The European Chamber of Commerce in Vietnam (EuroCham), its GreenGrowth Sector Committee (EuroCham GGSC) and the InternationalInstitute for Sustainable Development (IISD) announced the results oftheir study to determine the position of foreign direct investorstoward energy pricing and supply policy in Vietnam on June 5.
Vietnam’s ability to attract FDI is not based on low energy prices, the research revealed, adding that foreign firms do not typicallyinvest in Vietnam as a result of the fact that energy prices have beenhistorically low, and they are also not seriously concerned about theprospect of gradually increasing power prices.
Itnoted that firms ranked the state of power prices to be the leastimportant of ten factors in their decision to invest in Vietnam.
The majority of firms indicated that they would be willing to bearsustained nominal annual power prices increases of 15 percent or morebefore reconsidering future investment, and more than 65 percent offirms were willing to manage sustained price rises of more than 10percent per annum.
According to the study,interviewed enterprises are, however, concerned about the inadequatepower supply with 65 percent of them indicating that they were eitherslightly unsatisfied or not satisfied at all with power infrastructureand supply.
Further, a large majority (73percent) of firms said that the unreliability of power supply was moredamaging to Vietnamese investment competitiveness than the prospect ofhigher power prices over time.
Through the findings,experts stressed the necessity of Vietnam to find more practical andeffective measures to meet power supply needs and solve issues relatedto private investment attraction and shortcomings in the energy market.
Carried out through in-depth interviews with foreign businesscommunities in Vietnam, the research provides significant new data with anumber of clear and important implications for the Vietnamese energypolicy.
It assesses also the impact of the current energy policyon Vietnam’s competitiveness, providing policymakers with data to informthe development of an energy policy that reflects the needs andconcerns of this important constituency.-VNA
Vietnam’s ability to attract FDI is not based on low energy prices, the research revealed, adding that foreign firms do not typicallyinvest in Vietnam as a result of the fact that energy prices have beenhistorically low, and they are also not seriously concerned about theprospect of gradually increasing power prices.
Itnoted that firms ranked the state of power prices to be the leastimportant of ten factors in their decision to invest in Vietnam.
The majority of firms indicated that they would be willing to bearsustained nominal annual power prices increases of 15 percent or morebefore reconsidering future investment, and more than 65 percent offirms were willing to manage sustained price rises of more than 10percent per annum.
According to the study,interviewed enterprises are, however, concerned about the inadequatepower supply with 65 percent of them indicating that they were eitherslightly unsatisfied or not satisfied at all with power infrastructureand supply.
Further, a large majority (73percent) of firms said that the unreliability of power supply was moredamaging to Vietnamese investment competitiveness than the prospect ofhigher power prices over time.
Through the findings,experts stressed the necessity of Vietnam to find more practical andeffective measures to meet power supply needs and solve issues relatedto private investment attraction and shortcomings in the energy market.
Carried out through in-depth interviews with foreign businesscommunities in Vietnam, the research provides significant new data with anumber of clear and important implications for the Vietnamese energypolicy.
It assesses also the impact of the current energy policyon Vietnam’s competitiveness, providing policymakers with data to informthe development of an energy policy that reflects the needs andconcerns of this important constituency.-VNA
