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Delegates talk with Jana Herceg, deputy head of the Economics and Trade Section at the Delegation of the EU to Vietnam, on the sidelines of the seminar in HCMC on June 18 - PHOTO: DUC TAM

HCMC – Investors in the renewable energy sector in Vietnam will enjoy incentives for equipment imports and electricity sales after a free trade agreement (FTA) between the European Union and Vietnam is signed, heard a seminar in HCMC on June 18.

At the seminar on the impact of the FTA on green growth, Jana Herceg, deputy head of the Economics and Trade Section at the Delegation of the EU to Vietnam, said the FTA covers the development of sustainable energy sources and requires equal treatment for companies in the renewable energy sector and gradual tax reductions to 0% for green technology equipment.

According to Herceg, negotiations over renewable energy ran into trouble at first but both sides have virtually agreed on all major issues in this field.

It is expected that negotiations over the much-awaited FTA would end this autumn, Herceg told the seminar, which was organized by the European Chamber of Commerce in Vietnam (EuroCham).

After such talks are concluded, the two sides will need four to six months to prepare for the official signing of the FTA, Herceg said. She added that contents of the FTA need to be translated into 24 languages.

Robert Kramreiter, general director of Future Technology Vietnam Co. Ltd., said it was good to hear that renewable energy investment and trading to be included in the FTA and major problems have been solved.  

Kramreiter hoped investors of renewable energy projects would be allowed to sell their electricity directly to buyers instead of through Vietnam Electricity Group (EVN) to save time and avoid risks.

Regarding renewable energy promotion, Christoph Schill, deputy head of the Green Growth Business Sector Committee at EuroCham, proposed lifting unnecessary controls to boost renewable energy development, drawing up a road map for power price adjustments, issuing supporting policies and incentives, and providing support for individuals or organizations investing in renewable energy for their own use.  

The recommendations will be added to the next White Book of EuroCham, according to Schill

http://english.thesaigontimes.vn/41523/EU-Vietnam-FTA-to-benefit-renewable-energy-investors.html