Business News Archive

Search Our News Archive


Vietnam To Raise Retail Electricity Prices by 8.36%

ENERGY - Vietnam
March 2019

The Ministry of Industry and Trade (MoIT)'s Electricity Regulatory Authority has raised the retail price for electricity by 8.36% to an average of 1,864.4 VND (USD 0.0804) per kilowatt hour, excluding VAT. According to the plan, the new prices are:

  • Retail prices for households now range from VND 1,678 (USD 0.072) per kWh to VND 2,927 (USD 0.13) per kWh depending on usage.
  • Poor households would still receive support equivalent to 30 kWh per month.
  • Power tariffs for businesses and industrial zones are now divided into two levels: VND 3,076 (USD 0.13) per kWh for peak hours and VND 970 (USD 0.042) per kWh for off-peak hours.

The decision is based on a review of input costs for electricity production including coal and gas  as well as interest rate differences in EVN’s foreign currency-denominated debts. The increased power tariff revenue of over VND 20 trillion (USD 0.86 billion) would be used to buy coal and pay gas suppliers and power plants.

Vietnam’s hydropower potential has almost been fully exploited, while oil and gas reserves are running low. Furthermore, the depletion of coal reserves has turned Vietnam from a net exporter to net importer of coal in the recent years. The government is simutaneously developing favorable policies for new investment in renewable energy such as solar and wind energy in order to meet the energy demand from the fast growing manufacturing industries in the contry.

(Sources: Vietnam News; EVN)

Two New Wind Power Projects Approved In Vietnam's Quang Tri Province

ENERGY - Vietnam
February 2019

Two companies have obtained approval from the provincial government to develop wind power projects in Quang Tri Province in Vietnam. Huong Phung Wind Power Company Limited will develop Huong Phung 3 Wind Power Plant in Huong Phung Commune, Huong Hua District,with a designed capacity of 30 MW and a total investment of more than VND1.58 trillion. The facility covering nearly nine hectares is expected to be completed in 2021 and operate for 50 years.

Quang Tri GELEX Energy Company will invest in building three wind power plants – GELEX 1, 2 and 3, each has a designed capacity of 30 MW. These plants, will be built in Huong Hoa District’s Huong Linh Commune and Dakrong District’s Huong Hiep Commune by 2021, with a total investment of nearly VND 3.66 trillion. They will also operate for 50 years.

The province wants to achieve total wind power output of 800 MW and it has three assigned zones for wind power development with a total area of more than 6,700 hectares, including two in Huong Hoa District and one in Con Co District. Vietnam targets to have an output of 800 MW of wind power by 2020, 2,000 MW by 2025 and 6,000 MW by 2030, under the national energy development strategy.

(Sources: Vietnam News)

Construction Initiated On USD 150 Million Solar Plant In Tra Vinh

ENERGY - Vietnam
January 2019

Trung Nam Tra Vinh Solar Power JSC has recently initiated construction of solar power plants, valued at VND 3.55 trillion (more than USD 150 million), in Duyen Hai Township, in Tra Vinh, a Mekong Delta province. The 171 ha plant expected to become operational in the second quarter of 2019, and it offers a designed capacity of 165 MWp. It will contribute more than 250 milion kWh of electricity to the nation grid annually.

According to the general director of Trung Nam Tra Vinh Solar Power JSC, Mr. Do Van Kien, the construction of the plant not only helps cut greenhouse gas emissions, but also generates jobs for more than 1,500 workers and contributes to development and social welfare in the region. The on-going project is firmly supported by Tra Vinh local authorities.

Experts anticipate a promising future for solar energy in Viet Nam as it has a technical potential of solar energy is estimated at 300 Gigawatts (GW). The Government has established an ambitious target to install 12GW of solar power by 2030.

(Sources: Vietnamnews)

Incentives Announced For Investors of Renewable Energy Plants in An Giang

ENERGY - Vietnam
November 2018

Southern Vietnam's An Giang Province has recently announced offering preferential policies to investors in renewable energy plants as part of its strategy on sustainable development.

Investors whose projects are in production and trade of renewable energy will be able to avail attractive incentives, such as the following: 

  • Exemption from land lease fees for seven years;
  • Exemption from fees for infrastructure projects in industrial parks for 11 years, while loans equal to nearly 70 percent of total investment capital will be offered.
  • Investors in economically difficult regions, such as the districts of Tri on, Tinh Bien and An Phu, will have a corporate tax rate of 10 percent.

Currently, there are already a couple of solar energy projects that are being built in the Province, while some are seeking approval from the  Ministry of Industry and Trade.

Aside from the use of solar, An Giang Province also plans to use waste from agricultural production to generate energy under a biomass energy project awaiting approval from the Government. 

According to Viet Nam News, the Province has a huge potential for biomass energy as it has an annual output of paddy of more than 4 million tonnes, ranking second in the Mekong Delta region. It also has 8 million tonnes of straw and 800,000 tonnes of rice husks, and a large amount of other kinds of biomass such as corn husks, sugarcane dregs, and others. The total amount of biomass in the province is 10 million tonnes, which could generate 17 million MWh a year.

Under a project awaiting approval, three plants will be built to generate energy from rice husks, with total capacity of 40 MW. The plants will be built in areas where rice processing factories are located. If the project is approved, the department will ask the Government to provide preferential policies on land, corporate tax and import tax for procurement of fixed assets.

Many investors want to invest in rice husk energy plants, but are worried about the price offered by the Government. They said the prices should be equal to or higher than prices offered for solar energy, according to the Cong Thuong (Industry and Trade) newspaper.

(Source: Viet Nam News)

Solar Power Rush Continues In Vietnam With Two New Projects Announced

ENERGY - Vietnam
October 2018

Reflecting the ongoing solar power rush in Vietnam, two new solar projects in the country have been announced in October 2018: 

  • AC Energy, a wholly owned subsidiary of Philippines-based Ayala Corporation and AMI Renewables Energy JSC entered into a USD 83 million joint venture, signing engineering, procurement, and construction (EPC) and financing documents for the development of solar farms in Vietnam. With a capacity of 80 megawatts (MW), the additional solar capacity will be built in the coastal south central province of Khanh Hoa, and the central highland province of Dak Lak.  The projects will be financed with debt and equity from Indovina Bank of Vietnam and RCBC of the Philippines, while AC Energy will participate with at least 50% economic share
  • China-based PV manufacturer Risen Energy Co Ltd added a 50 MW solar project in Vietnam after winning the bid for the NHI HA solar farm project owned by Thap Cham Solar, a subsidiary of Vietnam-based Bitexco Group. Risen Energy will supply high-efficiency modules and 5-busbar 1500V high voltage modules for this facility that is to be built in Ninh Thuan, a coastal province in the south central coast of Vietnam. It  is expected to be operational at the end of June 2019, with electricity supplied to EVN, the Vietnamese state grid.

Vietnam's solar power sector has seen significant activity during the past several months, after the Vietnamese government issued Decree No.11/2017/QD-TTg last year, providing for a feed-in-tariff (FiT) rate for solar projects at 9.35 US cents/kWh until June 30, 2019. Because of its attractiveness, local and foreign investors such as Tata Power, Siemens Gamesa Renewable Energy and Sunseap Group have been racing to register solar power projects in the country.

According to Vietnam Investment Review, the government recently released figures approving more than 70 new solar projects to be put into operation before June 2019, and with a total capacity of over 3,000 megawatts (MW). This amount far exceeds the estimated solar power output of 1,000MW until 2020 in the original power development plan. Meanwhile, according to GE Reports ASEAN (GER ASEAN) by global giant GE, Vietnam's favourable geographical conditions endows the country with a high potential for solar energy production, with 1,600-2,700 sunlight hours per year and an average direct normal irradiance of 4-5 kWh per sqm per day. 

The Vietnamese government's National Power Development Plan VII for the period of 2016 – 2030 with the vision to 2030, aims to increase the country's total solar power capacity in the country's energy mix from its currently negligible percentage to about 0.5% (850 MW) in 2020, about 1.6% (4,000 MW) in 2025 and about 3.3% (12,000 MW) by 2030. 

(Sources: Vietnam Investment Review, Viet Nam News, GE Reports ASEAN, BusinessMirror, PR Newswire, Vietnam Electricity (EVN))

Vietnamese Increasing Feed-In-Tariffs For Wind Energy Projects

ENERGY - Vietnam
September 2018

A draft decision to increase feed-in tariffs (FITs) for wind power has been approved by the Vietnam government. Accordingly, FITs price for wind power projects will be increased from the current USD 7.8 cents/kWh to USD 8.5 cents/kWh applicable to onshore wind power projects, and USD 9.8 cents/kWh applicable to offshore wind power projects.

For new power plants that come into operation before November 2018, the new FiTs will be applicable for the remaining term of the project’s power purchase agreement (PPA). 

The new FiTs are expected to boost interest from investors by enhancing feasibility and practicalityof wind power projects. For the country, wind power contributes more to national energy security, supports the country’s constant economic development and the mitigation of climate change in a more efficient manner. 

(Sources: Renewablesnow; Evwind)

Power Shortage Forecast In Vietnam

ENERGY - Vietnam
August 2018

Speaking at the Vietnam Energy Forum in Hanoi in August, Deputy Minister of Industry and Trade, Hoang Quoc Vuong, said that Vietnam may face power shortages in 2021-23. Vietnam's energy demand rose by an average of 9.5% year-on-year during the last 15 years.The country's sole power distributor, Vietnam Electricity (EVN), is currently able to meet demand, but there is a strong possibility that the rising demands of the 95 million population and a fast growing economy would pace outpace supply. The shortfall might have to be met through energy imports from Laos and China, resulting in energy security concerns. 

There are seven coal-powered projects underway in the south of the country, and 18,000 to 26,000MW of coal thermal power projects are expected to be operational over the next five years. Any delay in their construction will increase power shortage by 7.2-7.5 billion kilowatts hours  a year. 

To solve the urgent issue of the gradual exhaustion of fossil fuel resources and energy shortage, the MoIT’s Department of Electricity and Renewable Energy targets of developing renewable energy, including small and medium hydro-electric plants, wind and solar power, biomass, biogas and biofuels. 

The electricity demand is expected to be around 265-278 billion kWh by 2020, increasing further 572-632 billion kWh by 2030, while the installed power capacity is estimated to reach 47,800 MW by end-2018, making the country second in ASEAN and 25th in the world.

(Sources: Vietnamnet; Vietnam News; The Saigon Times)

Thai-Vietnamese JV Building Largest Solar Power Facility In South East Asia

ENERGY - Vietnam
July 2018

A Thai infrastructure developer and power generation firm B. Grimm Power Public Company signed a joint cooperation agreement with Vietnamese conglomerate, Xuan Cau, to build a 420-MW solar park in Vietnam. 

Xuan Cau Group is one of the largest conglomerates in Vietnam, running many diverse businesses such as real estate, trading and services, energy and infrastructure. B.Grimm Power Plc is a Thai energy power company listed on the Stock Exchange of Thailand. The Vietnamese solar power scheme forms part of B.Grimm’s goal to boost its generating equity to 5,000 MW by 2022.

The 420-megawatt facility will be the largest photovoltaic solar power installation in South East Asia. Located in Tay Ninh, in the south-west of Vietnam, it is scheduled to start operation in June 2019.  It consists of two solar PV power plants, Dau Tieng 1 and Dau Tieng 2, with capacity of 150 MW and 200 MW, on which construction has started. A third facility, Dau Tieng 3, is expected to be built between 2021-2025.

The joint venture has awarded PowerChina International Group the contract to build the facility. 

At the same time, there are several other projects currently under development in the country under the govfernments FIT (Feed-in-Tariff) scheme, such as a 168 MW PV project with an investment of USD 150 million from Singapore-based solar developer, Sunseap. The power generated by all grid-connected PV installations will be sold to local power utility Electricity Vietnam (EVN) over a period of 20 years. 

(Sources: B.Grimm Power; Asian Power; PV Magazine)

Sunseap Building 168 MWp Solar Farm In Vietnam

ENERGY - Vietnam
June 2018

One of the largest and most established players in the solar energy industry in the ASEAN, Singapore-based Sunseap, has started construction of a 168MW solar farm at a 186 hectate site in Ninh Thuan province in Vietnam’s south-central coast. This is also the first solar project in Vietnam led by a Singaporean company.

The new solar farm, which is being built at an investment of UDD 150 million, will power nearly 200,000 households in Vietnam and create permanent jobs for more than 200 local workers and it is expected to reach commercial operation in June next year.  

Sunseap, together with its joint-venture partners InfraCo Asia, an infrastructure development and investment company of the Private Infrastructure Development Group, and CMX Renewable Energy Canada Inc., a solar developer based in Canada, will be allowed to sell solar power generated by its solar farm to Vietnam’s national grid at the mandated solar feed-in tariff of 9.35 US cents/kilowatt hour for the next 20 years. This is contigent on the completion of delivery of clean energy to the grid by June 2019.

Sunseap co-founder and director Frank Phuan said, “We are excited to reach another important milestone in this solar project for Vietnam and for Sunseap. It is a testament to the government’s commitment to promoting renewable energy and to supporting foreign investments in this sector.”

Enterprise Singapore assistant chief executive officer Tan Soon Kim commented, “We have seen traction in renewable energy projects in Vietnam, particularly in the solar energy sector. We hope to partner more companies to tap these growing opportunities in the market. The recent Memorandum of Understanding we have signed with Vietnam Electricity and Renewable Energy Authority aims to bring in more potential downstream opportunities for Singapore companies.”

(Source: Sunseap)

Rosneft Starts Drilling Offshore Production Wells in Vietnam

ENERGY - Vietnam
May 2018

Russian state-controlled oil producer, Rosneft, has started drilling at Lan Do prduction well as a part of Block 06.1 development. The implementation is done through the subsidiary - Roneft Vietnam B.V. while Rosneft will act as an administrator for the operation of this complex offshore drilling program. 

The sea depth at the drilling site is 160 meters, while the target depth of this production well is 1,200 meters. The gas reserves in this area are estimated to reach 23 billion cubic meters. Processed gas and natural gas liquids will be transfered inland via the 370 km two-phase Nam Con Son pipeline. This is the longest pipepline in Southest Asia. 

Within 2018, Rosneft plans to transform the exploration well, Phong Lan Dai field - also a part of Block 06.1 development - to production well. Target depth of this well will be 1,300 meters. Japanese company Japan Drilling Co., Ltd. (JDC) will provide drilling equipment to both of the projects at Lan Do and Phong Lan Dai.

Rosneft Vietnam B.V. owns 35% share in Block 06.1,and is the Project operator.  The project is being implemented on terms of Production Sharing Agreement (PSA). Three gas condensate fields - Lan Tai, Lan Do and PLD (Wild Orchid) are located on the Block. During 2017, around 9% of Vietnam's energy needs were met by gas produced by Rosneft.

(Sources: World Oil,, Rosneft)

Sterling And Wilson To Launch Solar Projects In Vietnam

ENERGY - Vietnam
April 2018

India-based firm Sterling and Wilson has annouced its plan to build a 300 MW of Solar PV plants in Dak Nong, Vietnam. Once completed, this plant will generate 270 million units annually thereby reducing 250,000 tonnes of CO2 emissions. The project is also expected to create 600-700 jobs during construction and 50 additional jobs during the maintenance phase of 20 years. Sterling and Willson has recently signed contracts with local developers and expect to complete the building phase in June 2019.

Sterling and Wilson is a global Solar EPC leader who has established a remarkable presence in Southeast Asia with its 50 MW plant in Philippines and 60 MW project in Bangladesh, which is close to completion. Bikesh Orga, Sterling and Wilson’s renewable energy and storage CEO, commented that "Vietnam is one of the fastest-growing economies in the world, with nearly 8-10% annual increase in power consumption by industries" and believed this project will help to bring affordable and clean energy to Vietnamese.

(Sources: Business Wire)

Vietnam Appoints Japan's JGC For Mega-Solar Plant Construction

ENERGY - Vietnam
March 2018

JGC Corporation from Japan has been awarded an EPC contract for the construction of KrongPa Solar Power Generation Plant in Gia Lai Province. This 49MW solar power plant is said to be one of the largest solar power plant in Vietnam, with a total investment of VND 1,500 billion (USD 65.7 million). Facilities constructed by JGC Corporation are expected to be completed for the first phase of 35 MW by the third quarter of 2018. Once completed, KrongPa Power plant shall be able to generate 65.57million kWh/year, equivalent to electricity usage of 47,000 households in Vietnam.

The contract was awarded by TTC (Thanh Thanh Cong) Group, the biggest investor of this project. TTC Group is a Vietnamese conglomerate who specializes in real estate and energy, with their increasing investment focusing on clean energy sources. To be specific, by 2020, TTC plans to reach a capacity of 1,000 MW of solar power and 40 MW of wind power, which accounts for 73% of the total energy sector of TTC; hydropower will account for 16% and 11% is for thermal power.

(Sources: JGC Corporation; Vietnam Energy Online)

Vietnam Sees A Boom in Solar Energy Projects

ENERGY - Vietnam
February 2018

After the government dropped the plan to build nuclear power plants in late 2016, the number of solar projects have increased drastically. In 2017, hundreds of solar projects with a total estimated capacity of up to 17,000 MW were registered nationwide, and are ready to seek investors. 

Vietnam's government is putting its effort into developing solar energy in the country. Solar energy currently accounts for only 0.01% of total electricity production. The government plans to increase this figure to 3.3% by 2030 and 20% by 2050. Mechanisms and policies have been promulgated to promote the development of solar power, especially the mechanism supporting the commercial price of solar power at the preferential price of 2,086 VND/kWh (9.35 US cents/kWh), compared to the current price of 2.587 VND/ kWh (11.37 US cents/ kWh) . In addition, investors and contractors for construction of solar power projects are also entitled to incentives on corporate income tax, import tariffs on solar power equipment, exemption from land use fees, rents land, etc., in accordance with current regulations on investment. 

Vietnam has a large volume of radiation from the sun and vast vacant land along the coastline, most of which are untapped yet ideal for renewable energy. In the Central and Southern regions, solar energy can be used to generate power on average 300 days per year. Average sunshine duration can reach 2,000 – 2,600 hours/year.

(Sources: Vietnam News, Electricity Vietnam - EVN)

Nexif Energy Invests In Wind Power In Vietnam

ENERGY - Vietnam
January 2018

Ben Tre province has approved Nexif Energy's application to build an 80 MW wind power project in one of the province's communes. The project with a total investment of VND 3.68 trillion (USD 160 million) will have a capacity of 80 MW once fully completed, and will generate 250 GWh of clean energy annually to 50,000 homes. The project will be divided into 3 phases, the first 30 MW phase of which, is expected to start operation in 2020.

Nexif Energy is an independent power producer in Asia and Australia. The company has a majority share in 30 MW Coc San hydro power project in northern Vietnam and owns other ongoing renewable energy projects across Vietnam, with a total capacity of 500 MW.

(Sources: Nexif Energy; Vietnam Economics News)

First Solar Resumes Construction Of Production Plant In Vietnam

ENERGY - Vietnam
December 2017

First Solar, a leading global provider of comprehensive PV solar energy solutions, has announced its plans to resume construction of its production facility in Vietnam, with extended investment capital and capacity. The U.S.-based company has resumed its solar panel production project at the Dong Nam Industrial Zone in HCMC’s outlying district of Cu Chi, years after halting project and seeking to liquidate its facilities there. The company's decision to resume its project is motivated by the growing demand for its products, as well as to support its transition to its Series 6 large format panel. The first module production is expected in the first quarter of 2019, and all products from its Vietnam facility will be exported to the US and European markets.

First Solar's Series 6 is expected to enter the commercial market with a power rating of 420-445 watts and conversion efficiency of over 17%. Measuring approximately 2 meters by 1.2 meters, Series 6 modules will provide more watts per lift than comparable crystalline silicon solar panels, and can be installed on virtually any ground-based PV mounting system. The new product is still based on First Solar’s thin film CdTe PV technology, but with increased physical dimensions and performance characteristics.

The HCM City Export Processing Zones Authority (Hepza) has adjusted the certificate of investment for First Solar for its venture in Vietnam. This is one of the largest increase of FDI from enterprises operating in export processing zones and industrial parks in Ho Chi Minh City. A series of investors have also announced intentions to develop satellite projects, including assembly facilities as well as component manufacturing factories, to serve the First Solar project in Vietnam.

(Sources: First Solar; Vietnam Investment Review; PV Tech)

Vietnam Adjusts Power Tariff

ENERGY - Vietnam
November 2017

Vietnam's Ministry of Industry and Trade (MoIT) has issued new regulations on retail prices for electricity, which tailors electricity prices for each of 5 categories: producers, businesses, lodging facilities, administrative agencies, and households. MoIT is lowering the price for lodging facilities to be equal with the price for producers, as the country is aiming to promote tourism as one of the key economic sectors. The new tariff schedule for electricity has been patterned from the experience of countries with similar economics situation such as Thailand, South Korea, Indonesia and Malaysia.

Following the announcement, the average electricity retail price was increased to 7.6 US cents per kWh, a 6.08% rise from the previous tariff of 7.1 cents per kWh. According to analysts, the power price hike was necessary, given Vietnam has kept prices unchanged since March 2015, despite the fact that  production costs have been continuously increasing since 2015. In addition, the country hopes to attract investment in new power resources, with the higher electricity tariffs.

Total power production for EVN (Electricity of Vietnam, the country’s power monopoly) topped 159.79 billion kWh in 2016, with a transmission loss ratio of 7.57%. The electricity giant reported a power cost price of VND1,665.29 per kWh, and total production expenses of more than VND266.1 trillion (US$11.72 billion) the same year. It posted only in VND265.51 trillion ($11.7 billion) in revenues from power, racking up VND593.46 billion ($26.14 million) in losses, which was offset by income from other activities.

(Sources: Vietnam News; Vietnamnet; Tuoi Tre News)

First Foreign Player Joins Vietnamese Petroleum Retail Sector

ENERGY - Vietnam
October 2017

A joint venture between Japanese company Idemitsu Kosan Co., Ltd. and Kuwait Petroleum International Ltd. (KPI), called Idemitsu Q8 Petroleum Limited Liability Company (IQ8) has opened its first filling station in Vietnam early this October. This new station - which is established in Hanoi - is equipped with the most modern safety technologies and offers customer services under Japanese standards, which was positively welcomed by both public and industry experts.

The Vietnamese petroleum market has always been dominated by domestic distributors. Although experts have forecast it is unlikely that competition would result in cut-throat business tactics due to limited product lines, the presence of a new foreign-owned market player will pressure local enterprises to improve their existing facilities and quality of service.

(Sources: TuoitreNews; Vietnam Investment Review)

Vietnam To Have Stations To Measure Solar Resouces

ENERGY - Vietnam
September 2017

The World Bank and the Electricity of Vietnam (EVN) have launched a campaign to promote the deployment of renewable energy in the country, with the installation of five solar measurement stations across the country. The stations will collect high-quality data on solar radiation data and improve the accuracy of estimates on solar resources. To be published and made freely available online, the data is expected to encourage and assist developers interested in building solar power plants.

The solar measurement campaign follows the recent publication by the World Bank of updated solar maps for Vietnam, which show the average solar resource potential at a 1km resolution. The data and maps can be accessed via the Global Solar Atlas. After two years of the measurement campaign, Vietnam’s solar maps will be fully validated, of excellent quality, and ready for planning and prospecting purposes.

(Source: The World Bank)

Vietnam Plans To Build Crude Oil, Fuel Storage Worth Over USD 6 Billion

ENERGY - Vietnam
August 2017

Vietnam's Prime Minister has issued a decision approving the master plan to develop a reserve system for Vietnam's crude oil and petroleum supply to meet the criteria of the International Energy Agency (IEA). To realize the goal, Vietnam plans to spend over VND 137 trillion (USD 6 billion) to build new strategic petroleum storage that will reserve up to 2.2 million cubic meters of crude oil, or about 13.8 million barrels, equivalent to six days of imports.

Strategic oil product reserves by 2020 would total 1.8 million cubic meters, or about 11.3 million barrels, equal to 14 days of fuel imports. The Ministry of Industry and Trade, PetroVietnam and Petrolimex are expected to submit feasibility studies for the projects by September. However, 90 days is a big target and the project may take longer to realize as it would take a big investment and strict requirement given the track record of refinery construction in Vietnam over the past few years.

(Sources: The Business Times; Vietnam Biz)

Vietnam's New Feed-in-Tariff For Renewables Attracting Attention

ENERGY - Vietnam
July 2017

Philippines' AC Energy Holdings Inc. is exploring possible investments and partners for solar and wind projects in Vietnam as it charts its expansion outside the Philippines. The company is zooming in on renewable energy investments, particularly solar and wind, in Vietnam after it announced earlier this year the country will be its second target to expand its presence overseas. Vietnam has an ongoing feed-in tariff (FIT) scheme for solar and wind projects. The Vietnamese government came out with FIT for solar recently, which would be valid from June 1, 2017 to June 30, 2019. Meanwhile, there is no deadline for wind. As part of its business development, AC Energy is scouting for partners to be able to enter the Vietnam power market as they do not wish to invest in Vietnam on its own.

Under the new FIT scheme, owners of grid-connected PV power plants will be granted a 20-year FIT of 2,086 ($0.091)/kWh excluding VAT. This rate, however, is subject to changes based on the VND/$ exchange rate. The power generated by all grid-connected PV installations will be sold to local power utility Electricity Vietnam (EVN). Furthermore, solar power producers will also be exempted from paying taxes on importing goods for their fixed assets.

(Sources: PV magazine, Philstar)

Coal-Fired Power Plants Worth USD 7.5 Billion In Vietnam

ENERGY - Vietnam
June 2017

Vietnam is expected to approve investment licenses for three coal-fired power plants worth USD 7.5 billion, despite its environmental impacts as Vietnam is still reliant on coal-fired and hydro-powered plants for its electrical consumption even though it supports renewable energy.

Projects will be invested by Japan’s Marubeni Corp, South Korea’s Taekwang Power Holdings and Saudi Arabia’s ACWA Power. Japan’s Sumitomo Corp is also expected to get its license approved in later half of the year.

(Sources: VN Express International, Reuters, PEI Power Engineering)

GE Signs USD 5.58 Billion Deal In Vietnam For Power And Aviation Sector

ENERGY - Vietnam
May 2017

General Electric Co. (GE), a Boston based company has signed the largest single combined deals with Vietnam.  The agreement includes deals in the power generation and aircraft engines and services sectors.

GE together with CFM international (a joint venture of GE and Safran SA of France) has an agreement with Vietjet Aviation JSC VJC.HM for 20 jet engines. GE power unit also signed a memorandum of understanding with state energy group PetroVietnam to build two 750-megawatt gas fired turbine power plants. GE also signed a joint agreement to build a 800-megawatt wind power facility with Phu Cuong Group and International Mainstream Renewable Power.

(Sources: Boston Business Journal, Reuters)

USD 4 Billion Investment for Binh Thuan

ENERGY - Vietnam
April 2017

Vietnam’s southern province of Binh Thuan is to receive an investment worth over USD 4 billion into 20 renewable energy projects and will become Vietnam’s major energy center. Binh Thuan’s natural conditions of low rainfall, lots of wind and sunshine and good systems of lakes and rivers make it a much favourable place as a new hub for clean energy in Vietnam.

Skepticism remains however in the Binh Thuan Wind Power Association due to long processing time for the approval in investment licenses for wind power project while investors are facing issues with access to credits and investment returns. High installation cost to relatively lower power prices has also disheartened investors to join Vietnam’s wind energy market.

(Sources: VN Express International, Bradman Energy & Carbon, Mekong Eye)

USD 3.3 Billion Investment In Solar Projects

ENERGY - Vietnam
March 2017

Vietnam's Daklak province has granted licences and signed memoranda of understanding (MOUs) for the development of solar power projects worth USD 3.3 billion. Investments include companies from U.S. group AES Corporation and South Korea’s Solar Park Global Limited

Currently Vietnam relies mostly on coal-fired and hydro-powered plants for its electrical consumption. It is looking into increasing the use of renewable energy to address issues with the environmental and scarcity or power resources. Vietnam has revised its National Power Development Masterplan (PDP VII) to increase solar power capacity to 850 MW by 2020, 4000 MW by 2025 and 12000 MW by 2030.

(Sources: Vietnam News, Taiyang News, Reuters)

Vietnam’s Renewable Energy

ENERGY - Vietnam
February 2017

Based on an energy scorecard report released by the World Bank, majority of the countries in the world have policies to support energy access, renewables and energy efficiency. The report indicated Denmark tops the score followed by the U.S.A, Canada and Germany. Wealth of a country tends to be related with favorable clean energy, the developing countries such as China, India, Vietnam, South Africa, Brazil, Mexico and Turkey are at also at the forefront efforts alongside the rich developed countries. Amongst all developing countries, Vietnam tops the score.

There are many renewable energy projects being developed, despite the weak energy prices. The government has also projected to develop renewable energy sources of 6 MW and 17 TWh (6.5% of total generation) by 2010, and 27 GW and 60 TWh (21.6%) by 2030.

(Sources: VN Express International, Entech Vietnam 2017, The daily Climate)

Chinese And Taiwanese Solar Panel Manufacturers To Invest In Vietnam

ENERGY - Vietnam
January 2017

Chinese and Taiwanese solar makers who want to make use of tax advantages implemented by the U.S. and the E.U. are investing to Vietnam. GCL-SI and Trina Solar sign contracts with Vietnam based Vina Solar Technology Co Ltd to develop 600 MW and 1 GW of solar cell manufacturing capacities respectively. Trina Solar to invest up to USD 100 million in the province of Bac Giang and GCL-S plans to invest USD 32 million for their projects.

(Sources: Vietnam Net Bridge, Energy Trend)

Vietnam’s Power Sector

ENERGY - Vietnam
December 2016

The power industry in Vietnam has a total installed capacity of 38,676 MW as of October 2016. According to Vietnam Electricity (EVN), power output in Vietnam increased at 10.84% CAGR in the period from 2011 to 2015. In 2015, power output reached 143.7 billion kWh. In the first 10 months of 2016, total power output reached 132.6 billion kWh, 11.34% higher than total power output in the same period in 2015. EVN’s total power output forecast for Vietnam in 2016 is 159.1 billion kWh, 10.72% higher than total power output in 2015.

There are three main types of power plant in Vietnam: hydropower, coal-fired thermal, and gas thermal. In terms of installed capacity, as of October 2016, total installed capacity of hydropower plants is 17,022 MW, coal-fired plants is 12,705 MW and gas thermal plants is 7,684 MW. Oil-fired thermal plants capacity is 1,154 MW while total capacity of other power plant types such as wind and biomass power is negligible at around 109 MW. Since hydropower plants can only operate at full capacity during rainy seasons, total installed capacity does not fully reflect the power output from each group. For example, according to EVN, in the first ten months of 2016, hydropower accounted for 35.45% of the industry’s total power output, coal- fired power accounted for 37.05%, and gas thermal power accounted for 26.04%.

(Source: Vietcombank Securities - VCBS)

Vietnam Cancels Nuclear Power Program

ENERGY - Vietnam
November 2016

In November 2016, Vietnam’s National Assembly has voted to support the government's decision to abandon plans to build nuclear power plants. The decision to abandon nuclear power was primarily based on economics, as nuclear power is not economically viable because of other cheaper sources of power.

The estimated cost of four Russian nuclear reactors at the two sites in Ninh Thuan province had nearly doubled to VND 400 trillion (USD18 billion). The estimated price of nuclear-generated electricity had increased from 4 ‒ 4.5 US cents per kwh to 8 cents per kwh. Vietnam has spent millions of dollars on the project so far, but now feels that continuing the program would add more pressure to the already high public debt. According to media reports, the cost of the reactors had escalated from the original estimate of USD 10 billion to USD 27 billion.

Electricity demand in Vietnam is growing, but not as rapidly as previously estimated. The latest survey predicts that power growth rate will be at 11% in the 2016-2020 period and will fall to 7-8% in the 2021-2030 period. The country does not expect to have a power shortage in the near future.

(Sources: Reuters, World Information Service on Energy - Wise)

40-MW PV Park In Vietnam’s Hau Giang Province

ENERGY - Vietnam
October 2016

Chinese firm JinkoSolar Holding has registered to build a 40 MW photovoltaic (PV) park in Vietnam’s Hau Giang province. The facility, to be located in Phung Hiep district’s Hoa An commune, is expected to require a total investment of VND 1.2 trillion (USD 54 million). Hau Giang deputy chairman, Nguyen Van Tuan, has asked the solar company to soon submit the PV project for approval to the province, the government and the Ministry of Industry and Trade. JinkoSolar and the provincial government are expected to wrap up the investment procedures in the fourth quarter of 2016. Construction works at the site are to kick off in 2017.

(Sources: PV Tech, Vietnam Investment Review)

VND 858.66 Trillion Investment In The Power Sector

ENERGY - Vietnam
October 2016

The Vietnamese government has asked the National Assembly to approve a VND 858.66 trillion (USD 38.4 billion) electricity infrastructure project, with 75% for developing power resources and 25% for the power network. The government hopes to receive VND 100 trillion from foreign investment inflows, VND 200 trillion from foreign official development assistance schemes, VND 4 trillion from the state budget and VND 554.6 trillion from the project’s investors and commercial loans. So far, a significant part of investment capital for the power sector has been sourced from foreign countries and organizations, namely, the World Bank, the Asian Development Bank (ADB), the Agence Française de Développement, and Germany’s KfW Development Bank.

(Source: Vietnam Plus)