Ho Chi Minh Suzuki Real Estate News Column

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Investment in renewable energy business

Investment in renewable energy business

The latest JLL report points to the need for alternative investments for the future.

According to Stephen Wyatt, regional general manager of JLL Vietnam, Vietnam has favorable geographical characteristics for the production of many renewable energies.

A JLL report released on May 27 noted that institutional investors from around the world have announced plans to invest in Vietnam's energy infrastructure sector in recent months. This will promote alternative energy markets.

Vietnam has a longer coastline than any other country, a tropical Southeast Asian climate, and a strong agricultural economy, creating ideal conditions for wind power, solar power, and biofuels.

Vietnam government promotes investment in renewable energy projects

Renewable energy (2)

Vietnam government policy also encourages more investors to enter this sector. The Ministry of Industry and Trade has released a third draft to encourage the development of solar power projects. This demonstrates the government's continued commitment to promoting renewable energy projects.

“If the government takes a proactive stance and supports investment in renewable energy, it will become a very attractive investment target for overseas investors,” said Wyatt.

In one notable project this year, Vietnam's BIM Group partnered with the Philippines' AC Energy to develop BIM solar power in Ninh Thuan province. The solar power generation system will consist of three facilities, with a power generation capacity of 330MW, making it the largest mega solar power generation system in Southeast Asia.

Wyatt went on to say:
“Vietnam's current power grid is under heavy stress.Energy prices are expected to rise as demand increases, especially in major cities and industrial areas.Such alternative investments are important for Vietnam's growth. He will play an important role.”

Renewable energy investment | Overseas

Major cities around the world are gearing up for renewable energy.
Chicago, USA, plans to power all city facilities with wind and solar energy by 2025. This is the same level as supplying electricity to over 900 buildings.
Atlanta, USA, has pledged to achieve 100% renewable energy by 2035.

Across Asia, governments and developers are steadily investing in sustainable construction and renewable energy to reduce wasteful energy consumption. China is investing heavily to catch up with Singapore, which is leading the way in renewable energy.

Energy and electricity shortage in Vietnam

Energy and electricity shortages are major problems in Vietnam.

Investment in renewable energy is being promoted as one of the solutions. However, power shortages have become an urgent issue, and thermal power plants are being developed.

The United States will continue to support the development of thermal power plants, and Vietnam will move forward with measures toward a stable power supply and an environmentally friendly energy portfolio.

 

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