We are ready to invest, but the project still has to wait," Mr. Tran Van The - Chairman of the Board of Directors of Indel shared with Lao Dong Newspaper about the Van Phong Energy Complex Project.
According to Mr. The, the investor wishing to implement the project in the 2026 - 2030 period has proactively worked with localities and relevant ministries and sectors. However, the project still needs more opinions on implementation time, location and scale of LNG wharves before completing the next procedures. Indel's story is not an isolated case. According to the Japan International Cooperation Agency (JICA), Vietnam's energy transition process is currently facing three major difficulties in mechanisms, policies, electricity transmission infrastructure, as well as difficulties in capital mobilization. Simply put, many businesses want to do it but cannot implement it as quickly as expected.
Meanwhile, the energy demand of the economy is not waiting. To achieve high growth, not only capital, technology or high-quality human resources are needed; to have factories operating, industrial parks expanding, and capital continuing to flow into production, first of all, there must be enough energy.
That is why energy transition is no longer a story of the future but a requirement of the present. Vietnam must both ensure sufficient electricity for growth and implement commitments to reduce emissions, green development and improve national competitiveness.
To do that, institutional bottlenecks need to be removed first.
Businesses need a clear, stable and predictable investment environment. Procedures related to planning, investment, land, construction, infrastructure and licensing need to be coordinated more synchronously between management agencies to avoid investors having to go through too many "doors". Along with that, the electricity price mechanism needs to continue to be improved in a transparent direction, reflecting market signals correctly so that investors have a basis for calculating efficiency and feel secure in investing long-term capital.
Besides electricity sources, the transmission system must also be invested ahead. If the power grid does not keep up, completed projects will also find it difficult to be effective. With biofuels and other green energy sources, it is necessary to soon complete technical standards, tax policies and consumption incentive mechanisms to expand the market.
What businesses need at this time are not investment calls. They need bottlenecks to be removed.
When procedures are shortened, mechanisms are clearer and infrastructure is more synchronized, capital flows will be unlocked. At that time, projects such as Van Phong Energy Complex will not only be the expectations of businesses, but also become an important resource for growth, energy security and the country's green development goals.
