Page 64 - Ebook HTKH 2024

capital in the renewable energy sector. The majority of international Asian partners are
30
in Japan, and Thailand.

Despite the numerous obstacles in regulations that can impact the implementation
of energy projects, significant potential benefits can be obtained when international
investors develop long-term power infrastructure in Vietnam. There are great chances
to invest in clean and green projects for international companies.
The lack of detailed guidelines and regulations for power initiatives and their grid
integration in Vietnam necessitates close cooperation between investors, developers,
and government bodies such as the MPI, MoIT, and local investment promotion
31
agencies . Power projects should comply with various legal frameworks in Vietnam,
including the PDP, and laws related to investment, enterprises, construction, land use,
environmental protection, and electricity. As the regulatory landscape for renewable
energy continues to evolve, project developers may face obstacles, but can navigate
these challenges more effectively with support from relevant authorities. To minimize
uncertainty and gain useful local insights, foreign entities new to the Vietnamese market
should consider partnering with domestic institutions. This can enhance their

understanding of the Vietnamese market and regulatory environment frameworks.
While solar and wind energy remain prominent in the renewable sector, other
emerging sources are gaining traction among investors and receiving government
support. Notably, biomass power generated by wood pellets has experienced increased
needs in the Vietnamese and neighboring markets. Despite increasing local
consumption, wood pellet exports are substantially larger, reaching 4.88 trillion metric
32
tons worth nearly US$800 million in 2022. Japan and South Korea are the primary
export destinations, with Japanese investors exploring forest plantation opportunities to
secure a stable wood pellet supply. The Vietnamese government is actively encouraging
international firms in these areas under the PDP 8 framework. These efforts include a
National Zoning Plan for the long-term development of forest resources through 2030.
This strategy aims to better manage and exploit forest resources in Vietnam.
Green ammonia is emerging as a key renewable power source in Vietnam’s efforts

to reduce carbon emissions. The PDP 8 proposes a gradual transition to co-firing
established coal- fired facilities with clean ammonia and biomass. Vietnam natural
sources, extensive coastline, and potential for generating more than 600 GW from
offshore wind sources. According to research by KPMG (2023), the capacity is
significantly larger when including onshore solar and wind capacity exceeding 1100
GW, positioning Vietnam favorably for clean ammonia production. The PDP 8 seeks

30 UNCTAD (2023). World Investment Report 2023: Investing in Sustainable Energy for all. United Nations
Conference on Trade and Development.
31 YCP Solidiance (2023). Vietnam's Energy Transition - The Future of Renewable Energy.
Https://ycpsolidiance.com/article/vietnam-energy-outlook-report
32 KPMG (2023). Power Development Plan 8 - Key Developments in Renewable Energy for Vietnam.
Https://kpmg.com/vn/en/home/insights/2023/09/pdp-8-key-developments-in-renewable-energy-for-vietnam.html

56