After the recent cancellation of the country's nuclear plan, Vietnam is now looking for new sources of energy that reduce the energy deficit that has been increasing year after year.
Thus, after the wind farms under development, now comes the turn to photovoltaic solar energy. In this context, the Asian country aims that, for the 2030 year, the 32% of the energy consumed comes from renewable sources and, consequently, the greenhouse gas emissions will be reduced by 25%.
Although photovoltaic solar energy is attracting many eyes, most investors are waiting for national authorities to publish the Feed-in Tariff (FiT) for solar projects. The purchase price of kWh will be a determining factor for future investments in the country. If, as with wind energy, the FiT is too low to guarantee the profitability of the projects, the solar plan of Vietnam could remain stagnant. The third and final proposal of the Ministry of Industry and Commerce (MoIT) aims to establish the purchase price of MWh at 11,2 cents for plants of 100 MW or less, and 15 cents for MWh for plants with higher capacity.
Be that as it may, Vietnam must seek an urgent solution to the growth of energy demand that has been occurring in recent years. The increase in population and the rapid pace of economic growth that is taking place in the country are the main responsible for the energy demand is increasing around the annual 10%.
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Vietnam is a densely populated country with a developing economy that is transitioning to an open economy since 1986, and in recent years, the country's authorities reaffirmed their commitment to modernization. After being almost completely destroyed during the Vietnam War, in the next twenty years the country recovered and expanded its most important sectors: agriculture, industry and mining. In January, 2007 Vietnam joined the World Trade Organization, which attracted more competitive industries and export returns.
Vietnam has a socialist market economy, with characteristics similar to the economic model of the People's Republic of China. Its gross domestic product has grown strongly in recent years, at an average of 8% annually, during which the poverty rate has been reduced to 12% of the population. Since the beginning of the economic crisis of 2008, growth has slowed down to around 6%.
The economic resurgence started from the Doi moi, which was a set of reforms undertaken in 1986, simultaneously with the fall of the Soviet bloc, and which meant the recognition of property and private initiative, the progressive opening to investment foreign market and a commercial opening abroad.
Its incorporation into the WTO, in 2007, and its integration into the Association of Southeast Asian Nations have meant its full integration into world trade, with a gradual reduction of tariffs and the liberalization of certain sectors that has also allowed it to benefit from the entry of new foreign investments that have played a fundamental role in its industrialization. There have not been major advances in improving the efficiency of large public business groups, which are characterized by inefficient investments and heterodox management.
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