US Companies Want to Invest $8 Billion in Vietnam

According to a senior U.S. official, fifteen American corporations, including semiconductor companies, have expressed interest in spending $8 billion in sustainable energy projects in Vietnam. Their involvement is contingent upon the nation’s advancement with regards to renewable energy regulations. Vietnam is trying to attract companies that make computer chips. It also aims to expand its industry related to renewable energy. However, it has had difficulty enacting legislation that would allow the renewable energy sectors to grow. These sectors include the building of offshore wind farms, which it now lacks, as well as solar and onshore wind.

 

Jose Fernandez works for the US State Department as an undersecretary for economic growth. “They are prepared to invest as much as $8 billion,” he told reporters in Hanoi last Friday in response to the question of whether American businesses want to invest in Vietnam. Fernandez omitted the names of the businesses. However, he pointed out that the funding would cover infrastructure for sustainable energy. According to Fernandez, those businesses pledged to “use only renewable energy.” Investment decisions would thus be based on how Vietnam’s renewable energy laws develop. He continued by saying that before the businesses could forward with their investment plans, they were also awaiting permissions.

 

Vietnam is debating regulations that would allow industries to directly bargain with producers for the cost of electricity instead of purchasing it via the nation’s state-owned power network operator. Additionally, it is attempting to pass regulations pertaining to offshore wind, such as establishing a marine area for its operation. However, the process of passing these regulations has been stalled. The increasing usage of solar panels and onshore wind farms in Vietnam has contributed to a rise in renewable energy. However, some of this progress has been undone by issues with connecting the projects to the electrical grid, which also has to be improved to handle renewable energy.

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