Hanoi, Vietnam. September 2020 — Ian Nguyen, Managing Director of Delta Offshore Energy which is the lead developer in a world-class consortium to the game-changing 3.2GW LNG-to-power IPP in Bac Lieu Province, Vietnam, was honored to be invited as the first investor to speak in the timely seminar on IPP investments in Vietnam chaired by H.E. Hoang Quoc Vuong, Vice Minister of the Ministry of Industry and Trade (“MOIT”) cum Deputy Chairman of the National Steering Committee for Power Development in Vietnam and hosted at the headquarters of national utility Vietnam Electricity Group (“EVN”).
Ian Nguyen’s presentation immediately set the theme for the seminar and received a lot of attention by the government officials as well as other industry investors present. Many of the speakers later continued to echo support to Ian’s presentation thus confirming the points raised in his presentation as being fundamental prerequisites for Vietnam to enable and attract more affordable international financing.
During his speech at the event, Mr. Hoang Quoc Vuong, the Vice Minister of Industry and Trade, spoke about Vietnam’s vision of the future. Specifically about how they are taking action to stay “one step ahead of the electricity/power needs of Vietnam” to ensure growth in the country’s socio-economic development for the next decade.
“The electricity industry has taken steps of rapid development and is increasingly modern, basically ensuring supply. enough electricity to serve the socio-economic development needs of the country, the daily life of the people, and contribute to ensuring security and national defense.” —Hoang Quoc Vuong
According to industry numbers, Vietnam’s energy production has increased tenfold from 1990 thru 2019. Electricity demand has grown at an average rate of 10.1% per year since 2010, and conservative estimates place the demand increase at 7.5 to 8 percent per year for the next decade.
This alignment between the state and market creates opportunities for private investors in this country’s energy sector.
Despite COVID 19, the Government of Vietnam continues to move forward with the development of the Energy Sector. Delta Offshore Energy is pioneering a new approach to developing power generation projects under Vietnam’s investor-friendly Law on Investment shortening the negotiation time frame from 7 – 11 years as seen in previous BOT projects to less than one year as an IPP. Thanks to the support by the Prime Minister of Vietnam to award a fast-track administration for this project of national importance which is paving the way for the future of energy generation in the coming decades. In particular, this project will address energy security for the Mekong Delta which is facing an electricity shortage of 20% as reported by MOIT, and will ensure the socio-economic development of Bac Lieu province.
The project is being implemented by The “A-TEAM” in LNG to Power, a consortium of American and European companies under a unique IPP mandate as the first mover of a Foreign Direct Investment in LNG to Power.
According to Ian Nguyen, “Vietnam has the right ingredients to be successful in attracting international capital. Vietnam is the fastest growing economy amongst key Asian peers. Vietnam is immensely successful in attracting FDI. Vietnam continues to modernize through industrialization and a greater service-oriented economy.”
The 3.2GW LNG-to-power project in Bac Lieu continues to progress at a world record pace. This project is expected to complete its development phase within 12 months from the granting of the Investment Policy Decision (“IPD”) and the Investment Registration Certificate (“IRC”) issuance to start implementation in 2021 including Financial Close.
Despite the COVID pandemic, travel limitations, economic recessions, and volatile financial markets globally, Vietnam and the Bac Lieu LNG-to-Power project continue to defy the odds. Both the country and the project serve as a shining example to the world of successful navigation through this challenging period and showcase there is hope and a brighter future.