Vietnam Concentrating on Increased Renewable Energy Adoption

Vietnam is focusing on promoting energy conversion from fossil fuels to renewable energy. This effort is aimed at meeting the net zero emissions target by 2050. This shift not only helps reduce emissions but in the long term, also helps the economy develop in a greener, more sustainable direction, according to recent international press and experts. Mckinsey commented that Vietnam’s renewable energy development rate could increase exponentially to attract manufacturers and ensure energy security.

It recommended that to support the trend of foreign direct investment, Vietnam could deploy more renewable energy projects to meet the growing demand for renewable energy from commercial and industrial customers. Vietnam even has the potential to become a regional champion in both installed renewable energy capacity and sustainable production.

In an effort to attract finance and capital for energy conversion, the Power Technology website said that the Asian Development Bank (ADB) recently loaned US$13.8 million to support the installation of a rooftop solar system in Vietnam. For ADB, this is the first financing for a rooftop solar portfolio in Vietnam's commercial and industrial segment.

The VTV online newspapers quoted Christoph Prommersberger, Deputy Ambassador of the Kingdom of the Netherlands in Vietnam, as saying that currently, there were tens of billions of climate finance resources around the world looking for places to invest, and if Vietnam could leverage them effectively through a well-managed carbon market, it could be a huge help in supporting Vietnam's green transition.