LNG, offshore wind power developers in Vietnam seek policy support to overcome obstacles
As the implementation of LNG and offshore wind power projects remains challenging while enormous investment capital is required, developers definitely need strong support policies and mechanisms, said insiders.
The Thi Vai LNG terminal in Ho Chi Minh City, southern Vietnam. Photo courtesy of PV Gas.
LNG power development – A big challenge
At a forum entitled "Energy Transition: Vision and Action," in Hanoi early this week, Nguyen Quoc Thap, chairman of the Vietnam Petroleum Association (VPA), said that the government and the Ministry of Industry and Trade have made significant efforts to remove obstacles for LNG-fueled power projects. However, current regulations are still insufficient to resolve bottlenecks in negotiating power purchase agreements (PPAs).
According to the association, apart from the Nhon Trach 3 and 4 LNG power projects in the southern province of Dong Nai with a total capacity of 1,624 MW, which have completed investment and are in test runs, only the 1,200 MW Hiep Phuoc 1 plant in Ho Chi Minh City is expected to start operation in 2026, but the PPA has yet to be finalized.
There are 12 others in the list, among which nine with a combined capacity of 16,400 MW already have investors, while three (4,500 MW in total) are still seeking investors.
The VPA chairman also listed a range of regulatory and policy obstacles facing LNG power development, including the lack of a legal framework to replace government guarantees for loans or funding arrangements for build-operate-transfer (BOT) or independent power producer (IPP) projects, and the lack of mechanisms for foreign exchange conversion guarantees and international payment obligations for imported LNG.
Moreover, the infrastructure planning for LNG, ranging from ports to storage, is still inconsistent and incomplete, he noted.
Other notable challenges include slower-than-expected growth in the LNG power consumption market compared to targets set in the Power Development Plan VIII (PDP VIII) and its adjusted version; no clear decision on centralized LNG terminal construction; no standard PPA template for BOT and IPP projects; and funding difficulties due to a lack of offtake guarantees and output commitments.
Therefore, Thap proposed the enactment of a National Energy Law with an integrated approach, aiming to synchronize the planning of LNG ports, power plants, transmission systems, and end-users.
He also recommended simplifying the investment selection procedures for BOT and IPP projects; establishing a selective mechanism for large-scale or key LNG power projects; and developing a flexible pricing mechanism for LNG electricity along with offtake commitments.
In particular, he emphasized the urgent need to finalize the Direct Power Purchase Agreement (DPPA) mechanism between LNG power plants and large electricity consumers.
This, he said, would help resolve the power offtake bottlenecks currently handled by state utility Vietnam Electricity (EVN) and relevant ministries for BOT power projects, while enabling end-users to verify the source of energy used in their production processes - similar to product origin labeling.
This mechanism is especially critical for large-scale LNG power plants, which require guaranteed offtake commitments from industrial consumers who need clean, stable, and internationally compliant electricity for export-oriented manufacturing, he stated.
Thap also proposed resolving legal and procedural obstacles and accelerating the implementation of ongoing LNG power projects such as Son My 2 in former Binh Thuan province (now Lam Dong), Bac Lieu in former Bac Lieu province (now Ca Mau), and Ca Na in former Ninh Thuan province (now Khanh Hoa).
A representative from PV Gas, a subsidiary of state-owned giant Petrovietnam, stated that there is currently no mechanism for EVN to commit to long-term LNG purchases, nor any policy for direct negotiations with LNG suppliers. In addition, while Vietnam's market is relatively small, there are too many LNG importers, which weakens the purchasing power and the bargaining edges of domestic buyers.
PV Gas estimates that if 15 LNG power plants with a combined capacity of 22,524 MW come into operation, annual LNG import demand could reach 16 million tons. If existing gas-fired power plants switch to LNG due to declining domestic gas supply, total demand may exceed 26 million tons per year. This massive demand requires vast capital and strong policy support to meet the LNG power capacity targets by 2030.
According to the adjusted PDP VIII, Vietnam is projected to have 22,524 MW in installed LNG power capacity by 2030. To support LNG power development, the country has cut import duties on LNG from 5% to 2%. The country will guarantee an offtake of at least 65% of annual electricity output from projects using imported LNG power for up to 10 years.
Offshore wind power: Still in the fog
At the end of June 2025, Lung Lo Construction Corporation under the Ministry of National Defense proposed investing in 11 offshore wind power project clusters totaling around 9,000 MW in three marine areas of the northern, south-central, and southern regions.
The company also proposed 14 more offshore wind projects and called for investor selection procedures to be initiated according to regulations. It committed to complying with all legal provisions and investment approval decisions and accepted full responsibility for costs and risks if projects are not approved.
The Ministry of Industry and Trade later assessed the proposal from Lung Lo as a 100% state-owned enterprise, in line with Point a, Clause 1, Article 28 of the Electricity Law No. 61/2024/QH15.
The company's submission was found to have had many deficiencies. For instance, the proposal lacked legal representative information and signature; and it did not clarify whether the electricity would be sold to the national grid.
Financial capacity documentation was also incomplete missing the past two years' financial reports, a parent company or credit institution commitment, or financial guarantees. The proposal also lacked details on investor selection, capital sources, financing plans, and survey information as required under Point b, Clause 1, Article 28 of the Electricity Law.
Previously, Petrovietnam had also proposed to survey the south-central marine area after its subsidiary, PTSC, received two survey licenses in the southern region for power export projects.
The Ministry of Industry and Trade stated that the South Central Offshore Wind Cluster 1 currently has no designated investor, making Petrovietnam’s survey request appropriate. However, the area overlaps with two other pending survey applications from Pacifico Energy Vietnam and CI GMF II Cooperatief U.A. To date, no enterprise has been officially granted survey rights for this area.
According to Nguyen Thai Ha, CEO of T&T Energy Group, achieving the offshore wind capacity targets outlined in the revised PDP VIII faces multiple obstacles.
Key challenges include an incomplete legal and policy framework; underdeveloped technical infrastructure and supply chains; lack of integrated grid planning; and a shortage of experienced, high-quality personnel.
Currently, there are no specific regulations for marine spatial planning, survey licensing procedures, or offshore wind development. Overlapping marine area claims remain unresolved. Potential offshore wind zones and development criteria have not been published, delaying implementation," he commented.
EVN estimates that the investment cost for offshore wind power is around VND93 billion ($3.55 million) per MW, significantly higher than other renewables like solar or biomass, so investors remain hesitant in the absence of clear support mechanisms.
Dr. Du Van Toan from the Institute of Environment, Sea and Islands Science under the Ministry of Natural Resources and Environment, proposed early issuance of a dedicated law or development of a specialized decree on offshore wind power. As an initial step, he suggested assigning Petrovietnam to carry out offshore wind project surveys, leveraging its existing advantages and experience in the field.
Vietnam currently has no offshore wind power projects. According to the adjusted PDP VIII, the country aims to have 6,000 MW of offshore wind capacity by 2030, 17,500 MW by 2035, and between 113,000 and 139,000 MW by 2050.
The adjusted PDP VIII for the 2021-2030 period, with a vision to 2050, was signed by Deputy Prime Minister Bui Thanh Son on April 15, 2025. The plan sets a target of doubling power output by 2030, with renewables accounting for 28-36%. It aims to ensure sufficient power supply for an average GDP growth of 10% per year in the 2026-2030 period and about 7.5% in the 2031-2050 period.
The output of electricity produced and imported in 2030 is expected to reach 560.4-24.6 billion kWh and rise to 1,360.1-1,511.1 billion kWh in 2050. By 2030, the total capacity of power plants serving domestic demand (excluding exports) is 183,291 - 236,363 MW.
- Read More
VAFIE, Nghe An province tax authority help businesses update new tax policies
The Vietnam's Association of Foreign Invested Enterprises (VAFIE) and the Nghe An province Tax Department on Friday co-hosted a tax policy workshop titled “New tax policies impacting business operations and accounting standards under IFRS.”
Companies - Sat, October 25, 2025 | 7:28 pm GMT+7
Vietnam parliament okays appointing 2 new Deputy Prime Ministers
Vietnam's legislature has approved Prime Minister Pham Minh Chinh's proposal to appoint Ho Quoc Dung, former Party chief of Gia Lai province, as Deputy Prime Minister, while Pham Thi Thanh Tra, a Party Central Committee member, became the country's first female Deputy Prime Minister.
Politics - Sat, October 25, 2025 | 6:32 pm GMT+7
Foxconn unit ShunYun injects extra $15 mln into northern Vietnam subsidiary
ShunYun Technology Co., a subsidiary of Taiwanese electronics giant Foxconn, has announced an additional $15 million investment into its Vietnamese arm in the northern province of Bac Ninh, according to a filing with the Taiwan Stock Exchange.
Industries - Sat, October 25, 2025 | 4:57 pm GMT+7
DNP Water, Samsung E&A launch $69 mln inter-regional water project in Vietnam’s Mekong Delta
A subsidiary of Vietnam’s water supplier DNP Water and South Korea’s Samsung E&A have broken ground on a VND1.82 trillion ($69.2 million) inter-regional raw water infrastructure project in the Mekong Delta, marking a major step toward improving the region’s water security.
Infrastructure - Sat, October 25, 2025 | 4:50 pm GMT+7
Vietnam’s bond market heats up as major corporates return
Vietnam’s corporate bond market is regaining momentum as large conglomerates join banks and brokerages in successful issuances.
Finance - Sat, October 25, 2025 | 9:33 am GMT+7
Decentralization and the potential for multi-center urban development in HCMC’s satellite areas
If managed well, urban decentralization and multi-center development can ease housing pressures in central HCMC and usher in a more balanced growth phase for the southern region's residential market, write Avison Young Vietnam analysts.
Real Estate - Sat, October 25, 2025 | 8:00 am GMT+7
Chinese firm proposes its 3rd waste-to-power plant in Vietnam
China’s EverBright Environment has proposed investing about VND1.6 trillion ($60.82 million) in a waste-to-energy plant in the central province of Quang Tri.
Energy - Fri, October 24, 2025 | 8:45 pm GMT+7
Mega golf-commercial-urban complex proposed for southern Vietnam city Can Tho
Vietnam Royal Investment Group JSC has proposed developing a 766-hectare golf-service-commercial-urban complex in the Mekong Delta city of Can Tho.
Real Estate - Fri, October 24, 2025 | 4:31 pm GMT+7
Sumitomo makes first hydropower investment in Vietnam
Sumitomo Corporation has made its first hydropower investment in Vietnam by acquiring a 49% stake in Mekong Electric Power Engineering and Development JSC which owns the 48 MW Dak Di 1 & 2 run-of-river hydropower project in Danang city.
Energy - Fri, October 24, 2025 | 3:42 pm GMT+7
Investors urge Vietnam to fix legal hurdles to LNG power projects
A group of investors in Vietnam’s gas-fired power sector has urged the country's parliament to address regulatory gaps that have stalled multi-billion-dollar LNG and domestic gas-fueled power projects, warning that delays could derail the country’s energy transition targets.
Energy - Fri, October 24, 2025 | 2:12 pm GMT+7
Central Vietnam province Gia Lai okays 3 large-scale wind power projects
Gia Lai province has granted in-principle approvals to three large-scale wind power projects with total registered capital mounting to VND19.35 trillion ($734.9 million).
Energy - Fri, October 24, 2025 | 12:01 pm GMT+7
HCMC pushes for early investment in Thu Thiem-Long Thanh railway project
The Ho Chi Minh City People’s Committee has emphasized the need for early investment and operation of a railway connecting Thu Thiem in the metropolis with Long Thanh International Airport in neighboring Dong Nai province.
Infrastructure - Fri, October 24, 2025 | 10:49 am GMT+7
Vietnam to let foreign investors place orders directly via global brokers
Vietnam plans to allow foreign investors to place orders directly through global brokerage firms, a move aimed at easing access to its stock market after a long-awaited upgrade to "secondary emerging" market status, a top regulator said.
Finance - Fri, October 24, 2025 | 8:28 am GMT+7
Vietnam business lobby urges easing of football betting limits
Vietnam’s leading business lobby VCCI has called on the government to sharply ease limits on international football betting and relax foreign ownership rules to make the industry more appealing to investors.
Finance - Thu, October 23, 2025 | 9:30 pm GMT+7
Powering growth from within
The development of a strong domestic private sector is essential for building a resilient, independent, and self-reliant economy that is less dependent on state-owned enterprises or foreign investment, writes Tim Evans, CEO of HSBC Vietnam.
Economy - Thu, October 23, 2025 | 9:09 pm GMT+7
Vietnam's stock market regulator appoints 2 new vice chairpersons
The State Securities Commission of Vietnam (SSC) has appointed Nguyen Hoang Duong and Le Thi Viet Nga as its new vice chairpersons.
Finance - Thu, October 23, 2025 | 4:14 pm GMT+7




















