Measures sought to increase localisation rate in wind, solar power development: Participants at the conference (Photo: VNA)

Deputy Director of the Department of Technology Application and Development under the Ministry of Science and Technology Tran Thi Hong Lan said that after the Prime Minister announced the commitment to net-zero emissions by 2050 at the 26th UN Climate Change Conference (COP26), Vietnam has taken specific, drastic and effective actions to achieve this goal, with the issuance of various relevant mechanisms, policies and strategies.

As a result, Vietnam has become the most vibrant market in the Asia-Pacific region and led Southeast Asia countries in the field of wind and solar power development. By the end of 2022, the total power capacity of the entire system reached 79,250 MW, of which renewable energy sources contributed about 20,165 MW, accounting for 25.4%, Lan noted.

However, the official held that the localisation rate of the supply chain as well as the engagement of Vietnamese firms in providing services to wind and solar power industry have remained modest.

Data showed that nearly 90% of supplies for renewable energy projects in Vietnam have been imported, mostly from China, Germany, India and the US, she said, stressing that the slow localisation of equipment and services in the renewable energy sector in Vietnam is partly due to limited capacity in project assessment and development, poor infrastructure and dependence on foreign countries.

At the same time, technological and production capacity of local firms have yet to meet requirements, while policies and mechanisms assisting the supporting industry in the renewable energy field are lacking and existing ones not adequate, she emphasised.

Deputy Chief of Mission of Germany in Vietnam Simon Kreye highlighted that cooperation in energy and energy transition has been one of the priorities in the partnership between Germany and Vietnam over the years.

The German Government has supported Vietnam in the fields of green hydrogen and offshore wind power to help Vietnam achieve the goal of net zero emissions as well as carbon neutrality, he said.

The German diplomat said that localisation plays a significant role in cutting the cost of renewable energy development. He underlined that the event is relevant in helping empower Vietnamese businesses to participate more deeply in the global value chain for wind and solar power products.

Besides the issue of localisation, participants at the conference discussed policies to support the research, transfer and development of wind and solar power technologies.