At COP28, members of the group of seven industrial countries such as the United States, the EU, and the UK announced their US$15.5 billion commitment to help Vietnam realise its net zero emissions goal under the signed political declaration on the Just Energy Transition Partnership (JETP).

Vietnam is also becoming the focus of attention for further green investment, as shown by the interest of foreign investors in their meetings with Vietnamese Prime Minister Pham Minh Chinh in Turkey and the UAE. At the Vietnam – UAE business forum, foreign businesses showed how highly they value the great Vietnamese potential for the development of renewable energy sources such as wind power and solar power, outlining that the country has the opportunity to become a renewable energy supply chain hub.

Over recent years the country has become one of the leading state actors in terms of developing wind power and solar power, with many large-scale projects getting underway. The 2015 -2022 period alone saw the country attract US$106.8 billion in FDI capital into the renewable energy industry.

During their meetings with the Vietnamese leaders in Turkey and the UAE, the CEOs of Equinor of Norway, International Holdings Company of the UAE, Copenhagen Infrastructure Partners of Denmark, and Enterprize Energy of the UK showed their keen interest in the Vietnamese market.

For example, Equinor, Norway’s largest energy corporation, has begun operation in the Vietnamese market by opening its office in Hanoi. The firm aims to promote ties with the Vietnam National Oil and Gas Group (PVN) to develop offshore wind power projects domestically.

Meanwhile, Copenhagen Infrastructure Partners has established a joint venture company and two representative offices in order to research and develop offshore wind power projects in Vietnam. Among them is the La Gan Offshore Wind Power Project in Binh Thuan province which boasts a total expected investment capital of up to US$10.5 billion.

Unlocking potential

Renewable energy is the only priority area that the country expects to attract investment in order to implement its green growth strategy. Denmark’s US$1.3 billion Lego Group project which is being deployed in Binh Duong province is viewed as one of the flagship projects that marks a shift of foreign investment capital into the Vietnamese market.

Elsewhere, the country’s Gia Dinh Group, a reliable partner of global brands such as Nike, Adidas, The North Face, and Polo, signed a memorandum of understanding on cooperation in April with SEP Cooperative of the Republic of Korea, to build a carbon neutral industrial complex worth US$200 million specialising in shoemaking and carbon reduction infrastructure in Binh Duong province.

Meanwhile, the management board of the Vietnam – Singapore Industrial Park (VSIP) ​is keen to pursue its ambitions to turn VSIP 3 in Binh Duong into a green industrial park to attract further green projects.

Previously, HEINEKEN put into operation a brewery in Ba Ria - Vung Tau, completely using renewable energy to run the production line.

Moving forward, Vietnam is making every effort to greenize FDI inflows by attracting projects that use advanced, environmentally friendly technology, with modern management and high added value. Businesses are therefore encouraged to consider investment projects that are consistent with the current green and sustainable development trend towards win-win cooperation.

Source: VOV