16:40 | 25/04/2016 Companies
(VEN) - Vietnam Economic News’ reporter Dang Hien spoke with General Director Axel Kalt of ABB in Vietnam, part of the ABB Group – a global leader in power and automation technologies. ABB in Vietnam’s products have been exported to more than 20 countries. Vietnam’s demand for ABB’s transformers has increased rapidly in recent years and accounted for more than 50 percent of the ABB in Vietnam’s output.
ABB’s products are valued for quality by partners and customers operating in the power sector. One of the reasons is that they are manufactured and tested according to international standards. Could you give a brief introduction of products that ABB offers to the power sector?
ABB is a leader in power and automation technologies that enable utility, industry, and transport and infrastructure customers to improve their performance while lowering environmental impact. The ABB Group of companies operates in roughly 100 countries and employs about 135,000 people.
ABB can offer the following products and solutions:
Transformers are an integral component of the power value chain, from power plants, through transmission and distribution systems and substations, to end-user applications. As the world’s leading manufacturer of transformers, ABB produces over 2,000 power transformers and 500,000 distribution transformers every year.
ABB has also developed high-efficiency distribution transformers that can reduce energy losses up to 70 percent, and a range of environmentally friendly products including high-efficiency amorphous core transformers and transformers using biodegradable oil.
ABB’s medium voltage portfolio includes switchgear, modular systems and equipment for distribution automation, all supported by a global service network.
ABB has a comprehensive offering of alternating and direct current transmission systems.
ABB pioneered HVDC (high-voltage direct current) technology. HVDC technology is designed for high-efficiency power transmission.
FACTS (flexible alternating current systems) technologies improve power quality and can significantly increase the capacity of alternating current transmission lines while maintaining or improving the system’s reliability.
Substations are key installations in the power grid that facilitate the efficient transmission and distribution of electricity. They feed power from generating stations into the grid and provide the link between transmission and end consumers.
Managing the network
ABB’s network management and utility communications solutions monitor, control, operate and protect power systems.
ABB’s offering includes control and protection systems for power generation, transmission and distribution, as well as software solutions for central electricity markets and electrical utilities.
Energizing and controlling power plants
ABB is a leading provider of integrated power and automation solutions. With an portfolio that includes electrical, automation, instrumentation and control systems, we offer products, systems and service solutions that help optimize performance, through the entire lifecycle of the plant.
ABB’s service portfolio includes design and consulting, installation and commissioning, performance optimization and routine maintenance, as well as refurbishments and upgrades.
Following Power Sector Master Plan to 2020, with a Vision to 2030 the sector and power generation businesses have much to do to meet the requirements. ABB currently offers its products for big projects in the power sector. Can ABB’s production capacity meet the requirements?
ABB is a global company with factories located around the world, these factories can provide all the technologies required to meet the Vietnamese power sector’s Vision to 2030. For example, ABB is the largest transformer producer in the world measured in the number of units and total MVA.
ABB’s provides almost US$15 billion worth of products and services to the global power sector each year. ABB has three factories in Vietnam producing products for the power sector. Our transformer factory is one of 45 transformer factories in the world. ABB in Vietnam has been producing and supplying transformers for more than 20 years. In recent years, the demand for ABB transformers in Vietnam has steadily increased and now amounts for more than 50 percent of our production.
Our other two factories provide medium voltage switchgear used in power distribution and high voltage components used in power transmission.
We have the design and engineering resources both in Vietnam and worldwide to meet the challenges of Vietnam’s expansion in the power sector with a vision to 2030.
What are your comments on ABB’s localization in Vietnam?
ABB has been supplying equipment to Vietnam for more than 30 years. Two of our three factories have Vietnamese managers. All of our engineers, service employees are Vietnamese. All of our finance, tax and logistic employees are Vietnamese.
We have development programs for Vietnamese staff whereby selected staff are sent for overseas training in various periods, ranging from weeks to years.
Our factories regularly search local suppliers to source materials, components and services. Some of our products have more than 70 percent of local content. Where we cannot find a local suitable supplier, we have helped to develop the competence of the local suppliers to meet our standards. We have many success stories from our local transformer tank fabricators to our local high voltage component suppliers. We have also helped develop local environmental management companies to build capacity in order to meet world standards.
We have a graduate engineer program whereby we support local students and give them an opportunity for overseas training.
ABB constantly and strongly promotes safety and activities to improve the behavior of our staff, suppliers and contractors to meet our safety standards. The benefit is that these Vietnamese companies can expand their business with customers who also require these standards.
ABB also promotes transparency and compliance. We educate our partners on what we require and how we behave. ABB’s strict requirements ensure that all transactions are done in an open and compliant manner.
ABB has been in Vietnam for a long time and plans to be in Vietnam long into the future. For ABB to continue to be successful, it means that we must continue to increase our localization with our employees and our products while still ensuring the expected worldwide quality standards while meeting the needs and preferences of that market.
We have great offerings of high quality products and services to the Vietnamese market. We are looking forward to continuing as a successful partner of the Vietnamese utilities and industries.
Vietnam’s amended Power Plan VII targets at commercial power. Power for production is expected to increase from 10.1-10.4 percent per year during the 2016-2020 period and 8 percent from 2021-2030 to contribute to the average GDP growth rate of about 7 percent per year. For this to happen, commercial power production should reach 228-245 billion kWh by 2020, 337-379 billion kWh by 2030 and 456-506 billion kWh.
The national power system is expected to produce 60,500MW by 2020, 95,400MW by 2025 and 129,500MW by 2030. To realize the target, apart from efforts made by power resource and network developers, domestic and foreign reputable suppliers of power products and solutions are vital.