Vietnam sets minimum equity requirements for foreign offshore wind investors

Under the decree, foreign investors and foreign-invested enterprises must hold a minimum 15-percent equity stake in an offshore wind power project that they will develop.

These offshore wind projects will sell electricity to the national grid under the national power development plan and are scheduled to begin operations during the 2025-30 or 2031-35 periods.

Also, developers are required to contribute equity equivalent to at least 20 percent of the project’s total investment capital.

In addition, investors must secure loan commitments from banks or other credit institutions to finance the remaining capital needed for the project.

The decree also requires foreign investors to ensure the participation of Vietnamese companies.

Domestic enterprises must collectively hold at least five percent of the charter capital or voting shares in the project company.

Foreign-invested developers must be further committed to using domestic labor, goods, and services during the investment, construction, and operational phases of offshore wind projects, provided that local suppliers meet requirements on price competitiveness, quality, project schedules, and availability.

For wholly Vietnamese-owned companies, they must contribute at least five percent equity to an offshore wind power project.

The decree took effect on July 4 and will remain in force until December 31, 2030.

Survey requirements for offshore wind projects

Decree No. 272 also introduces financial requirements for companies conducting offshore wind project surveys.

Survey contractors must have a minimum equity of VND1 billion (US$38,020) for every megawatt (MW) of offshore wind capacity.

Companies applying to survey multiple offshore wind projects must demonstrate sufficient equity based on the combined generating capacity of all proposed projects.

Survey firms are also required to commit that they will not seek reimbursement of survey costs under any circumstances.

The only exception applies to state-owned enterprises that have been officially assigned survey tasks by competent authorities.

To demonstrate financial capability, survey companies must submit audited financial statements for the two most recent years, financial support commitments from parent companies where applicable, or other documents proving adequate financial resources.

The decree further stipulates that survey costs and expenses related to preparing investment approval dossiers for projects surveyed by wholly state-owned enterprises under the Electricity Law for subsequent investor bidding must be audited before implementation.