Vietnam and UK enterprises discuss partnership in offshore wind energy production, exploring potential investments and collaborative projects.
Ho Chi Minh City (VNS) - A business delegation from Vietnam, led by key energy players, embarked on a week-long trip to the UK from June 16 to 23. The purpose of the visit, organized by the British embassy in Ha Noi and the consulate general in HCM City, was to explore collaborative opportunities in the offshore wind sector and connect with potential partners.
The Vietnamese delegation, consisting of 12 members from the Electricity Authority, the Vietnam Electricity Group, and the Petro Vietnam Technical Services Corporation, attended workshops, conferences, and roundtable discussions in London, Hull, and Grimsby.
During a workshop titled "UK Experience sharing on designing offshore wind auction and consenting process," they delved into valuable insights from leading experts in the UK's private and public sectors. Participants discussed strategies essential to designing effective auctions and streamlined consenting processes to minimize delays and attract foreign investment.
At the "Global Offshore Wind 2025" conference and exhibition, they engaged in discussions regarding the global trends and implications of offshore wind power, with a particular focus on the UK's experience and achievements. Furthermore, the "Roundtable Project Financing for Offshore Wind Projects in Vietnam" provided vital recommendations for drafting a legal framework and developing a supply chain in the Southeast Asian nation.
Hull and Grimsby, home to the Hornsea offshore wind cluster, were a significant part of the delegation's visit. They toured Operation and Maintenance company Xceco, the Siemens Gamesa blade manufacturing factory, the Grimsby Offshore Training Centre, and the Port of Grimsby. These visits offered a chance to gain a comprehensive understanding of the role of infrastructure development, private investment, and long-term planning in the specialized offshore wind industry.
Petro Vietnam executives also showcased the positive developments taking place in Vietnam to potential partners, fostering collaborative opportunities with the UK.
Alexandra Smith, British consul general in HCM City, expressed her appreciation for Vietnam's commitment to establishing a legal framework and developing the supply chain for offshore wind power, stating that it sends a strong message and attracts resources from around the world. She emphasized the UK government's ongoing partnership with Vietnam in the energy transition, highlighting collaborative initiatives like the Just Energy Transition Partnership (JETP) and the Centre of Excellence for Offshore Wind in Vietnam.
To unlock Vietnam's immense offshore wind potential - estimated at around 600GW - key recommendations from the UK experience can help guide the way:
our websiteese business delegation pay a visit to UK to explore co-operation opportunities and connect with potential partners. -- Photo courtesy of British Embassy in Việt Nam
- Establish a legal framework for offshore wind power in Vietnam: Clearing up licensing, maritime space use, environmental impact assessments, and coordinating among agencies like energy, maritime, and defense sectors is crucial.
- Streamline the consenting process: To develop a transparent, efficient consenting process, clarity on marine spatial planning, project approval steps, and early consultation with communities, environmental groups, and statutory bodies is essential.
- Implement financial support mechanisms and investment guarantees: Vietnam needs to establish financial incentives like investment guarantees, feed-in tariffs or competitive auctions with clear rules, risk mitigation mechanisms, and long-term power purchase agreements to attract private sector investment.
- Simplify regulatory framework and planning policies: Removing overlaps between maritime law, electricity law, and environmental regulations, as well as reforming planning policies, will unlock Vietnam's offshore wind potential.
- Address national security and defense concerns: Since offshore wind farms can overlap with national defense zones, early policy development is necessary to balance energy goals with security concerns.
To develop a strong, sustainable offshore wind sector in Vietnam, fostering local content, capacity-building, public-private partnerships, enhancing infrastructure and logistics, and developing a skilled workforce are vital. By adopting these recommendations, Vietnam can meet its ambitious energy targets and create a prosperous future for offshore wind power.
- The Vietnamese delegation learned valuable insights from UK experts on designing effective offshore wind auctions and streamlined consenting processes, which can be applied to Vietnam's legal framework.
- Participants discussed global trends and implications of offshore wind power at the "Global Offshore Wind 2025" conference, shedding light on how Vietnam can benefit from the UK's experience.
- The visits to Hull and Grimsby, home to the Hornsea offshore wind cluster, provided insights into the role of infrastructure development, private investment, and long-term planning in the specialized offshore wind industry.
- Alexandra Smith, British consul general in HCM City, emphasized the importance of developing a supply chain and establishing a legal framework for offshore wind power in Vietnam to attract global resources and investment.
- To ensure a successful offshore wind sector, Vietnam needs to simplify their regulatory framework and planning policies, address national security and defense concerns, and focus on fostering local content, capacity-building, public-private partnerships, and developing a skilled workforce.
