Vietnam Poised to Begin Construction on Inaugural Offshore Wind Farm by Year-End, Marking Major Renewable Energy Milestone
Key Insights
Vietnam's first offshore wind farm, the 3.5 GW Thang Long project, is expected to commence construction by late 2024, marking a significant step in the nation's energy transition.
Developed by UK-based Enterprize Energy off Binh Thuan province, the project represents an estimated investment exceeding $11.9 billion and aims to power millions of homes.
This landmark development is crucial for Vietnam to meet its net-zero commitments by 2050 and diversify its energy mix away from fossil fuels, aligning with its PDP8 targets.
While promising, the project's success hinges on overcoming regulatory hurdles, securing robust financing, and developing local supply chain capabilities, according to industry analysts.
Work on Vietnam's first-ever offshore wind farm is "likely" to start by the end of this year, according to the country's deputy minister of Industry and Trade, Nguyen Sinh Nhat Tan. This pivotal development marks a significant stride in Vietnam's ambitious renewable energy transition, positioning the nation as a burgeoning market for large-scale clean power generation in Southeast Asia.
The flagship project, the 3.5 GW Thang Long Offshore Wind Farm, is being developed by UK-based Enterprize Energy and is situated approximately 60 kilometers off the coast of Binh Thuan province. With an estimated investment exceeding $11.9 billion, the multi-phase project is designed to integrate over 100 wind turbines, each with a capacity of 10-15 MW, upon full completion. This immense capacity is projected to supply electricity to millions of Vietnamese households, substantially contributing to the nation's energy security and decarbonization targets.
Vietnam, heavily reliant on coal-fired power, has set aggressive goals to achieve net-zero emissions by 2050. The National Power Development Plan VIII (PDP8), approved in 2023, outlines a strategic shift towards renewable sources, targeting 6,000 MW of offshore wind capacity by 2030 and up to 70,000 MW by 2050. The Thang Long project is a cornerstone of this strategy, demonstrating the government's commitment to attracting foreign direct investment into high-impact green infrastructure.
Industry analysts from Wood Mackenzie emphasize that while Vietnam possesses one of the most promising offshore wind resources in the region, regulatory clarity, grid infrastructure upgrades, and robust financing mechanisms remain critical for project realization. "The initiation of Thang Long would send a strong signal to international investors that Vietnam is serious about its offshore wind ambitions," stated Alex O'Cinneide, CEO of Gore Street Capital, a firm active in renewable energy investments in Asia. He added, "However, consistent policy frameworks and streamlined permitting processes are essential to de-risk these multi-billion-dollar ventures."
The project's commencement would also spur significant local content development, including port infrastructure, supply chain localization, and job creation in specialized engineering and maritime sectors. Enterprize Energy has indicated plans for substantial local engagement, aiming to maximize the economic benefits within Vietnam. This initial offshore wind venture is expected to pave the way for further large-scale projects, establishing Vietnam as a key player in the global offshore wind landscape and a model for sustainable energy development in emerging economies.