Samsung Electronics Requests Vietnam Government Support for Direct Renewable Energy Purchase

(Photo by Vietnam Ministry of Industry and Trade)

[Asia Economy Reporter Jeong Hyunjin] Samsung Electronics has requested the Vietnamese government to support direct purchases of renewable energy from suppliers.

According to the Vietnamese Ministry of Industry and Trade and Japan's Nikkei Asia Review on the 4th, the Vietnamese Ministry of Industry and Trade announced that on the 29th of last month, it met with Choi Juho, Vice President and Head of Samsung Electronics' Vietnam Complex, and received such a request. Nikkei Asia Review explained that if the Vietnamese government approves this, Samsung Electronics will be able to sign a Direct Power Purchase Agreement (DPPA) to receive electricity directly from suppliers without going through the state-owned Vietnam Electricity.

The Vietnamese government has been promoting the introduction of a DPPA policy for several years, allowing companies to receive 100% renewable energy directly from private suppliers. Recently, pilot projects for solar and wind energy have begun, but progress has been slow. In December last year, global fashion companies from Nike to Mulberry sent a letter to the Vietnamese government urging faster approval.

Samsung Electronics' request appears to be part of its efforts to expand the use of renewable energy. Samsung Electronics achieved its goal of using 100% renewable energy at all business sites in the US, Europe, and China by last year, a target announced in 2018. Nikkei Asia Review also reported that Samsung C&T faced criticism last year when news emerged of its investment in a coal-fired power plant in Vietnam.

During the meeting with Vice President Choi, the Vietnamese government requested Samsung Electronics to continue investing in Vietnam while also urging Vietnamese companies to expand their participation in Samsung's supply chain. The Vietnamese Ministry of Industry and Trade acknowledged Samsung's significant contribution to Vietnam's economic development and expressed hope that cooperation between both sides will continue in the future.

Samsung Electronics currently operates mobile phone factories in Bac Ninh and Thai Nguyen provinces in northern Vietnam and began constructing a large-scale research and development (R&D) center in Hanoi last year. The R&D center is scheduled to be completed in 2022, and the research staff at the currently operating Samsung Vietnam Mobile Research Center (SVMC) is planned to increase from 2,200 to 3,000.

This content was produced with the assistance of AI translation services.