HCM City (VNS/VNA) - With its abundant resources andsoaring demand for clean energy, Vietnam is poised to become a regional leaderin renewable energy, heard a recent conference organised by Forbes Vietnam.

Ha Dang Son, Deputy Director of Vietnam Low Emission EnergyProgramme II (V-LEEP II), highlighted the country’s attractive prospects forlocal and foreign investors in renewables.

“Vietnam’s vast renewable resources, growing energy demand andsupportive governmental policies are major contributing factors.”

Its ample solar resources offer favourable conditions forinvestors as do its extensive coastline and favourable wind conditions, hesaid.

Its well-established agricultural sector generates substantialbiomass waste, which can be utilised for energy generation, Son said.

The Government approved in May a power development master planthat prioritises renewable energy, he said.

The plan includes an ambitious target to generate 20% of thecountry’s electricity from renewable sources by 2030.

Experts pointed out the country requires 135 billion USD for powerplant and transmission grid development by 2030, and over 500 billion USD by2050.

They highlighted the need for foreign investment, green credit anddomestic private capital to achieve the transformation towards a sustainableenergy model.

They also spoke about the major challenges faced by investors suchas uncertainty and inconsistency in the Government’s renewable energy policiesand regulations.

Trinh Quoc Vu, CEO of a HCM City-based renewable energy company,said the shortage of infrastructure to accommodate the rising renewable energycapacity is another obstacle.

Dang Quoc Toan, Chairman and General Director of the AsiaPetroleum Energy Corporation, said the lack of transparency in the bidding forrenewable energy projects is also a critical issue.

Financing remains a challenge despite the decreasing costs ofrenewable energy technologies, he added.

The complex and time-consuming land acquisition process in Vietnamis another hurdle for investors in renewable energy projects.

The shortage of skilled professionals and limited domesticmanufacturing capabilities escalate project costs and timelines in Vietnamsince developing large-scale renewable energy projects requires skilled labourand robust supply chain networks.

Supa Waisayarat, Vietnam country manager for Thailand’s SuperEnergy Corporation, said investors should stay updated on government policies,regulations and incentives related to renewable energy in Vietnam./.