09:10 | 10/07/2019 Economy
(VEN) - Thai companies consider Vietnam an important investment destination. In addition to their investments in the processing and manufacturing industries, industrial zone infrastructure and retail, they are boosting investment in developing Vietnam’s renewable energy resources.
Thailand currently ranks 10th among 112 countries and territories investing in Vietnam. So far, Thai direct investment in Vietnam has exceeded US$10.4 billion, concentrating in industrial production, processing and manufacturing industries. The largest Thai investment project in Vietnam is the Southern Oil Refinery and Petrochemicals Complex based in Ba Ria-Vung Tau Province’s Long Son Commune, with total investment of US$5.4 billion, expected to be completed in 2023.
Roongrote Rangsiyopash, President and CEO of the Siam Cement Group (SCG), said the geographical proximity and cultural similarities between the two countries offer favorable conditions for Thai companies to invest in Vietnam. The two governments signed an agreement on investment encouragement and protection on February 7, 1992.
Recently, Vietnam granted a license for a Thai group to build the Hoa Hoi Solar Power Plant in Phu Yen Province with total registered capital of US$216.7 million.
The Gulf Energy Development Public Company Limited has signed a contract with the Green Energy Engineering and Trading Co., Ltd. to develop a 48MW solar power project with total investment of US$66 million in Tay Ninh Province. It also plans to invest US$7.8 billion in a gas-fired power project in Ninh Thuan Province’s Ca Na Commune.
In April 2019, the Export-Import Bank of Thailand extended US$65 million in credit to Eastern Power Group Plc and Communication & System Solution Plc to finance the construction of two solar power plants in Phu Yen Province, with a combined generating capacity of around 100MW.
In 2018, the Sermsang International Co., Ltd. acquired 80 percent of the stock of the 49.61MW Binh Nguyen solar power plant in Quang Ngai Province.
The abundance of wind and solar power resources, the development of technology, and government policies to encourage investment in renewable energy are expected to attract more foreign investors to Vietnam, especially Thai companies.
According to the Ministry of Planning and Investment, to attract more investment from Thailand, Vietnam has been implementing investment promotion programs and creating favorable conditions for Thai companies in Vietnam. Along with promoting linkages between Vietnamese and Thai businesses, Vietnam is calling for Thai investment in fields where Thailand has advantages and Vietnam has demand, such as agriculture, infrastructure and clean energy.
The Vietnamese Government is pursuing the goal of turning solar power into a major renewable energy resource.
Total capacity of solar power plants is expected to increase to 12,000MW by 2030, equivalent to 3.3 percent of
electricity output nationwide.