GE Group considering business expansion in Vietnam

The US-based GE Group is considering about business expansion in Vietnam, after putting into operation the factory in Hai Phong that specifies in manufacturing turbines for wind power plants.

In an interview with Dau Tu, John Krenicki, vice president of GE Group stated that Vietnam has the most potential wind energy source in the region. Vietnamese government was working out the detailed legal framework and preferential programme for developing wind energy.

The wind turbine factory in Hai Phong City has total investment capital of $61 million. The investors had received the investment licence in June 2008 and started construction works since May 2009. In the first phase, the factory concentrated on producing wind turbines with designed capacity of 1.5MW. The factory had produced the first batch of products since May 2010.

However, the group also planned to expand the partner network in its distribution system in Vietnam. Lately, GE Group has organised a seminar about developing the supporting industry in Vietnam in order to introduce about the requirements and conditions to become one of the group’s distributors.

In its long-term business plan in Vietnam last year, the leader of the group also mentioned about constructing a wind power plant in the country. Krenicki also affirmed that his group was working with various investors in working out the wind power farm in Vietnam. Most of the investors have already finished initial feasibility studies and were ready to kick off the project at any time when the government releases the detailed price list for developing wind power.

Lately, GE Group has signed a memorandum of understanding (MoU) with ministry of industry and trade for power development strategy. Previously, another long-time cooperation contract had been inked with Vietnam National Oil and Gas Group (PetroVietnam) with GE Group’s commitments in supporting the oil and gas industry.

The group has also proposed initiatives for long-term strategic cooperation plan to Vietnamese government in such fields of energy infrastructure development, aviation and healthcare.

Like other investors seeking for profit, GE hopes to receive support from Vietnam’s governmental bodies in making priority for using the domestically-made equipment inside the country. – Dautu

Tags: GE Group, GE Group Vietnam

Posted by VBN on Nov 4 2010. Filed under Energy. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry