VIETNAM’S OIL AND GAS INDUSTRY CONTINUES TO GROW

Vietnam oil and gas industry has a great potential as it plays a vital role in Vietnam’s industrial development.

According to a report by the Vietnam Ministry of Industry and Trade, oil production in Vietnam in April 2015 reached 1.5 million tons, up 7.2% from the last year’s figure. Gas production reached 0.9 billion cubic meters (+1.8%), and production of liquefied petroleum gas (LPG)—60.3 thousand tons (+2.9%). During the same period of time, Vietnam produced 6.1 million tons of oil (+8.9%) and 3.5 billion cubic meters of natural gas (+1.6%). In contrast, the amount of liquefied petroleum gas produced fell by 12.2%, down to 241.3 thousand tons. The country produced 12.5% more petroleum products, some of which saw greater production rates than the average for the industry. Over the 4 months of 2015, the country produced 2.26 million tons of petroleum products, the source reported. According to the Vietnam Ministry of Industry and Trade, the overall performance of the oil and gas industry is in line with the targets set out for the sector.

Opportunity for oil and gas equipment, service and distribution enterprise to set-up business and invest in Vietnam has been predicted positive.

Vietnam’s expanding offshore exploration and production have created steadily growing market for offshore oil and gas equipment and service. In general, suppliers of oil and gas equipment and service are quite competitive in the upstream and midstream sub-sectors where advanced technologies and reliability are strict requirements. Offshore enterprise will find significant opportunity for exporting their equipment and services in Vietnam with many offshore oil and gas exploration and production projects, as well as several gas pipeline projects. The number of projects is likely to increase substantially over the next few years as PetroVietnam awards new oil and gas blocks to foreign oil and gas companies.

A quick overview of Vietnam oil and gas industry

Vietnam’s oil and gas industry is currently the country’s biggest foreign currency earner and a major procurer of imported technology. Since the first export shipmentin April 1987, crude oil has earned over US$17 billion for Vietnam. The oil and gas industry contributes US$1 billion to Vietnam’s State budget every year. The rapid expansion of Vietnam’s economy has fueled a surging demand for energy, which is projected to grow at the rate of over 10% annually. To meet this need, the Government of Vietnam is encouraging investment from both local and foreign sources in offshore oil and gas exploration and production.

Oil in Vietnam

Vietnam is ranked third in the Southeast Asian region and 31st in the world in terms of crude oil and gas output. Among the 50 field structures with proven oil and gas reserves, 20 commercial fields have been developed. Vietnam has 600 million barrels of proven oil reserves. Bach Ho (White Tiger), RangDong (Dawn), Hang Ngoc, Dai Hung (Big Bear), and Su Tu Den (Ruby) are the largest oil producing fields in the country. Crude oil production averaged average volume of 500,000 barrels per day.

Vietnam is a small exporter on the world oil market, currently supplying about 0.6% of global demand. The United States is named as the biggest importer of Vietnam’s crude oil, accounting for 27.9% of the country’s export volume, followed by Singapore with 27%, Japan 22.2%, China 18%, the Netherlands 2.8% and Malaysia with 2%.

Gas in Vietnam

Vietnam has proven gas reserves of 6.8 trillion cubic feet. Besides crude oil, Vietnam also produces associated and natural gas from several fields. Vietnam’s natural gas production and consumption have been rising rapidly since the late 1990s, with further increases expected as additional fields come on stream. Natural gas iscurrently produced entirely for domestic consumption. The Cuu Long basin offshore from the Mekong Delta in southern Vietnam, a source of associated gas from oil production, is the largest Vietnamese natural gas production area. Only two fields in Vietnam have been developed specifically for their natural gas potential: Tien Hai, with a potential output of 1.76 million cubic feet per day, and LanTay/ Lan Do in the Nam Con Son Basin, which began producing over 5 million cubic feet per day in 2002. In the Nam Con Son Basin, a $565 million, 230-mile pipeline has been completed connecting the Lan Tay and Lan Do fields to the mainland at Vung Tau. The Nam Con Son project consists of five sub sea wells linked to aproduction platform and a pipeline leading to an onshore treatment plant. Gas is piped to three generating plants at the Phu My industrial complex, where electricity is provided primarily to areas surrounding Ho Chi Minh City. Output from Nam Con Son has reached 88 billion cubic feet. The project currently supplies the Phu My 1, My 3, Phu My 2.1 power plants and the extended Phu My 2.1 plant. Phu My 2.2will soon begin using output from the field. A consortium headed by KNOC of Korea, signed a 23-year contract with PetroVietnam in 2002 to install facilities to pump and supply 130 million cubic feet per day of natural gas to Vietnam. The natural gas, located in the Rong Doi and Rong Doi Tay fields on Block 11-2 of the Nam Con Son Basin, is sold to PetroVietnam,which then resells most of the volume to Electricity of Vietnam (EVN). Production at the fields began in 2005. In 2004, KNOC and PetroVietnam signed agreements to further exploit natural gas in both Blocks 11 and 12. Construction of an additional pipeline to bring ashore natural gas from block 11 began in 2005, and is scheduled for completion in 2006.The Su Tu Den and Rang Dong oil fields, both of which have considerable reserves ofassociated natural gas, are located near the 62-mile pipeline from the Bach Ho field.An estimated 60 million cubic fee per day of gas from the fields is earmarked forconsumption in power plants in southern Vietnam.Both TotalFinaElf and ChevronTexaco have found natural gas in exploratory drillingin the Malay basin. Additionally, Talisman Energy has found natural gas at the CaiNuoc field in block 46. The discovery is close to block PM-3-CAA, which straddles the maritime border with Malaysia, and is expected to contain up to 100 billion cubic feet of recoverable gas reserves.

A contract was awarded to Mc Dermott International in March 2006 for construction of a 200-mile pipeline, which will transport natural gas from the PM3-CAA block to Ca Mau province in southern Vietnam. It is scheduled for completion in 2007.

Oil Refineries in Vietnam

Although it is a significant oil producer, Vietnam remains reliant on imports of petroleum products due to a lack of refining capacity. Most of Vietnam’s crude oil is exported to refiners in the United States, Japan, Singapore, and South Korea. Vietnam is contemplating development of two oil refineries: the Dung Quat refinery with a planned capacity of 6.5 million tons per year and an estimated total investment of $1.5 billion, and the Nghi Son refinery with estimated capacity of 7 million tons and $3 billion in investment. According to many industry experts, the decisions to build these two facilities were based largely on political considerations, raising questions regarding their commercial viability. Nevertheless, after several years of delays in financing, the construction of the $1.5 billion Dung Quat Refinery, located in Quang Ngai province, finally began in November 2005. More than $1 billion has been invested. Vietnam’s distribution infrastructure is discontinuous, with the north and south of the country functioning to some extent as separate markets. Completion of the Dung Quat Refinery, located in the center of Vietnam, led to greater interaction between the regions. A second refinery project, with investment of $3 billion, is located at Nghi Son, north of Hanoi in the Thanh Hoa province. In August 2004, Mitsubishi Corporation agreed to participate in building Nghi Son for completion in 2010. Vietnam has also contracted a feasibility study for a third oil refinery, to be located at Vung Ro in the southern province of Phu Yen, close to both currently producing oil fields and the major markets in southern Vietnam. The Vietnamese government hopes to complete the refinery within 12 years. PetroVietnam is proceeding slowly with the development of the third refinery in light of the other two projects discussed above.

Oil and Gas Players in Vietnam

Vietnam Oil and Gas Group (also known as PetroVietnam or PV), the national oil and gas monopoly that is monitored by Vietnam’s Ministry of Industry on behalf of the Vietnamese government, is empowered to make decisions on strategies, plans and policies for the development of the industry, including cooperation with foreign entities, signing petroleum contracts as well as implementing, monitoring, inspecting and supervising petroleum activities.PV has supplied up to 70 percent of services for the domestic oil and gas industry andis also a businesspartner with foreign companies in the oil and gas sector. Any oiland gas exploration and production activities by foreign entities in Vietnam aresubject to cooperation with PV.Vietnam’s largest oil producer is Vietsovpetro (VSP), a joint venture (JV) betweenPetroVietnam and Zarubezhneft of Russia. VSP operates Vietnam’s largest oil field,Bach Ho. Other foreign partners include Conoco Phillips, BP, Petronas, and Talisman Energy.

Vietnam’s storage and transportation division, Petrolimex,recently completed a new oil storage facility in the central Khanh Hoa province. The depot is largest in the country, with a total storage capacity of 3.68 million barrels.To date, exploration rights for only 25-30% of the country’s continental shelf with hydrocarbon potential have been awarded. Forty-nine foreign oil and gas companies with exploration contracts operate under Product Sharing Contracts (PSC), Joint Operating Companies (JOC) and Business Co-operation Contracts (BCC), with total registered investment capital of more than $7 billion. The remaining offshore areas, generally with water depths of 200 meters or more, are unexplored and open for new bidding.

Oil and Gas Products and Services in Vietnam

Vietnam’s expanding offshore exploration and production has created a steadily growing market for offshore oil and gas equipment and services, which is estimated at $1.2 billion in 2006. American equipment and services have captured about 15% ofthe market and this share is expected to expand over the next few years. In the local market, American companies are well known as world leaders for advanced technologies, quality, and experience in the offshore oil and gas sector. These U.S.firms are currently the most successful in the oil and gas sector in Vietnam. In general, U.S. suppliers of oil and gas equipment and services are quite competitive in the upstream and midstream sub-sectors where advanced technologies and reliability are strict requirements. Sales opportunities are promising in the following areas:

• 3-D Seismic Survey Equipment

• Blowout Preventers

• Buildings

• Chemicals

• Computer and Wireless Technologies

• Corrosion and Abrasion Control

• Cranes, Hoists, and Winches

• Deep-Sea Drilling Services

• Enhanced Recovery Equipment Services

• Fishing Tools

• Instruments and Control Systems

• Logging and Formation Evaluation

• Marine Equipment and Services

• Offshore Engineering & Design Services

• Offshore Platforms (Fixed and Floating)

• Offshore technology licensing

• Perforating and Testing Services

• Pollution, Oil Spill Control, and Environmental Technologies

• Power Supply, Engines, and Turbines

• Process Equipment

• Production Equipment and Services

• Project management services

• Pumps and Compressors

• Ropes, Wire Ropes, and Chains

• Rubber Products

• Software Engineering Services & Equipment

• Tools• Tubes and Piping

• Valves and Actuators

• Wellhead Assemblies

ANT Consulting is here to assist you from the outset; providing intelligence, information, management or support and administrative services that assist market entrance, and ensure efficient business start-up operation.  

We could be reached at email: ant@antconsult.vn or tel: +848 3520 2779 .  To learn more about us, please visit www.antconsult.vn

Read More

VIETNAM PROMOTES THE DEVELOPMENT OF WIND POWER

The very first wind power plants, one in Binh Thuan and one in Bac Lieu, can be considered a breakthrough to pave the way for the construction of Vietnam’s wind power industry, which is expected to be pillar of the future power source in Vietnam.

 In the field of renewable energy, hydropower and wind power are considered clean power sources

In fact, hydropower has hidden dangers for communities. On the other hand, wind power is friendly and gentle to humans. We can consider hydropower as an old power source and the wind power is the young one. While hydropower has been playing a vital role in the power industry of many countries, wind power has only been noticed and invested for about 5 – 10 years.

With the wind power plants in Bac Lieu, Binh Thuan and Ninh Thuan, recently, Vietnam Prime Minister has agreed to invest in a wind power plant in Khai Long resort – Ca Mau.

Under the direction of the Government, the investment objective of the above project is to build a wind power plant, connecting to the national electricity system and sell electricity through power purchasing agreement with the Electricity of Vietnam (EVN), contributing to ensure national energy security.

The plant will be built in Khai Long Village, Dat Mui Commune, Ngoc Hien District, Ca Mau. The total installed capacity is 100 MW on an area of land and sea of approximately 2,165 hectares.

The project will be implemented in the period from 2016 to 2018.

According to the Ministry of Industry and Trade, Vietnam currently has nearly 50 registered wind power projects but only about 10% of which are under construction, of which 3 projects are producing commercial electricity, which are Tuy Phong wind power project (Binh Thuan) with capacity of 30 MW; Phu Quy island wind power project with capacity of 6 MW in Binh Thuan; Bac Lieu wind power project with capacity of 16.5 MW.

Most recently, Phu Lac wind power project (Binh Thuan) with capacity of 20 MW and the total investment of nearly 1,100 billion USD has been started construction in July 2015.

ANT Consulting is here to assist you from the outset; providing corporate intelligence, risk advisory, management consulting services that assist market entrance, and ensure efficient business start-up operation.  Our services are as following:

• Market Entry
• Tax Advice
• Legal Advice

We strive to save your cost by guiding you towards economical solutions that comply with local legislation and procedures. We support you through early logistic solutions and carry you through as your business grows.  We aim to bridge the gap between international best practices and local cultures and assist foreign companies and organizations entering Vietnam market to overcome commercial and regulatory issues.

We could be reached at email: ant@antconsult.vn or tel: +848 3520 2779 .  To learn more about us, please visit www.antconsult.vn

Read More

PHARMACY AND HEALTHCARE IN VIETNAM

1.     Overview

There has been an optimistic trend in pharmacyand healthcare industry in Vietnam. This industry is irreplaceable as the education level and life expectancy of Vietnamese have been significantly improved. However, due to some challenges, pharmacy and health care industry desires for a change in legal framework, thus creating favourable conditions for development in the futures.

2.     Vietnam – next growing pharmacy and healthcare market

• Overview of market potential

With the population of around 94 million, 44% monthly increasing income, 30% urbanisation rate with 3.4% growth rate per year, 6% GDP growth per year, the demand for better development of pharmacy and healthcare industry has been significantly increased.

Business Monitor International (BMI) in their report “Vietnam Pharmaceutical and Healthcare” revealed that annual total value of pharmacy market $3 billion with annual growth of 15.5% period 2014-2018. The same report also showed that the total healthcare spending reaches $13 billion in 2015 which account for 5.8% GDP- highest in ASEAN, is expected to grow to $24 billion in 2020s.

• Trade agreement influence Vietnam’s market

Vietnam has recently taken part in several trade agreement which allow foreign companies to easily enter Vietnam. Firstly, Vietnam has cut tariff on 47 tariff lines of pharmaceuticals. Also by encouraging foreign investment to enter Vietnam in various forms, among 171 pharmaceutical companies operating in Vietnam, 9% are foreign invested enterprise, 4% are joint ventures.

Secondly, in terms of healthcare sector, the data of Ministry of Health stated that there are 137 operational private hospitals, including six foreign invested hospitals, and about 30,000 consulting rooms. These six foreign invested hospitals have the initial investment capital of 94 million dollars. Vietnamese government had licensed to a lot of foreign invested projects in the healthcare sector which included a total investment capital of 1.16 billion dollars. In addition, the government has allowed the investors in healthcare sector to enjoy 10% corporate income tax for the whole life of the project, tax exemption for 4 years and lower land leasing fee for years.

• Pharmaceutical products heavily rely on import

Local pharmaceutical production was valued at nearly US$920 million which satisfy 48 % of the needs in Vietnam. Imported drugs account for the remaining 52 %. Vietnam imports pharmaceuticals mainly from France, India and Korea. The medicine lines from this countries is stable and price competitive. In terms of domestic companies, the three largest public pharmaceutical companies are DHG Pharmaceuticals JSC (DHG), Traphaco JSC (TRA) and Domesco Medical Import-Export JSC (DMC).

Around 90 of raw material input are imported from foreign countries, in which 57% are from China, 18% from India and other countries such as Austria, Spain, Germany, France, Italy, and Sweden …

• Vietnam’s consumer behaviour

Vietnamese consumer has a strong preference of foreign medicines. The statistics have revealed that in the doctor prescription, 18 -20% domestic medicines are used for the patients even though the imported medicines are more expensive than domestic ones. Vietnameseconsumer has more confident in terms of quality of foreign products.

Only 20%-30% of Vietnamese consumers buy medicines with prescription. However, BMI expected that the usage percentage of medicine through prescription will increase to 74.6% in the next 5 years.

3.     Challenges

• Poor regulation standards

Price management and intellectual property protection of the government have not been managed closely. Therefore, the price of products still increases every year and the counterfeit medicines is still floating in the market, around 0.1% in 2012 (Drug Administration of Vietnam)

Around 28% of pharmaceutical companies have the Global Manufacturing Practice (GMP) certification, which states the minimum requirements that a pharmaceutical manufacturer must meet in order to prove that their products are of high quality and do not pose any risk to consumers. Particularly, in 2013, there are 79 out of 105 foreign medicine manufacturing enterprises and 5 of 80 domestic manufacturing enterprises that qualify GMP due to the fact that most of the enterprise are small in terms of sizes and capital investment. This indicates that Ministry of Health needs to take more aggressive actions to encourage the companies to meet the standards.

• Specific patented medicines is weak

Even though there are plenty of investment projects in pharmaceutical and healthcare industry with support from government, producing patented medicines are still too expensive in terms of time and manpower. In fact, lack of medical qualification, infrastructure development and material sources are factors leading to underdeveloped circumstance in this sector.

• Lack of accessibility in healthcare industry

There has been 1090 public hospital and 175 private hospitals in Vietnam in 2014, is expected to increase to 1204 and 200 respectively. However, there are 25.1 hospital beds per 10,000 inhabitants and 7.9 doctors per 10,000 inhabitants, which are still a question mark that has not been handled.

ANT Consulting is here to assist you from the outset; providing corporate intelligence, risk advisory, management consulting services that assist market entrance, and ensure efficient business start-up operation. 

We strive to save your cost by guiding you towards economical solutions that comply with local legislation and procedures. We support you through early logistic solutions and carry you through as your business grows.  We aim to bridge the gap between international best practices and local cultures and assist foreign companies and organizations entering Vietnam market to overcome commercial and regulatory issues.

We could be reached at email: ant@antconsult.vn or tel: +848 3520 2779 .  To learn more about us, please visit www.antconsult.vn

Read More

FAST-MOVING CONSUMER GOODS MARKET IN VIETNAM

1.     Overview

With increasing disposable income, rising living standard, stable GDP and economic growth, young population and low inflation, Vietnam is one of the most dynamic emerging market in Southeast Asia region. Fast movingconsumer goods industry has promised a robust development.

2.     Fast-moving Consumer Goods (FMCG) in Vietnam

• FMCG growth

There is a significant volume growth from -1,6% in 2014 to 2,7% in 2015 in terms of demand for FMCG and the figure is expected to continue increasing in 2016 and 2017 (Nielsen, 2015). Vietnam’s volume growth in 2015 in only behind Thailand and the Philippines in South East Asian religion. In short term, urban citizens remain positive value growth of 3,6% whereas value of growth in rural areas grow at weak pace.

• Value contribution in FMCG

It can be seen from the chart beverage contribute the largest value to FMCG industry while baby care products remain the lowest value contribution. Interestingly, urban prefers liquid tonic food drink with the rise of 4,4 PTS when the most popular beverage in rural is soya milk with the increase of 8,7 PTS.

• Distribution channel

The data of Kantar research shows that traditional trade outlet such as wet markets and grocery stores is still one of the most popular channel for FMCG. Convenient stores/mini market is a new rising star in distribution channel which experience 60% growth from 2014 to 2015. For example, VinMart + have appeared from 100 to 200 store in 2015, Circle K from 97 to 129 stores, and Shop & Go from 103 to 130 stores. E-commerce also will be a big trend which reaches steady growth of 13%.

• Consumer behaviour patterns

Consumer confidence index also experiences positive trend since Vietnam is the 6^th most optimistic country globally. Despite of the increase of 6,3% CPI in 2015 compared to 2014, Vietnamese consumer is prudent, still prefer saving than spending. Pricing has also been one of the most important decision making factor during purchase. Additionally, dropping shopping frequency proves that Vietnamese consumer has been lessen spending

The demand for high end FMCG is still week regard to relatively low income of majority of Vietnamese consumers in rural areas. Compared to other South East Asian countries, Vietnam’s per-capital expenditure on food and non-alcoholic beverages was US$200 in 2011 while this figure is US$900 in Thai Land and US$1000 in Malaysia.

3.     Future trend and potential investment

• Booming of foreign investment in FMCG

Vietnam has emerged as a popular destination for multinational and regional retailers. It is allegedly agreed that Vietnamese consumers are more likely to prefer foreign brands. In addition, 57% of Vietnam’s population below 35 years old, 44% monthly increasing income, 30% urbanisation rate with 3,4% growth rate per year; and 1.6 times more college and university graduate (Nielsen) result inthe shift toward modern trade outlets such as shopping mall and supermarket. Some of well-known foreign retailers are AEON (Japan), Lotte (Korea), Central Group (Thailand), Mark and Spencer (UK). In additional to strong foreign competitors, Vinmart and Citimart are the most popular domestic rising stars in FMCG/retail market in Vietnam.

• Shopper get smarter and more purchasing power

In 2015, 48% of Vietnamese consumers stated that “staying fit and healthy” is the top concern (Nielsen). Therefore, Vietnamese consumers have become more concerned about the quality, hygiene and safety of the products. Due to high competition in FMCG industry in terms of manufactures and retail outlets, Vietnamese consumer have more purchase power decision. This implies that manufactures as well as retailers also need to be more selective with the products that provide to customers.

• The emergence of new online channel

According to Nielson report in 2 big cities: Hanoi and HCMC, 92% of internet users are online shopper and 93% of shopper are middle class and millennial. Additionally, in such a busy world, on-the-go lifestyle will become a big trend in Vietnam. Thus, it indicates the high demand for online platform that conveniently host information and acquire interaction between online and offline store choices. Also lack of innovative approach and strategy to attract online shoppers is a huge issue in Vietnam market at the moment. Also there has been a huge lack of accessibility to online channel in rural areas and other smaller cities. E-commerce in FMCG promises high potential for investment.

ANT Consulting is here to assist you from the outset; providing corporate intelligence, risk advisory, management consulting services that assist market entrance, and ensure efficient business start-up operation.  

We strive to save your cost by guiding you towards economical solutions that comply with local legislation and procedures. We support you through early logistic solutions and carry you through as your business grows.  We aim to bridge the gap between international best practices and local cultures and assist foreign companies and organizations entering Vietnam market to overcome commercial and regulatory issues.

We could be reached at email: ant@antconsult.vn or tel: +848 3520 2779 .  To learn more about us, please visit www.antconsult.vn

Read More

US GOVERNMENT SPONSORED 1 BILLION USD FOR VIETNAM WIND ENERGY

US Consulate in Ho Chi Minh City has just signed a non refundable sponsorship for Cong Ly Construction, Trade and Tourism Co., Ltd an aid amount of nearly 1 billion USD to conduct a feasibility study program to develop Bac Lieu wind power plant with capacity of 300MW.

Accordingly, the research project involves conducting assessments on resources and wind energy; review of licensing issues and land controlling; grid connection and foundation design; estimating construction costs… The project has been approved by the Prime Minister and this is the first private project of Vietnam in the field of offshore wind power, which is benefit from the supporting programs of the US Government to Vietnam.

This activity is part of the implementation of commitments to comprehensive support Vietnam of the US Government. At the same time, the connection and promote cooperation between the two Governments will help organizations and enterprises of the two countries to have the opportunity to connect with many commercial activities.

According to the project investor, Bac Lieu wind power plant is implemented in 3 phases. The 1^st phase has been operated since August 2013 and used 10 wind turbines which were produced by the General Electric Company, with capacity of 16MW. After 19 months of operation, it has provided about 60 million KW of electricity into the national grid. The 2^nd phase of the project is being implemented and the number of wind turbines will increase by 50, which is expected to go into operation by mid 2016.

Directed to complete a project with capacity of 300MW, in the 3^rd phase, the project will be extended to the sea of about 2.1 km. According to leaders of Bac Lieu province, the construction of the Bac Lieu wind power plant is included in the overall plan to solve the problem of energy, especially clean energy. Moreover, through the deployment of wind power plant project, it is showed the benefits for ecology, culture, protection of forests and fisheries resources.

ANT Consulting is here to assist you from the outset; providing corporate intelligence, risk advisory, management consulting services that assist market entrance, and ensure efficient business start-up operation. 

We strive to save your cost by guiding you towards economical solutions that comply with local legislation and procedures. We support you through early logistic solutions and carry you through as your business grows.  We aim to bridge the gap between international best practices and local cultures and assist foreign companies and organizations entering Vietnam market to overcome commercial and regulatory issues.

We could be reached at email: ant@antconsult.vn or tel: +848 3520 2779 .  To learn more about us, please visit www.antconsult.vn

Read More

POTENTIAL OF VIETNAM WIND POWER

Located in the monsoon subtropical area with long coastline, Vietnam has fundamental advantages to develop wind energy. When comparing the average wind speed in the East Sea of Vietnam and the surrounding sea areas, the result showed that wind in the East Sea of Vietnam is fairly strong and seasonally change.

The World Bank (WB) conducted a detailed survey about wind power in Southeast Asia, including Vietnam. According to this study, among the four surveyed countries, Vietnam has the largest potential for wind power and better than the neighboring countries like Thailand, Laos and Cambodia.

Vietnam has 8.6% of the territory is rated as “good” and “very good” for the construction of large wind stations, while in Cambodia, Laos and Thailand, the numbers are 0.2%, 2.9% and 0.2% respectively. The total wind power potential of Vietnam is estimated to reach 513,360 MW, more than 200 times the capacity of Son La Hydropower Plant, and more than 10 times the total forecasting capacity of the power sector in 2020.

Vietnam has up to 41% rural areas that can develop small wind powers. Comparing this figure with the neighboring countries, the rural areas that can develop wind power in Cambodia, Laos and Thailand are 6%, 13% and 9% respectively.  It is indeed a privilege for Vietnam.

In Vietnam, the areas that can develop wind power do not spread across the entire territory. With the influence of monsoon, the wind regime is also different in each area. If the northern of Hai Van Pass, the strong wind season coincides with the northeast wind season, in which the most potential areas are Quang Ninh, Quang Binh and Quang Tri. In the southern part of Hai Van Pass, the strong wind season coincides with the southwest wind season, in which the most potential areas are the Tay Nguyen area, the coastal provinces of the Mekong Delta and especially the coastal areas of Binh Thuan, Ninh Thuan.

According to research conducted by the World Bank, in the territory of Vietnam, the two most potential areas for wind energy development is Son Hai (Ninh Thuan) and sand hills at the height of 60 – 100 meters from the west of Ham Tien to Mui Ne (Binh Thuan). The advantages of these areas are high average velocity wind, less storm and stable wind trend. They are the favorable conditions for wind energy development. During the monsoon months, the proportion of south and southeast winds are up to 98% with an average speed of 6 – 7m/s. It means that we are able to build the wind stations with capacity of 3 to 3.5 MW.

In fact, people in Ninh Thuan have also created a number of homemade small wind generators for the purpose of lighting. Both these areas are sparsely populated with hot and dry weather. Moreover, this is the ethnic areas with special difficulties of Vietnam.

Although there are many advantages as mentioned above, but when mentioning wind energy, we need to note a number of unique features to be able to develop it in the most effective way.

The biggest disadvantage of wind energy is the dependence on weather condition and wind regime. Therefore, at the design stage, the wind regime, terrain and type of wind without turbulence flows which badly affect the transmitter should seriously be studied. Moreover, although wind power is becoming more popular but it cannot be used as the main energy. However, the possibility of the combination between wind power and storage hydropower will open up opportunities for Vietnam to develop energy in areas such as Tay Nguyen, which has advantages in both of these kind.

Another noted point is that the wind power stations will cause noise pollution during operation as well as disrupt the natural landscape and could affect the signal of the radio waves. Therefore, when constructing wind power stations, it is needed to calculate reasonable distance to residential areas and tourist resorts in order not to cause negative impacts.

In order to meet the goal of ambitious growth, in the medium term, Vietnam should continue to exploit the traditional energy sources. In the long term, Vietnam needs to develop strategy and roadmap for the development of new energy sources. In this strategy, the economic costs (including internal and external expenses on the environment and society) need to be analyzed carefully, taking into account new developments in technology, as well as reserves and price movements of alternative energy sources. In these new energy sources, wind power has emerged as a worthy choice and therefore need to be fully assessed.

Vietnam has many advantages for the development of wind energy. If Vietnam does not invest in research and development of wind power will be a huge waste because the risk of power shortage is always permanent, affecting economic growth and national competitiveness. Meanwhile, the current national strategy for power seems only interested in hydropower and nuclear power – the energy sources with huge initial investment and many hidden risks on both environment and society.

In the world, the development of wind power is a major trend, showing the highest growth rate compared with other energy sources. Unlike nuclear power which needs a complicated technical process and strict supervision, the construction and installation of wind power does not require such rigorous processes. With the experiences of successful development of wind power in India, China, Philippines and the geographical advantages of Vietnam, Vietnam can completely develop wind power and contributing to the overall development of the economy.

Read More

VIETNAM MARKET RESEARCH

Market research is an important operation. If the market research is well done, it provides accurate information to help marketers make an appropriate strategy and then, bring high efficiency in business. In other words, if the result of market research is inaccurate information and does not correctly reflect the actual market situation, marketing activities will be inefficient.

Companies would fail if underestimating the importance of market research before entering a new market.

Therefore, market research activity is so important for whomever needing success. Namely, the market research is considered an active approach to enter into the market. The market research also helps you understand the latest development in the target market, thereby making marketing decisions quickly. The international business environment is quite volatile, that‘s why you need a proactive approach like that and it is really your competitive advantage.

Through the market research, you can form the idea of developing a new product and choose the correct strategy for that product in each specific market. Through research, you also do not have to waste money and effort for the false hope, especially when you export the products to oversea for the first time. On the other hand, it should be noted that although the market research does not make sure success in business, it will help you avoid many wrong decisions.

Market research service can:

• Help find the biggest market for your products, the fastest growing market, trends and prospects of market, conditions, business practices and opportunities for your product on the market.
• Allow to make efforts effectively in a field or a certain range. After that, you can set the priority for a specific target market and plan for the future market.
• Help understand the competitors, including strengths and weaknesses, mistakes and their causes of success.
• Help find ideas to develop new products.
• Helps strengthen business relationships with partners.

If you wish to explore investment opportunities, before setting-up company, or learn benefits of doing business in Ho Chi Minh City, or doing business in Hanoi, let us help with market research.  Please contact us via emailant@antconsult.vn or call our office number: +848 35202779 (HCMC) or +844 39388751 (Hanoi).

Read More