Vietnam lacks mechanisms for private investment in renewable energy

Published onJuly 23, 2020

Many private enterprises said they want to invest in building renewable energy infrastructure, but Vietnam still lacks mechanisms to encourage private enterprises to participate in this activity. Nguyen Tam Tien, General Director of the Trung Nam Group, the first and only enterprise so far allowed to invest in national grid transmission infrastructure, highly appreciated the Politburo’s Resolution No 55-NQ/TW on Vietnam’s strategic orientations for national energy development through 2030 because it encourages private enterprises to invest in building renewable energy infrastructure. In addition, Tien told the Voice of Vietnam (VoV) that according to the resolution, Vietnam would eliminate monopolies and barriers for the private sector joining the energy sector, including in the electricity transmission stage. However, Tien said private enterprises need to have specific regulations for investment in power transmission infrastructure. He has also proposed that Vietnam should have a pricing mechanism for power businesses to take bank loans because the banks need those businesses to ensure power consumption while the electricity transmission system is not available to connect from the alternative power projects to the national power grid.