At COP 26, with the participation of nearly 200 countries and territories, a series of the world's leading multinational economic groups also attended and made ambitious commitments to the goal of COP26. reduce greenhouse gases. As for Vietnam, the renewable energy development strategy is not only a story of utilizing natural resources and ensuring energy security, but also a factor in attracting and retaining FDI inflows, and determining the future. of the whole economy.
Green FDI trend in Vietnam
Green FDI can be understood as a source of foreign investment in production processes that reduce harmful effects on the environment such as using cleaner technology or being more energy-efficient. In recent years, a series of multinational economic groups that have invested capital in Vietnam are changing their investment and business strategies with increasing attention to environmental issues.
Most recently, at the end of 2021, the Danish toy company LEGO invested 1 billion USD in Vietnam to build the first carbon-neutral assembly plant, running entirely on solar energy. The factory is expected to be located in Vietnam - Singapore Industrial Park (VSIP). According to the plan, the new factory will have solar panels installed on the roof and VSIP will build a solar project on behalf of LEGO.
Permanent Deputy Prime Minister Pham Binh Minh and Danish Ambassador to Vietnam Kim Hojlund Christensen witnessed the signing ceremony of a memorandum of understanding between Lego Group and the Vietnam-Singapore Industrial Park Joint Venture Company.
In Vietnam, the enterprise with the largest FDI scale is Samsung Electronics. Around the world, in 2018, this "tech giant" made a commitment to switch to all renewable energy for production activities in the US, China and European markets within 2 years. five; However, in reality, this target has only reached 17.6%. In Vietnam in mid-2021, this group has proposed the Ministry of Industry and Trade to guide and support in the pilot implementation of the DPPA mechanism (Direct Power Purchase Mechanism). This mechanism allows Samsung to sign contracts and negotiate prices with renewable energy generation suppliers without going through EVN.
Another typical example of this trend is Unilever. By the end of 2020, the group has set a medium-term goal to be 100% neutral by 2030 of absolute emissions arising from Unilever's operations. By 2039, the goal of the entire value chain is to achieve zero emissions.
In fact, starting in 2009, Unilever used solar energy in the production process, then the group put into use Biomass (tablets made from wood waste) instead of diesel in boilers. . To date, Unilever has succeeded in using nearly 50% of renewable energy in production. In 2015, 100% of the electrical energy used by the plants met the "Renewable Energy Credit" standard - iREC, which means that all carbon emissions through electricity consumption are considered positive carbon.
In 2022, Unilever Vietnam has achieved zero-emissions operation chain 9 years ahead of schedule. One of the technologies invested and developed by the corporation is to use biomass pellets made from damaged pallets, shredded paper, rice husks for boilers, instead of diesel oil.
The above moves show that, at least in the period from now to the middle of the 21st century, the competitiveness in attracting foreign investment among countries increasingly depends on which country has the ability to supply long-term clean electricity for these businesses.
In addition to building an image of environmental responsibility, the motivation of economic groups is to reduce taxes to ensure a stable source of profits. For example, in Europe, it is expected that this region will apply an emission tax on imported goods from 2023. At that time, exporters will be taxed if they use electricity generated from coal power plants. . Besides, the change also allows them easier access to investment capital and incentives in host countries.
With an economy that is gradually becoming an important link in the global supply chain, where FDI contributes up to 20% of GDP like Vietnam (2018), the change in business strategy, along with the concerns of the Global brands and their key suppliers will have far-reaching effects, requiring the Government to respond promptly to retain investors.
On the other hand, if we look at Vietnam from the perspective of being one of the countries most affected by climate change, the trend of sustainable consumption is getting more and more attention. The development of renewable energy for green economic activities is a natural development direction, precisely because of the country's own needs.
The demand for clean electricity is huge
In many industrial parks and export processing zones, despite the excess of electricity that occurred in the period of 2019-2020, investing in renewable energy, with the popular model of rooftop solar power, still has the power attractive to businesses.
The most obvious benefit of rooftop solar power is the significant reduction in electricity costs. For factories and workshops, at peak hours, the price of electricity for business is nearly 4,300 VND/kWh; The price of electricity produced is nearly 3,000 VND/kWh. With a rooftop solar power system, businesses will reduce purchasing electricity from the national grid, helping to reduce operating costs and ensure business efficiency. This is also a solution for production units to be more proactive during peak periods when power shortage is forecast.
Rooftop solar power at Tan Tao Industrial Park, Ho Chi Minh City
By absorbing heat from the sun, the panels also reduce the temperature surrounding the factories, helping to reduce the load on the cooling system, and at the same time increasing the durability and efficiency of the machines and equipment. inside the building. In addition, the battery systems also help protect the roofs of factories, which are prone to damage, rust, and leaks during prolonged sun and rain.
In addition, the introduction of clean electricity from solar energy also helps production sites greatly reduce carbon emissions. According to calculations by the Management Board of Industrial Parks - Export Processing Zones of Ho Chi Minh City, when reaching the target of 1,000 MW of rooftop solar power capacity for more than 1,000 businesses in the area in the period 2020-2024, the electricity output consumed Consumption will be reduced by 10-15% and 23 million tons of CO2. This is one of the important conditions for enterprises to obtain green certification in production. Since then, when exporting products to difficult markets such as the United States, Europe, ... will create a competitive advantage because they are not subject to environmental protection tax.
Rooftop solar power projects in factories and workshops with small scale and scattered installations should be connected to the existing low- and medium-voltage power grids, without the need for additional investment in the transmission grid system.
At the present time, solar power has passed the hot growth period, so the cost of materials and installation costs has decreased significantly. The Government is also preparing to approve the Draft Power Master Plan 8 with many mechanisms and policies to encourage the development of renewable energy. With these conditions, it is expected that in the near future, clean power sources in industrial parks, factories, and workshops will still attract the investment attention of businesses.
With that fact, it can be affirmed that renewable energy is about to enter a very rapid development phase in Vietnam. So far, electricity has always been identified as a field that must be one step ahead in all economic and social activities. When traditional energy is running out of room for development, green energy sources will be the most secure choice. Investing in renewable energy not only helps the electricity industry go up, but also ensures the development of Vietnam's economy./.
