The Next Big Thing: Vietnam’s Upcoming Mega Facility in a Promising Sector

This is the world’s largest wind power equipment manufacturing plant project. The two enterprises involved in constructing this project are Dong Tam Group and CS Wind Corporation (South Korea) . Recently, on September 10, Dong Tam Group officially signed a memorandum of cooperation with CS Wind Group on leasing land to build a wind power equipment manufacturing plant in Dong Nam A Long An Industrial Park.

The project is considered a significant step forward in the development of Vietnam’s wind power industry. The initial investment capital for this project is about 200 million USD.

According to the above memorandum, Dong Tam Group will lease 50 hectares of industrial land in the Long An International Port Project Cluster and facilitate CS Wind Group to build a plant to manufacture wind power equipment. It is known that the products from this factory include single piles, offshore wind towers, and other transition pieces.

As of the project establishment, the factory to be built in Long An will have the world’s largest wind power equipment production capacity. It is expected that after going into operation, this factory will supply the global market with a production capacity of tens of thousands of units per year. Each piece of equipment produced is estimated to weigh from 500 to 4,000 tons.

According to CS Wind Corporation’s plan, 100% of the equipment and accessories produced in this factory will be imported and exported through Long An International Port, with an estimated volume of 150,000 – 200,000 tons per year. This is expected not only to boost the local export sector’s growth but also to promote the development of logistics and the regional economy.

On this issue, Mr. Huynh Van Son, Vice Chairman of the People’s Committee of Long An province, affirmed that the wind power equipment manufacturing plant project would contribute to the socio-economic development of the locality. In fact, industrial parks nowadays not only attract investment capital but also create many jobs for workers, making a significant contribution to the state budget. Evidence shows that budget revenue from industrial parks accounts for nearly half of Long An province’s total revenue.

CS Wind is considered one of the world’s leading corporations in wind power equipment manufacturing today. Mr. Bang Seong-Hun, CEO of CS Wind, shared that Long An is the second location the corporation has chosen to invest in Vietnam. After careful consideration, the corporation decided to cooperate with Dong Tam Group to build a plant in Dong Nam A Long An Industrial Park. The project also marks an important milestone in CS Wind’s strategy to expand its global production scale.

Previously, in 2003, CS Wind Corporation established a company specializing in manufacturing wind towers in Vietnam, with an offshore wind tower manufacturing plant located in Phu My 1 Industrial Park, Phu My town (Ba Ria – Vung Tau province), with a total investment of over 70 million USD.

Mr. Vo Quoc Thang, Chairman of the Board of Directors of Dong Tam Group, affirmed that the cooperation with CS Wind is considered an important step in affirming the attractiveness of Long An province to international investors. Dong Tam Group’s leaders committed to creating the most favorable conditions for secondary investors when implementing the project to ensure the progress and efficiency of the plant’s operation.

A Potential Industry Globally

According to the Global Wind Energy Council (GWEC), in 2023, the global offshore wind power industry installed a new capacity of 10.8 gigawatts (GW). This is also the second-highest year in terms of installations, setting the stage for a potentially record-breaking decade, provided the current policy growth momentum is maintained.

Mr. Ben Backwell, CEO of GWEC, said that installing nearly 11 GW of offshore wind power is considered the prime advantage of the new wave of offshore wind growth.

” Policy progress, especially in the Asia-Pacific and Americas regions, has put us on track to install a record annual capacity and surpass the 380 GW target set by the Global Offshore Wind Alliance. This means that offshore wind energy is on track to achieve the triple ambition set out at COP28 in Dubai “, shared Mr. Ben Backwell.

The CEO of GWEC emphasized that offshore wind power is no longer just a story of Europe, China, or the US. In 2023, GWEC witnessed remarkable progress in new markets, where the main drivers for offshore wind power are already in place, from government commitments to sustainable economic growth to increasing consumer demand and the decarbonization process in the industry.

The continuous expansion of the global offshore wind power industry will be increasingly driven by new participating countries, including Australia, Japan, the Philippines, South Korea, Vietnam, Colombia, Brazil, Ireland, and Poland.

In the next ten years, according to GWEC’s forecast, 410 GW of new offshore wind power capacity will be installed. Most of this will be installed at the beginning of this decade, with two-thirds installed from 2029 – 2033.

According to Bloomberg New Energy Finance (BNEF)’s analysis, with governments worldwide actively promoting the development of green energy, it is expected that by 2050, wind and solar energy will meet up to 56% of global electricity demand.

In Vietnam, according to the Ministry of Industry and Trade’s report, the development of offshore wind power is one of the important orientations of Power Planning 8. In addition to helping realize the energy transition roadmap, the development of offshore wind power also helps the country efficiently exploit the enormous potential of renewable energy and develop the marine economy.

According to the Ministry of Industry and Trade, Power Planning 8 sets the goal that by 2030, Vietnam will develop about 6,000 MW of offshore wind power and has oriented the development and formation of two inter-regional renewable energy industry and service centers in areas with high potential such as the North, South-Central, and South when conditions permit (mainly offshore wind power). The orientation towards 2050 is for Vietnam to reach 70,000 MW to 91,000 MW of offshore wind power.

Reference sources: GWEC, BNEF, Moit, CS Wind