COOPERATION: OPPORTUNITIES FOR RENEWABLE ENERGY IN VIETNAM

Hoang Thien Vu

8 thg 4, 2022

Over the last several years, Vietnam’s economy has been growing at a significant rate and is expected to grow at the rate of 6.5-7.5% per year till 2030. To maintain as well as raise the economic growth rate, electricity production is required to reach 2.2% of growth for every 1% of GDP growth.

To meet the economic growth demands and also ensure energy security, mobilize foreign investment and advanced technology is a wise strategy.

On 23/6/2019, the inauguration of BCG-CME Long An 1 solar power plant in Long An was held by the government of Vietnam and Oman through Vietnam-Oman Investment Fund (VOI). After the BCG-CME Long An 1 solar energy plant, VOI promised to continue to invest and build other large-scale renewable projects in Vietnam and in Long An in particular. This plan is expected to help Vietnam meet the target of becoming a favored clean energy country.

On 4/8/2021, Vietnam Ambassador in Germany Nguyen Minh Vu hold a meeting between the Vietnam Embassy in Germany and Germany’s Großmann Ingenieur Consult GmbH (GICON) and the Vietnam Petroleum Institute (VPI) to discuss about the content in the Memorandum of Understanding (MoU). The MoU was signed between GICON and VPI on 29/3 on cooperation of renewable energy and hydrogen production in Vietnam. The MoU is expected to improve and strengthen the two countries' cooperation in this field along with utilizing Vietnam’s great potential in solar and wind power. This cooperation can also promote the two countries’ cooperation in economy, trade, and investment.

The EU-Vietnam Free Trade Agreement (EVFTA) has furthered Vietnam’s opportunities to enhance economic cooperation and investment in many different fields, consisting of renewable energy with Sweden. Apart from launching a solar power system using a special inverter that can store energy for a long time, the Swedish Embassy in Vietnam also collaborates with the Vietnamese Ministry of Industry and Trade to organize workshops, help to create more opportunities for major energy firms and groups of Sweden and Vietnam. What the two countries focus on are ways to promote technical cooperation, upgrade the power grid, develop the renewable energy market, and mobilize Swedish financial institutions’ credit support for energy projects.

The US Energy Security Dialogue is an annual ministerial-level cooperation framework to reinforce cooperation in the energy and electricity sectors between Vietnam and the United States. Since 2018, Vietnam and the United States have implemented many cooperation activities in the energy field, consisting of: exploration and exploitation of oil and gas, oil and gas services, build and provide thermal power plant equipment, promote wind power development, technical cooperation in specialized fields,... In 2021, the two countries held the 3rd Vietnam - US Energy Security Dialogue with the signing ceremony of a funding document for an energy storage battery system between the US Consulate General in Ho Chi Minh City and AMI Khanh Hoa Energy Joint Stock Company, which is a wholly-owned subsidiary of AMI AC Renewables Joint Stock Company, specializing in the development and operation of renewable energy projects in Vietnam. More specifically, the US Government sponsored USD 2,962 million of the whole investment cost of USD 4.5 million for AMI Khanh Hoa Energy Joint Stock Company to install a storage battery system made by a leading partner in energy storage.

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