Forum discusses how HCM City can attract investment to renewable energy

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”, Vo Van Hoan, vice chairman of the city People’s Committee, said many countries around the world are pursuing sustainable economic development, and Vietnam, particularly HCM City, is no exception.

Vo Van 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)

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, Tran Du Lich, 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.

Nguyen Xuan Thang, 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 Vietnam 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 Vietnam could learn from.