Chance of Calling for Investment in Power Industry

According to many experts, although global economy is in the recession and Vietnam economy, in particular, is facing heaps of difficulties, the country’s growth and stability in recent years has strengthened the investors’ confidence. Two important factors include the rapid urbanization of Vietnam and the explosion of industries. This is regarded as chances to enable Vietnam to further access to foreign investment in the industry in general and power industry in particular.

 

While the production electricity demand is the main factor, the consumption electricity demand has increased considerably due to the increased income in urban areas and growing population density in cities, suburbs and real estate development. The power demand of Vietnam is predicted to increase by 3.5 to 4 times during the period of 2010-2025. It is forecast that the annual demand of power industry increase from 11 percent to 15 percent annually until 2015. The power output is supposed to reach 194-211 billion Kwh, 329-362 billion Kwh in 2015 and 2020 respectively. It is even expected to soar to 695-834 billion Kwh in 2030. To this end, it is essential to build 75 power plants and centers with the total capacity of 81,000 MW including 46 hydropower plants with the capacity of at least 50kw, two nuclear power center, and two new energy and renewable energy centers. In the next 20 years, Vietnam will need a huge investment in power generation, transmission and distribution.

According to Master Plan VII for the period of 2010-2020, in order to meet the growing demand in Vietnam, it is estimated that the power industry will need to provide additional annual average of 4,100 MW for the period of 2011-2015. The Government and Electricity of Vietnam (EVN) have jointly launched an action plan on further building power plants, hydroelectric and nuclear power plants in the coming years.

 

As the concern about power consumption is getting more serious, a new law and regulations on the effective and economic use of energy have been issued. These include Decree No.79/2009/ND-CP by the Government on urban lighting management and Decision No.1874/QD-TTg by Prime Minister on the approval of Vietnam urban lighting development orientation as to 2025. These laws will lead to the change and booming market demand for energy-saving devices, green and lit-by-Led lighting devices. This should be considered and strived for by manufacturers, suppliers, enterprises and even investors.

 

In fact, Vietnam has been successful in bringing grid power to most rural areas. However, the demand is still very high. Only when the power network is broadened, can the demand be met for the whole country. Therefore, support from foreign investment and technology become more and more important than ever before. According to the report of Herbert Smith LLP, Vietnam is currently one of three hot destinations for investors as electricity companies always expects for sustainable growth.

 

During the past time, Vietnam has done its utmost to develop renewable energy sources such as solar, biomas, energy from waste, wind and geothermal power. With the goal of increasing the supply of energy from renewable sources, Vietnam aims to achieve 5% of renewable electricity out of the total power in 2025. Simultaneously, Vietnam is seeking modern technology to serve for the development of renewable energy. National electricity development planning was approved in 2006 to ensure the power supply to be gradually transferred to private industry in 2022. According to the electricy planning, from 2006 to 2025, the total investment in the industry is estimated at US$ 79.9 billions, out of which, US$ 52 billions being used for power plants and the remaining for the transmission and distribution network. By 2020, as many as 74 power plants will have been completed.

 

In addition, national electricity development plan has presented the forecast for the period of 2010-2020 and vision as to 2030. As great as US$ 100 billions are needed build power plants in 20 years so as to provide Vietnam with 88 thermal power plants and another investment of US$ 83 billions for the period of 2010-2025 are made in the construction of 75 hydro power plants. Besides, by 2025, in order to achieve the objective of meeting 75 percent of demand for transmisison lines and transformer stations and enabling local power plants to meet 55 percent of demand for engines and generators, it is estimated that Vietnam will need US$ 170 millions for the production of electrial equipment. This is considered a great opportunity for foreign investors who have intention of making investment in Vietnam market.

 

Given the economic growth and the population increase especially in urban areas and cities, Vietnam has gradually found prompt solutions to meet the demand for different lighting venues including residential areas, industrial zones, state agencies, business centers, public areas, highways and lighting fields namely advertizing, construction, architecture. Vietnamese leaders as well as industry experts have confirmed that lighting is a potenital industry and must not be set aside. With the growing demand, the lighting industry has contributed to ensuring socio-political security, beautifying the urban landscape and acted as the positive factor in calling for investment in time to come.

 

Vietnamese leaders as well as industry experts have confirmed that the lighting industry is a potential, can not be ignored with the growing demand, it also contributes to the socio-political security Assembly, beautify the urban landscape and is a positive factor to attract investment in the future