Norway – Vietnam: Continued cooperation on energy

The launch is hosted by the Norwegian Ambassador to Vietnam, Mrs. Hilde Solbakken in the presence of the Guest of Honour, Deputy Minister of Industry and Trade Mr. Nguyen Hoang Long.

The event is also attended by representatives from relevant departments under MOIT including the Electricity and Renewable Energy Authority (EREA), Electricity Regulatory Authority, Department of Oil, Gas and Coal, Department of Industrial Safety Engineering and Environment, Department of Science and Technology, Department of Financial Planning, Department of Energy Conservation and Sustainable Development, Institute of Energy, Vietnam Oil and Gas Group (PVN), Vietnam Electricity Group (EVN).

The Embassy also welcomes representatives from the international stakeholders including members of the Global Wind Energy Council, the Development Partners Group (DPG) in Vietnam, Just Energy Transition Partnership (JETP) member countries, private companies and other stakeholders in the energy sector. 

The Vietnam offshore wind market is considered promising, with world class high wind speed and favourable seabed conditions. The existing supply chain used by the domestic oil and gas industry, in conjunction with the current onshore and nearshore wind infrastructure, has the potential to support in-country offshore wind developments. Recent orders for offshore wind components from international markets signifies a promising commencement for Vietnam to establish itself as an Asia-Pacific hub in offshore wind.

"We are very honored to launch this Report with the presence of MOIT Deputy Minister Nguyen Hoang Long", said Ambassador Hilde Solbakken. "Norway is proud of the cooperation with Vietnam and MOIT in the renewable energy sector, both as a bilateral partner and a JETP member. We hope this Report will be useful to Vietnam and MOIT in designing a roadmap for developing the country’s offshore wind industry and its local supply chain. I believe this would also open new cooperation opportunities for Norwegian and Vietnamese companies", Ambassador Solbakken continued.

With high appreciation of the Report, Deputy Minister Nguyen Hoang Long said, “This is an important source of information for the Government and the Ministry of Industry and Trade in our planning activities for the offshore wind industry”.

Deputy Minister Long also stressed the potential of Vietnam in the development of the local supply chain for this industry leveraging the experience from a well-established oil and gas industry, which helps to save time and cost. He also expressed hope that Norway, with its long- and well-estalished oil and gas and maritime industries, could assist Vietnam in the development of the offshore wind industry in general and the local supply chain for this industry in particular.

The Report was commissioned by the Norwegian Embassy in Hanoi in December 2023 and outlines the steps to develop a well-functioning supply chain for Vietnam’s emerging offshore wind industry. As for the two pilot projects for offshore wind decided by the Government of Vietnam, the Report illustrates the potential supply chain for the development of 1 GW in the North and 1 GW in the South of Vietnam (1GW completed and Commercial Operation Date (COD) by 2030 and an additional 1GW COD by 2035).

Key Findings of the Report:

1.         Significant Offshore Wind Supply Chain Potential:

Vietnam has significant potential to localize key components of offshore wind projects, including foundation fabrication, nacelle assembly, and tower supply. However, certain areas, such as subsea cables and offshore wind turbine (WTG) vessel supply, require further development.

2.         Port Infrastructure Assessment in the South and North:

The development of suitable ports is crucial to the growth of the OSW industry. The Report highlights the need for both Northern and Southern Vietnam ports to undergo upgrades to handle OSW logistics. Southern ports, exemplified by Vung Tau, are better positioned due to their established oil and gas infrastructure, while Northern ports like Hai Phong offer significant steel resources and logistics advantages, potentially becoming vessel fabrication hubs.

3.         Strong interest from Local Supplier:

The report assesses the readiness of local suppliers. Eight major suppliers, including PTSC and CS Wind, expressed strong interest and have clear plans for entering the OSW market. The oil and gas industry’s legacy in Vietnam provides a solid foundation for transitioning into OSW supply, particularly in foundation and tower manufacturing. Challenges remain for components like blades and nacelles, but with further investment, these could be domestically produced by 2035.

4.         Great Potential for Green Job Creation:

The OSW sector could create up to 9,000 full-time equivalent (FTE) jobs in a 1 GW scenario and as many as 55,000 jobs in a 6 GW scenario. The report emphasizes the potential for local job creation, particularly in the South, leveraging the well-established oil and gas industry’s experience and natural conditions favourable for OSW.

Strategic Recommendations:

To meet Vietnam’s OSW goals, the Report suggests improvements of the regulatory and policy frameworks for offshore wind, strategic investments in port infrastructure, supplier upgrades, establishing a clear project pipeline, engaging with universities for skill development, and fostering international partnerships. ​

It further recommends establishing two inter-regional renewable energy centres in the North and South by 2030, which will serve as hubs for manufacturing, research, and green industrial zones.

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This is the second offshore wind supply chain report that the Norwegian Embassy has commissioned in Vietnam. The first one provided an overview of the entire supply chain for Vietnam’s offshore wind industry and was handed over to MOIT Minister Nguyen Hong Dien in 2021 when the two countries celebrated the 50th anniversary of bilateral diplomatic ties.