Offshore Wind Worldwide Regulatory Framework in Selected Countries 5th Edition 2024 - Flipbook - Page 371
Offshore Wind Worldwide 2024
would be assuming exchange rate risk. On 1
November 2023, the MOIT issued a circular
on methods for future determination of
the wind power generation price range to
be applied to new wind power projects,
providing that EVN will calculate and submit
to the MOIT for appraisal and issuance a
power generation price range to be applicable to onshore and offshore wind power
plants before 1 November every year to
apply during for the subsequent year. While
the Prime Minister has made it clear that
the feed-in tariff mechanism will eventually
be replaced with a competitive wind power
auction mechanism, it is unclear when such
an auction scheme will be finalised by the
MOIT, creating substantial uncertainty
about pricing which has to date delayed any
substantial investments in the sector.
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be produced within Vietnam and imported
to service production of an offshore wind
project.
Current wind power regulations do not
provide for territorial exclusivity for an investor to conduct a site survey for a potential
offshore wind power project in a particular
marine space. As a technical legal matter, a
specific site for developing and operating
offshore facilities of a project can only be
fully secured upon obtaining a marine space
assignment decision from the competent
State body, as further described in section
6 below.
Other than the incentive on tariffs, offshore
wind power projects will generally enjoy the
investment incentives applicable to wind
projects, including:
2.1 Corporate income tax preferences
Income from new investment projects in
renewable energy production will be subject
to corporate income tax at 10% for the first
15 years.3 The lowest corporate income tax
rate available to regular companies is 20%.4
2.2 Import duty preferences
There is an exemption from import duty in
respect of goods imported to form fixed assets of the project or imported raw materials
and manufactured materials not yet able to
3 Article 15, Decree No. 218/2013/ND-CP dated 26 December 2013 of the Government detailing and guiding the implementation of the Law on Corporate
Income Tax (as amended).
4 Article 13.3, Law No. 32/2013/QH13 adopted by the National Assembly on 19 June 2013 on the amendments to the Law on Corporate Income Tax.
