Lawmakers urge incentives for private investment in offshore wind power

Vietnamese lawmakers have called for stronger policy incentives to encourage private investment in offshore wind power and small modular nuclear reactors (SMRs), as the country seeks to meet rising energy demand while ensuring emissions reduction.

During a parliamentary session on Monday, the National Assembly debated a draft resolution on mechanisms and policies for national energy development in the 2026-2030 period. Offshore wind power and SMRs emerged as two of the most discussed topics.

Nguyen Le Thuy, a lawmaker representing Vinh Long province, said that while the draft resolution is based on the Politburo’s Resolution 70 on ensuring national energy security to 2030, with a vision until 2045, several provisions have yet to be clearly defined and some are inconsistent with other Politburo resolutions, including Resolution 68 on private-sector development.

Under the Government’s proposal, total power generation capacity would need to increase 2.5-3 times current levels in the next five years, reaching 190,000-254,000 MW and requiring an estimated $18-20 billion in investment.

Attracting private capital is therefore critical, she said. However, Thuy added that the draft resolution lacks sufficiently open policies to spur private investment.

She said incentives for power projects – including grid investment and offshore wind – are largely reserved for state-owned enterprises and their subsidiaries, granting them advantages such as exemptions from planning requirements, land-use auctions, and competitive investor selection, as set out in several draft articles. She urged the Government and relevant agencies to review these provisions.

Ha Sy Dong, a lawmaker representing Quang Tri province, said the draft marked progress in simplifying procedures for investment approval, project appraisal, and financial capacity requirements.

He nevertheless proposed shortening survey licensing timelines, standardizing application documents, adding clearer investor qualification criteria for large-scale projects, and designating the Ministry of Industry and Trade as the central coordinating authority.

On SMRs, lawmaker Trinh Tu Anh, representing Lam Dong province, said Vietnam is entering a deep energy transition phase, with growing pressures to ensure energy security, cut emissions, and maintain high economic growth.

She noted that SMRs are no longer experimental globally, with several countries – including the United States, Canada, France and Britain – already commercializing or rapidly deploying the technology. Some Asian countries with conditions similar to Vietnam have also selected SMRs for remote or infrastructure-poor areas.

“These countries do not place the investment burden solely on the state, but mobilize energy groups, manufacturing companies, and environmental technology firms,” she said.

Anh voiced support for provisions encouraging both state-owned and private enterprises to participate in SMR research and investment, describing the approach as far more flexible than traditional nuclear power development, which has typically relied on state-led, large-scale, long-term projects.

However, she stressed that SMR development must meet strict conditions of safety, accountability, and transparency. Encouraging private participation, she said, does not mean full liberalization.

She called for a dedicated legal framework for SMRs, covering design licensing, technology appraisal, operational supervision, and radioactive waste management, alongside clear requirements on financial capacity, technological capability, and environmental responsibility to ensure the state retains ultimate oversight.

Responding to lawmakers’ comments, Minister of Industry and Trade Nguyen Hong Dien said the drafting agency has worked closely with reviewing bodies and National Assembly committees to revise the resolution in line with the Politburo’s Resolution 66.

He said issues under the Government’s authority would be detailed by the Government to streamline procedures, including financial requirements, documentation for offshore wind investment approval, survey cost mechanisms, and application handling.

On decision-making authority for offshore wind projects in the 2026-2030 period, Dien said the draft has been revised to grant approval powers to the Prime Minister, citing national defence and security considerations, local capacity, and inter-ministerial coordination.

The draft also allows the approval of offshore wind investors without land-use auctions or competitive bidding during the 2026-2030 period, he added.