The wind and solar power projects in the communes of Loi Hai and Bac Phong (Thuan Bac) of Ninh Thuan province. (Photo: Minh Hung / VNA)

According to the article, Asian Development Bank data shows that Vietnam’s economy has grown 6 percent or more every year since 2014, topping 7 percent in 2018 and 2019. This rapid growth is driving up energy consumption at an extraordinary rate.

In 2017, Vietnamese regulators authorized EVN to pay an attractive rate of 9.35 cents/kilowatt hour to purchase solar power from independent producers. This type of feed-in tariff, proven to be an effective inducement for renewable energy, is part of Vietnam’s effort to be seen as a friendly investment destination. The government is aware that Vietnam will need large capital inflows to underwrite its breakneck pace of economic growth.