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COMPLETION OF LAWS TO IMPROVE THE EFFECTIVENESS OF ATTRACTING AND SUPPORTING THE INVESTMENT OF RENEWABLE ENERGY
Through participation in the United Nations Framework Convention on Climate Change - UNFCCC (1992), successfully signing in the Just Energy Transition Partnership - JETP (2022), participating in new generation FTAs in the fields of investment, trade, and energy, Vietnam is expected as a new destination for RE investment. However, the investment in RE field has not been attractive and effective due to the lack of synchronous, clear, and stable mechanisms, policies, and laws. Thus, by the experience gained in the practical legal consulting process, in this Article, the author points out several legal issues and barriers of attracting and supporting the RE investment activities in Vietnam, thereby giving suggestions for completion of policies and laws to improve its efficiency.
Vietnam is facing to the climate change issues in their process of economic development as the same as many other countries in the world. Recognizing the impact of climate change on the economy, since 2013, the Central Executive Committee of Vietnam has declared the dual mission of economic development and combating climate change in the Resolution No. 24-NQ/TW. Vietnam has joined the United Nations Framework Convention on Climate Change “UNFCCC (1992)”, thereby made the commitment to achieve net-zero emissions by 2050 at the 26th Conference (COP 26) and continuously affirm this commitment at COP 27 and COP 28.
To realize the international commitments at COP 26, the Prime Minister approved the National Strategy on Green Growth for the period 2021-2023, vision 2050 and the National Strategy on Climate Change period toward 2050, in which the key solution is to promote circular economy, green economy and RE development. The year 2022 marks an important historical milestone when Vietnam successfully signed the Political Declaration establishing the Just Energy Transition Partnership (JETP) with the international partner group (IPG), through JETP, many countries as Canada, France, Germany, Italy, Japan, the United Kingdom, the United States, the European Union, Denmark and Norway will help Vietnam to realize its goal to net-zero by 2050.
With international commitments and national strategies regarding RE development, Vietnam has attracted international attention to its potential and investment opportunities in RE sector, in the context that the Country itself has a great need to mobilize financial resources, technology and international experience to RE sector. However, in the process of investing and providing legal support to investors and State agencies in RE field, we realize that foreign investors still consider investing in RE in Vietnam for reasons related to policy and laws. Therefore, although there is a great need and potential to attract foreign investment in RE field, Vietnam has not yet fully exploited its opportunities and strengths. This problem is challenging Vietnam to reach the international commitment to Net zero by 2050 and the national strategic of green growth.
Authors: LLM., Lawyer Nguyen Thanh Ha - Vice Director of Vietthink Law Firm, Vietnam
*This article is published on Vietnam Lawyer Journal, March 2024 Edition, Page 33-35, “Research, Discuss” Section. References:
- Difficulties and barriers on attracting and supporting the foreign investors to invest in RE field
- Suggestions for completion of policies and laws to improve the effectiveness of attracting and supporting foreign investment in RE field
Authors: LLM., Lawyer Nguyen Thanh Ha - Vice Director of Vietthink Law Firm, Vietnam
*This article is published on Vietnam Lawyer Journal, March 2024 Edition, Page 33-35, “Research, Discuss” Section. References:
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- Thanh Nhan Koh, Asya Jamaludin, Lynette Chew (2024). Renewable energy in Vietnam. CMS Expert Guide to renewable energy, updated on 22 February 2024. Access: https://cms.law/en/int/expert-guides/cms-expert-guide-to-renewable-energy/vietnam
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- PhD. Le Thi Nguyet Chau, LLM. Nguy Ngoc Anh – LLM. Tran Vang Phu -LLM. Pham Tuan Kiet (2020). Proposal to complete regulations on tax incentives for renewable energy production projects. Industry and Trade Magazine - Results of scientific research and technology application, No. 13 June 2020. Access: https://tapchicongthuong.vn/bai-viet/kien-nghi-hoan-thien-quy-dinh-ve-uu-dai-thue-doi-voi-du-an-san-xuat-nang-luong-tai-tao-73721.htm
- Doan Hong Nhung, Nguyen Thanh Hai (2022). Laws on encouraging investment in green energy, clean energy, and renewable energy in Vietnam. Hanoi National University Publishing House, page 17, Hanoi. Access: https://tapchicongthuong.vn/bai-viet/hoan-thien-phap-luat-ve-dau-tu-nang-luong-xanh-nang-luong-sach-nang-luong-tai-tao-o-viet-nam-66654.htm
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