1. June 2013
Vietnam update: Energy and Environment
- Market opportunities for Norwegian
companies
OVERVIEW ENERGY SECTOR
Vietnam energy sector is driven by the fastest – growing
demand in the region. Vietnam will shift from an energy-
export country to an energy-import country by 2016. The
Vietnam power sector is under restructuring to increase
investment from none - EVN investors.
Vietnam total power installed capacity is 24,000 MW and
will be increased to 146,800 MW by 2030. Of those, the coal
fired thermal power proportion will be increased from 11%
to 48%-51.6% by 2030. Contrarily, the hydropower
proportion will be reduced from 23.1% to 11.8% by 2030. Gas
turbine generation accounts for 42.65 % of the total
electricity production and will reduced to 10.5% by 2030.
Due to the high demand of coal for the electricity
generation, Vietnam will be an energy importing country by
2016. LNG is probably an alternative to coal and natural gas
for power generation
RENEWABLE ENERGIES
Renewable energies, especially affordable renewable
energy are given priority by the Vietnam government.
Renewable electricity production will account for 4.5% and
6% of the national electricity production by 2020 and 2030
respectively. By 2025, Vietnam plans to cover 100% the
national demand of petroleum productions by E5 and B5.
The affordable renewable energy include small hydropower,
biogas, biofuel, etc. At the moment, wind energy
production cost is less competitive in comparison with
small hydropower and conventional energies.
Possible donors
• Nordic Climate fund (http://www.ndf.fi/index.php?id=22);
• EEP Mekong (www.eep-mekong.org);
• Vietnam Business Challenge Fund (http://
www.vbcf.org.vn );
• ADB (http://www.adb.org/projects/45406-001/main?
ref=countries/viet-nam/projects).
• WB (www.worldbank.org)
Hydropower
Vietnam has huge hydropower potential, which is
estimated at 18-20 TW and 2.5-3 TW for large/medium
scale hydropower and small hydropower respectively.
Opportunities are seen in
• Dam safety calculation/optimization of hydropower
operation/Extension of existing hydropower plant;
• Invest in small hydropower project;
• Produce hydropower equipment in Vietnam;
• Utilize Vietnam factories/skilled technician and labor to
develop hydropower projects in other countries.
Biofuel
Vietnam has potential to produce biofuel from crops and
Ankroet hydropower plant – 4.4 MW (source: PECC 1)
Contact
Hai Anh Tran
Phone (+84) 903463318
tran.hai.anh@innovationnorway.no
www.innovationnorway.no
Innovation Norway. Akersgata 13, P.O.Box 448 Sentrum, NO-0104 Oslo, Norway We give local ideas global opportunities

2. agriculture by-products. Vietnam targets to cover 100% of
national petroleum demand with B5 and E5 by 2025
The business opportunities within biofuel include:
• Providing technology and equipment for blending/
transportation/storage/distribution of biofuel;
• Technology transfer in terms of biofuel production and
biofuel appliances;
Vietnam potential partners: PetroVietnam, Petrolimex,
Ministry of Agriculture and Rural Development, etc.
LNG
Vietnam has a potential of using LNG as an alternative to
coal and natural gas for power generation. The business
opportunities within LNG include:
• Providing technology/investment to switching from
diesel to LNG or from imported LPG to LNG.
• Providing technology and equipment for transporting
LNG to power plants;
• Providing equipment and consultant service for
developing LNG terminal;
• Cooperating on R&D projects relating to LNG.
Vietnam potential partners: Petrolimex, Vietnam Railway
Corporation, Electricity of Vietnam, PV Power, PV Gas, IPPs
fuelled by DO/FO.
WASTE TO MONEY
Aquaculture processing by- products
Vietnam is the world’s 3rd largest aquaculture nation with
4.5% GDP contribution by Aquaculture. In 2012, total
Vietnam aquaculture products are 3.2 million tones, which
also produce an approx. amount of 4 million tonnes of
aquaculture processing by-products. Opportunities are
seen in providing technologies to produce higher quality
fishmeal,fish oil, collagen, etc. Potential partners are private
companies under Vietnam Association of Seafood
Processing (www.vasep.com.vn).
Animal husbandry waste
Vietnam has 145,880 animal farms and approx. 9 million
animal husbandry households, which discharges an amount
of 73 million tons of solid waste and 23-30 million m3 of
liquid waste p.a. Opportunities for biogas technology from
animal manures are seen such as technology to develop
large scale biogas digester for farms; utilization of biogas
slurry as organic fertilizer; promote biogas appliances such
as biogas-generator; biogas cooking stove, etc. Potential
partners are Vinamilk, TH milk, CP Vietnam, etc.
Agriculture wastes
Vietnam agriculture wastes are estimated at 39 million
tonnes of rice husk and straw, 4.5 million tonnes of sugar
baggases; 75,000 tonnes of coffee skins, 0.8 million tonnes
of wood by products, etc. Opportunities are seen in
providing fermentation technology to product biogas from
agriculture waste; providing technology to produce fuel
from agriculture waste; and providing combustion
technology to produce electricity from agriculture waste.
Other wastes
Vietnamese produces approx. 13,100 tonnes of industrial
waste, 35,100 tonnes of domestic waste and 24,900
tonnes of rural household wastes per day. Vietnam faces
the challenge of disposing the waste properly and still does
not see the possibilities of turning these wastes into money.
WATER SUPPLY AND WASTE WATER
TREATMENT
Vietnam government gives high priority to water supply
and waste water treatment. The business opportunities
include:
• Provides drinking water unit for resort, hotel, hospital,
military base, vessels, etc.;
• Provides water purifiers for households in shortage or
water pollution areas;
• Provides relevant technology and equipment for water
supply projects/investors in Vietnam;
• Provide technology for converting blackish water to
drinking water;
• Technology transfer for industrial waste water treatment
projects;
• Partnership with Vietnamese partners to bid for
international funded projects;
• Local productions of relevant equipment;
• Provide technical control options for aqua-farming such
as aeration system, trickling filter, etc.
ENERGY EFFICIENCY/DEMAND SIDE
MANAGEMENT
In recent years, the Vietnam government has encouraged
supply side efficiency and demand side management, to
reduce the shortage of energy and the need for new
investment in capacity. Vietnam targets a reduction of the
peak demand of 207 MW by 2012, and 450 MW by 2015 at
day time peak load. Furthermore, the reduction of 6,000
GWh per year of the consumption are considered possible.
To promote reductions in the electricity demand, the
efficiency program is expected to set efficiency demand
standards for electricity appliances and labelling. Tariff
regulations which propose time of use (TOU) metering
creates pricing signals to reduce peak demand and energy
consumption.
Cascade rice field in Sapa (photo: Do Anh Tuan, Innovation Norway Hanoi)
We give local ideas global opportunities 2