Samsung Electronics Vietnam is making strides in boosting its climate change mitigation endeavors by increasing its utilization of renewable energy sources.

On July 3, the Vietnamese government sanctioned a directive regarding direct power purchase agreements (DPPA), permitting businesses to procure renewable energy directly from private suppliers, eliminating the need for intermediaries.

This move broadens the scope for enterprises to engage in renewable energy agreements beyond traditional methods of obtaining small-scale solar energy from their premises or acquiring renewable energy certificates. The decree enables enterprises to engage in partnerships for renewable energy that surpass a certain capacity with private producers instead of relying solely on the state-owned Vietnam Electricity (EVN).

Implementation of the DPPA framework will empower Samsung Electronics Vietnam in establishing a more robust foundation for securing renewable energy sources.

Samsung Electronics has been actively collaborating with diverse stakeholders, including the Vietnamese government and non-governmental organizations, to advocate for the DPPA initiative and translate climate-centric strategies into concrete actions. Samsung has been advocating for the swift implementation of mechanisms for procuring renewable energy to attain carbon neutrality objectives, offering technical guidance for its seamless integration. The company has maintained ongoing dialogue through the Asia Clean Energy Coalition (ACEC), a consortium of renewable energy procurers, collaborating with suppliers and financiers to drive policy transformations in pivotal Asian markets such as Vietnam.

“Through the DPPA arrangement, we aim to engage with large-scale renewable energy providers commensurate with the operational scale of Samsung Electronics Vietnam and engage in competitive procurement of clean energy sources,” stated Executive Vice President Joo Ho Choi, General Director of Samsung Vietnam Complex. “We are committed to partnering with the Vietnamese government to enhance Vietnam’s renewable energy infrastructure.”