Vietnam has achieved an impressive growth in the solar and wind energy sectors in the recent years, showing the high potential of using renewable electricity to address the energy demand.
According to the Government, before the Prime Minister Pham Minh Chinh’s visit to the UK, British Consul General in Ho Chi Minh City, Ms. Emily Hamblin, British Commercial Director in Vietnam showed lots of expectations for the future bilateral relations of the two countries, as well as the development potentials and investment opportunities in Vietnam in the upcoming time. Together with Vietnam’s efforts in controlling the COVID-19 pandemic, it is affirmed: Prime Minister Pham Minh Chinh’s visit will strongly promote the development of Vietnam – UK relations.
Vietnam becomes the largest solar market in Southeast Asia
What do you think about Vietnam’s efforts in transitioning to a low-carbon economy and responding to climate change?
Ms. Emily Hamblin: I appreciate Vietnam’s recent encouraging efforts in transitioning to a low-carbon economy and adapting to the negative impacts of climate change, through the goals of increasing the proportion of renewable energy in the overall energy planning of Vietnam. But we also expect more positive actions, especially in the context that Vietnam belongs to the group of countries vulnerable to high temperatures and extreme weather events.
Prime Minister Pham Minh Chinh’s attendance at the COP26 World Leaders Summit in Glasgow, Scotland along with Vietnamese ministers and businesses has demonstrated Vietnam’s determination in participating in the international commitments on green energy and sustainable development.
More than 130 world leaders will gather in Glasgow for COP26, an important international event for a common goal of reducing greenhouse gases and climate change. The latest report released by the Intergovernmental Commission on Climate Change has outlined a ‘red code’ for humanity, suggesting that the average world temperature is likely to increase by 1.5 degrees Celsius in the next one or two decades if we do not take immediate action. Now is the time for every country to commit to its Net-Zero goals and work towards investing in clean and sustainable infrastructure.
We also recognize the challenges during the transition to clean energy, especially in the context of Vietnam facing population growth and domestic energy demand.
In the meeting of the Council on Energy Transition, we discussed with Vietnam the accelerated transition to renewable energy from fossil energy, and worked with development partners and multilateral banks to secure the financing for the transition projects.
Developed countries are committed to financially supporting $100 billion each year for measures fighting against climate change and advocating the energy transition. We encourage Vietnam to use this capital in strengthening the power grid and investing in green infrastructure.
Vietnam has achieved an impressive growth in the solar and wind energy sectors in the recent years, demonstrating the high potential of using renewable electricity to address the energy demands.
Vietnam has now surpassed Thailand to become the largest solar market in Southeast Asia. And we also expect even bigger potential opportunities to come in the wind power sector.
The UK is the country with the largest installed offshore wind capacity in the world and we believe that with our expertise, we can fully support Vietnam in developing these potential opportunities.
COVID-19 is a strong reminder
The COVID-19 pandemic has made a significant impact on the global investment environment (supply chain disruptions, capital transfers, etc.). Can you share some thoughts on Vietnam’s post-COVID-19 investment environment? In your opinion, what are the important trends or demands (from investors) that Vietnamese policymakers should pay attention to?
Ms. Emily Hamblin: The recent outbreak of Delta variant is a huge challenge for not only Vietnam but the whole world and I am extremely pleased to see the positive signals from the reduced number of cases and restrictions. I am also glad to know that the UK can partner with Vietnam in the fight against COVID-19.
This week we have funded Vietnam with £500,000 worth of necessary medical equipment in addition to the 415000 doses we provided in August 2021, and our continued support in supplying the vaccine to Vietnam as the leading sponsor for COVAX.
Vietnam’s efforts in controlling the COVID-19 pandemic will create many opportunities to attract new and diverse foreign investment sources, while making the economy get adapted to the variable priorities of foreign investors.
In particular, foreign investors expect a transparent and consistent regulatory environment, and of course potential investors are eager to visit Vietnam as soon as travel services come back to normal operation.
Besides, I believe that foreign investors including UK companies are becoming more and more conscious of environmental and climate issues in their investment commitments.
COVID-19 is a powerful reminder of the fragility of international supply chains. And so international cooperation is needed to mitigate future risks. In particular, climate change will increasingly cause environmental instability, natural disasters and epidemics leading to disruptions to global trade and investment unless we take internationally significant actions.
I am happy to see an increasing number of companies are taking actions on climate change and committing to the ambitious global agenda Net-zero in their investment decisions
Vietnam – UK trading has grown impressively
What is your viewpoint about the trading and investment relations between Vietnam and the UK?
Ms. Emily Hamblin: Despite the recent challenges of COVID-19, Vietnam-UK trading continues to grow. And I am also very impressed that despite the difficulties of the pandemic, in the first 10 months of 2021, newly registered FDI capital has increased by 11.6%, and the real capital reached more than 15 billion USD.
This shows that Vietnam is considered as an investment destination and there are significant opportunities here for foreign investors, including UK companies.
Prime Minister Pham Minh Chinh’s visit to the UK represents a strong strengthening in the bilateral relationship between the UK and Vietnam. Since last year, the Vietnam – UK Strategic Partnership has achieved important milestones.
On the commercial side, we are delighted to have signed the UK Vietnam Free Trade Agreement (UKVFTA) by the end of 2020.
Vietnam is the UK’s 35th largest trading partner. We highly appreciate this relationship as a great potential for growth for the sake of both countries. The bilateral trading between the two countries had trippled in the period 2010-2019.
In 2020, due to the impact of the COVID-19 epidemic, the bilateral trading between Vietnam and the UK reached $5.6 billion dollars. I am very happy because in the first 6 months of this year, right after the UKVFTA was signed and took effect, the bilateral trading turnover between Vietnam and the UK has witnessed an impressive development with a growth rate of 19% per year compared to the same period in the previous year– despite the challenging situation of COVID-19.
Increased opportunities for Vietnamese agricultural products’ exportation to the UK market
In your opinion, which industries or fields of the two countries has great potential for future cooperation?
Ms. Emily Hamblin: The signing of UKVFTA demonstrates a shared commitment in the further development of the bilateral trading partnership, which brings great mutual benefits to both countries. Accordingly, 65% of all taxes have been eliminated on Vietnam-UK trading and this figure will increase to 99% before the full implementation of the FTA.
Opportunities to export Vietnamese agricultural products to the UK market are increasing. At the same time, many UK businesses are looking for more export and investment opportunities in Vietnam, especially in areas related to our strengths such as providing digital and high-tech solutions together with supporting sustainable development and green growth in a low-carbon economy.
And we see great potentials for increasing the bilateral partnerships in areas such as renewable energy, smart infrastructure, healthcare and education.
In the future, we are committed to strengthening economic cooperation with ASEAN region, especially with the UK’s new role as ASEAN Dialogue Partner.
Joining the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) is one of the top priorities of the UK Government, as we look to maximize our opportunities as a new independent trading country, and will help to promote trading with CPTPP countries including Vietnam.
In regards of the situation, we are pleased that Vietnam has shown support for the UK’s accession to the CPTPP. Joining the CPTPP will also help to further strengthen the bilateral trading relationship between Vietnam and the UK through additional commitments to the terms of UKVFTA.
Source: bnews.vn
