DNVN - Domestic private companies are playing an increasingly important role in financing the energy transition in Vietnam. Therefore, it is necessary to prioritize this source of capital by promoting corporate bonds and green bonds.
Sharing at the Workshop "Encouraging the private sector to participate in investing in the energy sector", on the afternoon of February 18, Associate Professor, Dr. Nguyen Thi Nhung - expert of the project "Encouraging the private sector to participate in investing in the energy sector of Vietnam" said that domestic private companies play an important role in financing the energy transition in Vietnam. This shows the increasing position of the private sector in the renewable energy sector.
Typically, Vingroup, through its subsidiary VinFast, is promoting the development of electric vehicles and solar energy. Trung Nam Group and Bao Son Group are also contributing by developing wind and solar power plants. In addition, green corporate bonds are emerging as an important capital mobilization channel for Vietnam's energy transition and sustainable development.
However, foreign indirect investment in the green capital market remains limited and underdeveloped. Legal issues arising in the field of public-private partnerships (PPPs) and power purchase agreements (PPAs) from deployed renewable energy projects also negatively affect investor confidence in renewable energy projects.
“Currently, Vietnam's policy mechanism in the energy transition process lacks standardization of green project evaluation criteria and lacks a carbon pricing mechanism,” said Ms. Nhung.
Delegates attending the Workshop "Encouraging the private sector to participate in investment in the energy sector".
According to Ms. Vu Quynh Le - Deputy Director of the Bidding Management Department (Ministry of Planning and Investment), PPP projects in the energy sector still face many difficulties and challenges. Specifically, transitional coal-fired thermal power projects face difficulties in signing contracts due to lack of funding from international financial institutions. Energy transition projects depend heavily on capital arranged by international financial institutions, while these institutions require guarantees from the Government.
Vietnam Electricity Group is unable to fulfill its fuel consumption obligations due to the large scale of renewable energy projects with large power capacity. Therefore, PPP projects in the energy sector have shown signs of slowing down recently.
Given the above situation, Ms. Nhung recommends that there should be policies to increase investor confidence in renewable energy projects. Establishing an electricity price framework for different types of renewable energy projects will help investors better prepare for project implementation plans.
At the same time, there are preferential policies on taxes, fees and charges for green investments in general and renewable energy projects in particular. Prioritize domestic capital by promoting corporate bonds, green bonds and promoting foreign capital sources.
Hoai Anh
Source: https://doanhnghiepvn.vn/kinh-te/chinh-sach/von-tu-cac-cong-ty-tu-nhan-ngay-cang-quan-trong-cho-qua-trinh-chuyen-doi-nang-luong/20250218052109730
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