Page 66 - Ebook HTKH 2024

FDI companies mostly limited to leasing land, thus creating obstacles to land
acquisition. Additionally, the lengthy management process for land transfers increases

company expenses, thereby reducing project viability.
5. Policy implications for attracting FDI flows in Vietnam’s renewable
energy development
Attracting more FDI flows in the renewable power industry is a crucial factor in

reducing greenhouse gas emissions, enhancing environmental conditions, and ensuring
long-term economic sustainability in Vietnam. To make Vietnam's renewable energy
market more appealing to capable developers, especially international investors, the
government could consider implementing the following measures:
First, Vietnam needs to develop a more favorable PPA for renewable energy, as
the current PPA allocates the majority of the risk to project developers, thereby impeding
their ability to raise capital. The country should actively promote the utilization of direct
PPAs, as this will not only attract foreign investment in renewable energy but also

alleviate the burden on the national grid.
Second, capital market instruments must be diversified to attract investors. Issuing
green, social, sustainable, and sustainability-linked (GSSS) bonds in the Vietnamese
market could be advantageous for improving the country's attraction to international
investors.
Third, Vietnam needs to elucidate the future of renewables tariffs after July 2019,

as developers are hesitant to proceed expeditiously because of the possibility of missing
the deadline and forfeiting the feed-in tariffs. Vietnam should streamline its project
approval process to enhance transparency and navigability, thereby fostering investor
confidence in the sector.
Fourth, Vietnam must establish future permitting and pricing policies in the
renewable energy sector that are transparent, concise, and have a longer timeframe to
minimize uncertainty. This helps increase FDI attraction in the renewable energy sector

in Vietnam.
Fifth, Vietnam needs to implement policies to attract investment and promote FDI
enterprises for the green energy development sector. The focus should be on intensive-
technological, green, high-value addition sectors. In particular, it is necessary to increase
investment promotion conferences to attract high-tech FDI capital flows and green
agriculture for investment and development. Simultaneously, Public - Private

Partnership (PPP) should be promoted and combined with investment in infrastructure
construction to develop renewable energy. Land management and processing
procedures need to be improved, or prioritized for FDI projects on renewable energy to
facilitate expediting progress and increasing project feasibility.
Finally, to foster the growth of renewable energy in Vietnam, the country should
collaborate with qualified developers to build expertise and train local companies. This
approach will help establish industries and generate job opportunities within the nation.

Vietnam ought to broaden its appeal to potential investors and developers, with a focus
on attracting multinational companies that possess cutting-edge technology and

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