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U.S., S.Korea investors keen on LNG power projects in Vietnam
The Saigon Times Daily
Wednesday,  Feb 12, 2020,16:47 (GMT+7)

U.S., S.Korea investors keen on LNG power projects in Vietnam

The Saigon Times Daily

Deputy Prime Minister Trinh Dinh Dung (C, R) meets a group of investors from the United States and South Korea who are interested in liquefied natural gas power development in Vietnam on February 11 – PHOTO: VGP

HCMC – A group of major investors from the United States and South Korea at a meeting with Deputy Prime Minister Trinh Dinh Dung in Hanoi on Tuesday expressed their interest in liquefied natural gas (LNG) power projects in Vietnam as the country is seeking to switch to cleaner sources of energy.

The investors are large firms with extensive experience in LNG-fueled power projects, reported the Government news website.

They expressed their intention to get involved in LNG power projects in the Southeast Asian country to develop clean energy, increase power supply and expand the high-quality workforce in the gas-fired power sector.

They said they had taken investment-related factors into careful consideration and would make long-term investments in LNG power projects.

Deputy Prime Minister Dung spoke highly of the investors’ plans to use LNG to run power stations in Vietnam.

The demand for electricity in the country is growing by an average 10% per year, he noted. Vietnam is diversifying its sources of power to reduce its reliance on coal-fired power and raise the share of gas-fired power and renewable energy in the power industry's output.

He added that gas-fired power is expected to account for 12% of the total electricity generation, equivalent to 17,000 megawatts, by 2030.

Therefore, the Government needs local and international businesses to participate in clean energy projects in Vietnam.

Their investments should be in line with Vietnam’s power master plan, while their electricity should be priced competitively and aligned with the country’s power transmission system, Dung said.

With regard to U.S. investors, he pointed out that the comprehensive partnership between Vietnam and the U.S. as the world’s largest economy has produced good results.

Bilateral cooperation in trade and investment is vital to the country, he said. Last year saw U.S. exports to Vietnam rise by 12% and Vietnam remained among the United States’ fastest-growing export markets.

He said Vietnam has long regarded the United States as one of its leading trade partners, and investment by American investors in Vietnam will to a certain extent help improve the balance of trade between the two economies.

Moody’s Investor Service explained in a recent report that the continued development of Vietnam’s power sector is needed to meet the fast-growing power demand from increasing industrial activity and residential customers’ rising power consumption.

There is also a need to develop renewable sources amid a government commitment to reduce greenhouse gas emissions by 8% with domestic resources and 25% with international support by 2030 on a business-as-usual basis, according to the U.S.-based ratings agency.

Renewables, excluding hydropower, accounted for a mere 0.2% of the country’s power generation mix in 2018, which was much lower than the Government’s target of some 7% in 2025 and roughly 11% in 2030.

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