A Clear Pathway for Vietnam to Build a Competitive, Sustainable Offshore Wind Market
Overview
Vietnam has the potential to become Southeast Asia’s offshore wind leader but realising this opportunity requires a clear, predictable transition from Feed-in Tariffs (FiTs) to competitive auctions.
This GWEC report provides the first comprehensive assessment of how Vietnam can design an effective offshore wind auction framework, drawing on lessons learned from six global markets: the UK, Germany, Denmark, France, the Netherlands and Taiwan.
The report analyses international auction designs, transition periods, policy structures and permitting systems, then applies these insights to Vietnam’s current market conditions. It offers practical recommendations for policymakers to strengthen investor confidence, reduce costs, attract international financing, and develop a robust domestic supply chain.
With more than 36 GW of offshore wind registered for investment, Vietnam stands at a critical moment and the decisions made today will shape the country’s long-term energy security and decarbonisation pathway.
Key Findings
Vietnam has world-class offshore wind potential but needs stable early-stage policy
Vietnam could install 11–25 GW of offshore wind by 2035 and meet 5–12% of national electricity needs. A clear and extended FiT for the first 4–5 GW of “true” offshore wind is essential to unlock early investment before transitioning to auctions.
Early transition to auctions could increase risks and delay delivery
Introducing auctions before 2026 would put excessive pressure on local developers, risk higher prices, and deter international financing. A well-communicated transition timeline is critical.
Global best practices show that successful markets begin with stable support schemes
All six case studies demonstrate that markets with early-stage FiTs and clear long-term pipelines (UK, Taiwan, Netherlands) achieve stronger cost reductions and industry development compared to those that moved to auctions prematurely.
Transparency, consultation and long-term visibility are essential for investor confidence
Vietnam should publish auction guidelines early, engage stakeholders openly, and ensure clarity on capacity targets, timelines, and site allocation to reduce risk premiums and support grid planning.
Bankability of the PPA must be improved for international financing
Current PPA terms pose challenges for foreign investors due to exposure to curtailment, grid delays, change-in-law risks, and dispute resolution limitations. Strengthening PPA bankability is crucial for large-scale offshore wind projects.
Media Inquiries
Alex Bath
Communications Director
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alex.bath@gwec.net