Vietnam's Offshore Wind Auction Awards 6 GW to International Developers

Vietnam's Offshore Wind Auction Awards 6 GW to International Developers

Vietnam's Ministry of Industry and Trade concluded its first competitive offshore wind auction on December 18, 2025, awarding development rights for 6 GW of capacity across four zones in the South China Sea and the Gulf of Tonkin. Winning bids averaged $0.072 per kilowatt-hour, below the government's ceiling price of $0.085.

The auction attracted bids from 22 consortia representing developers from Denmark, Germany, Japan, South Korea, and the United States.

Winning Projects

Copenhagen Infrastructure Partners secured the largest allocation with 2.1 GW across two zones off Binh Thuan province. Orsted won 1.8 GW in the Gulf of Tonkin, while a consortium of JERA and Mainstream Renewable Power took 1.2 GW off Ninh Thuan. The remaining 900 MW went to a joint venture between Equinor and local developer T&T Group.

First turbine installations are projected for 2028, with full commercial operation of all awarded capacity expected by 2031.

Regulatory Framework

The auction followed Vietnam's adoption of Power Development Plan VIII amendments in September 2025, which established a legal framework for offshore wind leasing, grid connection rights, and foreign ownership up to 100%. Previous regulatory uncertainty had delayed several projects by two to three years.

"Vietnam's regulatory reforms have transformed it from a market of promise to a market of action," said Ben Backwell, CEO of the Global Wind Energy Council. "The auction results confirm strong investor confidence."

Supply Chain Development

Auction conditions require 30% domestic content, rising to 50% by the third project phase. Vietnam's emerging maritime industrial base in Ba Ria-Vung Tau province is positioning to manufacture foundations and towers, with PetroVietnam Technical Services investing $180 million in a dedicated offshore wind fabrication yard.

Danish turbine maker Vestas has opened a blade manufacturing facility in Hai Phong, creating 600 direct jobs.

Climate and Energy Context

Vietnam's electricity demand is growing at 8-10% annually, driven by manufacturing sector expansion. The country still relies on coal for 46% of generation, though the Just Energy Transition Partnership with G7 nations provides $15.5 billion to accelerate coal phase-down. Offshore wind is expected to supply 12% of electricity by 2035.

The successful auction positions Vietnam alongside Taiwan and South Korea as a leading offshore wind market in Asia.