Ninh Thuan Investment Conference: VND 22,500 Billion for Future!

Ninh Thuan Investment Conference: VND 22,500 Billion for Future!

Ninh Thuan Province in Vietnam plans to make significant investments in various sectors to promote local economic growth and expand social infrastructure. Comrade Truong Van Tien, Director of the Center for Investment, Trade and Tourism Promotion, recently spoke at a conference aimed at bringing together investors and companies to discuss cooperation opportunities. The focus of the conference is on infrastructure investments, industrial parks, renewable energies as well as the development of technical infrastructure and clean water supplies for industry and rural agriculture.

According to vietnam.vn Vietnam Development Bank (VDB) will introduce a new lending mechanism tied to government decrees. This should enable companies to benefit from an attractive loan interest rate of 6.9% per year in 2025. The repayment terms are flexible so that companies can agree on appropriate terms and debt extensions. In addition, there will be a maximum credit limit of VND 12,000 billion per company and VND 20,000 billion per customer group.

Financing and goals until 2025

VDB has already signed 31 new loan agreements with a total amount of VND12,243 billion and disbursed VND3,137 billion by the first quarter of 2025. For Ninh Thuan province, a total loan capital of VND 5,000 to 10,000 billion is targeted, although it remains unclear how the VND 22,500 billion for social investments will be raised by 2025. The projects that will be prioritized include social infrastructure, renewable energy, seaports, industrial parks as well as clean water supply and social housing.

A significant highlight of the projects in the region is the development of renewable energies. Solar energy projects with a total output of 1,974 MW and wind energy projects with 1,039 MW are already being planned. In addition, the Ca Na liquefied natural gas project will take place, which is targeting an output of 1,500 MW. These measures are part of the comprehensive plan to increase local economic growth to 13-14% by 2025.

Renewable energies and international cooperation

As part of international cooperation, the Japan International Cooperation Agency (JICA) signed a project financing loan agreement with BIM Wind Power Joint Stock Company on December 20, 2022. The loan of up to US$25 million is intended for an onshore wind power project in Ninh Thuan. With a capacity of 88 MW, the project will help reduce annual carbon dioxide emissions by approximately 215,000 tonnes.

A partial financier of this project is the Asian Development Bank (ADB). Given the increasing demand for electricity in Vietnam, which is expected to increase by 9.1% annually between 2020 and 2030, the wind power project represents an important step towards sustainable energy production. The Vietnamese government has set a target of generating 15-20% of electricity generation capacity from renewable sources by 2030. This also includes 6,000 MW from wind power projects, while the government aims to reduce greenhouse gas emissions.

The recurring issue of financing poses a challenge to renewable energy adoption, particularly in Vietnam. At this point, the BIM Wind Power Joint Stock Company project could serve as a model case for future privately owned wind power projects. In doing so, it contributes to achieving the United Nations' Sustainable Development Goals (SDGs), particularly with regard to affordable and clean energy and climate protection.

In summary, it shows that Ninh Thuan is on a promising path to not only achieve its economic goals, but also to make a sustainable contribution to energy supply and climate protection.