Equinor, Norway’s state-controlled energy giant, has announced the cancellation of its plans to invest in Vietnam’s offshore wind sector and will close its Hanoi office, marking a significant setback for the country’s renewable energy ambitions. The decision comes amid ongoing delays in regulatory reforms that have caused several potential investors to reevaluate their commitments.
Magnus Frantzen Eidsvold, a spokesperson for Equinor, confirmed the company’s withdrawal, stating that the offshore wind sector is currently facing substantial challenges. This marks the first time Equinor has closed an international office dedicated to offshore wind development.
Vietnam has been recognized for its favorable conditions for offshore wind due to strong winds in shallow waters near its densely populated coastal areas. However, the country has yet to initiate any offshore wind projects, despite plans to install 6 gigawatts (GW) of capacity by 2030 as part of its strategy to reduce coal reliance and achieve net-zero carbon emissions by mid-century.
The exit of Equinor follows a similar move by Danish company Orsted, which also paused its investment plans in Vietnam last year. The Vietnamese government is now looking to assign the first pilot offshore wind project to state-owned enterprises, a decision that foreign investors believe could hinder the industry’s growth due to the limited capabilities of these domestic firms.
Industry insiders suggest that, due to regulatory hurdles, Vietnam may only achieve about 1 GW of offshore wind capacity by the end of the decade. Discussions are ongoing to encourage the government to allow foreign partners to co-develop pilot projects.