Võ Văn Hoan, vice chairman of the city People’s Committee, speaks at the Investment Legal Support Forum 2024 - Second Term in HCM City on September 20. — Photo courtesy of ITPC

HCM CITY — A specific regulatory framework for renewable energy development is needed to encourage private capital flows into this sector in Việt Nam, including HCM City, a forum heard in HCM City on September 20.

Speaking at the Investment Legal Support Forum 2024 - Second Term, with the theme “Attracting Investors to Renewable Energy and Promoting Green Economic Growth in HCM City,” Võ Văn Hoan, vice chairman of the city People’s Committee, said many countries around the world are pursuing sustainable economic development, and Việt Nam, particularly HCM City, is no exception.

He said the city had drafted the Green Growth Action Plan for 2024-30 to implement the national Green Growth Strategy to achieve sustainable development.

Under the plan, the city has identified 14 key tasks for "green" development, with an emphasis on renewable energy.

The plan, together with special policy mechanisms under the National Assembly’s Resolution 98, provides a framework to promote the development of green projects in the city, he said.

However, the city remains concerned about whether these policies are truly favourable for investors in renewable energy projects.

The forum provides an opportunity for it to connect with and listen to investors, leading to reforms in its investment environment, he added.

In his opening remarks, Dr Trần Du Lịch, vice president of the Vietnam International Arbitration Centre, said promoting the development of renewable energy, particularly wind, solar and biomass, not only helps mitigate environmental impacts but also creates significant advantages for countries and localities in the global trend towards "greening."

But he pointed out that terms like "greening" and "renewable energy" remain unfamiliar to many businesses and the regulatory framework for the sector remains inadequate.

He emphasised that the lack of clear regulations and guidance increases the risk of disputes, raising concerns among both investors and the government.

Therefore, the city and businesses need to collaborate to identify issues and devise solutions to address them, he said.

Nguyễn Xuân Thắng, vice chairman of EuroCham Vietnam and managing director of Schaeffler Vietnam, praised the city’s efforts to promote green investment under Resolution 98.

It has achieved significant progress in rooftop solar development, he said.

But he also referred to the challenges faced by the private sector in developing solar projects, including tardy regulatory approvals and restrictions on private sector involvement in public solar installations.

Regulatory framework for solar power projects in Việt Nam is still being developed, creating uncertainty for investors, slowing projects and potentially discouraging long-term investment, he said.

He also referred to successful international models of solar energy deployment that Việt Nam could learn from.

Nearly 300 delegates attends the Investment Legal Support Forum 2024 - Second Term to duscuss how to attract investors in renewable energy and promoting green economic growth in HCM City. — Photo courtesy of ITPC

Nguyễn Đức Minh, an attorney at Kim & Chang LLC (Vietnam), pointed out the need for a specific law governing renewable energy.

There is none now and regulations are spread across multiple laws, he said.

Complex administrative procedures make it difficult for investors to navigate the process, he said.

He stressed the need to use a standard power purchase agreement (PPA) that clarifies the rights and responsibilities of the parties involved.

Many international lenders have refused to provide funding because the PPA template does not safeguard investors' interests in certain situations, he pointed out.

He said the city should leverage the advantages of the special mechanism under Resolution 98 to take decisive steps to develop renewable energy.

It should soon announce a list of renewable energy projects and provide clearer guidance on procedures and processes for their implementation, such as the selection of strategic investors, the scope of investment cooperation and preferential policies, he added.

Nguyễn Thị Kim Ngọc, deputy director of the city Department of Industry and Trade, said as the biggest city in Việt Nam with a large population, the city has a high demand for energy.

Recognising the limitation of available land resources and capitalising on its strengths and the special mechanism under Resolution 98, the city plans to focus on developing rooftop solar energy and energy from solid waste in the near future, she said.

It is also considering the development of offshore wind energy in future when economic and technical conditions allow it, she added. — VNS