The Politburo’s Resolution 55-NQ/TW in 2020 creates great hope for business expansion for FDI enterprises providing complete equipment, technology and solutions for Vietnam energy market.
According to Wärtsilä Vietnam Country Director, Resolution 55-NQ/TW aims to develop synchronously and reasonably, diversify types of energy, prioritizing the exploitation and use of all renewable energy sources, new energy, clean energy. This is the core business of Wärtsilä (from Finland, specializing in the development of sustainable and closed solutions for the energy market) for the past 184 years.
In the Vietnamese market, Wärtsilä is doing strong marketing with the hope of increasing sales by providing technology for power projects. Wärtsilä’s energy business is leading the transition towards a future using 100% renewable energy. Wärtsilä offers flexible power plants, energy management and storage systems, as well as closed services to increase effectiveness and ensure efficiency.
With the push of the Government, in recent years, renewable energy has developed extremely strong in Vietnam and this is a very good opportunity to invest in the energy sector in Vietnam.
Another supplier – Fortum Power and Heat OY Finland is also looking forward to the coming of Resolution 55-NQ/TW to come to life soon. This business provides technology to minimize harmful thermal power emissions, mixed energy system development solutions in many markets around the globe.
Fortum’s hydropower plant efficiency enhancement technology will enable efficient hydropower plant operation, minimizing overhaul and plant downtime. With coal-fired power, Fortum’s technology allows it to replace up to 40% of the required amount of coal in coal-fired thermal power plants… This is what is being considered in the Vietnam energy development process.
With the national electricity demand growth rate for the 2016 – 2020 period of 10.6% and 8.5% for the period of 2021 – 2025 and 7% in the period of 2026 – 2030, Vietnam becomes an attractive market for domestic energy investors and foreign direct investment (FDI) enterprises. Accordingly, Vietnam needs to mobilize an additional 5,000 MW from now to 2025, which means that each year, it needs to pour an additional 7 – 10 billion USD to invest in power projects.
There have been new moves to welcome FDI inflows into energy. Recently, the US Millennium Company has been allowed by the Management Board of Van Phong Economic Zone (Khanh Hoa) to survey and research projects in the Van Phong area to study the feasibility of the gas-power project complex.
According to Millennium, the LNG Center Project (over 10 million m3) and the Power Plant (capacity of 4,800 MW) has a total initial investment capital of 8 billion USD. In the future, the Company will increase the capacity of the power plant to 9,600 MW and the warehouse to 15 million m3, with an investment of 15 billion USD. Secretary of Khanh Hoa Provincial Party Committee affirmed that the idea of implementing the LNG Center and Power Plant Project of Millennium Company is suitable with the potential and orientation of industrial development in this area.
Previously, at the Vietnam Energy Summit 2020, a series of cooperation in the implementation of energy projects was signed. Typically, Copenhagen Infrastructure Partners (CIP – Denmark) and Binh Thuan province have signed a Memorandum of Understanding for the development of La Gam offshore wind power project with a total capacity of up to 3.5 GW, with an investment of 10 billion USD. This is one of the first large-scale offshore wind power projects in Vietnam, as a prerequisite for attracting other foreign investors to offshore wind power projects.
CIP is a pioneer in the offshore wind power industry in the Asia – Pacific, including projects in Vietnam, Taiwan, Korea, Japan and Australia. CIP operates 7 funds with more than 10 billion USD in committed capital. Funds have implemented more than 20 portfolios in energy infrastructure, with a total capacity of nearly 8 GW in the United States, UK, Germany, Spain and Taiwan. The funds also have more than 15 energy infrastructure projects that are in the process of preparing final investment decisions and are expected to commence within the next 2 – 3 years.
According to the founding member of CIP, with the project in Binh Thuan, CIP commits to continue to cooperate with local partners to turn this project into a model of a successful technology transfer project in parallel with making maximum use of local resources and expertise.
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