The 6th Vietnam Energy and Technology Forum (The Forum) is an opportunity for parties to evaluate the causes, current status and find out policy mechanisms to improve the localization rate of the renewable energy sector in order to popularize and implement the Party's guidelines and policies, the State's policies and laws on energy technology application, transfer and development.

In December 14, 2023, in Hanoi, Ministry of Science and Technology, Ministry of Industry and Trade, Federal Ministry for Economic Affairs and Climate Action jointly organized the Forum with the theme "Policies and technology solutions for sustainable development of solar and wind power in Vietnam".

Overview of the Forum

At the opening of the Forum, Deputy Director General of State Agency for Technology Innovation (SATI), Ms. Tran Thi Hong Lan said that after Prime Minister Pham Minh Chinh announced Vietnam's commitment to achieving net zero emissions by the year 2050 at the COP26, Vietnam has implemented many specific and drastic actions to achieve this goal.

Recently, the P.M announced the actions Vietnam has been implementing within the framework of the COP28 Conference in Dubai. Accordingly, Vietnam’s Government has focused on building plans and organizing the implementation of the Climate Change Strategy; Green growth strategy; Electricity Planning VIII (E.P VIII) towards renewable energy as the mainstream; Developing the renewable energy industry and building a renewable energy ecosystem...

Resolution No. 29-NQ/TW dated November 17, 2022 of the XIII Party Central Committee on Continuing to promote industrialization and modernization of the country until 2030, with a vision to 2045 also contents to determining resource priorities and having a strong enough incentive policy mechanism to develop a number of foundation industries, including energy; Encourage domestic corporations and enterprises to associate and joint ventures with foreign enterprises to produce clean, renewable energy equipment, battery storage systems, energy-saving technologies and products.

Thanks to the above, Vietnam has become the most vibrant market in the Asia-Pacific region and leads Southeast Asia in the field of wind and solar power development. By the end of 2022, the total power capacity of the entire system will reach 79,250 MW, of which the total capacity of renewable energy sources (wind, solar power) will reach about 20,165 MW, accounting for 25.4%. . In E.P VIII, Government prioritizes strong development of renewable energy sources for electricity production.

Ms. Tran Thi Hong Lan, Deputy Director General of SATI

Sho told that, the supply chain localization rate as well as the deep participation of Vietnamese enterpries in providing services for the renewable energy sector (wind power, solar power) is still low. According to statistical data, renewable energy projects in Vietnam still import almost 90% of equipment from China, Germany, India and the United States. The slow localization of equipment production and services in Vietnam’s renewable energy is partly due to lack of project assessment and development capacity, poor infrastructure and foreign dependence. Besides, technological capacity and production level do not meet the requirements. In addition, industrial policies and mechanisms supporting renewable electricity are lacking or not strong enough.

The forum will contribute to improving the spread, building and perfecting policies for energy technology development and turning the field of energy technology application and development into one of the fields with increasingly effective contributions to social economic development. The Forum promotes the international cooperation expansion in scientific research and new technology development, enhances technology transfer with high content of knowledge, and capital from international partners; Support enterprises to meetmatch, exchange, promote investment, and transfer advanced technology, contributing to the goal of rapid and sustainable development of the economy.

​ Mr. Simon Kreye, Deputy Ambassador, Embassy of the Federal Republic of Germany, shared that the issue of energy transition is a topic of concern. Germany continues to be a partner with developing countries and emerging economies in energy transition. Vietnam and Germany have also implemented this cooperation for many years, becoming one of the important priority areas in cooperation between the two governments. Germany also has support in green hydrogen and offshore wind power assisting Vietnam achieve the goal of net zero emissions and carbon neutrality.

Mr. Simon Kreye also said that localization plays an important role in cut down the cost for developing renewable energy. Therefore, it is mentioned at the Forum are very relevant that Vietnamese enterprise should empower to participate in the global value chain for wind and solar power products.

Mr. Simon Kreye, Deputy Ambassador, Embassy of the Federal Republic of Germany

The Forum includes two sessions: Technology Localization in renewable energy development; current situation and solutions to promote technology localization in wind and solar energy development. Speakers from domestic and foreign organizations presented issues on the current status of wind and solar energy development in Vietnam; Localization potential in developing the wind and solar power; S&T policies for research, wind and solar power technology transfer, application and development; policies to improve localization capacity for wind power, solar power...

Assessing the current status of renewable energy sources and the development orientation of these energy sources in the medium and long term in electricity planning VIII, speakers said that localization and moving towards forming an comprehensive energy ecosystem based on renewable energy is essential. The focus is on gradually increasing the localization rate and accompanying ancillary services of the industry. Indonesia’s practical experience in developing solar power projects shows that in addition to necessary support policies from the government, the solar power industry itself must build a reliable technology development roadmap . The photovoltaic panel manufacturing industry must have close coordination with the downstream industry to ensure the supply of raw materials and increase competitiveness against imported products.

According to the assessment of experts from GIZ. Vietnam is not yet self-sufficient in many technologies related to wind power and solar power. To gradually increase the localization rate of these technologies, it is necessary to promote R&D, technology transfer, pilot projects, and develop skilled human resources. Only that it can meet  the potential of the wind and solar power market in Vietnam in the future.

At the Forum, leading experts and organization participating in project implementation analyzed and evaluated the supply chain of equipment and services in the construction and operation of wind power solar power projects. Thereby they help to identify which technologies Vietnam can be self-reliant on, and which will need to research or receive transfer from abroad.

The sharing of enterprises who participating in investing and developing wind power and solar power projects give the Forum a deeper look at the industry's value chain. In addition, general difficulties in capital, technology, and support policies, supporting services for the industry must also be given close attention to be able to localize technology along the industry's value chain, such as: operation management, maintenance, recycling, and the issue of labor transition from the traditional electricity to eenewable electricity

According to experts, in addition to policy support, businesses must also proactively cooperate with domestic and foreign organizations to access information sources. technology and other necessary support to develop renewable energy,

Recommendations will be studied by the Ministry of Science and Technology, the Ministry of Industry and Trade, along with other ministries and department, to propose appropriate policies to contribute to promoting the effective implementation of Resolution No. 29-NQ/TW dated November 17. 2022 of the Party Central Committee on "Continuing to promote industrialization and modernization of the country until 2030, with a vision to 2045".

​Source: SATI