South Korean firms seek government support for wind, gas power investment

Power plant equipment manufacturer Doosan Enerbility is willing to invest in Vietnam to help the country reach its carbon-neutral target by 2050, vice chairman Jung Yeonin told Prime Minister Pham Minh Chinh in Seoul Monday where the latter met with 50 business executives.

The company wants to supply turbines to wind power developers in Vietnam, he said.

"We are ready to provide technology transfer and training".

GS Energy is building a US$3-billion liquefied natural gas power plant in the southern province of Long An, and its chairman, Huh Yongsoo, wants support from the government so that the project can be operational by the end of this year.

Prime Minister Pham Minh Chinh (R) meets with South Korean business representatives in Seoul on July 1, 2024. Photo by Nhat Bac

Minister of Industry and Trade Nguyen Hong Dien told investors that there is large demand for investment in Vietnam’s energy sector.

The country plans to have 30,400 MW of gas-fired capacity, 75% from LNG, and 27,900 MW of wind power capacity by 2030, he said.

By 2050 it hopes to increase total capacity by eight times to 510,000 MW to meet the demand of an economy expected to grow at 6-6.5% a year, he said.

Vietnam is framing policies on liquefied natural gas prices and direct power purchase agreements, which are set to attract investors, he added.

South Korean investors also expressed interest in civilian aircraft engine maintenance.

Jung In Sub, CEO of Hanwha Aerospace, said currently Vietnamese airlines have to send their planes overseas for engine maintenance.

"We want to invest in this sector and we expect support from the Vietnamese government".

Chinh welcomed the proposal, saying that with airports such as Long Thanh, Da Nang Chu Lai and Noi Bai being built or upgraded, Vietnam would have a huge need for aircraft engine maintenance.

He also called on companies to find new areas of investment to help the two countries reach bilateral trade of US$100 billion by 2024 and $150 billion by 2030.

It had been worth $76 billion last year, making South Korea Vietnam’s third biggest partner behind China and the U.S.

Chinh and his wife are in South Korea for an official visit from June 30 to July 3 at the invitation of Prime Minister Han Duck-soo and his wife.

He has more than 30 events lined up during the visit, more than half focusing on the economy, one of the main planks of Vietnam-South Korea relations.