UK a long-standing partner in Vietnam’s energy mix plans

UK a long-standing partner in Vietnam’s energy mix plans

Vietnam has set ambitious goals for sustainable growth, with its revised Power Development Plan VIII (PDP8) positioning the country as a regional leader in clean energy. Central to this vision is the expansion of large-scale renewable energy generation, including new offshore wind (OSW) power.

Delivering on this ambition is key to Vietnam’s energy security and economic resilience – helping future-proof the economy against climate and financial shocks, fuelling clean industrial development, and attracting green investment. This green transition is foundational to achieving Vietnam’s dual goals of high-income status by 2045 and net-zero emissions by 2050.

Globally, OSW is gaining momentum. According to the International Energy Agency, total installed capacity reached 83.2GW by the end of 2024, with 8GW added that year. Despite a temporary slowdown, the sector is expected to grow by 138GW between 2023 and 2028, with annual installations tripling by 2028.

Vietnam is uniquely positioned to benefit from this OSW trajectory. With a long coastline and promising wind conditions, the country has exceptional potential for OSW generation and related supply chain manufacturing. A national target of up to 17GW of OSW capacity by 2035 reflects Vietnam’s ambition to become a major global renewables player.

Given the nascency of OSW in Vietnam, PDP8 is clear in outlining plans to integrate OSW with other renewable sources – onshore wind, solar, hydropower, and energy storage – for a diversified energy mix.

The United Kingdom is a long-standing partner in Vietnam’s clean energy transition journey and continues to deepen collaboration in OSW and renewables. With decades of experience in OSW development, the UK brings valuable technical and commercial expertise to support Vietnam’s pathway, in line with national plans.

OSW is a key pillar of the broader UK–Vietnam green growth partnership. As co-chair of the International Partners Group for Vietnam’s Just Energy Transition Partnership (JETP), which is helping to mobilise over $15 billion in public and private finance for Vietnam’s green transition, the UK is working in tandem with international and domestic partners to bring our partnership to life.

This includes technical support through the UK Partnering for Accelerated Climate Transitions programme on grid management, renewables and coal phase out, collaboration on an Offshore Wind Centre of Excellence via the UK’s Carbon Trust, academic partnerships through the Climate Compatible Growth programme, and access to UK clean energy financing instruments, including through UK Export Finance, UK-supported development finance institutions, and commercial partnerships.

However, we know that a stable and predictable investment environment is essential to turning Vietnam’s clean energy and OSW ambitions into reality. Clear regulations, consistent policies, and robust supply chains are critical to building investor confidence – especially in emerging sectors like OSW.

Through the JETP, Vietnam Energy Partners Forum and other established initiatives, the UK has been working closely with Vietnam’s Ministry of Industry and Trade (MoIT) and relevant agencies to support business-friendly policy and regulatory reforms to unlock critical clean energy investment. And the recently revised Electricity Law, and the evolution from PDP7 to PDP8, reflect Vietnam’s commitment to embedding net-zero targets into core planning frameworks.

Without predictable, legal and regulatory frameworks, the private sector will not have the assurance to move into nascent energy ventures – making the finalisation of Vietnam’s OSW policy frameworks essential.

To support this ambition, two growing areas of UK–Vietnam collaboration on OSW stand out. First is our support to the planned Offshore Wind Centre of Excellence in partnership with the MoIT and the Institute of Energy, which will serve as a knowledge hub to support research and development, address technical and skills gaps, and provide access to UK expertise to accelerate deployment.

Second is on clean energy supply chain development. The UK brings world-class capabilities across the OSW lifecycle – from project development and cable manufacturing to offshore construction and maintenance. A supply chain study led by the UK’s Offshore Renewable Energy Catapult is exploring Vietnam’s strengths in manufacturing, port infrastructure, technical services, and innovation. The study will offer practical recommendations through workshops and stakeholder engagement. The catapult’s involvement reflects Vietnam’s growing market potential.

Building on these partnerships and recent two-way knowledge sharing missions, a UK energy trade delegation will visit Vietnam in October. This mission will connect British companies with Vietnamese partners to explore commercial opportunities and share solutions aligned with the supply chain challenges identified in the catapult’s study.

Across our JETP partnership, policy development, expertise sharing, and commercial collaboration, the UK and Vietnam’s clean energy partnership is only growing stronger. The next phase of Vietnam’s OSW development will be crucial to unlocking its full potential as a driver of green and resilient growth.

VIR