Localizing the renewable energy supply chain

Localizing the renewable energy supply chain is one of Vietnam's important goals in the process of developing the energy sector. According to experts, to increase the localization rate, there needs to be strong support from policies, ensuring stability and longevity to attract businesses to invest in technology research and development.

Professor, Dr. Le Chi Hiep, Ho Chi Minh City University of Technology emphasized: “To increase the localization rate, there must be policies that are attractive and stable enough for investors. Localization cannot be achieved overnight but requires a clear roadmap and guaranteed feasibility.”

In order to promote the participation of domestic enterprises in the renewable energy supply chain, the Government has issued many policies to support the development of supporting industries, encouraging and facilitating domestic enterprises to participate more deeply in the supply chain. According to Resolution No. 55-NQ/TW of the Politburo on the strategic orientation of national energy development to 2030, with a vision to 2045, Vietnam will continue to prioritize the development of renewable energy, while promoting localization programs for the production of related equipment and technology.

View of Phong Phu solar farm. Photo: GIZ

However, Ms. Truong Thi Chi Binh, Vice President and General Secretary of the Vietnam Association of Supporting Industries, emphasized that the participation of Vietnamese enterprises in the renewable energy supply chain is still very limited. Up to now, Vietnamese enterprises have participated in the supply of some wind turbine components, but the quantity is still very small. This shows that Vietnam needs a long-term strategy to develop human resources and support enterprises.

Regarding the long-term vision, according to Ms. Binh, for Vietnamese enterprises to be able to participate in the supply chain, the most important thing is the market, meaning renewable energy plants must give enterprises the opportunity to participate in this chain.

“If not participating in supplying components from the beginning for companies selling wind and solar power equipment, Vietnamese enterprises can participate in the stage of supplying replacement components. In fact, in large factories in Vietnam in many fields, replacement components purchased in Vietnam are often cheaper, better and faster than components designed by the original company. Such single components need the development of the domestic market and will be much more convenient than importing,” said the Vice President and General Secretary of the Vietnam Association of Supporting Industries.

For Vietnamese enterprises to be able to participate in the supply chain, the most important thing is the market, that is, renewable energy plants must give enterprises the opportunity to participate in this chain.
- Ms. Truong Thi Chi Binh, Vice President and General Secretary of Vietnam Association of Supporting Industries -

In order for factories that have been put into operation to be able to find domestic replacement components, according to Ms. Binh, it is necessary to have an early plan because the warranty and maintenance process will know about the plan of which components need time to replace. Therefore, from now on, the parties should sit down together to discuss which components renewable energy plants may need in the near future for early development.

In addition, according to the Power Plan VIII, in the future, the power development strategy depends heavily on renewable energy. Therefore, a long-term localization policy of the Government is needed so that from the beginning when renewable energy plants begin to be deployed, they must be responsible for localizing related components and spare parts manufactured domestically. If there is an initial strategy and a clear localization plan, it will help all parties prepare, thereby creating conditions for Vietnamese enterprises to participate in the renewable energy supply chain.

Regarding the strategy to support renewable energy enterprises from the Vietnam Association of Supporting Industries, Ms. Binh said that in the coming time, the association will work with relevant units to establish a technology map for specific fields such as solar power, onshore wind power, offshore wind power, etc. to determine which areas Vietnamese enterprises can participate in, and how the roadmap will be implemented in the future.

Regarding technical support, for the renewable energy sector, which involves a number of specific international regulations and standards and high costs, the association is supporting the provision of information. To do a good job of producing components for this industry, Ms. Binh emphasized that production capacity, especially production optimization, must be good, meaning that quality and cost must be guaranteed so that businesses can supply to these chains. Therefore, the association will also support renewable energy businesses to achieve production capacity standards so that in all circumstances, domestic businesses can meet customer requirements.

It can be said that Vietnam is on the right track in the process of sustainable energy transition, with continuous efforts in training human resources and supporting businesses to participate in the renewable energy supply chain. However, to be successful, there needs to be consensus, efforts and close cooperation between the Government, businesses and the community, while maintaining long-term support policies to create a self-sufficient and sustainably developing renewable energy ecosystem, thereby ensuring a fair and efficient energy future for everyone.

Source: https://nhandan.vn/noi-dia-hoa-chuoi-cung-ung-nang-luong-tai-tao-buoc-di-chien-luoc-tren-con-duong-chuyen-dich-xanh-post838161.html