Thứ Năm, 29 tháng 12, 2016

Vietnam pushes renewable energy with focus on solar power

BY Juna Mèo IN , , , , No comments

Vietnam is grappling to generate enough energy to power the economy.
Vietnam’s electricity consumption has grown twice as fast as the country’s economic growth rate.
The average energy consumption inVietnam grew 13 percent from 2006-2010, and by about 11 percent from 2011-2015, said Le Tuan Phong, deputy head of the General Directorate of Energy. The country is on the path towards powering itself by 2030, Phong said.


The country’s power production is expected to grow at an annual rate of 14 percent between 2015 and 2030.

Fossil fuels still dominate Vietnamese energy consumption. According to the World Bank, over 66.2 percent of the country’s energy comes from fossil fuels.

Vietnam’s annual coal output is currently about 40 million tons, official statistics show.
Coal has taken over from hydro power as the leading source of electricity in Vietnam, which has recently become a net coal importer.

In response to fast growing demand for power, Vietnam is building more coal-fired thermal plants and buying electricity from neighboring China as part of measures to avoid outages.

Vietnam, however, is faced with a two-fold energy challenge. The country has to generate enough energy for economic growth and for millions of people who still lack access to energy services, while gradually shifting towards clean, low-carbon energy, said Tran Dinh Thien, head of the Vietnam Economic Institute.

“Vietnam’s economic growth still relies heavily on the exploitation of natural resources and relatively low-tech production. Industries such as cement and steel use a colossal amount of energy,” said Thien, adding that only 2 percent of local businesses are high-tech driven.
The Vietnamese government should change the country's economic structure and prioritize energy-saving industries, Thien suggested.

Half of Vietnamese households use solar energy
Along with the need to decrease the reliance on fossil fuels, the country needs to build an energy sector more focused on renewable energy, particularly solar energy.
To put Vietnam on a path to a clean energy economy, the government plans to cut coal consumption by 30 percent by 2030.

The government has also opened up its renewable energy sector to foreign investors, allowing them to invest in power generation. Official statistics show that in 2013, foreign investments in energy through the Build – Operate – Transfer model accounted for 6 percent of total installed capacity.
The country is also restructuring its power sector by breaking up its retail power monopoly EVN to develop a competitive retail power market by 2030.

Vietnam is aiming to generate enough energy to power almost every home by 2020 and increase residential solarpower usage to 50 percent of households nationwide by 2050.

Source: Bao Vnexpress




Thứ Tư, 28 tháng 12, 2016

Vietnam's revised energy plan might not be as green as it seems

BY Juna Mèo IN , , , , , No comments

Last March, Vietnam upped its planned share of renewable energy for 2030 to 10 percent, from the initial 4.5 percent. However, in the next 15 years, Vietnam also plans to increase its reliance on coal fired power, the most carbon intensive electricity source.

*Vietnam relies mostly on hydropower to produce electricity. Therefore, renewable energy in this article refers only to solar power, wind power and biomass energy.

As part of the Power Development Master Plan VII released in July 2011, the country will give priority to developing renewable energy sources. The rate of renewable power is planned to account for 4.5 percent by 2020 and six percent in 2030. However, the revised Power Development Master Plan VII released in March 2016 has adjusted those rates up.

Wind power, solar energy and biomass power contribute insignificantly to total electricity produced.
On the other hand, by 2030, the government plans to rely on coal-based plants to produce electricity, making coal fired power the dominant power source. The rate of renewable energy will only account for 10.7 percent of the country's power supplies.

Details in the Power Development Master Plan VII show that as of 2030, there will be 83 coal-based plants, but only 10 renewable plants. According to the Guardian, World Bank President Jim Yong Kim has warned that plans to build more coal-fired power plants in Asia would be a “disaster for the planet”. “If Vietnam goes forward with 40GW of coal, if the entire region implements the coal-based plans right now, I think we are finished,” he added.


 Source: Bao Vnexpress

Thứ Ba, 27 tháng 12, 2016

Vietnam sees record new business in 2016

BY Juna Mèo IN , , , , , No comments

A man welds a steel bed at a furniture factory outside Hanoi. Photo by Reuters/Kham
The new 110,000 businesses could create nearly 1.3 million jobs.
Vietnam saw a record number of business openings in 2016, shedding hopes for robust growth and strong investment in the near future.


A new report from the Ministry of Investment and Planning said the past year saw 110,000 new businesses open, up 16.2 percent from 2015. Registered capital increased 48 percent to more than VND891 trillion ($39 billion).

These new companies are expected to create nearly 1.3 million jobs, independent of the nearly 26,700 firms who suspended operations during tough times only to resume operations in the past 12 months.

Vice Minister Dang Duy Dong described the numbers as “lively.”

“With such energy and investmentopportunities, the market will surely be more competitive and the economy will leap strongly,” the government report quoted Dong as saying.

More than 36,000 new businessescame online in Ho Chi Minh City and nearly 23,000 in Hanoi.

New openings in the real estate sector increased almost 84 percent from last year, while education and healthcare openings increased 43 and 52 percent, respectively.

Arts, entertainment and agriculture businesses all dropped from last year.

But the ministry’s report also revealed a dark side of the boom.

Bankruptcies surged 32 percent to nearly 12,578, including in both agriculture and real estate.

Vietnam hopes to see over one million businesses in operation by 2020, which means an average of 100,000 openings every year.
Source: Bao Vnexpress


Forms of Public Private Partnership Investment in Vietnam

BY Juna Mèo IN , , , No comments

Public investment in Vietnam is not just limited to the transportation infrastructure, electricity, renewable energy, water, health and environment, but also in areas such as education, training, vocational training, culture, sports, commercial infrastructure complex, science and technology, economic zones, industrial zones


Vietnam is in the development stage that needs significant investment in infrastructure.  However, the state budget is limited, and donor funds have been reduced and limited. Therefore, the investment pattern in the form of public-private partnership (also known as PPP) is an effective solution to this problem. PPP has been expected to mobilize resources for investment in infrastructure from the private sector, from both domestic and foreign investment.
Investments in the form of public-private partnership investment is made on the basis of contracts between competent state agencies and investors or project company for the implementation, management and operation of the project in infrastructure, or providing public services. Accordingly, investors, project company shall be authorized to implement investment projects on construction or renovation, upgrading, expansion, management and operation of infrastructure projects or providing public services.
The investment contracts in the form of public-private partnership are defined in Vietnam as following.
BOT Contract
“Build – Operate – Transfer contract” (referred to as BOT contract) means a type of contract to build an infrastructure project between a competent state agency and an investor; after completing the construction, the investor shall be entitled to operate it for a specified period of time; eventually, the investor shall transfer it to the Vietnam competent state agency.
BTO Contract
“Build – Transfer – Operate contract” (referred to as BTO contract) means a type of contract to build an infrastructure project between a competent state agency and an investor; after completing the construction, the investor shall transfer it to the competent agency, and shall be entitled to operate it for an agreed period of time.
BT Contract
“Build – Transfer contract” (referred to as BT contract) means a type of contract to build an infrastructure project between a regulatory agency and an investor; after completing the construction, the investor shall transfer it to the competent agency, and then the investor will be allotted a land parcel used for carrying out another project.
BOO Contract
“Build – Own – Operate contract” (referred to as BOO contract) is a type of contract to build an infrastructure project between a competent agency and an investor; after completing the construction, the investor shall take ownership of this project and have the right to operate it for a specified period of time.
BTL Contract
The Build – Transfer – Lease contract (referred to as BTL contract) means a type of contract to build an infrastructure project between a competent agency and an investor; after completing the construction, the investor shall transfer it to the regulatory agency and shall be entitled to provide services on the basis of operation of such project for a specified period of time; the competent agency shall lease and make payment for the investor’s services.
BLT Contract
“Build – Lease – Transfer contract” (referred to as BLT contract) means a type of contract to build an infrastructure project between a competent agency and an investor; after completing the construction, the investor shall have the right to provide services on the basis of operation of such projector a specified period of time; the competent agency shall lease and make payment for the investor’s services according to the regulation; when the lease term expires, such project shall be transferred to the competent agency.
O&M Contract
“Operation & Management contract” (hereinafter referred to as O&M contract) means a type of contract to operate the project between a competent agency and an investor for a specified period of time.
ANT Consulting is here to assist you from the outset; providing corporate intelligence, risk advisory, management consulting services that assist market entrance, and ensure efficient business start-up operation.  Our services are as following:
We strive to save your cost by guiding you towards economical solutions that comply with local legislation and procedures. We support you through early logistic solutions and carry you through as your business grows.  We aim to bridge the gap between international best practices and local cultures and assist foreign companies and organizations entering Vietnam market to overcome commercial and regulatory issues.
We could be reached at email: ant@antconsult.vn or tel: +848 3520 2779 .  To learn more about us, please visit www.antconsult.vn




Thứ Hai, 26 tháng 12, 2016

Hanoi, Ho Chi Minh City listed as foreign investment magnets

BY Juna Mèo IN , , , , , No comments

Vietnam received an estimated $18.1 billion in new FDI pledges from January to November this year.
Ho Chi Minh City and Hanoi have been ranked 10th and 17th respectively out of the top 25 emerging market cities on the fDi 2016/17 Global Cities of the Future listing, a global investment service provided by the Financial Times.

Chinese cities dominated the ranking with Shanghai and Beijing claiming the top two places.

Thailand’s Bangkok was the other Southeast Asian city named on the list, placed above Ho Chi Minh City and Hanoi in 9th.
In the top 25 overall ranking, which included emerging and developed countries, Singapore kept its position at the top of the table as the Global City of the Future 2016/17, with London holding strong in second place and Dublin displacing Hong Kong to rank third.

 The ASEAN Investment Report 2016 showed that Cambodia, Laos, Myanmar and Vietnam (CLMV) recorded a combined 38 percent jump in FDI inflows to $17.4 billion last year from the year before. Their share as recipients of the investment flowing into the region rose from 10 percent in 2014 to 14 percent in 2015.

Leading the CLMV group, Vietnamattracted FDI inflows of $11.8 billion in 2015, a 28 percent increase year-on-year, said the report.

Vietnam received an estimated $18.1 billion in new FDI pledges from January to November this year, down 10.5 percent from a year ago, according to the Ministry of Planning and Investment.

However, the investment ministry said foreign investors had disbursed an estimated $14.3 billion in Vietnam as of the end of November, a rise of 8.3 percent from the same period last year.

Foreign direct investment inflows to Vietnam are expected to hit a record high of $15 billion this year, Prime Minister Nguyen Xuan Phuc said at the Vietnam Development Forum earlier this month.

Source: Bao Vnexpress



Thứ Tư, 21 tháng 12, 2016

Benefits of Setting Up Business in Danang

BY Juna Mèo IN , , , , No comments

Danang is considered an ideal destination for investment. The result shall be incredible where we evaluate on the following aspects:
Danang – one of the strategic economic centers of Vietnam’s central region
In March 13th, 2004, the prime minister signed a decision to establish central region’s strategic economic center, including 05 provinces and cities: Thua Thien Hue, Danang, Quang Nam, Quang Ngai and Binh Dinh to promote potential, geographical location and competitive advantages and step by step develop this economic region to become one of the most dynamic economic region in the country. In particular, Danang is defined as the role of nuclear motivation for promoting the development of the central region and the highlands.
Danang – eastern gateway of east – west economic corridor (EWEC)
EWEC is one of five economic corridor developed by the initiative of the Asia development bank in the greater Mekong sub – region.
Currently, the road system in Laos, Thailand and the road line from Danang to Savannakhet are completed. The second international bridge spanning the Mekong river was completed in the end of  2006 to facilitate the circulation of goods and passengers by road line from Danang to the northeastern provinces of Thailand and vice versa. East-west economic corridor not only provide an opportunity for the country on the path of promoting regional cooperation and improve living standards for the people but also enable businesses better access to the raw materials market services, capital, labor and technology with the purpose of creating favorable conditions for investment and trade across the border and diversifying economic activity and exports and promoting tourism development
Danang – entrance of the cultural heritage and natural wonders of the world
Danang is located in the heart of the “world heritage road”, stretching from the central coast of Vinh city to Da Lat city. From Danang, along the national highway 1A, visitors can access quickly and conveniently four of five world heritages in Vietnam, including Phong Nha – Ke Bang national park (about 300 km from the north of Danang), the ancient capital of Hue (about 100km from the north), Hoi An (about 30km from the southeast) and My Son (about 70 km from the southwest).
With the advantage of geographical location and potential economic development in tourism, Danang is an ideal destination for tourists as well as investors.
Infrastructure is step by step improved
Danang is an important traffic hub of the central  – highlands and country with system of international airports, deep sea ports, roads, north-south railways  developed conveniently.
Danang port is the third largest commercial ports in Vietnam after Saigon port and the port of Haiphong. With a depth of 11m wharf, warehouse systems and equipment upgraded by capital funds of the government of Japan, Danang port can receive ships with a capacity of 45,000 dwt and others such as container ships, passenger ships, cargo ships. Danang is the international shipping route anabling to go to Hong Kong, Singapore, Japan, Taiwan and Korea.
Danang international airport is one of the three best airports in Vietnam. In addition to domestic flights, there are weekly international flights directly from Danang to Singapore, Bangkok, Taipei. In the near future, the airport will open more routes to Hong Kong, Japan and Korea. Danang international airport is currently being upgraded and expanded to meet the needs of increasing passengers and cargos.
The system of roads in and out of the city are constantly being expanded and newly constructed
Telecommunication systems: Danang is one of three major telecomunication centers of the country, international transmission speed with good quality of  Southeast Asia. Danang post provides various and modern telecommunication services and be capable meeting the needs of customers.
The other services supporting investment (financial, banking, insurance …): most banks and finance companies of Vietnam have large branches in Danang. Some branches of foreign banks and international insurance companies are operating effectively in the city. These services have increasingly been improved better to meet the needs of investors.
Trained and abundant human resources
Danang has abundant human resources (over 50% of the population of the city), mostly young labor. Number of employees with technical expertise trained account nearly a quarter of the labor force. Labor costs in Danang are lower than some other cities in the country.
Danang is one of the provinces in the country with the high educational development index which create a favorable platform for the development of human resources of the city to perform the goal of improving the quality of human resources, quality of life. The city has about 14 universities, 15 colleges and professional schools with nearly 140,000 students. This system performs training in most areas of science, engineering, information technology, economics, business administration, language and pedagogy… Danang university also cooperates with universities of countries with an advanced education such as France, US, Japan, Australia, Canada, New Zealand …
Software technology center in Danang is one of the leading software producers in Vietnam and is the leading training center of the central region. Over the years, the software technology center  has cooperated closely with companies of India (aptech) and Japan (aots) to train programmers, technicians and engineers reaching the international standard.
In addition, the city also has about 55 vocational training centers which often provide short-term training courses in computer science, sewing, mechanics, electricity – electronics, construction techniques, etc …
Quality of life
Along with the process of urbanization, economic growth in recent years has helped to material life and spirit of the people of Danang continuously improved.
Unlike other large cities in Vietnam, next to the bustle of urban development, living in Danang always bring a sense of peace, comfort and closeness to nature. Danang is one of the very few cities in Vietnam having a harmonious combination between high mountains, deep forests, long beach, deep river. After work, you can easily find space to relax beside the river or on beautiful beaches.
Danang today is a city with a healthy cultural environment, with urban civilized lifestyle, literacy levels elevated, beautiful natural scenery. It can be said that Danang is an exciting place to live, work, travel  and invest in Vietnam.
ANT Consulting is here to assist you from the outset; providing corporate intelligence, risk advisory, management consulting services that assist market entrance, and ensure efficient business start-up operation.  Our services are as following:
We strive to save your cost by guiding you towards economical solutions that comply with local legislation and procedures. We support you through early logistic solutions and carry you through as your business grows. We aim to bridge the gap between international best practices and local cultures and assist foreign companies and organizations entering Vietnam market to overcome commercial and regulatory issues.
We could be reached at email: ant@antconsult.vn or tel: +848 3520 2779 . To learn more about us, please visit www.antconsult.vn
Source: Antconsult.vn




Thứ Hai, 19 tháng 12, 2016

Many Foreign Brands Are Coming to Vietnam

BY Juna Mèo IN , , , , , No comments

Realizing that Vietnam is a promising market, foreign enterprises want to do business in Vietnam through the form of franchising. Recently, many consumer goods, fashion and cosmetics brands from Japan and Thailand are promoting the franchise with Vietnamese partners and enterprises.

In the framework of the program “Vietnam – Thailand Enterprises Interaction in The Field of Franchising” which was held in Ho Chi Minh City (HCMC) recently, there were 40 Thailand enterprises operating in the food, beverage, restaurant, supermarket, health care, cosmetic sectors joined to find partners in Vietnam.
According Mr Nupartpat Sutthitham, Director of the MP Mart convenience store chain (Thailand), currently in Thailand there are 3 MP Mart stores, in which the model is not the same as Family Mart or Circle K. While Family Mart sells mainly food (80%), MP Mart sells mainly fast moving consumer goods, which are produced in Thailand (70%).
According to representatives of MP Mart, the cost to open a store in Thailand with an average area of 150 m2 is approximately 50,000 USD. Realizing the Vietnam market has many opportunities, MP Mart wants to explore and this is the first time this brand comes to Vietnam. The criteria for selection of investors, partners of MP Mart are having financial resources to be able to scaling this model in large numbers in Vietnam.
Meanwhile, according to representatives of Kokekokko – a well-known chicken fast food brand in Thailand with 5 stores, using Japanese spices to marinate chicken. Representatives of this brand also did not hide their intention to find partners with business understanding and financial resources to open stores in Vietnam.
Also in late November of 2016, there were 9 Japan enterprises with 14 fashion brands came to Vietnam to find partners to open franchise stores or distribute products in the domestic market.
According to Mr Akira Kaise, representatives of I Am Company Limited, this fashion brand has been presented in many markets around the world such as Hong Kong, Shanghai, Korea, Taiwan, Spain, UK, Netherlands… and this is the first time he comes to Vietnam to study the market.
Representative of I Am Co., Ltd commented that young population, good economic development, increasing people’s incomes… are factors to make Vietnam becoming a potential market for fashion items. In addition to the market penetration, the Company is also interested in outsourcing or investing in Vietnam to take advantage of low labor costs and highly skilled labors.
At the Vietnam market, Japanese businesses are often mentioned in the culinary field, meanwhile, the fashion, cosmetics or beauty brands are not widely known by consumers. Thus, recently, many Japanese cosmetic brands have decided to enter the market of Vietnam and looking for official distributors.
In an activity operated by the Esuhai Company of Vietnam recently in HCMC, there were nearly 10 cosmetic brands of Japan participated. Among them, the brand Kose is well known by many consumers.
According to the representative of Kose, this enterprise has been established since 1946, global sales reached 2.1 billion USD a year and has been presented in 18 countries. However, so far, this brand does not have official distribution channel in Vietnam market. Therefore, along with the promotion of market presence and product introduction, on this occasion, Kose desires to find agents and official partner in Vietnam.
Meanwhile, according to representatives of Nippon Menard Cosmetic Company, owner of the brand Menard, the Company is fully confident to introduce their products to consumers in Vietnam and wanted to find good partners to be able to access to more consumers.
According to the representatives of the Japan External Trade Organization (JETRO) in HCMC, Vietnam currently has more than 93 million populations, of which half are women who want to become more beautiful as earnings are improving and willing to spend the budget for beauty and body care. Therefore, this is a favorable time and good opportunity for the Japanese cosmetics brand to penetrate the market of Vietnam.
However, there is the fact that the Japanese cosmetic and fashion products are priced relatively high compared to the average income of local consumers. In addition, the Japanese fashion is not common in Vietnam market. Therefore, this is seen as the first step for the fashion and cosmetic brands of Japan to explore the market and find partners.
ANT Consulting is here to assist you from the outset; providing corporate intelligence, risk advisory, management consulting services that assist market entrance, and ensure efficient business start-up operation.  Our services are as following:
We strive to save your cost by guiding you towards economical solutions that comply with local legislation and procedures. We support you through early logistic solutions and carry you through as your business grows.  We aim to bridge the gap between international best practices and local cultures and assist foreign companies and organizations entering Vietnam market to overcome commercial and regulatory issues.
We could be reached at email: ant@antconsult.vn or tel: +848 3520 2779 .  To learn more about us, please visit www.antconsult.vn



Chủ Nhật, 18 tháng 12, 2016

GE begins $1.5 billion wind power push in Vietnam

BY Juna Mèo IN , , , , , No comments

The company wants to tap the market with huge power demand for economic growth.
The multinational conglomerate General Electric is teaming up with a partner to construct large-scale wind power plants in Vietnam with a total investment of $1.5 billion.


The company recently signed a partnership deal with the Ireland-based Mainstream Renewable Power Ltd. to develop 1,000 megawatts of wind power capacity for the national grid, according to the Wall Street Journal.

GE will be responsible for partially providing technology for the projects, considered part of its efforts to push further into fast-growing markets. Construction is expected to begin in 2018.
“Vietnam is going to be a huge importer of energy as the economy grows. There is huge demand for power and they can balance the equation with renewable energy,” Mainstream Renewable CEO Andy Kinsella was quoted as saying.

Vietnam's fast-growing economy is in need of more electricity.
Founded in 2008, the Dublin-based Mainstream Renewable Power Ltd. is a major independent power supplier to developing economies like South Africa and Chile.

This will be among the largest clean energy power projects in Vietnam funded by foreign investors.
Various media reports suggest that investors in general are reluctant to develop wind power projects because prices in Vietnam are not high enough to cover the investment.

In Vietnam, state-owned Electricity of Vietnam, which controls the national grid, reportedly pays 7.8 cents or VND1,731 per kilowatt-hour for wind power, much lower than the rates in China, Japan and the Philippines.

The Vietnamese government has set a target of increasing its power output from about 200 billion kWh in 2015 up to over 330 billion kWh by 2020.

Last month, German firm Terra Wood proposed a solar energy project worth $400 million in the central province of Quang Ngai.

Two months ago, Singapore's The Blue Circle was licensed to build a $60 million wind power project in Ninh Thuan, also in the central region.

Source: Bao Vnexpress 



Thứ Năm, 15 tháng 12, 2016

German firm jumps on Vietnam's renewable energy bandwagon

BY Juna Mèo IN , , , , , No comments

Terra Wood is proposing a $400 mln wind and solar energy project.
German green energy firm Terra Wood has revealed plans to invest $400 million in a wind and solar electricity project in Vietnam, contributing to an active week of renewable energy deals made by foreign investors.


The energy company has submitted an investment plan to build the project in Vietnam’s south central province of Quang Ngai, and on-site inspections started on August 3, according to the local People's Committee website.

Terra Wood's is the third renewable energy deal proposed to Vietnam in a week following a hydropower project run by the World Bank’s International Finance Corporation and Armstrong S.E. Clean Energy Fund and The Blue Circle’s wind energy project in Ninh Thuan Province.

Chairman of Quang Ngai People's Committee Tran Ngoc Cang welcomed the project and said the province will help facilitate the German investor's project. Cang also gave permission for Terra Wood to conduct research and surveys for the wind and solar electricity plants in Quang Ngai.The German-owned energy company will develop two electricity power plants, one wind and one solar, which will cover a total of 600 hectares with an output of 300 megawatts and total investment of $400 million.

Quang Ngai has immense potential for the development of wind and solar electricity, especially in the districts of Mo Duc and Duc Pho and the famous Ly Son Island. A number of foreign investors are also looking at electricity and renewable energy exploitation in Quang Ngai.

Beside Quang Ngai, foreign-invested solar and wind energy projects have been registered across the country, but only a few have been put into operation due to low electricity prices.

Terra Wood is an international group of consultancy, engineering and project development companies dedicated to green energy projects. Within the network, Terra Wood Vietnam is the country representative of Germany's ProfEC GmbH, which specializes in turnkey wind, biomass, biogas, wind, solar and Clean Development Mechanism (CDM) projects.

Reference Resource: Bao Vnexpress


Thứ Tư, 14 tháng 12, 2016

Solar Energy Power Future in Vietnam

BY Juna Mèo IN , , , , No comments

Although the initial investment cost for solar energy in Vietnam is high but it brings in opportunities for cheaper option than thermal power technology being used in Vietnam.

In other country, solar power plants are competing fiercely with the thermal power plants running on coal.
In Vietnam, Thien Tan solar energy plant has been started to construct on 24 ha land in Quang Ngai with capacity of 19.2 MW at investment of VND 800 bil.  The Ministry of Industry and Trade has also approved the investment project of Tuy Phong solar energy plant on 50 ha land in Binh Thuan with capacity of 30 MW at investment of VND 1,454 bil.  This will open opportunities for renewable energy to contribute to the effort of protecting the environment and curbing climate change.
The solar energy is new in Vietnam therefore the investment in this area is at very early stage.  However, the foreign investors have been increasingly interested in seeking opportunities in investment in solar energy projects.
Similar to investment in wind power energy in Vietnam, one of the concerns for investors is the expected increase in purchasing price from Electricity Vietnam Corporation, the party whom purchase the electricity on Power Purchase Agreement (PPA).   Further, legal frameworks for promoting solar energy investment are not yet finalized.  Accordingly, the contribution ratio of renewable energy in Vietnam is minimal.  The Vietnam government has been trying to put some effort to increase the renewable energy contribution to 5,6% (in 2020) and 9,4% (2030).
 To achieve this, Vietnam government shall need to be consulted on plan to support the solar energy investment project in Vietnam in tax, land, capital, power purchase agreement.  Investors would need to be consulted by local consulting firm on process, procedures on investment policy, appraisal process, power purchase agreement, and other steps to develop and execute an energy project in Vietnam to improve the effectiveness of the investment in renewable energy.
ANT Consulting is here to assist you from the outset; providing corporate intelligence, risk advisory, management consulting services that assist market entrance, and ensure efficient business start-up operation.  Our services are as following:
We strive to save your cost by guiding you towards economical solutions that comply with local legislation and procedures. We support you through early logistic solutions and carry you through as your business grows.  We aim to bridge the gap between international best practices and local cultures and assist foreign companies and organizations entering Vietnam market to overcome commercial and regulatory issues.
We could be reached at email: ant@antconsult.vn or tel: +848 3520 2779 .  To learn more about us, please visit www.antconsult.vn


Thứ Ba, 13 tháng 12, 2016

Changes needed for Development on Wind Energy in Vietnam

BY Juna Mèo IN , , , No comments

For economic sustainable development combined with environmental protection, the Government of Vietnam has made significant steps  in the  formulation of policies on renewable energy  development, which take  advantages  of  favorable  conditions  for the  production of  wind energy.


Many policies  have been  initiated  to  support  wind  power  project,  including  power  price assistance  from central  budget;  assistance to grid  and off-grid  connected wind power projects...focusing on wind power electricity development target to achievethe total wind power capacity from  the  current  negligible  level  to  around  800  MW  by  2020  and around  6,000 MW  by  2030, raising the rate of electricity from wind power accounted for 0.8% in 2020 to 2.1% in 2030.

Some financial policies for investment projects under the Clean Development Mechanism (price supporting mechanism) are issued. Moreover, the   Government   published   independent mechanisms to support  wind power projects on electricity price for grid-connected wind power projects, power purchase agreements for wind power projects.


 Nonetheless, there  are  difficulties  in  the  development  of  wind  power projects  in Vietnam  that should not be ignored. The first thing is difficulty of legal framework. The system of legislation, mechanisms and policies for wind power development are not synchronized.  New project must be  granted  by  the  Ministry  of  Industry  and  Trade  to  establish  the  supplementary  planning procedures  prior  to  implementation.    Power  purchase  agreement  with  EVN  will  be  required  as the initial condition to obtain investment permission.

Moving  toward  the  future  of  clean  energy  in  Vietnam,  the  Government  should  focus  on implementation of preferential treatment to wind energy projects to increase the competitiveness of this renewable energy. In addition, the Government should also collaborate with investors, and industry  experts  to  continue  to  research  the  wind  power potential  in  Vietnam, further  attract investment  and  assistance  from  domestic  and  international  organizations  for  the  wind  power projects.  Further, it is in the meantime required to have synchronized policies, legislations with the establishment of government authority to execute wind power planning and management to remove unreasonable barriers.

The  increase  in  purchasing  price  from  EVN  will  be  attracting  more  investment.   It  has  been discussed  on  the  increase  of  buying  price  from  7,8  US  cent/kWh  however  the  timeline  for  the increase has not yet been finalized.

ANT Consulting is here to assist you from the outset; providing corporate intelligence, risk advisory, management consulting services that assist market entrance, and ensure efficient business start-up operation.  Our services are as following:
We strive to save your cost by guiding you towards economical solutions that comply with local legislation and procedures. We support you through early logistic solutions and carry you through as your business grows.  We aim to bridge the gap between international best practices and local cultures and assist foreign companies and organizations entering Vietnam market to overcome commercial and regulatory issues.
We could be reached at email: ant@antconsult.vn or tel: +848 3520 2779 .  To learn more about us, please visit www.antconsult.vn