Key Highlights:
- Vietnam introduces a new decree to support renewable energy expansion.
- Fee exemptions provided for green hydrogen and ammonia projects.
- Offshore wind projects require local companies to hold shares.
- National wind capacity targets delayed, now set for phased growth after 2030.
Vietnam has announced a new policy to push renewable energy growth, granting financial incentives and prioritizing wind and solar projects. The new decree, issued on March 3, outlines various exemptions and aims to strengthen the country’s commitment to clean energy while ensuring local involvement in offshore wind projects.
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Government Introduces New Electricity Decree, the Vietnamese government issued Decree No. 58/2025/ND-CP as an extension of the 2024 “New Electricity Law.” This decree primarily supports offshore wind and large-scale solar projects, including energy storage systems. It also offers incentives for projects using 100% green hydrogen and ammonia for electricity production.
Under the new law, renewable energy projects connected to the national grid will get priority, especially during peak demand periods. However, these benefits will not apply to self-consumption projects. The government has also promised to speed up approvals for R&D initiatives related to solar panels, wind turbines, and power conversion equipment.
Fee Exemptions for Green Hydrogen and Ammonia Projects to encourage investment in green hydrogen and ammonia-based power plants, Vietnam has introduced several fee waivers:
- Maritime projects will be exempt from maritime use fees for three years, with a 50% reduction for the following nine years.
- Land-based projects will not have to pay land use and lease fees for the first three years, with fees afterward depending on land use regulations.
The government has introduced new rules requiring foreign investors in offshore wind projects to ensure Vietnamese companies hold a stake. At least 5% of project shares must be owned by Vietnamese entities. If a wind project is intended for electricity export, domestic companies must hold a majority share of over 50%.
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Vietnam’s Power Development Plan (PDP8) set an offshore wind capacity target of 6 GW by 2030. However, due to slow progress, the timeline has been extended, with new phased targets between 2030 and 2035. The country now aims for a long-term offshore wind capacity of 130 GW by 2050.
