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.
Vietnam’s localization 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 the renewable energy sector, including tax exemptions for imported equipment and land use for projects in this field.
