Recently, numerous South Korean firms visited Vietnamese provinces to find investment opportunities in the renewable energy sector, including IL Yang Industrial Company with the intention to conduct research to set up a company and build a solar power plant in the central province of Quang Tri.
Besides, VTC Corporation stated that it has arranged a large capital volume to develop a wind power plant in the southern province of Bac Lieu. The firm affirmed that after receiving approval from the authorities, it will swiftly complete the necessary investment procedures.
Speaking at the Vietnam-Korea Electricity and Renewable Energy Forum co-organised by Korea Trade-Investment Promotion Agency and the Ho Chi Minh City chapter of the Vietnam Chamber of Commerce and Industry (VCCI), Paik Un-gyu, Korean Minister of Trade, Industry and Energy said that Vietnam and South Korea hold potential for long-term co-operation in the energy industry, renewable energy, and smart grid development.
According to Paik Un-gyu, being Vietnam’s strategic partner, South Korea will increase investments in the local renewable energy sector. Besides, South Korea will support Vietnam in training human resources and transfer technology to help Vietnam develop this field by itself.
During the 8th meeting of the Vietnam-Republic of Korea Joint Committee for Co-operation In Nuclear Power, Industry and Trade in Ho Chi Minh City on February 2, the two sides discussed co-operation in projects related to renewable energy, energy safety, supporting industry, and the development of power plants under the build-operate-transfer (BOT) model.
These above initiatives are the basis for the two countries to develop specific projects.
According to Nguyen Van Vy, deputy chairman of the Vietnam Energy Association (VEA), Vietnam set the target to increase renewable power to 32 per cent of the total energy mix by 2030 and 43 per cent by 2050. At present, Vietnam has 50 wind power and over 100 solar power projects as well as a good number of renewable power projects being studied for development.
Meanwhile, according to the revised power development master planning for 2011-2020 with vision to 2030, Vietnam will accelerate power generation from renewable sources to serve the expansion of the manufacturing sector, while simultaneously scaling down hydropower.
To achieve these targets, the Vietnamese government has offered preferential loans, reduced export-import and corporate income tax, waived land use fees, and funded scientific research on energy.
Vietnam will also extend international collaboration to develop domestic electrical equipment manufacturing. Besides, Vietnam increased participation (both by organising and by joining) international co-operation activities and increased technology transfer to facilitate the domestic manufacturing of power equipment.
“South Korea is considered a pioneer in developing smart power grid and renewable energy. With Vietnam’s recent incentive policies, South Korean investors will have more favourable conditions to accelerate investments in these areas,” Vy stated.
Vietnam Investment Review