HÀ NỘI – The Vietnamese Government’s decision on providing incentives for solar energy projects in the country has attracted foreign investors to the field, including those from Taiwan.
Under Decision No. 11/2017/QD-TTg, dated April 11, 2017, solar power investors have to pay corporate income tax at just 10 per cent for the first 15 years of operation. They will also receive tax exemptions for the next four years and pay half tax for the next nine years.
In addition, they are exempt from import tariffs to create fixed assets for the projects. The State will purchase all electricity produced by the projects for VNĐ2,086 (US9.35 cents) per kWh.
According to Nguyễn Thu Trang, senior sales representative of Taiwanese Big Sun Group, one of Taiwan’s leading businesses specialising in solar energy solutions, Big Sun wants to introduce state-of-the-art solar panel trackers in Việt Nam to improve the efficiency of solar power plants in the country.
Big Sun also hopes to work with local steel firms to open tracker factories to reduce production costs. Although tracker import tax is currently at zero per cent, transportation costs remain high because of their weight.
Further Taiwan’s Neo Solar Power Corp (NSP) is working with Vina Solar Technology Co., Ltd of Việt Nam on a large solar energy project.
Tim Sun, a representative of NSP, said the cooperation was NSP’s first step to increasing its presence in Việt Nam and that the company would consider expanding its cooperation with Vina Solar while seeking other Vietnamese partners.
LTI ReEnergy, another Taiwanese group specialising in inverter technology, is also considering making a foray into Việt Nam.
LTI ReEnergy general director Tom Wang said he would visit Việt Nam early next year to explore the market, noting that he wants to introduce inverter technology, an advanced technology helping reduce energy loss, in the country.
Alen Wu, a representative of Motech Industries, Taiwan’s largest solar cell manufacturer, said the company was cooperating with Vina Solar and would seek more Vietnamese partners to benefit from the country’s friendly business policies.
According to the Foreign Investment Department under the Ministry of Industry and Trade, Việt Nam has 16 foreign direct investment projects in green energy with total registered capital of US$778 million, of which solar energy projects are valued at $137.4 million.
Source: Vietnam News