Vietnam makes great strides in clean energy development (Photo: VNA)According to the article, therenewable energy sector is booming in Vietnam thanks to its rapid economicgrowth over the past five years, led by massive inflows of foreign directinvestment (FDI) as multinational companies set up their factories here todiversify supply chains and to benefit from Vietnam’s young and well-educatedlabour force.
Economic growth and FDI inflows have led to ahuge surge in demand for energy in the country, it said.
In the context of limited domestic power sources, in recent years, Vietnam hasshifted towards development of renewable energy, mainly solar and wind energy,the article noted.
According to Fitch Ratings, Vietnam’s solarproduction already reached 16,640 MW last year, accounting for 24 percent ofthe total energy output of the country.
Asiatimes.com quoted Frederick Burke, Managing Director of BakerMcKenzie/Vietnam, as saying that Vietnam has hit a home run in terms of solarenergy, and it is way above its original power development plan target at aboutdouble what it was targeting.
He said that one reason for the clean energyboom in Vietnam is due to customer demand, specifically from brand-nameconsumer product conglomerates that are looking for a “Green supply chain” tosatisfy their home market requirements for more climate-friendly goods.
Investment flowing intoVietnam's industrial parks has been spent on rooftop solar as a climate-appropriatesolution to meet the electricity demand of those IPs themselves.
Obbon Thiracahi, senior analyst for corporates at Fitch Ratings, said manyenergy giants have come to Vietnam because there are many opportunities forinvestment in the Southeast Asia nation./.
VNA
