At a recent conference on the development of small and medium-sized hydropower plants and renewable energy, Pham Trong Phuc, head of the Ministry of Industry and Trade’s General Department of Energy spoke about the country’s renewable energy development plan.
According to Thuc, Vietnam’s localisation rate of renewable energy equipment is expected to reach 30% by 2020 and 60% by 2030. The country has set a target to export the renewable energy equipment by 2050.
Renewable energy is also expected to meet 5% of demand for means of transport in Vietnam by 2020 and the rate is aimed to be raised by 13% by 2030 and 25% by 2050.
By 2030, 100% of Vietnamese families are expected to use equipment run by renewable energy and the rate is 30% by 2020 and 60% by 2025.
In reality, nearly 90% of equipment for renewable energy production is still imported from China, Germany, India and the US.
Meanwhile, the rate of Vietnamese companies involved in this sector is very modest.
Some equipment for wind energy produced by foreign-invested companies in Vietnam has been exported to the US and Australia.
The Vietnamese government has issued policies to support for the renewable energy sector, including tax exemptions for imported equipment and land use for projects in this field.
The Ministry of Planning and Investment reported that to date Vietnam has licensed 16 renewable energy projects valued at nearly USD800 million.
Experts said that Vietnam holds huge potential for renewable energy development. Solar energy is abundant with an average solar radiation of 5kWh/m2 per day across the country, while bio-mass output from agricultural production and waste are estimated at 10 million tonnes a year.