“Great opportunities: about 50 billion US$ market size of green technologies in Vietnam until 2030!”
Mr Thi Nguyen – Clean Technology Consultant, International Finance Corporation (IFC)
Characterized by significant economic growth and rising living standards, Vietnam needs to keep pace with growing demands for energy and electricity from a population of over 90 mio. people. Following the political and economic reforms in 1989 (“Doi Moi” reforms), Vietnam has transformed itself from one of the poorest countries in the world (per capita under 100$) to a lower-middle income country within a quarter of a century with per capita (income of over $2,000 by the end of 2014). To that end, Vietnam has been one of the fastest developing economies in the world with an average annual GDP growth rate of 6.9% over the last 20 years.
To ensure sustainable growth, Vietnam needs to meet the accelerated energy demand that has increased by 10 % for the past 10 years and is estimated to increase by 400 % for the next 20 years. Electricity consumption accounts for the majority of energy demand and is expected to increase even faster, by 600 % for the next 20 years. At current stage, one third of Vietnam’s power supply is generated by hydro energy, one third comes from gas and the remains are either stemming from coal or from energy imports. To ensure stable energy supply domestically, the government plans to operate its first nuclear plant by 2020. According to the General Department of Energy, electricity output in 2015 ranges from 194 to 210 billion kWh and will increase to 330 – 362 billion kWh in 2020 and to 695 – 834 billion kWh in 2030 respectively. Furthermore, the government has issued a Clean Energy Development plan according to which CO2 emission should be cut down in all energy operations by 10 % to 20 % until 2020 and by 20 % to 30% until 2030.
To meet the thriving demands, Vietnam has started to initiative reforms in the energy field, namely the opening of the sector and the promotion of private investments. However, the retail price of electricity and the power purchase agreements with EVN (Electricity of Vietnam, state-owned utility) are still considered the main obstacles for foreign investors. Foreign investments are especially needed in the field of Renewable Energy and Energy Efficiency where the objective is to increase the proportion of Renewable Energy to 4.5 % by 2020 and 6 % by 2030. The webinar on Green Technologies: Opportunities in Vietnam (include link) provides more information about market potentials and opportunities in the Renewable Energy and Energy Efficiency field. It was organized by EVBN with information provided by Mr Thi Nguyen, Green Technologies Consultant from IFC (International Financial Corporation) about Green Technologies in Vietnam and information on the EVBN Green Mission provided by Mrs Jana Ackermann from EVBN and Mrs Eliane Van Doorm from UBM.
Overall, Vietnam has great potential for the development of Clean Technologies ranging from Renewable Energies to Waste Treatment and Energy Efficiency. The EVBN Green Mission to Vietnam is designed for European companies who want to expand their business in Vietnam. The Mission will include sector experts’ presentations, tailored B2B meetings and a three-day business exhibition on our European Pavilion on the Renewable Energy & Energy Efficiency exhibition from 25 – 27 November, 2015. Link to the Green Technologies Trade Mission.