World Bank Backs Viet Nam's Push for Offshore Wind with Policy Roadmap

The report was jointly funded by the World Bank-managed Energy Sector Management Assistance Program (ESMAP) and the Australian Department of Foreign Affairs and Trade (DFAT).

The World Bank Group has released a comprehensive new report outlining a strategic policy framework to help Viet Nam unlock its vast offshore wind potential and meet ambitious national energy targets. As global energy markets accelerate their transition toward renewables, the report is intended to guide Vietnamese authorities and industry stakeholders in building a robust, investment-ready offshore wind sector—one that can contribute to energy security, climate goals, and long-term sustainable growth.

The report, titled A Framework for Private Sector-Led Offshore Wind Projects in Viet Nam, analyzes the country’s current policy and regulatory landscape and offers targeted recommendations to create a more transparent, investor-friendly, and scalable environment for offshore wind development. It reflects an urgent need for actionable reforms as Viet Nam aims to become a regional leader in clean energy.

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Ambitious Targets and Significant Wind Potential

Viet Nam is uniquely positioned to become a major offshore wind player. Its long coastline, favorable wind speeds, and shallow waters near major population centers make it one of the most promising locations for offshore wind development in Asia. Under its Power Development Plan VIII (PDP8), the country has set an ambitious offshore wind capacity target of 6 to 17 GW by 2030–2035, and up to 139 GW by 2050.

Meeting these targets will require massive capital mobilization, including foreign direct investment, domestic private financing, and public sector funding, along with policy coherence across ministries and agencies. The World Bank’s roadmap aims to de-risk the market for private investors and facilitate coordination among stakeholders.

“Offshore wind presents a strategic opportunity for Viet Nam to diversify its power mix, strengthen energy security, and support sustainable growth,” said Mariam J. Sherman, World Bank Country Director for Viet Nam, Cambodia, and Lao PDR. “With an enabling policy and regulatory environment, the country can attract private investment, build domestic capacity, and contribute to its long-term climate and development goals.”

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A Private Sector-Led Vision for Growth

The report introduces an implementation-ready framework that integrates international best practices from leading offshore wind markets—such as the United Kingdom, Denmark, and Taiwan—while minimizing disruptions to Viet Nam’s current regulatory framework. The goal is to develop a sustainable and competitive project award process, clear licensing and permitting pathways, and mechanisms that promote local content and knowledge transfer.

“To establish Viet Nam as a reliable, long-term investment destination for offshore wind development, clear, transparent, and attractive policies and procedures are essential,” said Chiara Rogate, Senior Energy Specialist at the World Bank. “This report supports the country in realizing its potential to drive economic growth and create green jobs for generations to come.”

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Support from International Partners and Ministries

The report was jointly funded by the World Bank-managed Energy Sector Management Assistance Program (ESMAP) and the Australian Department of Foreign Affairs and Trade (DFAT). It was developed in close coordination with the International Finance Corporation (IFC) and in collaboration with the Ministry of Industry and Trade (MoIT) and the Ministry of Agriculture and Environment (MAE) of Viet Nam.

This broad coalition reflects the importance of multi-stakeholder engagement in building an offshore wind sector that balances environmental integrity, economic opportunity, and social inclusion.

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Regulatory Progress and Key Recommendations

Recent regulatory changes introduced in late 2024 and early 2025 represent initial steps toward establishing more coherent permitting and licensing processes. However, several challenges remain—including lack of grid readiness, unclear site allocation procedures, and limited clarity on revenue models for developers.

“To realize its offshore wind potential and meet national energy targets, Viet Nam will need a balanced approach that harnesses both state leadership and private sector innovation,” said Sean Whittaker, Co-lead of the World Bank Offshore Wind Development Program. “This report offers actionable solutions to enhance regulatory clarity, de-risk investment, and promote sustainable sector growth.”

Key recommendations from the report include:

• Developing a clear site selection and allocation strategy

• Introducing competitive procurement mechanisms to promote cost efficiency

• Establishing stable power purchase agreements (PPAs) and clear tariff regimes

• Investing in grid infrastructure upgrades and integration strategies

• Supporting workforce development and local supply chain readiness

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Looking Ahead: Powering a Clean Energy Future

The release of the World Bank’s report marks a significant milestone in Viet Nam’s energy transition journey. With strong political will, sustained international support, and an enabling investment climate, Viet Nam has the potential to become a regional hub for offshore wind energy—driving clean growth, climate resilience, and inclusive development.

The World Bank Group reaffirmed its commitment to working alongside Viet Nam’s government and private sector partners to turn this vision into reality.