Allocating Sea Area for Offshore Wind Power Projects In Vietnam

Applicability of Decree 11/2021

It is likely that an offshore wind power project (Offshore WPP) will need to follow the procedures under Decree 11/2021 in order to be allocated with the necessary sea area for development and operation of the Offshore WPP. This is because:

  • Under the current wind power development regime of Vietnam, an Offshore WPP is defined as a grid-connected wind power project with wind power turbines constructed and operated “from the average lowest seawater line over several years off the coast” (nằm ngoài đường mép nước biển thấp nhất trung bình trong nhiều năm ra ngoài khơi);

  • Decree 11/2021 applies to the allocation of certain sea area “from the average lowest seawater line over several years off the coast” for exploitation and use of “sea resource” (tài nguyên biển); and

  • Sea resource is defined to include biological and non-biological resource of the water mass, the [sea] bed and the soil beneath the seabed.

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Written by Nguyen Quang Vu On In , ,

Offshore Wind Development in Vietnam – Legal Issues Relating to the Use of Sea Area

Vietnam appears to have great potential to develop offshore wind. And recently, many foreign investors are interested in developing large offshore wind farms in Vietnam. Unfortunately, except for regulations on offshore oil and gas development under the Petroleum Law, Vietnam does not have adequate regulations to develop a large offshore infrastructure project such as offshore wind farms. This starts with inadequate legal framework on the use of sea under the Law on Sea 2012 and Decree 11/2021. In particular,

  • The Law on Sea 2012 and Decree 11/2021 allow certain sea areas (khu vực biển) to be allocated for exploitation and use of “sea resources” (tài nguyên biển). While the term “sea resources” is not clear, it appears to include offshore wind farm development. Decree 11/2021 requires a project developer of an offshore wind farm to pay from US$ 125/ha/year to US$300/ha/year for the sea area allocated to the project. Payment for the allocated sea area could be a substantial amount since an offshore wind farm could require significant sea area for not only the wind turbines and the floating sub-station but also the sea area for the undersea transmission line and other protective area/corridor. On the other hand, sea area allocated to offshore oil development is exempt from payment under Decree 11/2021.

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Written by Nguyen Quang Vu On In , ,

Decree 15/2021 on management of construction investment projects

On 3 March 2021, the Government issued Decree 15 detailing a number of provisions on management of construction investment projects (Decree 15/2021) to replace Decree 59 of the Government on dated 18 June 2015 on the same subject (Decree 59/2015).

Some new key points of Decree 15/2021 are as follows:

  • Encouraging BIM and digital technology solutions: Decree 15/2021 encourages to impose building information modeling (BIM) and digital technology solutions in construction and work operation management activities. BIM file constitutes a component of construction design documents or as-built documents for construction projects or works imposing BIM. Contents and details of BIM would be agreed upon in construction contracts by parties involved in application of BIM.

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Written by Lawyers VNLaw On In ,

IMPORTING LNG FOR LNG POWER PLANT

1. Pursuant to Article 6 of Decree 87 of the Government dated 13 March 2018 on gas trading (Decree 87), an entity involving in the import of LNG for trading in Vietnam needs to obtain a certificate on satisfaction of conditions applicable to LNG importing/exporting merchant (Import Certificate) from the Ministry of Industry and Trade (MOIT) before doing such activity.

2. The requirements of Decree 87/2018 seem to be drafted with entities importing LNG to trade in Vietnam in mind, but not for own consumption purpose, for example, a LNG power plant (LNG Power Plant) imports LNG to turn it into power. That said, if the LNG Power Plant imports LNG for own consumption purpose, it is advisable to apply for the Import Certificate because (i) there are no specific regulations guiding how to import LNG for own consumption purpose and (ii) the conditions to issue the Import Certificate set out in Decree 87/2018 mainly focus to ensure the safety of the LNG import activities.

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Written by Lawyers VNLaw On In ,