Tran Tuan Anh - Minister of Industry and Trade
The issuance of Resolution 55 is of great significance and comes at the right time as 2020 is the final year in implementing Vietnam’s five-year socio-economic development plan since 2016 and decade-long socio-economic development strategy.
Also, this year Vietnam has embraced creation of the national socio-economic development strategy for the coming decade, reflecting the Party’s stance and vision on the country’s energy development cause.
Resolution 55 has set forth a raft of new points in regards to national energy development to ensure national energy security and push up the country’s industrialisation and modernisation pace.
It will help meet the requirements for rapid and sustainable economic development, along with self-reliance attached to international integration. It will also ensure defence and security, protection of the ecosystem, and increasing access to diverse energy resources at reasonable costs.
In addition, Resolution 55 has put forward orientations on removing obstacles and facilitating participation of assorted economic sectors, particularly the private sector, into energy development in Vietnam.
The resolution also made clear that in the forthcoming time the national energy development strategy will focus on developing diversified and suitable energy resources, with priority given to renewables.
Resolution 55 has, thereby, opened new doors, allowing us to put trust into having in place a strategy that features fresh policies and mechanisms, including the regulatory framework, to gravitate towards the right direction, ensuring national energy security.
The Ministry of Industry and Trade, as the central advisory agency to the government in the energy field, has crafted out and submitted to the government for enactment an action programme that could serve as the groundwork for penning out further action plans to expedite Resolution 55.
The draft of the action programme is expected to be enacted imminently. To ensure effective and consistent implementation of Resolution 55 across the board, the general contents and each particular aspect of the resolution must be perused prudently.
The new breakthrough points in the resolution such as diversifying energy sources in a suitable manner, further reviewing and presenting new breakthrough policy, and encouraging participation of the private sector into energy development, must be detailed by particular action programmes and resolutions from the government.
Caitlin Wiesen - Resident representative, United Nations Development Programme
Vietnam is at a critical junction to make strategic choices for continued sustainable growth and leap to the next stage of economic development. It is clear that Vietnam will not achieve its full potential in renewable energy development without the full engagement and investment from the private sector.
UNDP surveys of some large banks, institutions, and investors conducted in over the last two years show that between $10-15 billion is available for investment in renewable energy and energy efficiency in Vietnam, if key barriers are addressed.
Firstly, a consistent concern raised by international investors is that the current power purchase agreement (PPA) model needs further improvement to reduce risk for lenders that prevents them from making long-terms commitments.
We strongly recommend accelerating the pilot and adopting policies on direct PPA mechanisms between renewable energy developers and end users.
Secondly, key challenges persist for energy efficiency. With regard to financing, financial institutions view energy efficiency projects as risky as they do not have confidence in the returns from such projects and they face the high transaction cost due to legal, technical, and transactional complexities.
Thirdly, businesses, in particular micro-, small-, and medium-sized enterprises, are key contributors to the economy and job creation and have important roles in energy efficiency, environmental protection, and climate change action.
These kinds of enterprises need support and training in preparing and implementing green bankable projects, access to de-risking instruments and targeted funds that will stimulate demand for green investment, and enhanced links to global value chains.
It is very encouraging that the recently adopted public-private partnership law has brought in great potential for private investment, especially in the energy sector.