Vietnam Deputy PM urges Danish firms to invest more in renewable energy

Vietnamese Deputy Prime Minister Tran Hong Ha has urged Danish businesses to invest more in Vietnam, especially in green transition and renewable energy, such as offshore wind power.

Ha made the statement at a Monday working session with Danish companies in Copenhagen, part of his ongoing visit to Denmark. He suggested Danish firms focus on technology transfer, research & development, technical standard building, and green finance.

He asked the Ministry of Industry and Trade to study and draft changes to the National Power Development Plan VIII (PDP VIII), in order to improve grid management and increase the portion of renewable energy in line with the development of baseload power.

The Deputy Prime Minister also called on Danish firms to make recommendations to the Vietnamese government and ministries to update the legal framework to facilitate cooperation between businesses of the two countries.

Ha highlighted Vietnam’s advantages, including its role as the gateway to the Asian and Southeast Asian markets and its own market with 100 million people. Other advantages are Vietnam’s membership in 17 free trade agreements (FTA), net-zero commitment by 2050, and high potential for renewable energy.

At the working session, Danish companies, including Vestas, Blue Water Shipping, Lego, Pandora, A.P. Moller Holding, and Carlsberg, highlighted their focus on using renewable energy, utilizing direct power purchase agreements (DPPA), and enlarging investments.

CIP seeks offshore wind power investment

At a separate meeting with Denmark’s Copenhagen Infrastructure Partners (CIP), a major offshore wind power investor, Ha asked CIP to collaborate with the Vietnamese Ministry of Industry and Trade and local businesses in deploying projects.

He suggested that CIP help Vietnam conduct or ensure defense-security, technology transfer, grid building, and fair pricing.

The National Assembly, Vietnam’s highest legislative body, will soon approve the (amended) Law on Electricity to facilitate offshore wind energy, while the government will soon issue guiding decrees related to sea zoning for survey and investment.

He also proposed CIP study the feasibility of exporting energy from Vietnam or utilizing offshore wind power to manufacture green hydrogen and green ammonia.

Maersk seeks seaport investment

At another separate meeting with integrated transport and logistics giant A.P. Moller - Maersk (Maersk), the deputy PM highlighted sea-based economy is a priority of Vietnam, with seaports playing a key role.

Vietnam will prioritize major businesses with innovation and high technology, such as Maersk, to partner up and invest in major seaports in the country, such as Cai Mep, Lach Huyen, and Lien Chieu.

Ha also recommended Maersk invest in green energy and green fuel, such as hydrogen and ammonia, energy supply for seaports, and sea-based logistics.

So far, Denmark has invested $2 billion in Vietnam with 169 projects, making it the 22nd biggest investor in terms of capital.