Key trends
The key trends we are currently seeing are:
Changes in regulation to help promote growth
Governments are loosening restrictions on development in regions in efforts to encourage investment in a range of infrastructure investments and streamlining regulation generally to facilitate investment and development.
Vietnam has a coastline of over 3,000km with reasonable water depths and promising OSW conditions
Government stimulus packages
Policymakers are actively encouraging the development of new projects, which are viewed as vital to economic growth, through a range of measures including tax and tariff cuts. Renewable energy projects and development data centres are amongst the sectors which have been recipients of support from governments across the APAC region.
The Government is potentially targeting over 11GW of wind energy by 2025.
Offering support with financial obligations
In order to meet these targets, Vietnam’s Government has rolled out a series of regulations aimed at clarifying the legal framework and incentives for the development of renewable energy projects, including a competitive statutory feed-in tariff. These policy developments, combined with a decline in global manufacturing costs for the technology necessary to leverage renewable energy sources, have generated significant interest among prospective investors.
Vietnam’s Government has rolled out a series of regulations and incentives for the development of renewable energy projects
Renewed interest in PPP initiatives
PPP initiatives are becoming more attractive to governments as they attract private investors to defensive, lower-risk segments in the infrastructure sector.
There remain a number of key hurdles for the development of largescale offshore wind in Vietnam.
Reallocation of priorities
In some jurisdictions, governments are delaying infrastructure spending and development to reallocate funding to more immediately urgent priorities. In many cases, this means directing funds previously earmarked for big-ticket infrastructure, being used instead for much needed health and social infrastructure.
There remain a number of key hurdles for the development of largescale offshore wind in Vietnam.
Government support measures across the region
Click on the map pins to explore how governments across Asia are implementing ongoing measures to support infrastructure development .
Select a jurisdiction on the map to explore in more detail.
Mainland China (Click to expand)
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8 May 2020: Beijing introduced new policies to encourage private investment in telecoms and power. 15 May 2020: People’s Bank of China announced 26 guidelines which will make cross-boarder transactions easier between Hong Kong, Macau and nine cities in the Greater Bay area of mainland China, with the aim of increasing development of big data infrastructure for sectors including healthcare and transportation.
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20 April 2020: NDRC announced fast track approval process for large-scale and strategically important infrastructure projects and to expand list of sectors that are open to foreign investment.
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4 March 2020: China Development Bank (CDB) and the Ministry of Commerce to provide financial support to coronavirus-hit Belt and Road projects, with streamlined loan approval process.
17 March 2020: National Energy Administration has scrapped wind power investment red alert for northwest provinces (Lanzhou, Baiyin, Tianshui, Dongxi, Pingliang, Qingyang, Longnan, Linxia, Gannan cities and prefectures of Gansu).
19 March 2020: Hubei reduced minimum equity threshold for urgently needed infrastructure projects by 5%.
20 March 2020: Government announced CNY 49.6 trillion to be invested in infrastructure across 25 major cities and provinces – focus on 5G networks, data centres, public healthcare, transport (high speed rail), energy (especially large-scale hydro) and social housing.
25 March 2020: National Development and Reform Commission (NDRC) announced it will work with large Chinese banks to raise financial support for 638 early-stage private sector-funded projects worth a combined CNY 47 billion (USD 66 billion).
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Ministry of Finance (MOF) announced relaxation of PPP regulations to fast-track registration and approval of PPP projects.
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Indonesia (Click to expand)
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23 April 2020: Public Works and Public Housing Ministry to suspend to 2021 (to come up for auction October 2020) a number of infrastructure projects to reallocate funds (37% of its 2020 budget) to COVID-19 emergency measures, including hospitals.
2 April 2020: Government considering asking banks to relax payment obligations for toll road operators.
Other: Likely the $33 billion project to build a new capital city in East Kalimantan province will be delayed.
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12 March 2020: Public Works and Public Housing Ministry gauging interest for 5 PPP road projects to try to counter impact of COVID-19.
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