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Themed “Attracting investment in renewable energy projects and promoting green economic growth in Ho Chi Minh City”, the event brought together nearly 300 participants, mostly representatives of relevant agencies, lawyers, experts and investors operating in Ho Chi Minh City. The forum consisted of two main parts: the presentation of reports from investors and experts and a dialogue to listen to the issues that concern investors and municipal authorities during the process of implementing renewable energy projects in Ho Chi Minh City.

Fourteen main working groups

In his opening speech, Vice Chairman of the Ho Chi Minh City People’s Committee Vo Van Hoan said that sustainable economic development is a model that many countries around the world aspire to. Vietnam, Ho Chi Minh City in particular, is also part of this trend. The city has just published a 2024-2030 Action Plan for Green Growth as part of the National Green Growth Strategy for the period 2021-2030.

Ho Chi Minh City has identified 14 main work groups that focus on the “green” element of development, including renewable energy projects. The Green Growth Action Plan for the period 2024-2030 and specific mechanisms and policies according to National Assembly Resolution 98/2023 create the necessary framework to promote the development of green projects.

Dr. Tran Du Lich, Vice President of VIAC, said that the development of renewable energy, especially wind, solar and biomass, not only helps to cope with the adverse effects on the environment, but also creates great benefits for localities and the country in the global trend of “greening“.

An insufficient legal framework

“However, so far, ‘greening’ or ‘renewable energy’ are still terms that are not really familiar to businesses. In addition, the legal framework in this field in Vietnam is also incomplete. This leads to the situation of wanting to do things but being unable to do them or doing them but being delayed due to obstacles. The lack of a regulatory framework also increases the risk of litigation, which discourages investors and worries the government.”stressed Doctor Tran Du Lich.

He also added that Ho Chi Minh City has many advantages as it is allowed to develop and pilot specific mechanisms, among others in renewable energy. But due to the common obstacles in current policies and processes of implementing the said Resolution 98/2023, this area faces many challenges.

Dr. Trân Du Lich, Vice President of VIAC, speaks at the event.

Tran Du Lich also expects experts, especially in the legal field, to be able to support Ho Chi Minh City in the process of attracting investment and implementing renewable energy projects so that the investment and operation process is carried out safely, guaranteeing the rights of all parties involved.

Vice President of the European Chamber of Commerce in Vietnam (EuroCham) Nguyen Xuan Thang said a decision on a mechanism to promote the development of solar energy projects in Vietnam is still being worked out by the Ministry of Industry and Trade. These delays create uncertainty among investors and slow down the progress of projects.

According to lawyer Nguyen Duc Minh from Kim & Chang Vietnam Law Firm, Vietnam currently does not have a separate law on renewable energy. There is also no synchronization between the coal, oil and gas, renewable energy, transportation sectors… The preferential FiT (supported electricity tariff) policy is no longer applied to wind and solar projects operating after 1^er November 2021. Investors have therefore temporarily stopped developing wind and solar energy.

With Resolution 98, Lawyer Nguyen Duc Minh proposed that Ho Chi Minh City should soon announce a specific list of projects calling for investment in renewable energy, which should contain complete information such as project requirements, investment form, how to select investors, energy needs, investment methods, favorable policies… This should be announced publicly to ensure transparency and fairness. At the same time, it is necessary to clarify the mechanism for connecting electricity from rooftop solar energy systems, and issue preferential policies and special investment support.

As vice chairman of the Association of the Korean Chamber of Commerce in Vietnam (KOCHAM), Choi Kyu Chul, said that there are currently 10,000 South Korean companies operating in Vietnam. Most of the factories want to install rooftop solar energy systems, but face difficulties because current regulations are not clear and specific.

A wind farm in Ninh Thuan province.

According to Deputy Director of the Department of Industry and Trade of Ho Chi Minh City Nguyen Thi Kim Ngoc, the city has the capacity to consume a large amount of energy. Until 2023, it consumed about 28.5 billion kWh, or 15% of the country. Ho Chi Minh City is very favorable to the development of rooftop solar energy, due to its high density of buildings, factories. Resolution 98/2023 of the National Assembly also allows it to use the headquarters of a public building to install photovoltaic panels. Ho Chi Minh City also proposed to the Ministry of Industry and Trade to guide the implementation of study procedures for two offshore wind projects in Can Gio district, with a total capacity of 8,000 MW.

Text and photos: Tân Dat/CVN