An agreement for a ‘renewable energy integration study' aimed at developing wind power as a reliable energy source into the national grid is signed between GE and ERAV. — VNS Photo

HA NOI (Biz Hub) — General Electric (GE) on Wednesday announced the official opening of its Vietnam Engineering Centre in HCM City, coinciding with the company's 20th year of operations in the country.

The company said in a press release that the centre is only the second of its kind that it has launched in Asia. It "serves as an affirmation of the company's commitment to the long-term development of the Viet Nam economy through building local capability and resources."

The establishment of GE's first Engineering Centre in Viet Nam was announced last November. The centre operates with a team of 41 engineers who support different product lines of oil and gas.

The new centre will provide product design and applications services that focus on the oil and gas sector in Viet Nam and the surrounding region. It will employ up to 200 engineers in the coming years and expand into application engineering and production design for other GE businesses, the company said.

Its statement cited Vice Chairman of GE, President & CEO of GE Global Growth & Operations, John G. Riceing as saying the centre will bring new capabilities to Viet Nam.

"The centre is testament to our long-term partnership with the country as we work together to nurture local capabilities and skills, help build sustainable economic growth, and strengthen Viet Nam's role and status in the region," said Rice.

Wind power

Also on Wednesday, the company signed with the Ministry of Industry and Trade's Electricity Regulatory Authority of Viet Nam (ERAV) an agreement for a ‘renewable energy integration study' aimed at developing wind power as a reliable energy source into the national grid.

The project is funded by the US Trade and Development Agency under the Grant Agreement between the US Government and the ERAV.

The signing ceremony was attended by Director of ERAV Dang Hung Cuong and John Rice and other officials of Viet Nam and the US.

Under the agreement, the GE will contribute technical assistance that will assist the MOIT and its ERAV to understand the requirements for preparing the grid system for the successful integration of wind power.

The study will provide valuable insights into grid stress and stability and will evaluate the reliability of long term wind forecasting. The company will also help train the local work force to support the development of wind power.

Cuong said that to ensure sustainable development of the power industry, ERAV has been focusing on studying and evaluating key issues to develop the country's electricity system, especially the integration of renewable energy sources into the grid and ensure the system operates safely and effectively.

Rice said the agreement would lay the foundation for Viet Nam to exploit its great potential in wind energy, which in turn will contribute to the improvement of the country's energy infrastructure.

According to a study conducted by the International Energy Agency and the World Bank in Thailand, Viet Nam, Laos and Cambodia, Viet Nam has the greatest capacity to utilise wind to generate energy. Up to 8.6 per cent of the country's land area has been evaluated as either "good" or "very good" for building large wind power stations. Current development of wind power in Viet Nam is a small fraction of its potential, it found.

GE has been in Viet Nam since 1993 starting with a representative office in Ha Noi and expanding to HCM City in 2001. In 2003, it established GE Vietnam Ltd, offering a wide range of products and services in the field of energy, healthcare and aviation. GE now employs more than 700 people in Viet Nam and is focused on helping bring a broad range of infrastructure capabilities to the country in what it describes as a "company to country" partnership.

Since 2009, GE has invested more than USD110 million in its Hai Phong manufacturing facility which employs more than 600 staff, including engineers and other skilled workers. Wind turbine generators and other components manufactured in Hai Phong are exported to GE's manufacturing and service centers around the globe. Total export volume stands at US$390 million since inception and is the highest amongst industries in Hai Phong. — VNS