Investors flock to central Vietnam for renewable energy projects

Vietnam's central region is drawing attention from investors who want to pour money into large renewable energy projects.

As the first foreign-invested company in Quang Ngai province operating in the field of mechanical engineering, South Korea's Doosan Enerbility Vietnam Company Limited (Doosan Vina) specializes in manufacturing high-tech products. However, in the near future, this business will shift to fields related to renewable energy.

According to CEO Kim Hyo Tae, the company's current main products are seaport cranes and modules for oil refineries.

In order to build a development strategy for the new industry - wind power, Doosan Vina is making efforts to win bids from foreign companies related to offshore wind power turbine foundations as well as onshore wind power turbines, he said.

"Vietnam is a member of the Paris Agreement adopted at the 26th UN Climate Change Conference (COP26) with commitments to net-zero emissions. Doosan Vina, as a business based in the country, will actively participate in this effort," said Kim.

According to Kim, the scheme to implement the National Power Development Plan VIII (PDP VIII) has been issued, but in order to achieve the goals on time, efforts from relevant agencies and sectors, as well as businesses, are needed.

"In terms of energy security, in addition to fighting climate change, we need to transition to renewable energy. As a country with abundant sea, wind, and sunlight resources, Vietnam has great potential for developing renewable energy," he added.

Sharing the same view, Cyril Dissescou, CEO of Nexif Ratch Energy SE Asia Pte., Ltd (Singapore), held that Vietnam is becoming increasingly appealing to investors as it boasts some of the largest reserves of renewable energy resources in the Asia-Pacific region.

With most hydropower sources already in use, renewable energy will potentially play an important role in contributing to overall economic growth, he added.

Large renewable energy projects in Binh Dinh

Nexif Ratch Energy SE Asia Pte., Ltd and the People's Committee of Binh Dinh province recently signed an MoU on the VND5.5 trillion ($216 million), 150MW Nexif Ratch Binh Dinh wind power plant project in Van Canh district.

Dissescou said that 143 MW of onshore wind power capacity has been allocated to Binh Dinh by 2030 under the PDP VIII implementation scheme. This is the basis for renewable energy developers such as Nexif Ratch Energy to expand their operations in the province, he noted.

At a conference held to announce the master plan for Binh Dinh province for 2021-2030, with a vision to 2050, the provincial People's Committee awarded investment MoUs for the construction of a 2,000 MW onshore, nearshore and offshore wind power plant with a total investment of $4.8 billion, and the VND2.4 trillion ($94.28 million) Binh Dinh Biomass Power Plant project, both in Phu Cat district

The investors of the two projects are a consortium of IDG Capital, STS Development and Saigon-Nhon Hoi Industrial Park JSC; and Japan’s Erex JSC, respectively.

The delegation from the German Industry and Commerce in Vietnam (AHK Vietnam) is also exploring opportunities to invest in an offshore wind power project in Phu My district with an expected investment of about $4.6 billion.

The People's Committee said that in the second quarter of 2024, the province will focus on supporting investors to complete procedures for PNE AG's offshore wind power plant; the onshore, nearshore and offshore wind power plant project under a consortium of IDG Capital, STS Development and Saigon-Nhon Hoi Industrial Park JSC; a hydrogen production and general port complex, and the Phu My Industrial Park project.

Prime Minister Pham Minh Chinh recently signed Decision No. 376/QD-TTg dated May 4, 2024 approving the master plan of the north-central and central coastal regions for the 2021-2030 period, with a vision to 2050.

Under the plan, the regions will develop the refining and petrochemical industry and production of refined petroleum products, mainly in Thanh Hoa, Quang Ngai, Khanh Hoa and Phu Yen.

Priority will be given to developing renewable energy in Quang Binh, Quang Tri, Quang Nam, Quang Ngai, Binh Dinh, Ninh Thuan and Binh Thuan, and building inter-regional renewable energy service and industrial centers in Ninh Thuan and Binh Thuan.