Businesses are more actively seeking opportunities and optimising investment incentives in the sector, experts said. As a result, investments in EGS have increased and proved effective, though they are still modest compared with other sectors.
Additionally, the demand for EGS is growing rapidly, which means the country must attract investment in and develop the EGS sector in order to boost sustainable economic growth and development.
Vietnam is encountering mounting pressure and challenges on environmental issues, so it needs to use more clean energy and EGS, according to the European Trade Policy and Investment Support Project (EU-MUTRAP)’s management board.
The mushrooming population, industrial parks and energy use directly impact the environment, and there is currently a shortage of attention to EGS and goods made for environmental protection purposes, the board said.
EU-MUTRAP specialist David Luff emphasised that investors have positively assessed Vietnam’s EGS-related incentives, but they also suggest the local Government streamline administrative procedures to provide more harmonious, transparent regulations.
The EGS market is being expanded through bilateral and multilateral free trade agreements, he said, adding that the global EGS market was valued at around US$1 trillion in 2012 and is expected to reach US$3 trillion by 2020.
