Vietnam Renewable energy report November 2021

Prepared by Italian Chamber of Commerce in Vietnam

Overview:

Vietnam’s power sector remains dominated by fossil fuels, with close to 56% of current installed
capacity being coal, gas, or oil based. Coal accounts for around 46% of Vietnam’s electricity mix,
making it the largest generation source. Hydropower represents the second-largest share of installed
capacity. It amounts to over 30% of the country’s electricity mix in 2019. Meanwhile, just under
19% of capacity is based on gas. Though the country has tried to attract renewable energy
developers since 2011, Vietnam’s renewable energy market only took off in 2018. Today, wind
and solar are the principal drivers of growth in the country’s power sector. According to IRENA,
between 2017 and 2019, Vietnam deployed over 5.5 GW of solar, amounting to over 10% of the
power mix. By the end of 2020, the country’s solar capacity reached 16.5 GW. Additionally, the
government of Vietnam is looking to install 12 GW worth of onshore and offshore wind by
2025. Between 2014 and 2019, increasing industrialization and urbanization was followed by a shift
in energy demand towards renewables, which brought Vietnam's power capacity from 109 MW to
5700 MW.

Non-hydro renewable sources such as wind and solar made up 5% of Vietnam's electricity
generation in 2020. Expanding non-hydro renewable capacity will likely help Vietnam rely less on
coal, reduce carbon emissions, and increase electricity generating capacity to meet the country's
growing electricity needs.
Vietnam exploits all four big sources of renewable energy: hydroelectricity, wind power, solar
power and biomass. As of 2019, Vietnam has the highest installed capacity in Southeast Asia.
In 2020, there are 102 solar power plants operating in the country with a total capacity of 6.3
GW.

Vietnam’s Economic Growth and Renewable Energy Investments

Researchers and experts have pointed out that one of the critical factors in Vietnam’s explosive
renewable energy growth is its economic growth. According to the Asian Development Bank, the
country has seen its economy grow by 6% annually since 2014, and 7% since 2018. Coupled with
the country’s population increase, Vietnam’s swift economic growth drives up energy consumption
at an extraordinary rate. Consumption of electricity has increased by more than 11% a year,
growing faster than the GDP of Vietnam. According to the International Energy Agency report,
Vietnam is Southeast Asia’s second-largest electricity consumer. The statistics affirm that if
Vietnam wants to continue growing its economy and attracting foreign investors, it needs to move
away from fossil fuels and invest in renewable energy.

Another important reason why Vietnam has gradually moved away from fossil fuels is its green
energy potential capacity. A report from the World Bank pointed out that Vietnam has one of the
highest numbers of installed solar panels in Southeast Asia. Recently, renewable energy in
Vietnam has seen massive solar outputs of electricity and energy, with the country producing 16,500
MW at the end of 2020. According to the statistics from a report by the International Renewable
Energy Agency (IRENA), Vietnam is among the top 10 countries with the highest capacity of
solar energy panels as of 2020. Vietnam has an estimated 311 GWs of wind energy, one of the best
resources in the region. Accompanied by the government’s commitment to investing in renewable
energy, Vietnam is in a strong position to become a leader in the world in renewable energy
development and innovative energy solutions.

The second most important element of Vietnam’s recent renewable growth is its public
commitment. A by-product of Vietnam’s economic boom was its massive carbon footprint and
environmental pollution. Recent severe air and water pollution incidents in major cities have
created public pressure that opposes any new development of coal power plants. Vietnamese people
living in urban areas have been wearing their protective facemasks long before the COVID-19
pandemic; however, the increasing number of cars and motorbikes on public streets has created a
hazardous environment. Ho Chi Minh City and Hanoi have seen pollution levels four times higher
than what the World Health Organization (WHO) considers acceptable. Recent Vietnamese
governmental reports said that local governments refuse new power projects because of their
environmental implications. As a result, urban planners and the Vietnamese government are
reshaping their energy market to incorporate more solar and wind energy in order to reduce the
country’s reliance on fossil fuels. Experts believe that Vietnam can become a study case for
renewable energy financiers and investors, thanks to its vast solar and wind energy potential.

Vietnam’s Accomplishments in Renewable Energy

From the beginning of 2014 through 2015, the country only produced 4 MW of installed solar
energy for power generation. Renewable energy in Vietnam is only 0.32% of the total electricity
that the country generates. Yet, as the statistics have pointed out, in just over five years, Vietnam
has produced over 7.4 GW of rooftop solar power. Its renewable energy share boasts 10% of the
country’s total electricity generated.
Researchers have estimated that Vietnam would produce more than 16.5 GW of solar energy, and
11.8 GW of wind energy. The government has already prepared for more onshore and offshore wind
projects by 2025, which should produce 12 GW of energy capacity. These projects include wind
farms in Binh Thuan and Ninh Thuan, which projections have determined will produce about 170
million kilowatt-hours of green energy per year, along with Bac Lieu offshore wind projects. Along
with these projects, the government’s effort and policies show precisely why Vietnam is on track to
become Asia’s next renewable energy powerhouse.

Vietnam’s recent accomplishments in renewable energy have contributed to combating extreme

poverty both nationally and globally. With the help of a booming green energy market, the country’s
yearly poverty rate has been declining gradually. Vietnam has gone from a country with a rural
electrification rate of 2.5%to being able to connect millions of rural families to the national grid,
and the country is on track to provide more green energy to rural areas. According to a report from
the Asian Development Bank, these transitions will experience enhancement, thanks to renewable
energy. In urban areas, renewable energy can help combat economic inequalities by providing a
cleaner environment and stable energy prices. As the country has a commitment to transforming its
energy, its economy will likely benefit and reduce extreme poverty.
These factors have contributed to the fast and efficient transformation of renewable energy in
Vietnam. From a country that heavily relied on fossil fuels, Vietnam has become one of the leading
countries in green energy. This transition helps the country combat weather changes while also
uplifting the nation’s economy and providing solutions for eradicating poverty.

Types of renewable energy:

Renewable energies are defined as: solar power, wind energy, geothermal energy, hydroelectric
energy, biomass energy, ocean energy.
Vietnam's energy development plan has seen the country increase production through renewable
energies such as hydro, solar and wind, as well as LNG, but the government has also subsidized
new coal plants.

Solar energy:
Golden period for the development of solar energy in Vietnam. In June 2020, Sharp Energy
Solutions Corporation (SESJ) completed a mega solar power plant in Ninh Thuan province, which
will generate 76,373 megawatt / hour (MWh) annually. The plant is the latest addition to SESJ's
other five solar power plants in Vietnam. Sharp is just one of many companies that have benefited
from Vietnam's renewable energy needs by investing in large-scale solar energy projects. As the
country recovers from the downturn due to the pandemic, its energy demand is expected to
increase by more than 9% over the next decade, starting in 2021. The Ministry of Industry and
Commerce (MoIT), in a draft report, predicted that Vietnam will need approximately $ 128.3 billion
in investment to develop its electricity industry over the period 2021-2030.

For years, Vietnam, like many other developing countries, has focused on coal as the cheapest and
simplest option to meet energy needs. However, technological progress and growing environmental
concerns have shifted attention to renewable energy. In fact, if in 2017 solar energy had no role in
Vietnam's energy strategy, already at the end of 2019 Vietnam overtook Malaysia and Thailand,
reaching the largest capacity of solar panels installed in Southeast Asia. The country has developed
around 5 gigawatts (GW) in photovoltaic projects, far exceeding the 1 GW target by 2020.

Much of the success of solar energy in Vietnam can be attributed to feed-in-tariffs (FiTs). The FiTs
encourage investments in renewable energy by guaranteeing a higher than market price for
producers. As these typically engage in long-term contracts, FITs help limit the risks associated
with renewable energy production.
In April 2020, the Vietnamese government set new FiTs for solar, ten months after the previous
FiT program expired (June 2019). The new tariffs, compared to before, are between 10 and 24%
lower and are still uniform among the regions, but differentiated by type (ground, floating and
rooftop systems).Under the new decision, to benefit from the new FiTs, solar energy projects had to
reach commercial operation by December 31, 2020. The delay in government approval required
much shorter working times. With the current disruption of supply chains involving solar cells and
module delivery from China, as well as other economic uncertainties induced by the pandemic, it
has been very difficult for companies to become operational before the deadline. As such,
consulting firm FitchSolutions predicts that FiT's new scheme will not be the main driver of solar
energy investments in Vietnam. For the future, Vietnam intends to further implement an auction
mechanism. All projects that cannot benefit from the new FiT rates will go through a competitive
tender procedure. The publication of a tender by the government, and the selection of the most
competitive companies in terms of prices, will help to better manage the development of clean
energy throughout the country.
However, transitioning from a FiT scheme may take longer than expected, as tariff eligibility for
large-scale PV projects not yet developed has just been approved. Attracting investments will
largely depend on the government's ability to provide a clear auction scheme and other incentives
on time.
In addition to the uncertainties about future investment schemes, there are other factors that both
investors and government authorities will need to take into account when developing solar energy
in Vietnam.First, there are some deficiencies in infrastructure that hinder energy transmission.
Most solar power plants are concentrated in the sunny southern region where the national grid
tends to be overloaded. At the same time, some solar plants have seen their operation delayed due
to incomplete transmission lines.
The government has proposed to develop the energy transmission system and the energy source
from the central, south-central, north-central and central regions. He also said he wanted to research
an intelligent grid system and to use Industry 4.0 technology to optimize transmission systems.
Transporting energy to economic centers and northern cities is therefore still a problem. The new
PDP intends to address this by ensuring that energy development is balanced in all regions and that
energy grids are connected both within Vietnam and with neighboring countries.
Furthermore, projects involving the installation of solar panels on the ground must take into account
land rights, an issue that is looming in Vietnam. While investors can benefit from land use tax and
rental exemptions, administrative proceedings can take a long time and cause significant delays.

In October 2020 the largest solar farm in Southeast Asia has been commissioned in Vietnam’s
central province of Ninh Thuan.The 450 megawatt Trung Nam Thuan Nam Solar Power Plant,
which spreads over an area of nearly 560 hectares in Thuan Nam District, went on stream on
Monday evening, 102 days after construction began in mid-May.Built by Ho Chi Minh City-based
energy firm Trungnam Group at a cost of VND12 trillion ($518 million), it has a plant that can
produce over one billion kilowatt-hours of electricity a year and a 17-kilometer transmission line to
connect it with the grid.This is the first time a private company has been allowed to install a
transmission line, a preserve thus far of state-owned utility Vietnam Electricity (EVN).Laying
transmission lines has become a critical task since the rising number of renewable energy plants is
overloading existing ones.Trungnam has added a total of 1,064 megawatts capacity to the national
grid comprising of hydropower and solar and wind power. It plans to have a renewable output of
nearly 10,000 MW by 2027.There are over 100 solar power plants operating in the country with a
total capacity of over 6,300 MWp.The Ministry of Industry and Trade is drafting a national power
development plan for the next decade with a 80 GW addition to generation capacity of which 37.5
percent will come from wind and solar power.Vietnam needs over $133 billion over the next decade
for building new power plants and expanding the grid to fully meet its surging demand for
electricity.

Jinko Solar Hongkong Ltd. obtained, on March 31 2021, the funds and company registration
certificates for its photovoltaic solar cell plant in Quang Ninh province, specifically in Song Khoai
Industrial Park. The certificates for the JinkoSolar PV Vietnam were delivered at a ceremony
attended by dignitaries from Quang Ninh province and representatives of the investors and the
industrial park. JinkoSolar PV Vietnam will be built on a 32-hectare plot of Song Khoai Industrial
Park in the Quang Yen Economic Zone, Quang Ninh, and is designed to employ 2,244 local
workers. Huang Xin Jing, project director of JinkoSolar Hong Kong, said at the ceremony that the
new facility will be JinkoSolar's third global facility and will be its first "smart factory", thanks to
the use of new production lines. and new machinery and equipment.
“To continue expanding production, JinkoSolar's commission in charge of the investigation has
visited Vietnam twice since October 2020, and has conducted investigations in more than twenty
provinces and thirty industrial zones. In the end, the Song Khoai industrial park was chosen as the
base for the new facility in Vietnam, ”added the project director.
He also praised the swift and efficient support of the Quang Ninh authorities, who even worked
during the Lunar New Year holidays. Thanks to these efforts, the project is proceeding as planned
and will be started in late April, officially starting to be operational at the end of October.
Meanwhile, Bui Vang Khang, vice chairman of the Quang Ninh People's Committee, expressed
pride in noting that JinkoSolar's project was the fastest project to receive corporate registration
funds and certificates. The documents were approved less than 48 hours after the submission date.
Once operational, JinkoSolar PV Vietnam will generate VND 29.7 trillion ($ 1.3 billion) in annual
revenue, and contribute VND 873 billion ($ 37.96 million) to state coffers post-tax, ending in net
annual profit. total of VND 3.93 trillion ($ 170.87 million).
JinkoSolar Hong Kong is one of the largest solar panel manufacturers in the world, with a share of
12.6% of the global market in 2019.With the expected capacity to generate approximately $ 1.2
billion annually, this project will significantly contribute to the socio-economic development of
Quang Ninh province in the near future. The Amata group will work closely with Jinko Solar
investors to meet the schedule, and hopes to receive continued support from Quang Ninh province
in the construction and start-up process of the plant. In addition, Amata Group is committed to
continuing to seek and introduce more foreign investment in Song Khoai Industrial Park in Quang
Ninh.

Wind power:
Vietnam’s offshore wind power capacity will increase 36 GW by 2045, according to the latest
draft of the Power Development Master Plan VIII.
It will increase to 4 GW by 2030, 10 GW by 2035, 23 GW by 2040. Offshore wind power will
account for some 2.6 percent of the total electricity generation capacity in 2030 and 10.8 percent in
2045. Offshore wind power farms will be located mainly in the north and the south of the country.In
the previous draft of the plan, the Ministry of Industry and Trade had set a target of lifting offshore
wind power capacity to 2-3 GW, or 1.5-2 percent of the total, by 2030.At a meeting held to discuss
the latest draft Friday, Mathias Hollander, senior manager of the Global Wind Energy Council
(GWEC), said Vietnam can have offshore wind power capacity of 5-10 GW by 2030. The country’s
offshore wind power generation has an efficiency of over 50 percent, similar to that of
hydroelectricity, he noted. According to GWEC calculations, Vietnam will have to invest $10-12
billion for the first 4-5 GW of offshore power wind capacity, but wind is an infinite source, so the
country will not have to keep feeding wind power farms as it does with coal or gas-fired plants.
Meanwhile, the unit cost for 1,000 kWh of electricity generated by an offshore wind power farm is
around $83, down from $255 in 2010. It is expected to further drop to $58 by 2025.With a coastline
of 3,260 km, low sea levels and high wind speeds (7-10 meters per second at a height of 100
meters), Vietnam is an emerging offshore wind power magnet in Southeast Asia, experts say.

Vietnam has given the green light to almost a hundred new wind energy installations, indicating the
nation keeps powering ahead with renewables amid fears of looming power shortages as industry
and population boom.
The Vietnamese government on 25 June 2020 formally approved 7 gigawatts (GW) worth of new
wind projects to be built in the country, putting it on track for a total wind power generation
capacity of nearly 12 GW by 2025, according to a source close to the administration.
The go-ahead was given in a letter addressed to the nation’s Ministry Industry and Trade (MOIT)
and encompasses a total of 91 onshore and offshore wind projects, with most installations to be
sited in the central and southern regions of the country, said the source.
Vietnam’s trade ministry heeds calls to extend wind power tariff policy, submits proposal to
government. The move comes as fears mount Vietnam could face severe power shortages from
2023 as its industry and increasingly energy-hungry population burgeon. By 2030, the country is
expected to require about 130 GW of electricity, more than double the 54 GW currently.
Amid such concerns, the Communist Party’s decision-making politburo released a new energy
strategy earlier this year that strongly promoted wind and solar energy, with ambitions to source up
to 20 per cent of the country’s electricity from renewables by 2030.
In April 2020, MOIT announced a bold new plan to install 11.6 GW by 2025, a goal significantly
more ambitious than the 2-GW target enshrined in the country’s current power development plan.
MOIT has been mandated to present the first draft of a new power master plan in October this year.
Commenting on the decision, Luu Hoang Ha, energy partner at Vietnam International Law Firm
(VILAF) and a board director at Vietnam-based clean energy company Nami Energy, said: “This
formal approval shows the strong political will of the government to support the growth of
renewable energy. It demonstrates the ambition of both the public and private sectors in Vietnam’s
energy transition. It is a major push for the development of the wind energy sector in Vietnam.”
However, Vietnam’s new ambitions for wind power also pose challenges.

The country’s power grid has struggled to keep up with the proliferation of renewables
coming online, with fluctuating and intermittent clean energy placing stress on transmission lines.
Although progress has been made, major infrastructure updates are required to ensure the grid is
ready for the wave of new projects springing up across the country.
Vietnam also has yet to decide which direction to take after its current feed-in tariff scheme—a
support mechanism introduced in 2018 that stipulates fixed, subsidised rates paid to wind farm
operators for the electricity they export to the national grid—expires in November 2021.
On April 2020, MOIT submitted a proposal to the government to extend the tariff scheme to 2023 in
response to appeals from industry players and local governments who warned that Hanoi’s failure to
send a clear signal of continued support threatened to deter investors and derail the country’s wind
targets. According to Ha, the government is still deliberating on the proposal. An auction
programme is being mulled over to replace fixed renewable energy rates once the scheme ends,
reflecting a global trend towards a competitive selection of developers amid rapidly falling prices of
clean energy equipment. Auctions would enable Hanoi to select the most price-competitive wind
power firms for specific energy projects. In recent years, Vietnam’s rich wind resources as well as
strong government support have propelled wind power growth in the country. As of 2019, it boasted
an installed onshore and offshore capacity of 490 megawatts.

Environmental impact:

The Ministry of Planning and Investment is working with relevant ministries, sectors and localities
to develop a national green growth strategy for 2021-2030 and the vision for 2050.
To make Vietnam a zero-carbon economy as soon as possible, the strategic project sets goals on
reducing greenhouse gas emissions, greening all economic sectors, promoting sustainable
consumption and strengthening resilience. during the green transition process, among other issues.

Science and technology, digital transformation, innovation, culture, health care, education and
equality in accessing the opportunities and benefits of growth outcomes will be promoted to ensure
the dual role of achieving green and inclusive growth and building a Vietnamese society where no
one is left behind. Objectives, missions and measures in the new strategy will be based on a wide
range of quantitative methods, econometric models, cost-benefit analyzes and impact on socio-
economic development. The strategy updates new influencing factors for green growth and ensures
synchronicity with the 2030 Sustainable Development Goals and the Paris Agreement on the
reduction of greenhouse gas emissions. The strategy will be adapted in order to limit any overlap
and create favorable conditions for implementation, monitoring and evaluation.According to the
ministry, the national strategy on green growth in the period 2011-2020 and the vision until 2050
was approved by the Prime Minister on 29 September 2012. After eight years of implementation, it
has helped to raise public awareness of the importance of green growth. Measures to reduce
greenhouse gas emissions have been widely adopted, with the result that these emissions decreased
by 12.9% compared to the normal development scenario. Energy consumption per unit of GDP
decreased by an average of 1.8% each year, while 46.9% of companies were aiming for cleaner
production by 2020 compared to 28% a decade earlier. In particular, outstanding loans financing
green growth stood at nearly VND 238 trillion (USD 10.36 billion) by 2018, which is 235% higher
than the 2015 figure.

The Green Climate Fund has provided Vietnam with $ 30.2 million in grants to help the country
fight climate change.The sum will be allocated to a project called "Strengthening the resilience of
smallholder farmers to water insecurity due to climate change in the central highlands and coastal
areas of Central-South Vietnam" (SACCR). The document certifying this allocation was signed by
representatives of the Ministry of Agriculture and Rural Development (MARD), and the United
Nations Development Program (UNDP) in Hanoi on 28 May. Residents of five provinces are
expected to benefit from the project, namely Khanh Hoa, Binh Thuan, Ninh Thuan, Dak Nong and
Dak Lak.The plan aims to enhance vulnerable domestic agriculture, especially women and people
of ethnic minorities present in the central highlands and central-southern regions, and the ability to
manage climate risks related to agricultural production, ensuring the availability of water resources,
activities resilient to climate change and access to climate-related information for agriculture, credit
and the market.According to Deputy Minister for Agriculture and Rural Development Nguyen
Hoang Hiep, this is the largest grant the ministry has received from an international organization in
recent years. The project will help strengthen the link between irrigation systems, improve
management capacity and effectively use climate change adaptation systems, especially in the
south-central regions and central highlands. Local UNDP Vietnam representative Caitlin Wiesen
said the project will support smallholder farmers, particularly women and ethnic minorities
vulnerable to climate change, in timely adaptation to natural disasters. They will benefit through
smart irrigation systems and new livelihood options, says Wiesen; in addition, he adds that
knowledge related to climate risks and the opportunity to access efficient cultivation techniques, as
well as information on the market will also be provided. The project is expected to be completed in
the first quarter of 2026.The Green Climate Fund was created by 194 countries party to the United
Nations Framework Convention on Climate Change. It is conceived as an operational entity within
the financial mechanism of the Convention and its headquarters are located in South Korea. It is
governed by a commission of 24 members, representing the countries, and receives directives from
the Conference of States Parties to the Convention. (COP). Created by the United Nations
Framework Convention on Climate Change (UNFCCC), the fund aims to support a sea change in
the global response to climate change. It allocates resources to low-carbon, climate-resilient
projects, and to initiatives in developing countries. At the 26th United Nations Climate Change
Conference of the Parties (COP26), Prime Minister Pham Minh Chinh claimed that Vietnam’s
attendance affirms, once again, its commitment to cutting carbon emissions to zero by 2050. As one
of the countries hit the most by climate change, Vietnam has always done its best to boost green
growth and cope with climate change sustainably.
The Southeast Asian state is increasing its efforts to develop a sustainable and resilient green
transition across the entire economy, as it was highlighted in October during the conference on the
National Green Growth Strategy for 2021-2030. An ever-growing number of businesses and
localities are committing to rapid decarbonization and further investing into sustainable
technologies.Vietnam is also encouraging European enterprises to invest in environmentally
friendly fields in the country. The Minister of Industry and Trade said that the government will
promote the digital transformation process in all production and trade fields and pursue a
sustainable development model, adding that Vietnam will strive for cleaner and greener production,
using energy more economically and efficiently.On the sidelines of COP26 Summit, the Prime
Minister met the GWEC representative and Mads Nipper, President and CEO of the wind farm
group Orsted, who confirmed that Vietnam has huge potential, since it offers great opportunities and
competitive advantages for renewable energy development, especially wind power.

In December 2019, the Premier approved the addition of the Bac Lieu LNG Thermal Power Center,
having a scale of 3,200MW, to the national development plan for 2011-2030. Bac Lieu Province,
located in the Mekong Delta, has Immediately awarded the investment certificate for the project to
Singaporean developer Delta Offshore Energy Pte., Ltd. With an estimated investment value of
approximately VND93.6 trillion ($ 4.1 billion), it is the largest FDI project in the Delta region.
A month earlier, the Ministry of Industry and Commerce (MoIT) and the US AES Group signed a
MoU regarding the Son My 2 LNG plant, with a capacity of 2,200MW. The plant will be located in
the southern province of Binh Thuan, its investments will amount to approximately $ 1.7 billion for
a 20-year contract. “LNG is a clean and reliable source of energy, at the most reasonable price, and
therefore will play a key role in solving the ever-increasing energy demand in Vietnam. Signing the
MoU right now is an important step in the development of the Son My 2 plant, a project that we
believe will help the energy transition in Vietnam, ”said Mark Green, President of AES for Asia-
Europe.These are some of the dozen LNG-related projects currently in development plans, with a
production capacity ranging from 1,000 to 6,000MW. A recent MoIT government report
acknowledged that investors are showing a large appetite for power plant projects that use imported
LNG. In particular, in addition to the LNG energy complexes, whose plans had already been
approved with a capacity of 9,200MW, nine other LNG energy complexes, with a total capacity of
approximately 34,000M ”were considered. In addition, there have been two proposed conversions
from coal and oil to LNG, with combined capacity after conversion estimated at 5,700MW.
Last month, Deputy Prime Minister Trinh Dinh Dung met with a group of US and South Korean
investors who are particularly interested in developing LNG plants in Vietnam. Investors confirmed
their desire to invest in LNG projects to develop cleaner energy and ensure a sufficient supply of
energy for both production and consumption. They also stated that they are willing to make a long-
term investment in the country's LNG power plant development project.According to Deputy PM
Trinh Dinh Dung, the demand for electricity in Vietnam is growing by about 10% every year.
The country diversifies its energy sources with a view to reducing coal-fired energy and increasing
the share of gas and renewables, Dung said, adding that gas plants will cover 12% of energy
generation, about 17GW, by the end of the year. 2030. Vietnam, with an average GDP growth of
6.5% over the last 5 years, has long had a policy geared towards emphasizing the crucial role of
natural gas as a reliable and competitive supply of electricity that allows to go meeting national
CO2 emissions targets. Based on the current situation of domestic production, the country needs to
import significant volumes of LNG over the next 5-10 years, requiring about $ 7-9 billion of
investments in infrastructure for the import of LNG, the World Bank says.
Looking at the current national energy capacity of around 58,000MW, the aforementioned projects
for the production of LNG plants, with a capacity of around 50,000MW, demonstrate a strong
investor involvement that is in no way inferior to the investments made in the last two years. there
have been in projects related to solar and wind energy.

There are still uncertainties regarding the future of coal. While PDP VIII emphasizes sustainable
development to tackle climate change, Vietnam’s coal imports in the first half of 2020 had a 53.8%
increase over the previous year, a record high. According to the MOIT, coal-fired plants cover
approximately 35% of the country's electricity generation capacity.
The ministry expects Vietnam to face severe energy shortages as construction of new energy plants
lags behind rapid growth in demand. Coal, therefore, could continue to fill the energy gap over the
next few years. However, there are signs of a decline in interest in coal. Most of the planned coal-
fired power generation capacity has been delayed or postponed. Although alleged corruption and
engineering difficulties partly explain these delays, local opposition and a global movement away
from coal-fired energy are also important contributing factors.
For example, some South Korean and Japanese lenders have withdrawn their investments from
coal-fired energy projects, while Chinese companies are becoming more aware of the risks of
continuing to invest in this energy source. More recently, in February, Mitsubishi Corp. pulled out
of a coal-fired power plant in central Vietnam due to international concern over its environmental
impact. Nonetheless, with adequate strategic planning and increased investment support, Vietnam
can leverage the opportunities provided by the success of solar energy and solidify its position as a
leader in renewable energy in Southeast Asia.

In the autumn of 2020 the local authorities of the district of the island of Côn Đảo, off the southern
coast of the province of Bà Rịa-Vũng Tàu, in collaboration with the World Wildlife Fund for Nature
(WWF), launched the Zero Plastic program. Waste, with the aim of eliminating single-use plastic
products. WWF said the program, which involved 74 businesses in the district, aims to raise
awareness among local islanders and tourists about reducing plastic bags and single-use plastic
from their daily purchases.
The program offers support by providing free eco-friendly bags instead of plastic shopping bags.
Canvas bags are available at the Côn Đảo market stall. Phạm Bảo Ân, an official from the natural
resources and environment department of the island district, said the island contributed 70,000 tons
of garbage to the landfill. of Bãi Nhát and polluted the environment and beaches. He said the
district and other agencies have built a database on plastic bags and single-use plastic consumption
to find the best solution to limit the harmful pollution of plastic waste The island of Côn Đảo, 97
nautical miles off the coast of the city of Vũng Tàu, is home to 600 hectares of seaweed beds and
1,000 hectares of coral reefs. Its unspoiled natural landscape has attracted tourists to explore the
Côn Đảo Park and nature reserve. In Việt Nam, the Chàm Islands - a World Biosphere Reserve site -
are the first and most successful site in banning the use of plastic bags among islanders and local
tourists, while the campaign "say no to straws and glasses." disposable plastic "was launched in
early 2020. A waste sorting program was launched by the International Union for Conservation of
Nature (IUCN) to reduce plastic waste in 12 nationally protected marine areas. It will help build a
plastic waste database and offer policy advice on how to reduce and control plastic waste and
plastic production. According to Greenhub, an NGO, waste can be found along the beaches from
the northern province of Quảng Ninh to the island of Côn Đảo in the southern province of Bà Rịa-
Vũng Tàu, while plastic waste accounts for 80% of the total waste. solid in 30 beaches of Vietnam.

Italy-Vietnam: Memorandum of Understanding on energy signed:

The Memorandum of Understanding was signed on the 20th August 2019 at the Ministry of
Economic Development, by Undersecretary Andrea Cioffi and by the Minister of Industry and
Trade of Vietnam Tran Tuan Anh, which aims to promote cooperation in the energy sector and
follows the visit of the Prime Minister Giuseppe Conte in the South East Asian country which took
place on 5-6 June.The agreement lays the foundations for developing a fruitful collaboration
between the two countries, in the technical, scientific and economic fields, in the energy sector, with
particular interest in the development of Liquefied Natural Gas (LNG) and Renewable Energy. The
goal is to strengthen the diversification of energy sources and increase energy security, always in
compliance with the obligations deriving from national regulations, international treaties and, as
regards Italy, from those deriving from its membership of the European Union.The signing of the
Memorandum, therefore, allows Italy to develop energy cooperation with a country that plays a
strategic role in Southeast Asia, thus opening up new opportunities for collaboration between Italian
and Vietnamese companies."We strongly believe in the increase and improvement of Italy-Vietnam
relations which, just this year, turn 45. We pay particular attention to industrial agreements, on
which we will continue to collaborate with the Vietnamese government - said Undersecretary
Cioffi.The signing of the Memorandum will allow us to start a collaboration on energy matters,
which will see the activation of technical discussions between Vietnamese and Italian companies
operating in Vietnam.With regard to the issue of energy efficiency, Italy will be able to offer the
Asian country its expertise in the field of Smart grids, to develop technologies useful for reducing
carbon dioxide emissions. In the process of negotiating the free trade agreement between Vietnam
and the EU, Minister Tran Tuan Anh assured that the Vietnamese government is committed to
improving conditions for workers. An issue - underlined Cioffi - is also a priority for our
Government, which is working to strengthen the protection of workers”.
Undersecretary Cioffi finally accepted the invitation to go to Vietnam soon with an Italian business
delegation.
Services offered by the CCIE Vietnam
The Italian Chamber of Commerce
in Vietnam (CCIE Vietnam) is a private association whose main activities are
focused, mainly, around the promotion of trade with Italy.
The Chamber aims
to develop a networking web between organizations, agencies and operators who
work in Italy and Vietnam, in order to develop their economic and commercial
relations while easing the internationalization of Italian firms in
Vietnam.
The Chamber is
involved into a series of activities in order to achieve its aim: analysis such
as the one in this report and the pointing of potential partners in the country
are just some of the services\support that the Chamber can offer to the Italian operators.
It should be
remembered that the Chamber can offer a variety of specific services in support
of Italian firms in their internationalization process.
Specifically, the Chamber can:

-Organize B2B meetings: Organize, plan and

schedule Italian firms to B2B meetings after having researched the perfect
local partner. Also provide
interpreter and other logistics services.

-Offering a Follow up service: Support Italian

firms in contacting, reminding and following up with the Vietnamese partner
after the B2B meeting.

-Organize seminaries on specific themes: Promote Italian

products or tech from a technical point of view for defined sectors.

-Organize visits in firm: Both to the

producer or the importer\retailer’s company.

-Provide consultancy service for investments:

Follow
the investor during its whole investment path, from the first step to the
opening of its branch.

-Lobby: Providing lobby

services with the government or local authority.
Contacts
For further information, please visit www.icham.org or
send an email to:
- officer@icham.org
- madeinitaly@icham.org
- info@icham.org