPORT Estimated No. Projects Technology Notes capacity (MW) Based on other 1 OSW power export projects 8,000 to 10,000 Offshore wind country proposals Proposed by 2 TGS Duyen Hai offshore wind 2,000 Offshore wind Tra Vinh province Renewable energy 3 Power export from Ca Mau 2,000 to 5,000 Ca Mau province sources Proposed by 4 Bac Lieu 5 wind power project 10,000 Offshore wind Bac Lieu province OSW power project for Proposed by 5 3,000 Offshore wind export to Malaysia Bac Lieu province Source: Revised PDP8 approved in April 2025. Photo: Freepik WITH SUPPORT FROM: Energy Sector Management 8 Dao Tan Street, Ba Dinh Assistance Program District, Hanoi, Vietnam The World Bank +84-24 3774 0100 1818 H Street, N.W. www.dfat.gov.uk Washington, DC 204333 USA esmap.org  esmap@worldbank.org Hanoi, Vietnam 8th Floor, 63 Ly Thai To Street, Hoan Kiem District, Hanoi, Viet Nam +84 24 3934-6600 www.worldbank.org/en/country/vietnam