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Vietnam Today

$778mn invested in green energy projects

Released at: 14:26, 06/04/2017

$778mn invested in green energy projects

Illustrative image (Source:thangmaygiadinh.tne.vn)

Average capital at $48 million, $13 million higher than FDI project average.

by Hai Van

Of the 110 foreign direct investment (FDI) projects Vietnam has attracted in the field of electricity and gas production, 16 are in green energy, with total registered capital of $778 million, accounting for 14.5 per cent of project numbers and 6 per cent of total registered capital, according to the Foreign Investment Agency (FIA) at the Ministry of Planning and Investment.

The average size of each green energy project is over $48 million, or $13 million higher than the average for each FDI project, but much lower than the size of the average capital for a project in the electricity industry, of about $115 million.

In 2009, there were two FDI projects in the energy industry, with total registered capital of $90.5 million. FDI in the field fell in 2013 then increased gradually in 2014. In 2015, registered capital stood at over $356 million.

In terms of project scale, wind-generation power attracted the most attention among foreign investors, with total registered capital of $577 million, accounting for 74 per cent of capital in the green energy sector. Following was solar power, with capital of $137.38 million, or 18 per cent, and biomass power generation, with capital of $59.2 million, or 8 per cent.

“Although Vietnam has attracted a number of green energy projects, it is still not commensurate with its potential and strength,” the FIA noted.

Nine countries have invested in green energy FDI projects in Vietnam: South Korea, Germany, France, India, the US, Singapore, Russia, Belgium, and China.

South Korean investors led the way, with total registered capital of over $371 million, accounting for 48 per cent of the total. Germany followed, with $226.68 million, or 29.3 per cent, then French, Indian, and US investors with capital of $77.12 million, $59.22 million, and $26 million, respectively.

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