European businesses want to bring green technology to Vietnam

The prospect of renewable energy development in Vietnam is very attractive to foreign investors. European businesses are staying here, to raise capital and bring green technology to Vietnam…
Doanh nghiệp châu Âu muốn mang công nghệ xanh đến Việt Nam
Chairman of the European Chamber of Commerce in Vietnam (EuroCham) Alain Cany. (Photo: EuroCham)

The direction of Vietnam

In November 2021, in Glasgow, UK, Prime Minister Pham Minh Chinh officially announced Vietnam's commitment to achieve net zero emissions by 2050. To achieve this goal, Vietnam has launched a wide range of initiatives and profound policies. For example, the National Green Growth Strategy for the period 2021-2030 has created more strength and clearer direction for the country.

Sharing with The World and Vietnam Report, Chairman of the European Chamber of Commerce in Vietnam (EuroCham) Alain Cany commented, as Vietnam postulates its ambitious green growth agenda, foreign investors are excited. In particular, the prospect of renewable energy development in Vietnam is very attractive to foreign investors due to the country's natural advantages and rapidly increasing energy demand.

Vietnam's coastline is about 3,200 km long, often subjected to strong gales. These factors are very suitable for offshore wind farms and have significantly greater wind potential than neighboring countries. By 2021, Vietnam was able to use 0.8% of its wind energy potential, so there is plenty of room for growth.

Comparable potential could be foreseen from solar energy. The central and southern regions of Vietnam have relatively long hours of sunshine. These are ideal conditions for solar farms. Vietnam's solar power boom in the late 2010s helped make it the largest supplier in Southeast Asia. Nevertheless, the country still has a lot of potential for growth in this sector.

Mr. Alain Cany said that, the new policies are seen as a turning point for Vietnam in terms of energy transition; however, it is not enough to address the long-term sustainability challenges comprehensively. Establishing and maintaining energy infrastructure requires unprecedented mobilization of capital, technology and human resources.

For example, Vietnam's draft Power Development Plan 8 (PDP 8) proposes that an additional 11 billion USD/year be allocated to energy projects until 2030. According to the World Bank (WB), from now to 2040, Vietnam must invest USD 368 billion to pursue a development roadmap that combines resilience and net zero emissions. Currently, the annual expenditure of USD 8 billion is insufficient.

Besides climate change adaptation, Vietnam will also need to allocate significant budgets to a number of insistent challenges. Education, healthcare and transportation are also top priorities. Therefore, the country cannot rely solely on the public budget for green development funding.

In addition, climate change is a major threat to Vietnam. Saline intrusion and flooding caused by sea level rise are destroying people's property and livelihoods. This problem will become worse when sea level rises in the Mekong Delta and coastal areas, causing unimaginable impacts on the economy and people.

According to the Ministry of Industry and Trade, Vietnam is heavily dependent on coal power, with coal demand expected to peak in 2030. This exacerbates air pollution problems and goes against the pronounced development goals of the country.

Vietnam's power transmission and grid infrastructure are already overloaded, so adding only renewable capacity will cost a lot to solve these problems.

European businesses are ready

According to the Chairman of the EuroCham, the European business community in Vietnam can participate and play an important role in addressing these challenges. The Vietnamese government and private sector will be at the forefront of the green transition, nevertheless European businesses are still here to raise capital and bring green technology to Vietnam.

European businesses and policymakers have expertise in green, sustainable industries and renewable energy development. They are willing to cooperate with the Vietnamese government and businesses to “fill up the gap” in terms of resources.

Besides, Vietnam has a lot of potential, especially in solar and wind energy. Businesses with the right expertise and technology can unlock this potential. Vietnam can greatly benefit from the expertise, advanced technology and practical experience that European businesses and policymakers have accumulated over the decades.

Doanh nghiệp châu Âu muốn mang công nghệ xanh đến Việt Nam
EuroCham Green Economy Forum & Exhibition (GEFE) Press Conference & MOU Signing at Meliá Hanoi, 3/10/2022. (Photo: EuroCham)

In parallel with the readiness, to help Vietnam realize its potential, Mr. Alain Cany said, from November 28 to 30, the European Chamber of Commerce in Vietnam (EuroCham) organizes the 2022 Green Economy Forum & Exhibition (GEFE) in Hanoi, Ho Chi Minh City.

By sharing this expertise and technical experience with Vietnamese companies and policymakers through comprehensive dialogue, investment coordination, knowledge exchange and technology transfer, GEFE 2022 contributes to strengthening sustainable development cooperation between the European Union (EU) and Vietnam as well as support the country to realize its goals and commitments in Glasgow.

GEFE 2022 has laid out a series of far-reaching plans. The plenary meeting on November 28 will be attended by high-level representatives of the EU and Vietnamese governments, business leaders and international agency officials. Delegates will discuss Vietnam's challenges when developing a green economy, and at the same time, find solutions to "remove difficulties".

The plenary session also provided an opportunity to review and expand the United Nations Framework Convention on Climate Change, basing on the results of the 27th Conference of the Parties (COP 27).

Besides, more than 20 green topics including circular economy, renewable energy, smart city, green tourism, sustainable agriculture and water treatment will be discussed at GEFE 2022.

Additionally, at GEFE, a three-day exhibition showcases the cutting-edge green technologies, sustainability initiatives from Europe, Vietnam and beyond.

On this occasion, EuroCham will launch the Sustainable Innovation Lab. Students from leading universities in Asia and Europe will collaborate with businesses to develop solutions to business, environmental and social problems.

EuroCham will connect more than 150 European businesses with Vietnam at GEFE 2022. At the same time, it offers products, initiatives and green economic models to help Vietnam achieve the net zero emissions targeted by 2050. With more than 30 years of experience, European businesses are ready to join Vietnam in developing a green economy.

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