Electronics giant Samsung Vietnam has proposed that the Vietnamese government facilitate its enhancing the use of more renewable power for production in Vietnam at reasonable costs.

Choi Joo Ho, general director of Samsung Vietnam, a subsidiary of South Korean conglomerate Samsung Electronics, made the proposal at a meeting with Vietnamese Deputy Prime Minister Tran Hong Ha in Hanoi on Monday. 

Choi highly appreciated the Vietnamese government for recently enacting the Decree on Direct Power Purchase Agreement (DPPA), which allows businesses in Vietnam to purchase electricity directly from private renewable energy producers, enabling them to power their operations with 100 percent renewable energy. 

The new policy not only satisfies the needs of businesses but also contributes to Vietnam’s efforts to achieve net-zero emissions by 2050, Choi said.

Choi expressed his hope that the government will create more favorable conditions so that Samsung Vietnam could increase the use of renewable power under the DPPA at rational costs, thereby contributing to the realization of the nation’s carbon-neutral goal.

Choi also informed that Samsung Vietnam currently has six manufacturing plants and one research and development center in the Southeast Asian country, with an accumulated investment of US$22.8 billion. 

The company’s export earnings reached $33.5 billion over the first seven months of this year, up five percent year on year. 

After the DPPA launch, the prime minister directed the Ministry of Industry and Trade to promptly issue criteria for selecting renewable energy projects that are qualified to be connected to the national grid, as a move to promote the use of clean energy in production activities, Deputy PM Ha said.

He stressed that Vietnam always accompanies and encourages businesses to promote green transformation and reduce carbon emissions by promulgating regulations on emission limits, carbon credit markets, carbon tax policies, green finance, and land-related incentives, among other fields. 

Ha assigned the Ministry of Industry and Trade, Vietnam Electricity, and relevant ministries to continue working with Samsung Vietnam on the company’s request for support in boosting the use of renewable energy in its operations.

The official urged foreign businesses, including Samsung Vietnam, to continue making practical proposals and recommendations to address challenges in implementing the DPPA, with the goal of operating Vietnam's electricity market under a full market mechanism.

He also praised Samsung Vietnam's significant and pioneering role in fostering economic cooperation between businesses in Vietnam and South Korea, as well as the broader relationship between the two countries.

The official encouraged Samsung to continue investing in research and development centers in Vietnam and to promote technology transfers to Vietnamese businesses, particularly in emerging industries such as semiconductor chips.

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