National Giant to Build Asian Country's First Offshore Array, Beating 'Surprised' European Player
•February 6, 2026
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Why It Matters
The move signals Vietnam’s preference for domestic players, reshaping the investment landscape for foreign renewable firms and highlighting policy volatility that could affect regional offshore wind development.
Key Takeaways
- •Vietnam selects VinEnergo over German PNE for 2 GW project
- •Project valued at $4.6 bn, located off Binh Dinh province
- •Vietnam aims for 6 GW offshore wind by 2030
- •Subsidy cuts raise alarm for $13 bn foreign investments
- •Domestic consortium gains foothold in emerging offshore market
Pulse Analysis
Vietnam’s offshore wind agenda has accelerated in recent years, with the national Power Development Plan earmarking 6 GW of capacity by 2030 and a long‑term target of more than 70 GW by 2050. While the government touts these goals as a pathway to energy security and decarbonisation, it has also introduced policy shifts that unsettle investors, notably retroactive cuts to wind and solar subsidies. Such regulatory volatility has prompted foreign developers to reassess risk exposure, especially as the country balances ambitious targets with fiscal constraints.
The contested 2 GW project off Binh Dinh illustrates the tension between international expertise and emerging domestic champions. PNE, a German firm with a track record in European offshore wind, had pursued the $4.6 bn venture since 2019 and secured a memorandum of understanding with provincial authorities. Yet the Ministry of Industry and Trade ultimately awarded the contract to VinEnergo, a freshly created subsidiary of real‑estate giant Vingroup. This decision not only blindsides PNE but also signals a strategic pivot toward home‑grown entities that can leverage local networks and state‑owned partners, potentially reshaping the competitive dynamics of Vietnam’s renewable market.
For investors, the episode serves as a cautionary tale about the importance of aligning with domestic policy directions and partner ecosystems. As neighboring countries like Thailand and the Philippines also chase offshore wind opportunities, Vietnam’s emphasis on local participation could influence regional supply chains and financing structures. Stakeholders will watch closely whether the VinEnergo-led project meets its timeline and cost targets, a benchmark that could either reinforce confidence in Vietnam’s offshore wind roadmap or deepen skepticism among foreign capital providers.
National giant to build Asian country's first offshore array, beating 'surprised' European player
Renewable energy investors have had rough ride in Vietnam of late amid regulatory upheaval
Vietnam's acting minister of Industry and Trade, Le Manh Hung, who has oversight over the power sector.
Photo: Vietnam government/An Văn Đăng
A German developer has been snubbed in its bid to build a multi‑gigawatt offshore wind farm in Vietnam, with authorities instead selecting a newly created local player. Renewables firm PNE told Reuters it was surprised to have missed out on the chance to build the planned 2 GW array.
Vietnamese authorities reportedly instead selected a new subsidiary of real‑estate conglomerate Vingroup, VinEnergo, to build the project.
“We have taken this decision with surprise. We are currently reviewing the reasoning and will then decide about the next steps,” said PNE.
PNE asked the Vietnamese government last year to green‑light the $4.6 bn project off its northern Binh Dinh province. PNE’s ambition to develop the project dates back to at least 2019. In 2022, PNE signed a memorandum of understanding with Binh Dinh authorities on the project’s development. Vietnam’s Ministry of Industry and Trade expressed its support for the plan in August last year.
Foreign renewables investors have had a rough ride in Vietnam of late. Last year, a group of international developers expressed “deep alarm” at plans for the Vietnamese government to retroactively cut wind and solar subsidies, warning it could imperil $13 bn in investment.
Another European developer, Copenhagen Infrastructure Partners, did however agree last year to develop a major offshore wind project in Vietnam in partnership with state‑run oil company Petrovietnam.
Vietnam’s national Power Development Plan includes a commitment to develop 6 GW of offshore wind by 2030, rising to more than 70 GW by 2050.
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