“The Ministry of Industry and Trade’s proposal to initially assign State-owned economic groups to pilot offshore wind power projects, instead of private enterprises, is unreasonable.” This was shared by National Assembly Deputy Nguyễn Quang Huân, a member of the National Assembly’s Committee on Science, Technology and Environment, in an interview with Dien Dan Doanh Nghiep (Business Forum) on July 29, 2024.

– How do you assess the Ministry of Industry and Trade’s recent proposal to assign State-owned economic groups to pilot offshore wind power projects in the initial phase?

If State-owned enterprises (SOEs), such as EVN, are assigned to pilot offshore wind power projects, EVN would both generate and sell electricity. This would run counter to the overall policy of gradually reducing EVN’s monopoly.

I believe this proposal is unreasonable because we would fail to mobilize resources from domestic and international private enterprises in the offshore wind power sector, even though they are always ready to participate.

The failure to attract foreign companies to partner with domestic companies would slow the transfer of advanced science and technology, as well as modern management practices. This would put domestic companies at a disadvantage and negatively affect the economy.

National Assembly Deputy Nguyễn Quang Huân – Member of the National Assembly’s Committee on Science, Technology and Environment

– Explaining this proposal, the Ministry of Industry and Trade stated that private enterprises have not yet been assigned to invest in pilot offshore wind power projects because the defense and security implications have not been fully assessed. What is your view on this issue?

If we cite only national defense and security concerns, without fully assessing other aspects, as a reason for not allowing the private sector to invest in offshore wind power, we risk falling behind other countries. For example, in the United States, even space exploration and development have been opened up to private investment. So why are they still able to ensure national security?

Therefore, we need to effectively control our territorial waters through modern technology and professional military forces, rather than arguing that private companies’ involvement in offshore wind power projects would compromise Vietnam’s national defense and security. Even on land, there are strategic areas where private enterprises are allowed to invest, so why should offshore wind power be treated differently?

– Some argue that, with their management experience and existing infrastructure, State-owned enterprises (SOEs) are capable of undertaking and managing offshore wind power projects. What is your assessment of this issue?
Many State-owned enterprises (SOEs) have expanded their operations beyond their core competencies, resulting in major failures, such as Vinashin. Therefore, a market economy cannot depend on just a few SOEs.
The Party has adopted a policy of developing the private sector to build a socialist-oriented market economy, as reflected in the Political Platform (supplemented and developed in 2011) and various Central Committee resolutions. Thanks to this approach, the country has been able to achieve the progress and accomplishments it has today.

Petrovietnam is one of three options proposed by the Ministry of Industry and Trade to participate in the pilot implementation of offshore wind power projects. (Photo: Construction of an offshore wind turbine foundation at a port operated by PTSC Corporation.)

Petrovietnam is one of the three options proposed by the Ministry of Industry and Trade to participate in the pilot implementation of offshore wind power projects. (Photo: Construction of an offshore wind turbine foundation at a port operated by PTSC Corporation.)

At the 5th Plenum of the 12th Party Central Committee, the Party issued Resolution No. 10-NQ/TW, identifying the development of the private sector as an important driving force of the socialist-oriented market economy.

These are major policies and strategic decisions of the Party, so the entire Party and people must make every effort to implement them. We should not backtrack when faced with difficulties or go against the reform process set out by the Party. I would like to reiterate that the above proposal by the Ministry of Industry and Trade represents “backward thinking” and is inconsistent with the policies, guidelines, and development orientation of our Party and State.

– The Ministry of Industry and Trade believes that selecting international investors to pilot offshore wind power projects may not be feasible due to existing legal and regulatory obstacles. What is your view on this, sir?

If there is no legal framework, then we need to build the necessary institutions and regulations. We cannot hold back the country’s development simply because of a lack of institutional frameworks, especially when the State’s resources are limited.

Meanwhile, according to World Bank (WB) estimates, Vietnam will need approximately US$386 billion between now and 2040 for the energy transition and climate change mitigation, with the aim of achieving net-zero emissions by 2050, as committed by the Prime Minister at the COP26 Conference.
So, if we do not engage the private sector from the outset, how can we achieve this goal? Suppose a State-owned enterprise (SOE) carries out the pilot project. It could take five years, at best, for the project to succeed, followed by another five years to draw lessons and formulate policies allowing domestic and foreign private enterprises to participate. In that case, we would fall 10 years behind other countries with similar conditions today.
– In your opinion, what solutions are needed to effectively develop offshore wind power projects?
First, the Power Development Plan VIII (PDP8) has been approved, and its implementation plan has also been issued. What is needed now is specific guidance. Instead of restricting private enterprises, State agencies should develop appropriate models that allow the private sector to participate.
Second, the biggest obstacles currently facing private investors are the pricing mechanism and power purchase agreements (PPAs). If an optimal solution has not yet been developed, the State should establish a bidding price framework or study how other countries regulate this sector while still attracting private investors. In addition, it is also necessary to examine why some major renewable energy investors have withdrawn from the Vietnamese market in recent years.
Third, we need to develop a comprehensive and inclusive policy framework, with a view to establishing a dedicated law on renewable energy development.
– Thank you very much for your time, Mr. Huân!