Equinor ASA, the Norwegian energy giant, has announced its withdrawal from Vietnam’s burgeoning offshore wind sector. The decision, which comes after reported delays in regulatory reforms, casts a shadow over Vietnam’s ambitious green energy goals.
Vietnam’s renewable energy sector has attracted global interest due to its favorable wind conditions, particularly in shallow waters near densely populated coastal areas. The World Bank Group has highlighted the potential of Vietnam’s wind energy resources. However, the lack of progress in regulatory reforms has prompted some investors to reconsider their commitments.
Equinor’s departure marks a significant setback for Vietnam’s offshore wind ambitions. It’s the first time the company has closed an international office dedicated to offshore wind development. An Equinor spokesperson confirmed the decision, stating, “We have decided to discontinue our business development in Vietnam and to close our office in Hanoi.”
Equinor’s withdrawal from Vietnam comes amidst other recent challenges for the company. Earlier this week, the company shut down the Gullfaks C platform in the North Sea due to a well control incident. Despite these setbacks, Equinor reported strong second-quarter results, with adjusted revenue reaching $25.54 billion, exceeding analysts’ expectations.
Investors interested in gaining exposure to Equinor can consider ETFs such as SGI Enhanced Global Income ETF (GINX) and Keating Active ETF (KEAT).
Following the news, EQNR shares have shown a positive response, rising by 1.09% to $26.80 at the time of this writing.
