Illustrative image (Source: nhipcaudautu.vn)
Under Decision No. 11/2017/QD-TTg dated April 11, 2017, solar power investors have to pay corporate income tax at just 10 percent for their first 15 years of operation. They can also receive tax exemptions in the next four years and pay half tax for the next nine years.
They are also exempt from import tariffs to create fixed assets for the projects. The State will purchase all electricity produced by the projects for 2,086 VND (9.35 US cents) per kWh.
Nguyen Thu Trang, a senior sales representative of Taiwanese Big Sun Group, one of Taiwan’s leading businesses specialising in solar energy solutions, said Big Sun wants to introduce state-of-the-art solar panel trackers in Vietnam to improve the efficiency of solar power plants in the country.
Big Sun also hopes to work with local steel firms to open tracker factories to reduce production costs, she said, adding that although tracker import tax is now 0 percent, transportation costs remain high because of their weight.
Taiwan’s Neo Solar Power Corp (NSP) is also working with Vina Solar Technology Co., Ltd of Vietnam on a big solar energy project.
Tim Sun, a representative of NSP, said the cooperation is NSP’s first step to increasing its presence in Vietnam and that the company will consider expanding its affiliation with Vina Solar while seeking other Vietnamese partners.
LTI ReEnergy, another Taiwanese group specialising in inverter technology, is also considering entering Vietnam.
LTI ReEnergy General Director Tom Wang said he will visit Vietnam early next year to explore the market, noting that he wants to introduce inverter technology, an advanced technology helping reduce energy losses, in the country.
Alen Wu, a representative of Motech Industries, Taiwan’s largest solar cell manufacturer, said the company is also cooperating with Vina Solar and will seek more Vietnamese partners to benefit from the country’s friendly business policies.
According to the Foreign Investment Department under the Ministry of Industry and Trade, Vietnam has 16 foreign direct investment projects in green energy with total registered capital of 778 million USD, of which solar energy projects are valued at 137.38 million USD.