Monday, November 15, 2010

Power plants create opportunities

Vietnam 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 and 2025,
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.


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.


Domestic
businesses, such as the Corporation for Industrial Machinery and
Equipment and Vietnam 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 percent 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 percent of the
equipment used by the coal-fired power projects that are under
construction are from domestic enterprises, accounting for only 25
percent 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 percent 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 Vietnam .


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

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