A senior US official announced in January 2024 that fifteen American companies, including semiconductor firms, are interested in investing USD 8 billion in Vietnam’s clean energy infrastructure. This investment is contingent on the country’s advancement in implementing regulations pertaining to renewable energy.
Vietnam aims to attract chip manufacturers and enhance its renewable energy sector. However, it has encountered difficulties in adopting the necessary framework to facilitate the growth of its solar and onshore wind industries, as well as the establishment of offshore wind farms, of which it currently has none. Specifically, regulatory delays have challenged progress in this regard. Despite experiencing a renewable energy boom in recent years, fueled by the widespread installation of solar panels and onshore wind turbines, Vietnam has encountered challenges in connecting these projects to the grid. Furthermore, substantial upgrades to the grid infrastructure are required to accommodate the increasing capacity of renewable energy sources.
Vietnam is considering the adoption of a regulatory framework that would enable factories to directly negotiate electricity prices with producers instead of purchasing from the state-owned power network operator. Additionally, efforts are underway to establish regulations for offshore wind projects, including the allocation of marine space usage.
This cooperation is part of the two countries’ plans to implement the agreements reached in September 2023, when they officially upgraded their ties to “comprehensive strategic partnership”, Vietnam’s top tier of its diplomatic ranking.
(Source: Reuters)
