Chinese Taipei businesses are highly interested in renewable energy development in Vietnam. The Vietnamese government’s new policies on renewable energy development are expected to attract more investors to this sector.
According to Yu Lung Shih, chief representative of the Taiwan Trade Center in Ho Chi Minh City, the city offers many great opportunities for Vietnamese and Chinese Taipei companies to promote renewable energy cooperation. Vietnam is endeavoring to become self-sufficient in terms of energy by 2050. Its target is to produce solar energy and wind power that account for 35 and 13 percent of all energy in the country and to reduce carbon emissions by up to 80 percent by 2050. This goal implementation will open up great prospects and opportunities for renewable energy producers.
Being strong on renewable energy, Chinese Taipei companies are looking for investment opportunities in Vietnam and are willing to share their experience and expertise with Vietnamese partners. The Neo Solar Power Corp. (NSP) from Chinese Taipei is working with the Vina Solar Technology in Vietnam on a relatively large solar energy project. A NSP representative said the corporation would consider broader cooperation with Vina Solar Technology and diversify its partners in Vietnam in the near future.
LTI ReEnergy, an inverter manufacturer from Chinese Taipei, is also interested in the Vietnamese renewable energy market and weighing an investment.
New investment promotion policy
On April 11, 2017, the Prime Minister issued Decision 11/2017/QD-TTg on encouraging solar power development in Vietnam. According to the decision, solar power investors can benefit from a 10-percent corporate income tax during the first 15 years of their investment, be exempt from tax payments for the following four years and enjoy a 50-percent tax reduction over the nine subsequent years.
In addition, the decision stipulates that solar power projects are exempt from duties on imported goods used for creating their fixed assets. The state will purchase all of the solar power generated by the projects at a price of VND2,086 (9.35 cent) per kWh, excluding value added tax (VAT).
According to the Ministry of Planning and Investment’s Foreign Investment Agency (FIA), there are 16 registered foreign-invested green energy projects totaling US$778 million in capital in Vietnam, including US$577 million worth of wind power projects, US$137.38 million worth of solar energy projects and US$59.2 million worth of biomass electricity projects.
Vietnam has great potential for developing renewable energy and green industry. With its current policies, the government is working to reduce greenhouse gas emissions by 8-10 percent by 2020, compared to 2010, and increase the contribution to the country’s gross domestic product (GDP) of industry (including green industry) to 42-45 percent by 2020. This goal is expected to boost green industry in Vietnam and provide opportunities for Chinese Taipei companies to participate in the Vietnamese renewable energy market development, Yu Lung Shih said.