Jakarta, CNBC Indonesia – A total of 15 United States (US) companies, including semiconductor companies, have expressed interest in investing US$8 billion (Rp. 126 trillion) in Vietnam.

The investments are aimed at green energy infrastructure, contingent on the country's progress on renewable energy rules, a senior US official said.

Vietnam is trying to attract chipmakers and wants to boost its renewable energy sector.

But so far neighboring Indonesia has struggled to adopt regulations that would allow the expansion of its solar power industry and onshore wind power plants. Apart from that, there is also the development of offshore wind power plants which currently do not exist in Vietnam.

“They are ready to invest as much as US$8 billion,” said US Deputy Minister for Economic Growth and the Environment Jose Fernandez at a press conference in Hanoi, quoted by Reuters, Monday (29/1/2024).

In his remarks, he stated that the investment would focus on environmentally friendly energy infrastructure, in line with what the company had told him.

He declined to name the companies.

Fernandez underlined that these companies have obligations to shareholders so the investment will depend on the progress of regulations regarding renewable energy in Vietnam.

“They made a commitment to shareholders and customers that they will only use renewable energy,” he said, adding that the companies were also still waiting for permits before they could proceed with investment plans.

Vietnam is reportedly considering implementing regulations that would allow factories to negotiate electricity prices directly with producers rather than buying them from the state-owned power grid operator.

The government is also working to pass regulations on offshore wind power generation, including determining the use of marine space, but regulatory delays have long hampered progress.

Vietnam's surge in renewable energy in recent years driven by widespread installation of solar panels and wind turbines on land has been hampered in part by problems in connecting these projects to the power grid, which has also required significant improvements in handling renewable energy.

Fernandez's visit to Vietnam is part of the US plan to implement the agreement reached in September when the two countries officially upgraded their ties to a comprehensive strategic partnership, which is at the top of Vietnam's diplomatic rankings.

In meetings with senior Vietnamese officials during the visit, Fernandez discussed mostly chips, critical minerals and green energy, he told reporters.

[Gambas:Video CNBC]

(fab/fab)