Today: 11/12/2023 19:36:37 (GMT+7)

Swiss Investment Fund provides 20 million USD to support renewable energy development in Vietnam

Switzerland’s responsAbility has continued its support by providing a loan package worth 20 million USD to Vietnam’s CME Solar Investments (CME) to develop renewable energy projects in the Southeast Asian country.

A virtual signing ceremony for the long-term senior secured debt financing contract was held recently.

The 20 million package is the second investment of responsAbility into the CME Solar facility, bringing the fund's total investment in CME to date to 32 million USD and positioning it as the largest investment into non-financial institution in Vietnam as of 2023.

Swiss Investment Fund, 20 million USD, renewable energy development, Vietnam, CME Solar Investments, largest investment

A solar power project installed by CME Solar Company at Hong Hai Foxconn Company in Bac Giang Province.

Previously, the first investment from responsAbility in 2021 was effectively implemented by CME, including a 31.5MWp rooftop solar project installed at Foxconn factory in the provinces of Bac Giang and Bac Ninh. The high-quality project saw fast implementation and was completed in just 3 months with advanced N-type PV technology.

With the new support in 2023, CME will continue to implement a series of projects, with a focus on increasing investment and development of commercial and industrial (C&I) solar initiatives across various sectors in Vietnam, covering manufacturing, electronics, food and beverage, and textiles, while expanding its reach to Southeast Asia.

Chung Dieu Tuan, CEO of CME, expressed optimism about the market outlook, highlighting the growing need for rooftop solar installations in Vietnam’s FDI manufacturing domains, especially electronics/semiconductors, textiles, and global MNC consumer sectors.

With the support of the Vietnamese government, Tuan also affirmed that the growth potential of the rooftop solar energy industry in Vietnam will continue to develop further in the next decade.

With the new long-term loan from responsAbility, CMES's goal is to install 50MWp of solar power, contributing to reducing 51,200 tons of CO2 emissions per year, while allowing end-users to claim around 70,000 Renewable Energy Certificates (REC), contributing to achieving the Government and UN's Net Zero targets towards a more sustainable and eco-friendly future.

A representative from responsAbility said that the 20 million USD investment into CME is a clear demonstration of the strong commitment to cooperation in sustainable energy development.

Building on the success of the first phase, the Swiss investment fund has expressed its belief that a strong partnership can help reduce barriers to green financing. It is also highly optimistic about Vietnam's solar sector, especially among C&I off-takers – who are increasingly focused on minimising operational costs.

Positive outlook for Vietnam’s foreign investment attraction
Vietnam’s foreign investment attraction will see a positive outlook in the coming time as efforts have been made to improve investors’ trust in the country, said director of the Ministry of Planning and Investment’s Foreign Investment Agency (FIA) Do Nhat Hoang.
Vietnam lures over 16 billion USD in foreign investment
As of July 20, total newly-registered capital, additional capital, and capital contributions and share purchase by foreign investors stood at nearly 16.24 billion USD, up 4.5% compared to the same period of 2022 and 8.8% compared to the first half of the year.
Alibaba to double investment in Vietnam, the global business-to-business e-commerce platform of Chinese tech giant Alibaba, will double its investment in emerging manufacturing centers in Vietnam and additionally hire hundreds of employees.
Vietnam lures over 16 billion USD in foreign investment in 7 months
Vietnam attracted approximately 16.24 billion USD in foreign direct investment (FDI) from the beginning of this year to July 20, up 4.5% year-on-year, according to the Foreign Investment Agency under the Ministry of Planning and Investment.
Bac Giang lures 1.5 billion USD in investment in seven months
Bac Giang province ranked second among provinces and cities nationwide in terms of FDI attraction in the first half of the year, after only the capital city of Hanoi.

Source: NDO

Swiss Investment Fund, 20 million USD, renewable energy development, Vietnam, CME Solar Investments, largest investment
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