Power plants create opportunities

Viet Nam will have a large market for domestic equipment manufacturing with the planned development of 70 coal-fired power plants within the next 15 years, according to mechanical engineering experts.

Under the national electricity development plan for 2006-15, more than 40 coal-fired power plants with capacity of 600MW or more will be constructed in the country.

Between 2015-25, another 30 coal-fired power plants will begin producing power. With this considerable development, demand for coal-fired power plant devices from now to 2025 will increase.

On December 26, 2002, the Prime Minister approved a development strategy for Viet Nam’s mechanical engineering industry with the priority goal of developing key mechanical products.

Deputy Minister of Industry and Trade Do Huu Hao said the domestic mechanical engineering industry has seen significant growth in equipment manufacturing for thermal power, reaching capacity of 600MW.

Vietnamese and foreign experts have done all the basic designs for the industry.

Domestic businesses, such as the Corporation for Industrial Machinery and Equipment and Viet Nam Engine Agricultural Machinery Corporation, have made a number of important devices such as engines, gear boxes and fan pumps.

The domestic mechanical engineering industry has built around 50 to 70 per cent of the country’s standard equipment needs, such as lifting buckets, conveyor belts, storage devices and dust filtration equipment.

Although Vietnamese enterprises have the capacity to produce a significant portion of the equipment needed for coal-fired power plants, generally only 40 per cent of the equipment used by the coal-fired power projects that are under construction are from domestic enterprises, accounting for only 25 per cent of the total value.

If domestic enterprises do not develop, they will fail to take advantage of a great opportunity.

Ngo Van Tru, deputy director of the Department of Heavy Industry under the Ministry of Industry and Trade said domestic firms without an understanding of design would not be able to contribute anything. Domestic firms need time to study in order to participate in power plant design.

Director of the Centre for Design and Machinery Manufacturing Technology under the Ministry of Industry and Trade Hoang Van Got outlined some local production schemes and added that rather than becoming sub-contractors for foreign contractors, domestic firms should plan to work with foreign partners to design and manufacture boilers.

Domestic firms could also manufacture the auxiliary devices for turbine generators with support from foreign consultants. This plan could lead to domestic production of 40 per cent of project value, he said.

He also proposed measures to assign domestic joint venture companies as Engineering, Procurement and Construction (EPC) contractors to ensure active implementation of Build and Transfer Technology plans.

Engineering enterprises have also proposed an increase in domestic production of supplies for thermal power plants in Viet Nam.

Incentives should be offered by including required conditions in international bidding and encouraging the establishment of centres for mechanical equipment manufacturing. — VNS

Tags: Vietnam energy, Vietnam power plants