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Chủ Nhật, 22 tháng 1, 2017

Vietnam invests little in Wind energy

HANOI – Vietnam holds huge growth potential for wind energy and has policy incentives available for this sector but only three wind power projects have been put into operation nationwide, according to a conference in Hanoi on November 29.

Speaking at the conference on wind energy held by the Danish Embassy, Deputy Minister of Industry and Trade Hoang Quoc Vuong said that with a coastline of over 2,300 kilometers, the country is in a good position to develop the wind power sector.

The Government has taken a couple of policy steps to spur clean energy development, including Decision 37, and has set a target of increasing the wind power capacity to 6,000 MW by 2030, 2.1% of total power output.

With the support of the Danish Embassy and other foreign partners, the nation is drawing up a wind energy map.

Vuong noted the three existing wind farms have a combined capacity of just 150 MW. He explained investors are not interested in this field as wind power prices are still low.

Henrik Breum, special adviser the Danish Energy Agency’s Centre for Global Cooperation, told the conference that before the 1973 oil crisis, 99% of electricity in Denmark was sourced from fossil fuel-fired power stations.

But things changed a lot in the following 40 years as Denmark embraced green energy. In 2014, renewable energy accounted for 56% of total power generation in Denmark, the highest percentage in the world.

Wind energy requires big upfront investments, so the Danish government has adopted appropriate polices, set suitable electricity prices for a long term and give priority to the use of wind power in the national grid.   

Steve Sawyer, secretary general of the Global Wind Energy Council, said at the conference that wind power contributed around half of the world’s electricity production growth in 2015.

Wind power makes up 4% of the world’s electricity output and the percentage may climb to 8% by 2020, 18-20% by 2030 and around 30% by 2050 if countries concentrate on combating climate change, said Sawyer.

Charlotte Laursen, Danish Ambassador to Vietnam, said that according to Vietnam’s power industry development strategy adopted in 2011, the proportion of renewable energy in its total power output would reach 7% by 2020 and 10% by 2030 (excluding hydropower).

Wind power plays a pivotal role in this strategy, she said, because Vietnam has the biggest wind power potential in the region. Denmark is ready to help Vietnam develop this source of clean energy, she noted.
Source: Bao E.Vnexpress



Thứ Sáu, 20 tháng 1, 2017

Vietnam: FDI into Solar Energy Increased Sharply

Vietnam is becoming attractive locations for investors producing solar panels from China, Taiwan to expand production in order to meet increasing demands of the world as well as make use of the advantages of tax for exports to the two largest markets which are the US and Europe.
Vina Solar has just signed a contract with GCL-SI – China’s leading solar panels manufacturer and Trina Solar Company to develop the project to produce solar energy panels with capacity of 600 MW and 1 GW at the factories in Vietnam. In particular, GCL-SI Company also announced an investment of 32 million USD together with Solar Vina in Vietnam.
According to President of GCL-SI, this investment is not only brings cost advantages but also help organizing the supply chain of the Company.
Also reported by GCL-SI Company, this is a notable move to strengthen competitiveness as well as to expand opportunities to join the US and EU markets as these two markets are having trade barriers, which are set for solar energy panels manufacturing in China and Taiwan.
Meanwhile, with an investment of 100 million USD, Trian Solar Company has recently completed construction the project producing solar energy panels with capacity of 800 MW/year in Bac Giang – the province with highest solar energy panels production scale in the country, with a total capacity of 5,200 MW/year. Moreover, Bac Giang is forming production and assembly chains of solar energy panels with 8 projects have been licensed, the total registered capital reached 635 million USD.
Under the agreement, Vina Solar will supply and assemble PV modules for Trina Solar. This is the largest project of Trina Solar in Vietnam. The project has a workshop area of 42,000 m2, with 14 modern production lines, the factory produce many kinds of single-crystal and polycrystalline batteries. The products are exported to all continents in the world.
According to the Chairman and CEO of Trina Solar, the factory in Vietnam is a result of global strategy, following the opening of the factories producing solar energy panels in Malaysia and Thailand. This cooperation will bring benefits for both parties, helping to bring solar energy panel production technology to Vietnam and create about 1,000 jobs.
In November 2016, JA Solar Corporation (China) has started construction of the 1 billion USD project to build a factory producing solar energy batteries at Quang Chau Industrial Park (Bac Giang). The project is divided into several stages, with the scale of 88 hectares of land.
According to forecasts, the demand for solar energy panels worldwide will increase after 2016, while the cost of installation and production will continue to decline. According to the report of International Renewable Energy Agency, that trend will contribute to replace fossil energy. This is the reason why many solar panels projects are warming up in Vietnam, after several major projects are bankrupt previously.
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 Tư, 18 tháng 1, 2017

Renewable energy development bumpy in Vietnam

CMC – Despite huge potential for renewable energy development, Vietnam has found it hard to attract investments and expand operational projects due to low electricity prices and lack of policy incentives.
At a seminar on clean energy in HCMC, experts were of the opinion that Vietnam still relies heavily on limited fossil energy sources. This has prompted the Government to work out plans for renewable energydevelopment.
The nation may have to pay a dear price for the environment and the local economy in the future if the Government fails to change energy policy and find suitable measures to develop the sector, they said.
Vietnam has many favorable conditions to develop clean energy sources such as wind, solar power and gases from landfills, and a number of projects have been deployed in the sector in recent times.
Sundar Venkataraman, technical director at General Electric Energy Consulting Co., said Vietnam has potential for wind powerdevelopment and that many investors have expressed interest in the industry. Wind farms require high investments but their operation cost is lower than thermal power plants as they need no fuel.
According to the U.S. Trade and Development Agency (USTDA), many U.S. companies are seeking to expand investments in the energy sector in Vietnam. However, a lack of supporting policies, difficult capital mobilization and unattractive electricity prices for green energy are their major concerns.
Gavin Smith, director of Clean Development Fund at Dragon Capital, said the Government has not thrown strong support behind renewable energy projects in the country and the legal framework in this area is still underdeveloped.
The low buying prices for wind and biomass power prices make it difficult for companies to invest in projects in this sector.
To make the most of renewable energy potential in Vietnam, investors want the Government to issue support policy for power prices and encourage banks to finance renewable energy projects.
Source: english.thesaigontimes


Vietnam airport operator misses out on retail business opportunities

The ACV made just $1 per passenger from retail services last year, far behind regional operators.

Despite robust growth in passenger numbers, the state-owned Airports Corporation of Vietnam (ACV), which operates the country’s civilian airports, generated only $81 million from non-aeronautical businesses such as airport retail in 2016, or 15 percent of the annual target.

 Industry experts said the airport operator’s revenue mainly comes from the aeronautical sector such as landing fees and passenger service charges. Meanwhile it hasn't focused enough on non-aeronautical business, especially the airport retail business. 

 The operator estimated its revenue from retail at $1 per passenger last year, far below the average of other airport operators in Asia that reached up to $12.

Thailand’s AOT and Malaysia’s BHD raked in $4-5 per passenger last year.
The ACV, which operates 22 civilian airports in Vietnam, recorded significant growth in passenger traffic in 2016 to an estimated 81 million, with Vietnam’s airline market developing at the third-fastest pace in the Asia-Pacific region.

According to market research group Nielsen, Vietnam’s airline market will be fueled by the middle and affluent class which is forecast to rise from 12 million people in 2014 to 33 million by 2020.
However, ACV revenue lags behind it's Thai counterpart even after factoring differences in passenger traffic. As of the end of the third quarter of 2016, the ACV’s annual revenue was only equal to 40 percent of Thailand’s airport operator AOT while passenger traffic made up as much as 68 percent. 
The proportion of international arrivals at Vietnam’s airports is about 30 percent of total passenger traffic, compared to 58 percent in Thailand and 48 percent in Malaysia, while service charges on international travelers are higher than those for domestic passengers. That partly explains why the ACV is so far behind many of its competitors in the region in terms of revenue.
Airports Corporation of Vietnam, which is currently valued at $1.2 billion, is one of Vietnam’s biggest state-owned enterprises.
Last year, the ACV raised $51.6 million by selling a 3.47 percent stake in an initial public offering where foreigners snapped up 82 percent of the shares on offer.
France's Aeroports de Paris SA has emerged as the front-runner to buy a 20 percent stake in the HoChi Minh City-based company, according to the Transport Ministry. The deal is scheduled to take place in March.
Source: E.Vnexpress
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Vietjet Air Had 26 Foreign Investors




Chủ Nhật, 15 tháng 1, 2017

New Solar Power Plant Project in Binh Dinh

Solar energy is encouraged to invest by Vietnam Government. Therefore, there were many foreign business delegations come to Vietnam to find out opportunities in this area.
On January 11th 2017, Chairman of Binh Dinh Province has met and worked with the President of Truong Thanh Investment and Development Co., Ltd (Vietnam) and Truong Thanh’s partners from Japan and Spain to find out opportunities to invest in solar energy plant project in Binh Dinh, Vietnam.
According to representatives of Truong Thanh, in recent time, the Company has made the solar power plant investment project proposal in Cat Hiep commune, Phu Cat district, Binh Dinh province. The project capacity is 95mW, using land area of about 150 hectares.
The expected investment capital for plant construction is 4,000 billion VND. Tuong Thanh Company wants to be supported by leaders in Binh Dinh Province and relevant local Government agencies with the investment procedures.
According to Chairman of Binh Dinh Province, they are always welcome and encourage enterprises to invest in power plant using renewable energy, which is very environmentally friendly.
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 Sáu, 13 tháng 1, 2017

Samsung Invests Aggressively in Bac Ninh Province

With the favorable and open business environment, Vietnam has committed to be the attractive investment destination for multinational enterprises to come and set up business in Vietnam.
Samsung wants to raisethe total investment in Bac Ninh to 6.5 billion USD and transferred the model from high-tech project to large-scale project…
Bac Ninh Provincial People’s Committee has just sent an official letter to the Prime Minister on supporting Samsung Display Co., Ltd Vietnam (SDV) in the process of project expansion in Bac Ninh province.
According to the Provincial People’s Committee of Bac Ninh, so far SDV has raised investment capital to 4 billion USD. Reportedly, SDV’s total revenue in 2015 was 2.7 billion USD, in which exports reached 2.5 billion USD. Accumulated to October 2016, SDV has revenue of 5.9 billion USD.
Project disbursement schedule of Samsung by the end of 2016 is estimated at 2.5 billion USD. Expected in 2017, Samsung will disburse the registered capital of 4 billion USD in Bac Ninh.
Bac Ninh confirmed that SDV has done on schedule and as planned when the entire Module 3 project when come into operation will be a prerequisite to attract more companies to serve SDV.
Notably, SDV has expressed their desire to invest an additional of 2.5 billion USD, disbursed in 5 years since 2018. Thereby, raising the total investment in Bac Ninh to 6.5 billion USD.
Recently, according to Mr. Hyun Woo Bang – Deputy General Director of Samsung Vietnam, in 2016, although the Company has to face with the problem of Samsung Galaxy Note 7, thanks to the support of the Government and Ministries in Vietnam, Samsung has overcome difficult period. In 2016, revenue of Samsung Vietnam reached 46.3 billion USD; exports reached 39.9 billion USD, increased by 9.9% compared to 2015.
Samsung accounted for 22.7% of export turnover nationwide, a slight increase compared to the rate of 20% of the previous year.
Reportedly, Bac Ninh is the province that attracting a lot of foreign investment projects in Vietnam. Moreover, Bac Ninh is the investment destination of 30 countries and territories around the world. Accumulated up to the present time, in the Industrial Zones in Bac Ninh province, 1,050 projects are licensed with a total investment of 13.1 billion USD. FDI sector has created 231,000 jobs.
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 Tư, 11 tháng 1, 2017

Cargill (USA) Will Build Factory in Bac Ninh

Cargill Company (USA) is planning to build a factory specializing in producing livestock feed in Bac Ninh. It shows the attraction of Vietnam market, which makes foreign enterprises to come and invest in Vietnam.
On January 6th 2017, Chairman of Bac Ninh province had a meeting with Mr. Jorge – CEO of Cargill Vietnam came to survey and explore Bac Ninh province. Cargill is the US leading company in the fields of agriculture, food, industrial products and financial services. With more than 150,000 employees working in over 100 countries in the world, the revenues of the Company reached 150 billion USD a year.
In Vietnam, Cargill has 11 factories manufacturing and processing livestock feed in many localities across the country, such as Dong Nai, Hung Yen, Long An, Can Tho, Binh Dinh, Dong Thap and Nghe An…, creating jobs for thousands of workers.
Through surveys, Mr. Jorge impressed with the favorable investment environment, infrastructure, drastic and flexible management system of Bac Ninh province. Hence, the Company intends to build a factory manufacturing livestock feed in Que Vo 3 Industrial Zone in the first quarter of 2017.
It is expected that the Cargill factory has a total investment of 60 million USD, with the area of land to be used is 11 – 13 ha, capacity of 70,000 tons/month. This will be the largest factory of the Company in Vietnam, applying modern technology and equipment with a closed and environmental friendly deodorizing process.
The Chairman of Bac Ninh province welcomes Cargill Company has trusted and choose Bac Ninh as investment destination to invest in stable and long-term production. He also assigned the Management Board of Industrial Zones in coordination with the VID Group – the infrastructure investor of Que Vo 3 Industrial Park and other offices complete the legal procedures and creating all necessary conditions for the project of Cargill Company.
Bac Ninh is one of the leading provinces in attracting FDI, with nearly 1,000 projects with total registered capital of over 12.26 billion USD. In which there are many projects of large companies such as Microsoft, Samsung, Pepsico and Canon…
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, 10 tháng 1, 2017

Hanwha Techwin Company (Korea) Wants to Invest in Bac Ninh

Vietnam has always been an ideal investment destination for many foreign companies to come and set up business in Vietnam.
Currently, Mr. Yang Jin Seol, CEO of Hanwha Techwin Company (Korea) came to Bac Ninh to survey and explore the investment environment in Bac Ninh province.
Working with the Chairman of Bac Ninh Province, Mr. Yang Jin Seol said that Hanwha Techwin Company (under Hanwha Group) is specializing in producing security devices with 27 networks globally. Turnover of the Company in 2015 reached nearly 600 million USD.
Through survey and research, the Company is expected to invest in building factories in Que Vo Industrial Zone with a total investment of 50 million USD, in which the first phase (2017-2019) is 30 million USD. When put into operation, the plant will create jobs for about 1,500 – 2,000 labor, with capacity of 2 million pieces/year.
Mr. Yang Jin Seol hopes that the company’s business ideas will be interested and the provincial leaders will create favorable conditions, especially the preferential policies for enterprises producing high-tech products so that the Company can early implemented the plant construction in the first quarter of 2017.
The Chairman of Bac Ninh province welcomes Hanwha Techwin Company have trusted and choose Bac Ninh as investment destination to invest in stable and long-term production.  He also assigned the Management Board of Industrial Zones in coordination with the Kinh Bac Urban Development Corporation – the infrastructure investor of Que Vo Industrial Park and other offices complete the legal procedures and creating all necessary conditions for the project of Hanwha Techwin Company.
Bac Ninh is one of the leading provinces in attracting FDI with nearly 1,000 projects with total registered capital of over 12.26 billion USD. South Korea has more than 400 projects, accounting for about 50% of total FDI capital of the whole province, in which there are many projects of large companies such as Samsung, Orion, Daewoo, Flexcom, Intops, Nano Tech…
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, 8 tháng 1, 2017

Vietjet Air Had 26 Foreign Investors

The total number of shares that foreign shareholders are holding at Vietjet Air accounting for more than 24% of charter capital.
Recently, Vietnam’s Deputy Minister of Transport has signed a written approval for Vietjet’s 5 shareholders to transfer 66,506,870 shares, equivalent to 22.169% of the charter capital of 3,000 billion VND to 23 foreign investors.
Earlier, in December 2016, the Ministry of Transport has also agreed for 1 Vietjet’s shareholder to transfer 6.566 million shares, equivalent to 2.626% of charter capital for 3 foreign investors, who are: Wareham Group Limited (British Virgin Island), Dragon Capital Markets Limited (Cayman Island) and DC Developing Markets Strategies Public Company (Ireland). The amount of transferred money was not revealed, but ranged from 65 billion VND to 788 billion VND. The transfer has been completed and aproved by the Department of Planning and Investment of Hanoi on December 22nd 2016.
In total, the transfer of shares to foreign investors has reached 24.358% of charter capital.
According to Vietnam Civil Aviation Administration, the transfer of shares to foreign investors of Vietjet is valid. The transfer does not increase the charter capital of Vietjet, foreign investors do not participate in the executive apparatus, management operations and administration works of Vietjet and therefore it does not alter the business plan and development strategy of Vietjet.
Relating to the transfer of shares to foreign investors, according to Decree 92, the foreign parties cannot occupy more than 30% of charter capital and foreign members shall not exceed 1/3 of the total number of members participating in the executive apparatus.
Vietjet Air is the first airline in Vietnam operating under the model of the new generation airline, with low cost and provides a variety of services for customers to select. Vietjet is an official member of the International Air Transport Association (IATA) with IOSA safety operation certificate. Besides the position of “Top 500 Leading Brands in Asia in 2016”, Vietjet is voted as “Best Asian Low Cost Carrier” in 2015 by the TTG Travel Awards and Top 3 airlines that have fastest growth facebook fanpage in the world, evaluated by SocialBakers.
Currently, Vietjet is operating 42 A320 and A321 aircrafts, performed about 350 flights a day and has transported nearly 35 million passengers, with 60 routes covering destinations in Vietnam and international routes to Hong Kong, Singapore, Korea, Taiwan, China, Thailand, Myanmar, Malaysia, Cambodia…
Vietjet has planned to develop extensive flight network throughout Asia – Pacific region. Moreover, they are studying for further expansion of routes in the region and has signed procurement contracts to purchase new generation aircrafts.
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 Sáu, 6 tháng 1, 2017

Flappy Bird creator lends a wing to Vietnamese startups

'Just propose those projects to me, no matter how bad it is,' Nguyen Ha Dong writes on Facebook.
The overnight success of mobile game Flappy Bird has turned its creator Nguyen Ha Dong into a star of the local startup scene.
Flappy Bird creator Nguyen Ha Dong (L) and Google CEO Sundar Pichai (R) shake hands at a sidewalk café in Hanoi on December 22, 2015. Photo by Reuters
The game, hailed by the industry as one of the milestones of Vietnam's startup history, has brought Dong great fame and fortune, all within a short period of time.
Now Dong is making a pledge to pay it forward and fund Vietnamese startups in the fields of robotics, artificial intelligence, social services, community development and education.
“Just propose those projects to me, no matter how bad it is,” he wrote on his Facebook page.
He did not give specific details about mentoring and funding.
Flappy Bird was released in May 2013 with little fanfare. By February 2014, the sleeper hit topped the charts in more than 100 countries and had been downloaded more than 50 million times. Dong reportedly earned an estimated $50,000 a day.
The Vietnamese government has seen successes like Flappy Bird as an encouraging sign. It is trying hard to cultivate a startup scene where tech entrepreneurs can create products and services that will go global.
Unlike the well-developed startup ecosystem in most other countries, where there are venture capitalists and a strong network of entrepreneurs working together, the system in Vietnam is at a fledgling stage, with many funding difficulties.
Relate news
Source: Bao Vnexpress






Thứ Năm, 5 tháng 1, 2017

Vietnam, Ireland ink deals to build $2.2 billion wind farms

The farms, one in the central region and the other in the south, will have a combined capacity of 940 MW.

Companies from Vietnam, Ireland and the U.S. on Monday signed cooperation agreements to build two wind farms in Vietnam worth $2.2 billion.

Part of a wind farm in the Tuy Phong District of Binh Thuan Province. Photo courtesy of Nguoi Lao dong news site

The pacts are part of various deals reached by Vietnam and Ireland during the visit to Vietnam by President of Ireland Michael D. Higgins from November 5-14.

Vietnam’s Phu Cuong Corporation will join hands with Ireland’s Mainstream Renewable Power Ltd. and the U.S. giant General Electric to set up an 800-megawatt wind farm in the southern province of Soc Trang. The project will need $2 billion.

In the second project, Vietnam’s Pacific Corporation will cooperate with Mainstream Renewable Power Ltd. to build another 140-MW wind farm in the central province of Binh Thuan, which is worth $200 million for construction.

The same day Vietnam and Ireland also signed other agreements on poverty reduction, education and training, information and communications.

Vietnam has recently revised down the target for electricity generation by coal-fired thermal power plants from 56.4 percent of the total electricity generation to 53.2 percent by 2030.

The country is more focused on renewable energy, particularly solar and wind energy, targeting a renewable energy ratio of 10.7 percent by 2030.

But that will require a lot of investment in the coming years. Wind and solar power capacity is estimated to account for only 0.8 percent and 0.5 percent of total electricity generation respectively by 2020.

With over 3,000 km of coastline and numerous islands, Vietnam has more wind power potential than most of other Southeast Asian nations with a total estimated capacity of 24,000 MW, the Vietnam News Agency has reported.
Source: Bao Vnexpress


Thứ Tư, 4 tháng 1, 2017

Fast-growing Vietnam to invest $40 billion in electricity projects by 2020

The country is also shifting attention to renewable energy to meet the needs of the economy.
Vietnam may need to invest about VND859 trillion ($38 billion) in electricity generation, transmission and distribution infrastructure between now and 2020 to meet domestic demand, the government said in a new report.


 Fishermen working near the first towers of wind turbines from a Vietnamese wind power plant. Photo by AFP

That is equivalent to 20 percent of the country's gross domestic product last year.

According to the report, about 75 percent of the investment will go to generation and the remaining 25 percent to upgrade, repair and expand the national transmission and distribution system.

The government said a majority of the investment would be funded by loans and the state budget would cover only 0.5 percent.

The average electricity consumption steadily grew at 13 percent between 2000 and 2010, and about 11 percent between 2011 and 2015, said Le Tuan Phong, deputy head of the General Directorate of Energy, under the Ministry of Industry and Trade.

The country’s electricity demand is expected to continue to grow 13 percent annually in the next four years to feed the economy, which has grown above 5 percent a year on average since 1999 and is forecast to reach 6.5-7 percent in the next four years.

It is estimated that Vietnam will need about 47 billion kilowatt-hours by 2030 for the annual economic growth rate of 7 percent.

Vietnam is trying to generate enough energy for growth and for millions of people who still lack access to electricity while gradually shifting towards clean and low-carbon energy, said Tran Dinh Thien, who heads the Vietnam Economic Institute.

The government has recently revised down the target for electricity generation by coal-fired thermal power plants from 56.4 percent of the total electricity generation to 53.2 percent by 2030.

Vietnam is more focused on renewable energy, particularly solar and wind energy, targeting a renewable energy ratio of 10.7 percent by 2030.

But that will require a lot of investment in the coming years. Wind and solar power capacity is estimated to account for only 0.8 percent and 0.5 percent of total electricity generation respectively by 2020.
Source: Bao Vnexpress