Developers of Liquefied Natural Gas (LNG) and offshore wind power projects in Vietnam are urgently calling for robust policy support and clearer regulatory frameworks to overcome significant investment and operational obstacles. Despite Vietnam’s ambitious energy transition goals outlined in Power Development Plan VIII (PDP VIII), a lack of comprehensive legal mechanisms and consistent planning is hindering progress in these capital-intensive sectors.

For LNG-fueled power, the primary challenge revolves around the finalization of Power Purchase Agreements (PPAs) and broader regulatory certainty. While the 1,624 MW Nhon Trach 3 and 4 projects are in test runs, and the 1,200 MW Hiep Phuoc 1 plant aims for 2026 operation, PPA finalization remains a bottleneck. Industry stakeholders, including the Vietnam Petroleum Association (VPA), point to the absence of a legal framework for government guarantees on loans for Build-Operate-Transfer (BOT) or Independent Power Producer (IPP) projects, as well as a lack of mechanisms for foreign exchange conversion and international payment obligations for imported LNG. Inconsistent infrastructure planning, from ports to storage, further complicates development. Nguyen Quoc Thap, VPA chairman, advocates for a National Energy Law to synchronize planning and a flexible pricing mechanism for LNG electricity. PV Gas, a subsidiary of Petrovietnam, estimates that meeting the 22,524 MW LNG capacity target by 2030 could necessitate annual LNG imports of 16-26 million tons, requiring vast capital and strong policy backing, despite recent import duty cuts from 5% to 2% and a 65% offtake guarantee for up to 10 years.

The offshore wind sector faces similar, if not greater, policy uncertainties. Despite proposals from entities like Lung Lo Construction Corporation for 9,000 MW across multiple clusters, and Petrovietnam’s survey requests, no offshore wind projects are currently operational in Vietnam. Key challenges include an incomplete legal and policy framework, underdeveloped technical infrastructure and supply chains, and a critical lack of integrated grid planning. Nguyen Thai Ha, CEO of T&T Energy Group, highlights the absence of specific regulations for marine spatial planning and survey licensing procedures, leading to unresolved overlapping marine area claims. With estimated investment costs around VND93 billion ($3.55 million) per MW, significantly higher than other renewables, investors remain hesitant without clear support mechanisms. Dr. Du Van Toan from the Institute of Environment, Sea and Islands Science suggests the urgent issuance of a dedicated law or decree on offshore wind power, potentially assigning Petrovietnam to conduct initial surveys given its existing expertise. The adjusted PDP VIII targets 6,000 MW of offshore wind capacity by 2030, a goal that appears increasingly challenging without immediate and decisive policy interventions.