Tiếng Việt
中文 (中国)
The development of offshore wind power projects in Vietnam is currently awaiting legal clarity. According to the Ministry of Industry and Trade, several amendments and additions to various laws are necessary to enable the implementation of offshore wind power projects. These include revisions to the Investment Law, Bidding Law, Law on Marine Resources, Environment, and Islands, or relevant resolutions by the National Assembly.
Legal Challenges
Following a report highlighting difficulties and obstacles in implementing offshore wind power projects in Document No. 9323/BCT-ĐL in December 2023, the Ministry of Industry and Trade has identified several legal bottlenecks.
One major issue concerns investigations, surveys, exploration, and measurements at sea and in maritime zones. According to construction law regulations, to initiate an investment project, survey results are required, with meteorological, hydrological, and geological data being crucial. However, current laws do not specify permission or approval for organizations or individuals to conduct such activities with non-budget state funding.
Additionally, there is uncertainty regarding whether the exploitation of natural resources (such as offshore wind energy) falls within the scope of the Law on Marine Resources, Environment, and Islands.
The Investment Law of 2020 lacks a specific definition of what constitutes a “land-using project.” Similarly, the current Land Law does not define “land” in general, only stipulating “land with water surface” as a type of land, without clarifying whether it includes land under the sea surface.
Furthermore, the subsoil beneath the seabed falls under the jurisdiction of the Vietnam Law on the Sea. The extraction and use of marine resources must comply with the Law on Marine Resources, Environment, and Islands, rather than the Land Law.
Investment approval authority under Articles 30 (authority of the National Assembly), 31 (authority of the Prime Minister), and 32 (authority of provincial People’s Committees) of the Investment Law of 2020 has not clearly defined whether offshore wind power projects fall under the jurisdiction of investment approval by the National Assembly, the Prime Minister, or provincial People’s Committees.
Proposed Solutions
To address these legal challenges, the Ministry of Industry and Trade suggests amending and supplementing legal provisions, resolving the aforementioned obstacles, and establishing a legal basis for implementation.
Additionally, the ministry is drafting regulations for determining electricity prices and Power Purchase Agreements (PPAs) for renewable energy projects, including offshore wind power projects. These efforts aim to create favorable conditions for negotiations and project execution.
Despite the abundant potential, offshore wind power projects in Vietnam face hurdles due to legal uncertainties and ambiguities. With legal clarity and appropriate regulatory frameworks, these projects can contribute significantly to Vietnam’s energy transition and sustainable development goals. It is imperative for relevant authorities to address these legal issues promptly to facilitate the realization of offshore wind power projects and the generation of clean energy for Vietnam’s future.
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