Korean firms to expand investment in electricity in Vietnam

Workers of Hanoi Electricity Corporation. According to the Republic of Korea's Consulate General, many Korean enterprises are particularly interested in smart grid solutions in combination with 5G.-Photo Hoa Viet Cuong

While analysing the potential to develop electronic equipment, smart grids and clean energy, RoK Consul General Lim Jae-Hoon said Vietnam’s electricity consumption increased by about 10 per cent each year.

Vietnam would need to increase electricity generation 2.5 times in by 2030 to meet local demand, he said, suggesting the Vietnamese Government be more proactive in attracting investment to ensure sufficient supply of electricity.

According to the official, the RoK has built a smart grid network which is operating effectively.

Korean businesses planned to invest in electricity in Vietnam, he said, adding that more than 150 Korean enterprises arrived in Vietnam’s southern economic hub of HCM City in July this year to explore investment opportunities.

Deputy Director of HCM City Department of Industry and Trade Nguyen Phuong Dong said Korean enterprises were particularly interested in smart grid solutions in combination with 5G, creation of energy-saving products and generation of solar and wind energy.

They also held the Korea Smart Electric and Energy Week (KOSEF) 2019 to create opportunities for businesses to connect and promote investment cooperation in energy production in Vietnam, he added.

Also in July, more than 300 businesses from Germany, France, the US, Sweden, Poland, Japan, China, Taiwan and Hong Kong came to study investment, promote trade and expand markets in Vietnam.

The national programme on using energy in economical and efficient manner in 2019-30 has created an attractive investment environment for the field.

According to the National Load Dispatch Centre (NLDC), as of May 20, the national electricity system reached a maximum capacity of 36,885MW, a year-on-year rise of 12.2 per cent.

National commercial electricity output is forecast to reach 211.95 billion kWh in 2019.

Vietnam is facing major challenges in ensuring enough electricity.

It requires Vietnam to take measures to save energy and develop renewable energy resources, contributing to developing a green economy, reducing greenhouse gas emissions, and improving national energy security.