Vietnam Assembly to Hold Off Building Nuclear Power Plant

  

It is important for Vietnam to properly re-balance the power supply. Without nuclear power, Vietnam shall need to add additional coal-fired power plants. Further, Vietnam will need to accelerate more renewable energy, including wind energy, solar energy projects and attract more investment in Vietnam in these energy sectors.

According to the National Assembly Office, the Parliament met the Minister of Industry and Trade on Nov 10th, 2016 whom will present the draft draft resolution on holding off building the first nuclear power plant in Ninh Thuan, Vietnam.

Back to history, on Nov 25th, 2009, with 382 endorsed delegates (at the rate of 77.48%), the Vietnam National Assembly has decided to approve the investment policy of Ninh Thuan nuclear power plants: Ninh Thuan Phuoc Dinh 1, located in Thuan Nam and Ninh Thuan 2 located in Vinh Hai commune, Ninh Hai district with a capacity of about 2,000 MW per plant.

Key technologies of the two plants is “light water reactor technology improvements, the most modern generation furnace, with proven, guaranteed safety and economic efficiency at the time of the project”.

Recently, there has been concerns among energy experts and Vietnamese people on a number of issues in regard to legal frameworks, technology, safety and expert resources. It appears that such concern has been listened leading to the possible decision to postpone the deadline to start the the nuclear power project. According to the new plan, the new clear power plant could be scheduled in the year 2030.

According to energy experts in Vietnam, being cautious is necessary. In order to implement the nuclear power projects, Vietnam will need to take time to prepare.

Firstly, Vietnam will need to evaluate the project, organize international tender, and implement detailed design. Such will need the help of foreign energy consulting firms to help appraise.

Secondly, Vietnam is sending 300-500 experts to Russia and Japan to study experience about managing the nuclear power plants. This training period is important to ensure the proper people are well equipped with knowledge and are capable to manage the plants and this process will take time.

Thirdly, Vietnam is negotiating with Russian factories and Japanese factory to import technology in nuclear power plants and the negotiations are still on-going.

Fourthly, number of scientists and people still fear safety problems of nuclear source especially the last two incidents at Chernobyl nuclear power plant in Russia and the Fukushima plant in Japan. Safe operation is one matter but the handling of residues is also an on-going concerns that Vietnam has to face when investing in nuclear power project.

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Vietnam Encourages Investment in Solar Power

 

The Vietnam government has stepped up to encourage investment in solar power plant and project, which is part of the effort to close the gap of energy growth demand versus supply, and support the sustainable energy development in Vietnam.

According to Decision No. 11/2017/QD-TTg issued on Apr 11th, 2017 to be effective from Jun 1st, 2017, organizations and individuals involved in the development of solar power projects are entitled to investment, tax and land incentives.

Specifically, organizations and individuals involved in the development of solar power projects can legally mobilize capital from domestic and foreign organizations and individuals to invest in the implementation of solar power projects in accordance with the provisions of current law.

Solar power projects are exempted from import duties on imported goods to create fixed assets for the project; complying with the current law on import tax and export tax on goods imported for production of projects which are raw materials, supplies and semi-finished products which cannot be produced at home.

The exemption and reduction of corporate income tax for solar power projects shall be implemented the same as for projects in the field of investment incentives in accordance with current tax law.

On land preference, the Decision stipulates that solar power projects, transmission lines and transformer stations for connecting to electricity grids shall be exempted from or reduce land use fees, land rents and water surface rents in accordance with current law applies to projects in the field of investment incentives.

Based on the planning approved by competent authorities, the provincial people’s committees create conditions for arranging land funds for investors to carry out solar power projects. The compensation and support for ground clearance shall be implemented in accordance with the current land legislation.

The decision also specifies that organizations and individuals investing in the construction of solar power projects have the responsibility to install solar power equipment must ensure the safety of structures and work safety in accordance with the current regulations.

The investment in the construction of solar power projects shall comply with the current law provisions on investment, construction, fire prevention and fighting, environmental protection and other relevant regulations.

The Vietnam laws on electricity will be changed to attract investment of the private sector, boosting the industrial development of the country, which is always hunger for power to develop.

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers have law firm in Hanoi, law firm in Ho Chi Minh City and law firm in Da Nang.

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