Workers install solar panels in the central province of Quang Ngai (Photo: VNA) HCM City (VNS/VNA) - Korean investorsare keen to invest in renewable energy due to its potential and theincentives that Vietnam has offered to foreign investors, an HSBC officialhas said.
Speaking recently with Vietnam News, Pham HongHai, CEO of HSBC Vietnam, said that electricity was one of the most importantinvestments of Korean businesses into Vietnam. “Korean firms are nowlooking to invest in the renewable energy sector.”
The investment trend from the Republic of Korea (RoK) washighlighted at the Vietnam–Korea Electricity and Renewable Energy Forum heldearlier this year.
Vietnam plans to cooperate with the RoK in reducinggreenhouse gas emissions, adaptation to climate change and environmentalprotection. It will also assist Vietnam in personnel training andtechnological transfer in the field, he said.
As the country is growing, Vietnam needs more power sources.Coal and nuclear power could be short-term solutions, but air quality might beaffected.
If Vietnam pursues sustainable growth, renewable energy isan area that will attract foreign investment.
The Government has issued regulations on tax relief forrenewable projects, as well as a strategic plan for renewable energydevelopment and a national power development plan.
Power demand is forecast to grow by more than 10 percenteach year from now to the end of 2020 and by 8 percent annually during 2021-2030.
According to the Vietnam Energy Association, Vietnamaims to increase renewable power to 32 percent of the total energy mix by2030 and to 43 percent by 2050.
The potential for developing renewable energy is huge,especially for solar power production as the country is located in theequatorial area with a hot climate all year long in the south and centralregions.
Abundant energy sources such as wind, solar power andbiomass remain largely untapped, according to Hai.
To realise the great potential of solar power, theGovernment has developed policies to speed up investment in the sector.
Advantages for foreign investors include the favourablegeographic location of the country and the Government's incentivepolicies.
The RoK’s investment in ASEAN member countries last yearrose by 16.7 percent over 2017.
Vietnam accounted for 51.5 percent of the RoK’s totalinvestment in ASEAN, followed by Singapore with 25.6 percent.-VNS/VNA
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