Rooftop Solar Power Accelerates Ho Chi Minh City Green Economy

Green Economy Ho Chi Minh City is rapidly becoming a critical focus for sustainable urban development. Experts convened on April 18, 2023, to discuss the imperative of clean and renewable energy, particularly rooftop solar power, as a foundational element for this economic transformation. This strategic shift is vital for fostering sustainable growth, reducing environmental impact, and enhancing the city’s overall resilience. The consensus from the “Building and Developing a Green Economy in Ho Chi Minh City” meeting highlighted that adopting clean energy solutions is not merely an environmental choice but an economic necessity, positioning Ho Chi Minh City as a leader in national green growth.

Meeting on Green Economy in HCMC

The “Building and Developing a Green Economy in Ho Chi Minh City” meeting brought together a diverse group of stakeholders, including government managers, prominent scientists, academic researchers, and leaders from key industry associations such as the Ho Chi Minh City Plastics Association and the Handicraft and Wood Industry Association of Ho Chi Minh City. Business executives, institute experts, and media representatives also participated, reflecting broad interest in the city’s sustainable future. Discussions centered on the current state and urgent need for developing a green economy in Ho Chi Minh City. Delegates explored detailed roadmaps for green economic development and outlined specific targets for the city’s green economy program. Business representatives further enriched the dialogue by presenting innovative initiatives and practical solutions aimed at establishing a robust green economy in Ho Chi Minh City.

Scenery of the Meeting “Building and Developing a Green Economy in Ho Chi Minh City”

Role of Solar Power in HCMC’s Green Economy

Pham Nam Phong, Chairman of Vu Phong Energy Group’s Board of Directors, a company renowned for nearly 15 years of clean energy development and recognized as a leading professional solar developer in Vietnam, emphasized the critical benefits of deploying clean and renewable energy sources, especially rooftop solar power in HCMC. He highlighted its necessity for cultivating a green economy in Ho Chi Minh City. Mr. Pham Nam Phong asserted that embracing solar power offers an effective strategy to significantly reduce greenhouse gas emissions and establish a low-carbon, green economy in Ho Chi Minh City, given that the energy sector currently contributes approximately 30% of total emissions. Ho Chi Minh City possesses substantial untapped potential for transitioning to renewable energy. As of late 2022, the installed capacity of rooftop solar power in HCMC stood at a mere 358 MWp, a figure dwarfed by the estimated technical potential exceeding 5,000 MWp. Furthermore, the high demand for load balancing means that developing rooftop solar power in Ho Chi Minh City alleviates pressure on the existing power grid. Instead, it boosts on-site power generation, increases the supply capacity for the city’s power system, and is crucial for meeting Ho Chi Minh City’s continuous growth requirements, where a 1% GDP growth typically translates to a 1.5% increase in electricity consumption, equating to an annual energy consumption rise of at least 10%.

Mr. Pham Nam Phong – Chairman of Vu Phong Energy Group’s BOD – shared at the Meeting

HCMC’s Transition to a Green Economy

Leading enterprises in Ho Chi Minh City are increasingly driving green growth and sustainable development through renewable energy solutions. This global trend sees major corporations mandating green practices across their supply chains, compelling businesses to adopt clean energy to secure orders and enhance competitiveness. Mr. Pham Nam Phong underscored the importance of proactive engagement and support for enterprises in their clean energy transition and greenhouse gas emission reduction efforts, which directly contribute to the development of a green economy in Ho Chi Minh City. He further emphasized that developers and investors, including Vu Phong Energy Group, are fully equipped to assist companies in reducing emissions through the implementation of rooftop solar power systems. Through flexible collaboration models, such as the innovative Power Purchase Agreement (PPA) model pioneered by Vu Phong Energy Group, businesses can access solar power without initial investment in system installation, simply by utilizing available factory roof space. This allows businesses not only to harness clean energy for emission reduction but also to achieve significant monthly electricity bill savings by purchasing power at rates lower than current grid prices. Upon the agreement’s conclusion, the solar power system is transferred to businesses at no cost (0 VND), with a guaranteed performance of over 80-90% upon transfer, depending on specific conditions. This advantageous approach currently underpins approximately 80% of the rooftop solar power projects that Vu Phong Energy Group develops for enterprises. Vu Phong Energy Group actively collaborates with diverse industrial enterprises across various sectors to minimize emissions and advance sustainable development via the PPA model, partnering with prominent corporations like Vinamilk, Duy Tan, Kem Nghia, and Dong A Plastic. Notably, several of these installed systems have garnered prestigious international energy awards.

Businesses that use rooftop solar power will contribute to reducing greenhouse gas emissions and promoting a low-carbon, green economy

Mr. Pham Nam Phong expressed his belief that Ho Chi Minh City’s proposal to the Government, advocating for the deployment of rooftop solar power systems on the premises of administrative agencies and public service units under the City’s jurisdiction, is a crucial step. By leveraging private funding sources alongside the City’s Budget, similar financial solutions can effectively overcome financial impediments. During the meeting, Mr. Phong also urged Ho Chi Minh City to champion carbon neutrality in construction projects, particularly for buildings. With Government Decree 06/2022/ND-CP (issued January 7, 2022) already mandating specific greenhouse gas inventory and reduction requirements for each sector, establishing carbon neutrality targets for buildings and facilities would provide strong motivation for businesses to reduce their emissions. He further mentioned that Vu Phong Energy Group is currently investing in a Renewable Energy Equipment Manufacturing and Research Center Project in Saigon Hi-Tech Park (SHTP). This initiative focuses on cutting-edge solutions for maximizing natural resource utilization, minimizing energy consumption, increasing green spaces, and implementing rainwater harvesting and reuse strategies to ensure carbon neutrality in building design. To support companies in reducing emissions and achieving carbon neutrality, Vu Phong Energy Group is dedicated to providing innovative solutions and expertise. This strategic direction aligns with global efforts towards promoting sustainable business development.

The perspective of Vu Phong Energy Group Renewable Energy Equipment Manufacturing and Research Center Project in Saigon Hi-Tech Park, Ho Chi Minh City

The establishment and advancement of a green economy in Ho Chi Minh City necessitates substantial resources and unwavering commitment from all stakeholders. Crucially, this includes robust collaboration between governmental bodies and both state-owned and private enterprises. By collectively implementing diverse solutions, Ho Chi Minh City can achieve high efficiency in forging a green economy and confidently lead the nation’s trajectory toward green growth and sustainable development.