Two workers of Vietnam Electricity (EVN) are inspecting an electricity facility. EVN took out an unguaranteed foreign loan of 80 million euros in March to develop new grids in the South. — Photo baochinhphu.vn As the State Bank of Vietnam is gathering comments on a draft amending Circular 12 on eligibility requirements for unguaranteed firms to take out foreign loans, the Vietnam Chamber of Commerce and Industry has suggested several modifications to the document. The draft requires borrowers which are not credited institutions or branches of foreign banks to inform the authorities about all their business activities when applying for a foreign loan. VCCI believes full disclosure is unnecessary and suggests the borrowers be required to disclose only those business activities that are relevant to the loan. The draft also requires borrowers to inform the authorities about their outstanding foreign loans and show that they qualified for the loans at the moment they were granted to … [Read more...] about VCCI comments on draft amending Circular 12
Draft
Securities stocks strengthen after draft on T+2 settlement cycle
Before today's trading session, investors received the news that the Vietnam Securities Depository (VSD) had recently consulted on a draft regulation on clearing and payment of securities transactions under the direction of adjusting the payment time for completing the T+2 settlement cycle of the State Securities Commission of Vietnam. One of the essential contents of this draft is the adjustment of the time for securities settlement and clearing banks to complete payment from 3.30 p.m. to 4 p.m. to from 11.30 a.m. to 12.30 p.m. on the trade date plus two days (T+2). With this new regulation, investors can trade right in the afternoon trading session of T+2. According to the draft, the money for securities transactions will be transferred to investors' accounts one day earlier than the old regulations. Therefore, investors can use the money to buy securities right in the afternoon trading session of T+2 instead of having to advance money as before. The new regulation on clearing … [Read more...] about Securities stocks strengthen after draft on T+2 settlement cycle
Vietnam to draft national action plan for circular economy adaptation
The adaptation of circular economic models would help Vietnam realize its commitment to net-zero carbon emissions target by 2050. The Ministry of Natural Resources and Environment (MONRE) today [June 28] held a conference to kickstart the formulation of a national action plan to promote a circular economy in Vietnam. Minister of MONRE Tran Hong Ha at the event. Photos: UNDP At the event, Minister of MONRE Tran Hong Ha said climate change, environmental pollution, and the degradation of the natural ecosystem are posing threats to the world. He referred to the sixth assessment report of the Intergovernmental Panel on Climate Change (IPCC-AR6) which stated that if global warming gradually increases 1.5 degrees Celsius above the pre-industrial level, some impacts may be lasting or irreversible, such as the loss of some ecosystems. The IPCC also estimated since 2008, around 20 million people annually have been forced to leave their homes behind due to extreme … [Read more...] about Vietnam to draft national action plan for circular economy adaptation
Hanoi determined to become an engine for the nation’s prosperity
Culture and the people are the aim, foundation and motivation for Hanoi’s socio-economic development. Rapid and sustainable development of Hanoi would serve as the growth engine for the Red River delta, the northern key economic zone, and the country toward prosperity. Overview of the conference. Photos: Viet Thanh Secretary of the Hanoi Party Committee Dinh Tien Dung gave the remarks during a conference held today [June 22] to discuss the implementation of Politburo’s Resolution No.15 on the vision and objectives for Hanoi’s development until 2030, with a vision to 2045. According to Dung, during every phase of development, the Politburo has set an objective for Hanoi to fulfill its role as the country’s political-administrative hub, as well as the economic, cultural, educational, scientific, technological and global integration center. “Resolution No.15 is the latest step to ensure Hanoi realizes its potential and strategic roles in the country’s … [Read more...] about Hanoi determined to become an engine for the nation’s prosperity
MoF proposes further cut to environmental protection tax for petrol
A customer buys petrol at a petrol station of Vietnam National Petroleum Group (PLX) in Ha Noi. Deputy Minister of Finance Ta Anh Tuan speaks to local media about this issue. Since the beginning of the year, gasoline prices have fluctuated greatly. What measures has the MoF introduced to stabilise petrol prices? World petroleum prices have had complicated fluctuations from the beginning of 2022 until now, due to the recovery of large economies in the world along with impacts from the Russia-Ukraine conflict and Covid-19 pandemic. The MoF, a price managing agency of the Government, is very worried about the impact of increased gasoline prices on controlling inflation in 2022. To stabilise gasoline prices and minimise the negative effects of the petrol price increases, the ministry has recommended that Government and the National Assembly Standing Committee reduce some kinds of tax imposed on gasoline products. The ministry has submitted proposals to the National Assembly … [Read more...] about MoF proposes further cut to environmental protection tax for petrol
Vietnam Deputy PM expects no disruption to petrol supplies
Rising prices of strategic goods, including petrol, fertilizers, and farm produce are putting pressure on the Government’s efforts in market price management. The Ministry of Industry and Trade (MoIT) is responsible for maintaining adequate supplies of petrol and avoiding disruption risks. Overview of the meeting. Source: VGP The Government Office released the conclusion of Deputy Prime Minister Le Minh Khai at a meeting of the Price Management Committee last week. According to Khai, Vietnam is facing high inflationary pressure amid rising prices of strategic commodities such as petrol, fertilizers, and transportation costs. In this context, recent price hikes of petrol products since early 2022 have resulted in the price of RON 95-IIII hitting a record high of nearly VND33,000 (US$1.42) per liter, leading to the uptick of prices of other products and services. Khai, therefore, called for the MoIT to stay active in the management of petrol supplies … [Read more...] about Vietnam Deputy PM expects no disruption to petrol supplies
Role of press highlighted in promoting development
Role of press highlighted in promoting development Nguyen Thu Lan, a consultant from a Hanoi-based US-invested investment consultancy firm, two weeks ago completed a digital transformation report for the firm’s three potential American clients, who are exploring Vietnam’s investment climate. Lan had to seek information from many sources for the report, including local newspapers. She also found detailed information on Vietnam’s macroeconomic situation and digital transformation in VIR, which features a new hallmark scheme from the government on supporting industrial enterprises in smart production development. Lan said, “I am very happy as I had been seeking such information for months. More importantly, such information was cited from an original source,” she said. Under the draft scheme, expected to be enacted by the government soon, just over one-third of Vietnamese businesses will implement digital transformation effectively by 2025, and the rate will increase to 85 per … [Read more...] about Role of press highlighted in promoting development
Investors clamour for wind incentives
Wind experts in Vietnam are suggesting improved bankability in order to attract finance from elsewhere, Photo: Shutterstock Mark Hutchinson, chair of the Southeast Asia Task Force at the Global Wind Energy Council (GWEC) said the investment rate of offshore wind power projects is very large. Therefore, Vietnam needs to have a clear process and an appropriate price to attract investors. At the same time, it is also necessary to consider the supply chain and develop seaport infrastructure. Commenting on the target of 7GW by 2030 as set out in the draft Power Development Plan VIII (PDP8), Hutchinson said it is necessary to have a conversion mechanism for the first 4GW, then implement a bidding mechanism for the remaining 3GW. “If we switch directly to the bidding mechanism, this goal will be difficult to achieve. Besides this, it is necessary to have capital financing from international banks because domestic banks have limited capital supply,” Hutchinson said at a conference two … [Read more...] about Investors clamour for wind incentives
Developers expect smoother LNG policy planning
The input price of imported liquefied natural gas (LNG) fluctuates between 15-20 cents/kW while the saleable electricity price is currently 6-7 cents/kW only. This will be an obstacle in the future because Electricity of Vietnam (EVN) will have to buy high and sell low. Despite the mandatory use of the standard form wholesale market power purchase agreement (PPA), complete with untenable fuel cost pass-through clauses being imposed on would-be LNG project sponsors, the market will never accept the proposition. Prime Minister Pham Minh Chinh questioned why the latest draft of the Power Development Plan VIII (PDP8) seeks to effectively block any new solar power projects until 2030, since “solar power costs are getting cheaper and cheaper, and energy storage battery technology is becoming more advanced at more acceptable pricing”. The LNG gas power project is scheduled to start construction in the second quarter of 2022 According to calculations by the Ministry of … [Read more...] about Developers expect smoother LNG policy planning
MoF proposes further environmental tax cut for petrol
Deputy Minister of Finance Ta Anh Tuan To control increases in petrol prices, the Ministry of Finance (MoF) has proposed to reduce the environmental protection tax for petrol products to the floor level. The reduction will be from VND550-1,100 per litre, depending on the kind of petrol. Deputy Minister of Finance Ta Anh Tuan speaks to local media about this issue. Since the beginning of the year, gasoline prices have fluctuated greatly. What measures has the MoF introduced to stabilise petrol prices? World petroleum prices have had complicated fluctuations from the beginning of 2022 until now, due to the recovery of large economies in the world along with impacts from the Russia-Ukraine conflict and COVID-19 pandemic. The MoF, a price managing agency of the Government, is very worried about the impact of increased gasoline prices on controlling inflation in 2022. To stabilise gasoline prices and minimise the negative effects of the petrol price increases, the ministry … [Read more...] about MoF proposes further environmental tax cut for petrol