HCMC – PNE AG, a German company, has signed a memorandum of understanding with Binh Dinh Province to develop an offshore wind farm.

The signing took place at an investment promotion conference held in the province on November 21.

With an estimated cost of US$4.6 billion, the offshore wind energy project is expected to have a capacity of 2,000 MW, contributing to the country’s electricity industry and facilitating the socio-economic development of the province.

“Currently, the majority of enterprises use electricity from the national grid. With this renewable energy project, the proportion of clean energy in the province would rise rapidly,” said Pham Anh Tuan, chairman of Binh Dinh Province, at the event.

Thorsten Fastenau of PNE AG said the company would build 154 to 166 wind turbines in three phases once the project is approved.

In the first phase, the project will be developed in the seas off Phu Cat and Phu My districts, with a capacity of 700 MW, requiring an investment of US$1.6 billion.

At the event, the local authority also announced that German businesses will enjoy investment incentives from the Government and additional incentives from the province, if they invest in Binh Dinh.

The incentives comprise a corporate income tax (CIT) rate of 10% for the first 15 years, four years of CIT exemptions upon having taxable income, and 50% tax reductions for the next nine years.

Moreover, the investors will be exempt from import taxes during the first five years for raw materials and semi-finished products that Vietnam does not produce.