Nearly 200 domestic and international delegates have developed the financial and policy frameworks needed to accelerate Vietnam’s green transition and unlock the country’s offshore wind potential. 

Vietnam's Prime Minister Pham Minh Chinh speaks at the Vietnam Business Forum on Mobilizing Resources for Green Transition co-chaired by GWEC in Dubai on December 2. Photo: Nhat Bac/VGP

The ideas were made at the “Vietnam Business Forum: Mobilizing Resources for Green Transition” co-chaired by Prime Minister Pham Minh Chinh and Ben Backwell, CEO of the Global Wind Energy Council (GWEC) on December 2 alongside the 2023 United Nations Framework Convention on Climate Change (COP28) in Dubai, UAE.

The event convened ministerial leaders, local authorities, embassies, international organizations, and experts in the offshore wind supply chain, together with major wind power developers, potential renewable energy buyers, and leading financial institutions.

Sharing at the event, the Vietnamese Prime Minister said the government focuses on three key pillars, namely regulatory framework, infrastructure, and manpower, to create favorable conditions for investment and business operations.

Delegates at the forum highlighted Vietnam’s wind power potential capacity of 600 GW as underlined in the Power Development Plan VIII (PDP8), saying the country is in an opportune moment to unlock the economic prospects of renewable energy and fulfill its net zero commitments through wind power development.

An agreement signed between Vietjet and UAE Novus Aviation Capital for financing and purchasing sustainable aviation fuels. Photo: Nhat Bac/VGP

In a broader move, renewable energy is key in facilitating the green transition. Among the renewable energy sources, offshore wind is particularly noteworthy as it offers large-scale, locally sourced clean power, enhances energy security, creates jobs, and serves sustainable economic growth.

In this regard, the policies seek to fully utilize the nation’s wind energy resources, making it a leading hub for the renewable energy supply chain and drawing private sector investments to boost the manufacturing sector and support the green transition.

Ben Backwell, CEO of GWEC, speaks at the event. Photo: GWEC

“Offshore wind is a cost-effective and price-predictable renewable energy solution for countries planning their energy transition. GWEC recognizes wind power’s pivotal role in tackling climate change and energy security and we applaud Vietnam’s commitment to prioritize wind energy for sustainable economic growth and large-scale renewable energy generation,” said Ben Backwell, CEO of GWEC, an organization that represents renewable energy (RE) developers responsible for 70% of global wind power capacity.

Prime Minister Chinh, currently leading a high-ranking delegation in Dubai, communicated the Government of Vietnam’s progress towards the net zero target at COP28. Its Power Development Plan VIII aims for 150 GW and 573 GW of energy capacity from all sources, requiring investments of US$119.8 billion and $511 billion for power sources alone by 2030 and 2050, respectively.

Meeting the renewable energy investment requirements for the net zero target will require cooperation between the Vietnamese government, developed countries, international organizations, and the world’s business community.

GWEC is working closely with government ministries such as the Ministry of Industry and Trade (MOIT), the Ministry of Natural Resources and Environment (MONRE), and the Ministry of Planning and Investment (MPI) in Vietnam to push for the wind energy transition. It also collaborates with the Vietnam Energy Partnership Group, the World Bank, and other multilateral organizations and stakeholders.

Thomas Lingard, Global Head of Sustainability of Unilever, at the session. Photo: GWEC

Thomas Lingard, Global Head of Sustainability of Unilever, said collaboration among governmental bodies, renewable energy generators, and energy buyers is crucial for this energy transition.

“We appreciate and fully support that the Vietnamese government has taken steps to design the Direct Power Purchase Agreement (DPPA), which is a catalyst for investor attraction to green energy areas and a critical mechanism for Vietnam to achieve its net zero emission ambition by 2050,” Lingard said.

To support the government’s path, Unilever has achieved 100% renewable electricity in its Vietnam operations since 2021 and aims for a net zero value chain by 2039.

Jim Andrew, Executive Vice President and Chief Sustainability Officer of PepsiCo, at the event. Photo: GWEC

Jim Andrew, Executive Vice President and Chief Sustainability Officer of PepsiCo, stressed that allowing DPPA would accelerate the transition to 100% renewable electricity across the company’s significant operation in Vietnam. “We look forward to collaborating with the government and others to make this a reality.”

At the forum, some agreements were inked between Vietnam and international partners in the presence of Prime Minister Pham Minh Chinh. The deals are signed on carbon credit trading, lower carbon emissions, financing in the aviation industry, and sustainable aviation fuels (SAF) – renewable or waste-derived aviation fuels that meet sustainability criteria.