return icon

How should the mechanism on wind power pricing policy be?

Experts all have agreed that it’s necessary to offer big investment incentives to encourage investors to pour money into wind power projects, but they still have not agreed on how big the preferences should be.

VietNamNet Bridge – Experts all have agreed that it’s necessary to offer big investment incentives to encourage investors to pour money into wind power projects, but they still have not agreed on how big the preferences should be.


Pham Trong Thuc, Director of the Recycled Energy Department under the Ministry of Industry and Trade, said the government orders the wholesale buyer, EVN, to buy all the electricity output churned out by wind power projects. The selling price is UScent7.8 per kwh, not including VAT. The price in dong would be adjusted in accordance with the dong/dollar exchange rate fluctuation.

Thuc stressed that the price fixed by the government and applied to wind power projects is much higher than the price of the electricity churned out with other kinds of fuels.

He went on to say that the government has also decided that the products of clean energy projects, including wind power, can enjoy the subsidy from the environment protection fund, and enjoy the investment credit preferences from the state sources.

The wind power project developers don’t have to pay the import tax on the equipment imported to serve the projects’ implementation. They can enjoy the 10 percent corporate income tax rate for 15 years during the projects’ lives, while the tax incentives can be extended by up to 30 years.

Also according to Thuc, MOIT is going to issue two important documents relating to the wind power development, including the wind power development program and the sample contract on wind power sale and purchase. The average duration of the projects is 25 years.

“With the two new legal documents, the investors would feel secure to make investment in wind power projects in Vietnam,” Thuc said.

However, he also thinks that in the long run, the wind power purchase price needs to be raised by the government, while the electricity price needs to be set up in accordance with the market supply and demand to ensure the harmonized benefits for the State, investors and consumers.

The policy maker also mentioned the removal of the subsidy in the gas and coal prices being applied to coal run and gas run thermopower plants, and the necessity to simplify the procedures to create most favorable conditions for investors.

The government has been urged to instruct relevant ministries and branches to continue the surveys on the wind power potentials and show exact figures about the potentials. The relevant ministries would be requested to seek reasonable resources to call for the investment capital. Since wind power projects require huge capital, it would be unfeasible to rely on the state’s investments or domestic capital sources.

One more wind power project on the track

Cong Ly Company, the investor of the Bac Lieu wind power project, has reportedly asked for the HCM City People’s Committee’s permission to develop a 200 MW wind power plant in Can Thanh town of Can Gio district in the city. The project is expected to have the investment capital of VND10 trillion.

A senior executive of Cong Ly said the wind speed in Can Gio is as high as 7 meters per second, which is suitable for developing wind power.

The company plans to install 125 turbines on the area with the length of 20 kilometers along the Can Thanh beach. It would take 3-4 years to build the plant



Ngoc Linh ginseng helps Central Highlands locals out of poverty

Growers in the Central Highlands provinces dreamed of escaping poverty when they planted Ngoc Linh ginseng which has made an economic contribution to improving local farmers’ living conditions.

Soc Trang’s Khmer pagoda features giant Buddha statue

With the long-standing bonds of the Kinh, Khmer, and Hoa ethnic groups, Soc Trang boasts a special cultural identity that makes it an outstanding spiritual destination for tourists and Buddhist followers from far and wide.

Smart-homes getting cheaper in Vietnam

In Vietnam, a smart-home installation package costs VND14-25 million.

Vietnamese nationals account largest proportion of Japan’s foreign worker population

Vietnamese nationals account for 25.4% of the total 1.82 million foreign workers who were working in Japan as of the end of October last year, according to the Japanese Ministry of Health, Labour and Welfare (MHLW).

Mekong Delta develops more OCOP products

The Cuu Long (Mekong) Delta’s 12 provinces and the city of Can Tho are developing more products under the country’s “One Commune-One Product” programme.

Major Vietnamese paintings worth millions of dollars at global auctions

2022 represented a successful year for the Vietnamese painting market as three more pieces were auctioned at more than US$1 million each, bringing the total number of valuable paintings to 19. Let’s take a closer look at some of them.

Vietnamese American singer brings Tet Holiday joy to disadvantaged children

In hope to bring the children who lost their parents because of Covid-19 a warm spring holiday, Vietnamese American singer Ha Phuong spent a day to enjoy Tet with them.

How will the economy fare in 2023?

Vietnam’s economy had a prosperous year in 2022 with GDP growth rate of 8.02 percent, a one-decade high.

Female Vietnamese badminton star Thuy Linh placed 50th in world rankings

Vietnamese badminton star Nguyen Thuy Linh has risen to 50th position in the world’s latest singles women rankings, according to the Badminton World Federation (BWF).

Phin Ho ‘shan tuyet’ tea –specialty of Ha Giang

Apart from stilt houses and seemingly endless terraced paddy fields, “shan tuyet” tea, a famous specialty of Phin Ho village, is one of the special things visitors cannot forget once setting foot in Tay Con Linh Mountain in Ha Giang.

Discovering art of making vegetarian dishes in Tay Ninh

Religions and beliefs have made considerable contributions to the culinary culture of Tay Ninh.

Hoi An, HCM City among world's top 25 trending destinations in 2023: TripAdvisor

Germany’s famous travel site has run an article highlighting the world’s top 25 trending destinations for 2023, including Vietnam’s Hoi An ancient city and Ho Chi Minh City, recently voted by readers of TripAdvisor.

Make-in-Vietnam sleeping machine developed by professor

FRENZ Brainband helps users have faster, tighter and deeper sleep. It can also be used for relaxing and enhancing concentration when working.

Paris Agreement: Lessons on independence, self-reliance, int’l solidarity

The signing of the Paris Agreement on ending the war and restoring peace in Vietnam on January 27, 1973, was a resounding victory of Vietnam’s revolutionary diplomacy in the Ho Chi Minh era.

PM: Lunar New Year comes with new energy

Prime Minister Pham Minh Chinh chaired a meeting of permanent Cabinet members in Hanoi on January 27, speaking of new energy of the nation following Tet (Lunar New Year), the biggest festival in Vietnam.