Vietnam makes great strides in clean energy development: Asiatimes

Vietnam is making rapid strides in shifting from fossil fuels to clean energy in the post-COVID-19 world, according to a recent article published by the website asiatimes.com.

According to the article, the renewable energy sector is booming in Vietnam thanks to its rapid economic growth over the past five years, led by massive inflows of foreign direct investment (FDI) as multinational companies set up their factories here to diversify supply chains and to benefit from Vietnam’s young and well-educated labour force.

Economic growth and FDI inflows have led to a huge surge in demand for energy in the country, it said.

In the context of limited domestic power sources, in recent years, Vietnam has shifted towards development of renewable energy, mainly solar and wind energy, the article noted.

According to Fitch Ratings, Vietnam’s solar production already reached 16,640 MW last year, accounting for 24% of the total energy output of the country.

Asiatimes.com quoted Frederick Burke, Managing Director of Baker McKenzie/Vietnam, as saying that Vietnam has hit a home run in terms of solar energy, and it is way above its original power development plan target at about double what it was targeting.

He said that one reason for the clean energy boom in Vietnam is due to customer demand, specifically from brand-name consumer product conglomerates that are looking for a “Green supply chain” to satisfy their home market requirements for more climate-friendly goods.

Investment flowing into Vietnam's industrial parks has been spent on rooftop solar as a climate-appropriate solution to meet the electricity demand of those IPs themselves.

Obbon Thiracahi, senior analyst for corporates at Fitch Ratings, said many energy giants have come to Vietnam because there are many opportunities for investment in the Southeast Asia nation.