return icon

Clean energy: investment potential exists but bottlenecks impede progress

Favorable natural conditions and the government’s determination to allow Mekong Delta to develop environmentally friendly energy have both contributed to investment opportunities. 

VietNamNet Bridge - Favorable natural conditions and the government’s determination to allow Mekong Delta to develop environmentally friendly energy have both contributed to investment opportunities. But it is necessary to remove the bottlenecks hindering the development of clean energy.


Rainer Brohm, a renewable energy expert from GIZ, said the German cooperation agency, conducted a survey on PV (photovoltaic) roofs in Vietnam, which showed that 60-80 percent of systems are on a small scale, such as solar panels at households, or public lighting systems with solar energy. 

About 30-40 percent of larger systems are local solar power stations or electricity grids in remote areas/islands.

The expert, when citing typical projects such as the ones at Avery Dennison (100 KW), Intel Corp (220 KW), X Power (40 KWp), Big C Binh Duong (212 KWp), DBW (165 KWp), said the projects are developed in an unplanned way and do not follow any principles.

Meanwhile, supporting enterprises which provide PV in Vietnam mostly maintain production on a small scale or do outsourcing for China. Very few manufacturers have certificates for product quality.

Favorable natural conditions and the government’s determination to allow Mekong Delta to develop environmentally friendly energy have both contributed to investment opportunities. 
He said that the solar radiation level of 1,460-2,000 KWh per square meter per annum in Vietnam is relatively high compared with Spain, Italia and Thailand. This would be enough for developing solar energy which saves money in generating power and is friendly to the environment.

Brohm said that Vietnam has the capability of developing energy under the government plan to produce 850 MW of clean power by 2020 and 12 GW by 2030.

The amended Power Law, expected to be ratified by early 2017, stipulates bigger preferences in FiT price (Feed in Tariffs), the selling price of solar power to the national grid – 11 cent per kwh vs 7 cent per kwh currently. 

This, together with tax incentives, will make investors feel more secure when developing solar power projects.

According to Tran Huu Hiep from the Steering Committee for the Southwest Region, there are two problems that need to be settled.

First, the Ministry of Industry and Trade has set up a policy to encourage investors to develop renewable energy. For example, it would buy electricity from the wind-power plant in Bac Lieu province at 9.8 cent per kwh, higher than the average level of 7.8 cent. However, the support is only applied to specific cases.

Second, there are existing problems in the popicy for renewable energy projects to join the national electricity grid. 

Brohm from GIZ also noted that with the current monopoly of Electricity of Vietnam, it is difficult to create a competitive power market.

Mai Thanh


Central bank not tighten real estate credit: Deputy Governor

The State Bank of Vietnam (SBV) has never issued any documents or statements ordering credit for real estate be tightened, Deputy Governor Dao Minh Tu said on February 8.

Vietnamese Prime Minister starts official visit to Singapore

Prime Minister Pham Minh Chinh, his spouse, and a high-ranking Vietnamese delegation arrived in Changi Airport on February 8 afternoon, starting a three-day official visit to Singapore.

Businesses discuss ways to overcome challenges in 2023

Warned that uncertainties will still exist in 2023, businesses need to prepare well to weather the storm.

Vietnam's bond market remains quiet this year

The scale of debt in the corporate bond market is less than 15 per cent of GDP.

Organ trafficking in Vietnam driven by high demand, low rate of donation: experts

A conference on organ donation registration and the prevention of human organ and tissue trafficking was held on Monday.

VCCI proposes allowing businesses to set fuel retail prices

The Vietnam Chamber of Commerce and Industry (VCCI) has written to the Government suggesting fuel retail prices be decided by businesses based on supply and demand to prevent fuel shortages.


Vietnam puts children at centre of development policies, strategies: Ambassador

Gov’t issues action plan to realize Hanoi’s development vision until 2045

The Government has issued an action plan to realize Politburo’s resolution on the objectives for Hanoi’s development until 2030, with a vision to 2045.

Commercial sidewalk use may be charged by HCMC authorities

HCMC is planning to allow the paid use of sidewalks for commercial purposes such as vending goods or parking if these business activities leave a space of at least 1.5 meters wide for pedestrians.

CAAV advises caution when buying air tickets

The Civil Aviation Authority of Viet Nam (CAAV) has received feedback on the fact that passengers have to buy air tickets higher than the specified prices on domestic routes, especially during the peak of the Lunar New Year (Tet).

Prime Minister leaves Hanoi for official visits to Singapore, Brunei

Prime Minister Pham Minh Chinh, his spouse and a high-ranking delegation of Vietnam left Hanoi at noon on February 8 for official visits to Singapore and Brunei from February 8-11.

US war veteran wishing to return wartime diary to Vietnamese family

Pater Mathews, a US war veteran, has emailed relevant agencies of Ha Tinh province, central Vietnam, expressing his desire to fly to Vietnam and return a Vietnamese martyr’s diary he came across decades ago to the martyr’s family.


January payment transactions via national public service portal valued at 11.8 mln USD

Vietnam needs new products, services to reach tourism targets

To realise the targets of attracting 110 million tourists and earning some 650 trillion VND (27.5 billion USD) in revenue this year, Vietnam is recommended to develop more products and services to offer new experiences to visitors.

PM Chinh’s Singapore visit expected to advance bilateral trade ties

Prime Minister Pham Minh Chinh’s Singapore visit from February 8-10 aims to affirm the determination to elevate the bilateral economic ties to a new height in the context of many free trade agreement (FTAs) coming into force.