Renewable energy used in the country accounted for only 2 per cent of the total energy used, Foreign Investment Enterprises Association vice chairman Hoang Van Huan said. The conference, organ-ised by the ministries of Planning and Investment (MPI) and Industry and Trade (MIT), was aimed at providing the latest information on renewable energy in the world.

"We will have to face the fact that fossil fuels will become exhausted. Thus developing renewable energy is of great importance to the country," said deputy director of the Department of Industry and Economy under MPI Tran Dong Phong.

Director David Jozefy, of wind turbine builder Czech KV VENTI Company, said Viet Nam had renewable energy resources that other countries could only dream of. Its average sunlight hours numbered up to 2,500 a year, which gave it great potential for solar energy, Jozefy said. Geographically, Viet Nam was among 14 countries worldwide that had the most potential for hydro-power. And, its 300 hot springs of 45-150C degree, gave it potential for thermal electricity. There also was big potential for wind energy in central and southern regions. However, Viet Nam had not been able to have renewable energy resources tapped, said Pham Khanh Toan, director of the Institute of Energy under Electricity of Viet Nam.

There were several difficulties. Investment needed was 1.5 to 10 times higher than for traditional resources. Also, they depended on climate and seasons. Plus a database for analysis and assessment of these resources were still lacking, scattered or out-of-date. On another level, Government policies to promote investment in this field were "modest". "The Government needs to have more encouraging and supportive policies to attract investors," Toan said.

Development of renewable energy is included in Viet Nam’s National Energy Development Strategy which proposed increasing new and renewable energy sources to 3 per cent of primary commercial energy by 2010; 5 per cent by 2020 and 11 per cent by 2050.

Under the strategy, individuals, local and international economic organ-isations would be allowed to co-operate in investment and use of new and renewable energy sources. Besides, renewable energy projects would be encouraged with the participation of all economic sectors. In the short-run, priorities would be given to productive use of electricity to develop renewable energy projects with economic viability.