In response to increasing power consumption, the Ministry of Industry and Trade has revised upwards its electricity production plan for this year.

The adjusted plan now targets total electricity output and imports of 310.6 billion kWh for the entire year, an increase of nearly four billion kWh compared to the previous projection.

Outlined in Decision No. 924, the ministry’s plan emphasizes the need to step up electricity supply, especially during peak dry season months. Total electricity production and imports during this period have been raised by over two billion kWh to approximately 111.47 billion kWh.

To ensure sufficient fuel for electricity generation, suppliers of coal, gas, and oil have been urged to maintain adequate supply levels, particularly during peak demand periods.

The Vietnam Electricity Group (EVN) has been tasked with updating its supply plan for both peak months and the entire year, with a directive to report significant demand or supply fluctuations for timely adjustments and minimal operational disruptions.

State-owned energy companies, including the Vietnam Oil and Gas Group (PVN) and Vietnam National Coal and Mineral Industries Group (Vinacomin), have been assigned the responsibility of ensuring continuous fuel supply for power generation.

According to data from EVN, in the first quarter of 2024, commercial electricity production surged to 62.66 billion kWh, an 11.42% increase compared to the same period in 2023.

Notably, electricity production in key cities like HCMC and Hanoi saw significant growth, with HCMC recording a 12.8% increase and Hanoi witnessing a 10.64% rise. Similarly, the Northern Power Corporation reported a notable uptick of 9.87% in electricity production.

Real estate 'golden triangle' heats up

The 'real-estate fever' in the 'golden triangle' of Ho Chi Minh City-Binh Duong-Dong Nai has been attributed to Ho Chi Minh City's price pressures and the building of key transportation infrastructure developments, with many new projects that connect the southeast economic region with other areas implemented since the start of the year.

These include the Ho Chi Minh City-Moc Bai Expressway project phase 1, with a total investment of about $870 million and a length of about 50km. The project is being urgently reviewed by the Ministry of Planning and Investment (MPI) with efforts being made to start construction before April 30.

The expressway, starting in Binh Duong and ending at the border with Binh Phuoc province, is scheduled to begin construction on September 2, with a total investment of $725 million. Additionally, highways connecting Bien Hoa-Vung Tau, Dau Giay-Tan Phu, and Tan Phu-Lien Khuong are also under construction. These projects should serve as catalysts for future real estate growth in the south.

Ngo Quang Phuc, CEO of Phu Dong Group said, "Venturing further from the city to find affordable housing in a nice, clean environment is becoming increasingly common. However, not every project attracts buyers, and only those located in areas with decent infrastructure, connectivity, and amenities are being noticed."

In Binh Duong, Phu Dong Group is preparing to announce the Phu Dong Sky One project in Di An city, with an average price of above $1,333 per square metre, with handover expected in December 2025. Picity Sky Park is another proposed development for this area.

Danh Khoi Group will launch phase 2 of its Astral City project in Thuan An city in the second quarter of this year. Further out, in the new city of Binh Duong, CapitaLand commenced The Orchard project on February 28, a component of the Sycamore urban area.

The formation of the Ho Chi Minh City-Long Thanh-Dau Giay Expressway corridor has driven the development of the real estate market in Dong Nai, where the supply of apartments is still limited, and where buyers predominantly seek plots of land and town houses.

Dong Nai People's Committee issued a plan on April 10 to auction land use rights for 2024, meaning the rights to use 18 land plots of over 470 hectares and valued at $212.5 billion will be auctioned. The plots are located in Bien Hoa city and the districts of Long Thanh, Trang Bom, Cam My, and Thong Nhat.

Another reason for the wave of real estate projects in Binh Duong and Dong Nai is the fact that the Ho Chi Minh City market is under tremendous pressure, meaning buyers are being priced out. According to a real estate market report released by Savills in January, Ho Chi Minh City no longer has properties priced below $83,300 per unit, with 90 per cent of transactions falling within the range of $83,300-$208,300.

"Between 2024 and 2026, we expect the majority of apartments being supplied will focus on the $208,000- $417,000 segment. Therefore, homebuyers in Ho Chi Minh City may consider shifting their purchases to properties in neighbouring areas such as Binh Duong, Dong Nai, and Long An, where prices are more affordable," said Giang Huynh, deputy director and head of the Market Research Department at Savills.

Vietnamese ore and mineral exports see upswing in Q1

Vietnam exported more than 740,908 tonnes of ores and minerals worth more than US$61 million during the first quarter of the year, representing a rise of 5.4% in volume and 71% in turnover against the same period from last year, according to the General Department of Vietnam Customs.

The average export price reached nearly US$82.4 per tonne, witnessing a sharp increase of 61% on-year.

March alone saw Vietnam rake in more than US$21.88 million from exporting 233,844 tonnes of ores and minerals, up 74.5% in volume and 45.3% in value compared to February.

Malaysia, Taiwan (China), and the Republic of Korea all remained as the country’s three largest export markets for ores and minerals throughout the reviewed period.

Most notably, the export of these products to the Malaysian market has enjoyed impressive growth, outperforming other major markets to take the leading position.

During the three-month period, Malaysia spent US$3.28 million importing 196,739 tonnes of ore and minerals from the Vietnamese market, marking a sharp annual rise of 1,827% in volume and 202% in turnover and accounting for 26% of total exports.

Currently, the nation is 15th and 65th place in the world in terms of mineral area and geological age, respectively, whilst it is also home to 60 of the 200 most popular mineral types in the world.

Viettel establishes a new strategic partnership with Nanning City

Viettel Post (a member unit of Viettel Group) will deploy intermodal train services invested by Viettel and "customs clearance inspection" at 30 centers located deep in the interior of Việt Nam.

This was announced at a meeting between Chairman and General Director of Viettel Group - Major General Tào Đức Thắng and delegates from Nanning City government (China) led by Nong Sheng Wen - Secretary of Nanning City Party Committee. The two sides have discussed investment opportunities in logistics, trade, digital transformation, smart border gates and other potential fields.

The co-operation between Viettel Group and Nanning City in logistics and cross-border transport is expected to halve connection time between Nanning and Hà Nội to only 12 hours, optimally reducing logistics costs by at least 30 per cent. This optimisation will contribute to promoting trade in goods between the two countries, especially in agriculture and fisheries. 

The two sides have reached agreements in co-operation to establish the Việt Nam - China Association of Logistics and Trade Enterprises.

The completion of cross-border logistics infrastructure connecting Việt Nam and China will be the premise for Việt Nam to become a regional logistics centre, increasing the competitiveness of Vietnamese agriculture and fisheries in the Chinese market. The reduction in time and transportation costs compared to agricultural products from other countries is the key factor to this outcome. 

Wen said: "In recent years, Nanning City has become a important transit route between China and Asean, chosen by many Chinese and Asean businesses. This creates an urgency to upgrade transportation and logistics infrastructure to connect the two regions strongly and effectively." 

Thắng said: "Viettel Group will invest heavily in human, financial and technological resources to participate in building national logistics infrastructure - thus, contribute to making Việt Nam a regional and international logistics center, in addition to the two national infrastructure systems that Viettel has built on the largest scale in Việt Nam: telecommunications infrastructure and digital infrastructure.”

Viettel Post is the first enterprise in Việt Nam to sign a co-operation agreement with Nanning government - a logistics hub city connecting Vietnamese and Asian goods to mainland China and vice versa. 

In early March, Viettel Post signed an agreement with the government and businesses in Nanning and Pingxiang on the establishment of a representative office and the construction of a China - Asean agricultural product trading centre and logistics centre. 

Vietnamese plywood businesses seek help

Vietnamese plywood businesses are reaching out to the Ministry of Industry and Trade for assistance amid concerns over a potential higher anti-dumping duty in South Korea on plywood imports from Vietnam.

The Vietnam Plywood Association has formally requested the ministry’s support to maintain the current anti-dumping duty of 10.54%, urging the Trade Remedies Authority to work with South Korean authorities to facilitate Vietnam’s continued exports to this market.

The association’s petition follows indications that the anti-dumping duty on plywood exports to South Korea might soar from 4.1% to 13.04%. South Korea has initiated an anti-dumping investigation into plywood imports from Vietnam for the 2020-2023 period.

South Korea is among Vietnam’s top four plywood buyers, with Vietnamese plywood exports to South Korea exceeding US$201 million in 2023, accounting for 29% in volume and 22.7% in value of the total plywood export revenue.

SBV warns against unregulated foreign currency trading

The HCMC branch of the State Bank of Vietnam (SBV) has told citizens to avoid participating in informal foreign exchange markets.

In a statement released on April 23, the SBV said that such activities violate the prevailing regulations and carry inherent risks.

According to Nguyen Duc Lenh, deputy director of the SBV’s HCMC branch, individuals who have foreign currency should sell it to banks, foreign bank branches, or entities authorized to provide currency exchange services.

Authorized currency exchange agents are only allowed to use Vietnamese dong to purchase foreign currency from individuals, with exceptions made for agents operating at designated international border checkpoints.

Vietnamese citizens residing abroad are permitted to purchase, transfer, or carry foreign currency abroad for legitimate purposes under Decree 70/2014/ND-CP.

To comply with regulations, currency traders need proper documentation for their transactions, said Lenh. Violations of foreign exchange management regulations can lead to administrative sanctions, adding that breaking foreign exchange rules will result in administrative penalties.

Dong Nai to turn 2,000 hectares of rice into other crops

The southeastern province of Dong Nai has unveiled a plan to convert over 2,000 hectares of land under rice cultivation into other crops due to water shortages.

The plan entails cultivating annual crops, perennial crops, and integrated rice-aquaculture, reported the local media.

The provincial government of Dong Nai has issued a directive outlining the plan for 2024, with over 750 hectares earmarked for annual crop cultivation, nearly 600 hectares for perennial crops, and around 60 hectares for a combination of rice farming and aquaculture.

The objective is to optimize land utilization efficiency, boost income for agricultural households, and align with the province’s agricultural development strategy. The move aims to diversify crop production and enhance economic efficiency.

The province said it would focus on maintaining conditions for potential rice re-cultivation, preventing land pollution, and ensuring adequate water availability, suitable climate conditions, and higher economic returns.

The local government plans to leverage scientific and technological advancements, utilize high-yield crop varieties, establish production and consumption linkages between enterprises, cooperatives, and farmers, and create specialized production zones tailored to specific crops.

Currently, Dong Nai Province boasts around 280,000 hectares of agricultural land, with 300 large-scale farms focusing on perennial crops such as rubber, cashew, black pepper, coffee, and durian.

According to its land use plan for the 2021-2030 period, Dong Nai aims to maintain over 15,400 hectares of rice land by 2030.

Refinements necessary for stock market

Vietnam’s ambitious endeavour to upgrade its stock market is confronting formidable challenges, such as pre-funding complexities and potential market volatility.

Ketut Kusuma, senior financial sector specialist at the Finance and Markets Global Practice of the World Bank Group, voiced strong optimism about the potential of Vietnam’s stock market a conference on the issue last week, though he noted that there is still significant room for it to evolve into a crucial capital source.

“Vietnam must overcome three primary obstacles to enhance its appeal to emerging market investors. Key challenges include the need for pre-funding and block transactions, which necessitate establishing a central counterparty and offering payment guarantees for foreign investors,” he said at the event.

Moreover, adjustments are crucial regarding “the foreign ownership cap and the room available for foreign investors”, such as permitting non-voting depository receipts and increasing the foreign ownership limit.

The market’s attractiveness could also be bolstered by ensuring equitable information access. “Providing information in both English and Vietnamese and adopting International Financial Reporting Standards are essential steps,” he noted.

“Further refinements needed include simplifying the process for opening accounts and registering investors, improving account structures, and ensuring efficient and transparent initial public offering processes,” Kusuma said. “Addressing issues related to access, risk mitigation, foreign exchange conversion capabilities, and upgrading trading system infrastructure are also vital.”

He added that an upgrade would enhance Vietnam’s market status, ensuring sufficient capital access for foreign investors with substantial securities scales.

Second Secretary Arabella Bennett from the Australian Embassy in Vietnam added, “Despite facing challenges, Vietnam has achieved notable results in its efforts to ascend to an emerging market status. Moreover, Vietnam has been included on FTSE Russell’s watchlist for a potential upgrade of its stock market.”

Vu Chi Dung, director of the International Cooperation Department at the State Securities Commission of Vietnam, emphasised the broader implications of an upgrade.

“A market upgrade is a clear signal that Vietnam has moved further along in its international economic integration journey, elevating not only the stature of Vietnam’s stock market but also of the entire economy in the eyes of the global community,” Dung said.

The World Bank’s assessment suggests that an upgrade could draw approximately $7.2 billion of net indirect foreign investment into Vietnam annually, predominantly from major global investment funds and foreign investors. “This upgrade will enhance the pricing capabilities of stocks, leading to a valuation that reflects the actual demand and potential of businesses, greatly aiding the equitisation process and facilitating higher state divestment revenues,” Dung explained.

The upgrade would increase the number of institutional investors and large-scale investors in the market, currently dominated by over 90 per cent individual retail investors.

However, Dung cautioned that the greatest challenge remains ensuring the continuous stable and sustainable development of the stock market, maintaining the ranking and avoiding any downgrade. This challenge stems from the market’s ability to meet the ongoing or changing criteria set by ranking organisations.

On the other hand, Duong Ngoc Tuan, deputy general director of Vietnam Securities Depository and Clearing Corporation, discussed the challenges associated with pre-funding, particularly focusing on the group of foreign institutional investors who, despite constituting only 10 per cent of investors, account for a significant share of transactions.

“These investors typically exhibit high compliance and have not yet faced payment defaults due to unarranged funding. Therefore, resolving issues for this group is our priority,” Tuan stated.

He also explained the principle that allows for this based on the brokerage’s assessment of capability of margin levels to ensure payment on the settlement day. “The challenge lies in handling situations where, on settlement day, the investor lacks funds, transferring payment obligation to the brokerage. If the brokerage itself fails to arrange the necessary funds, it would jeopardise payment operation safety,” he added.

Dr. Nguyen Nhu Quynh, director of the Institute of Financial Policy Strategy, recommended vigilant monitoring and preparedness for rapid capital flow reversals. This involves closely tracking capital inflows from individual investors, foreign entities, and securities-related debts.

“Enhancing market resilience against external shocks through improved regulatory and supervisory capabilities, along with financial stability, is crucial. Modernising inspection and surveillance tools and enforcing regulations are vital components of this strategy,” he stated.

“Additionally, a comprehensive restructuring of intermediary organisations is essential to elevate their quality and ensure they meet the demands of an upgraded market, thereby ensuring system stability and financial security.”

Vietnam seeks to remove obstacles in upgrade of securities market

The State Securities Commission of Vietnam (SSC) recently held an online working session with the World Bank (WB) and the Asia Securities Industry and Financial Markets Association (ASIFMA) to discuss ways to remove obstacles related to criteria for upgrading the Vietnamese securities market.

Co-chaired by SSC Chairwoman Vu Thi Chan Phuong and Senior Financial Sector Specialist of the WB in Vietnam and Coordinator of the Financial Sector Programme Ketut Kusuma, the event focused discussions on the contents of the draft decree amending and supplementing certain provisions on securities trading, transaction clearing and settlement, operations of securities companies and market information disclosure.

Speaking at the event, Phuong said the draft decree has undergone in-depth consultation through various channels, including the SSC’s website, seminars, and working sessions with domestic and foreign experts.

Feedback from ASIFMA members at the meeting is particularly valuable, as it will help refine the draft decree to align with international practices, she said.

The session addressed critical issues, such as pre-funding requirement, payment processing procedures for foreign investors, and overall settlement capability of the Vietnamese market.

By addressing these concerns, the SSC hoped to create a more attractive and efficient market for both domestic and foreign investors, ultimately paving the way for Vietnam's securities market to have its status lifted from "frontier" to "emerging".

Hà Nội promotes development of private economic sector

Hà Nội is striving to develop many private economic models by the end of 2025, and improve business quality and efficiency of innovative enterprises.

Growth rate of Hà Nội's private economic sector is also set to be higher than the overall growth rate of the municipal economy.

This is part of a plan issued by the Hà Nội People's Committee to implement the Government's Action Programme on private economic development for the period 2023-25.

It aims to create favourable conditions for the private economy to have quick and sustainable development with growth in quantity, scale and quality of private firms. Those contribute to the gross regional domestic products (GRDP), create jobs and improve income of the people in the city.

The city also strives to have more than 439,000 enterprises by 2025 and 600,000 units by 2030. Of which, it will have 152,700 newly established enterprises in the period 2021-25.

To complete these targets, the municipal people's committee has deployed some key tasks and solutions.

It continues to improve mechanisms and policies with synchronous and consistent manners, creating a favourable investment and business environment for development and participation in market of the private economic sector; and promoting fair competition.

The city will develop infrastructure and increase ability approaching to resources of the private economy. It focuses on supporting the private economy to innovate technology, develop human resources and improve productivity.

In addition, it is necessary to improve the efficiency of State management for private economic development.

Incentive policy drafted to promote settlement of weak credit institutions

The State Bank of Vietnam (SBV) has proposed an incentive policy on the reserve requirement ratio for credit institutions (CI), which receives the compulsory transfer of specially controlled credit institutions, to promote the settlement of the weak credit institutions.

Under a draft circular to amend Circular 30/2019/TT-NHNN, the SBV states credit institutions, which receive specially controlled credit institution transfers, will have their reserve requirement ratio reduced by 50 per cent.

The move was made as the settlement progress of specially controlled credit institutions has been slow.

According to a report of the State Audit of Vietnam (SAV), progress in handling weak credit institutions, including OceanBank, GPBank and CBBank, is still slow as it has lasted for many years (since 2015).

The extension of the handling has led to an increase in the expected capital sources that have been used to aid the handling through special loan forms because the weak banks have reported consecutive losses.

By the time of the audit in August 2023, the handling of the three banks was only at the stage of the Government's approval of the mandatory transfer policy, and determining the bank value.

According to current legal regulations, DongA Bank must be transferred to another bank because its equity is negative.

Therefore, the SAV recommended that the SBV speed up the handling of weak banks.

The SBV should coordinate with agencies to urgently speed up the compulsory transfer of the poor-performing banks, the SAV said.

According to the SAV, relevant agencies must propose monitoring and intervention measures in accordance with the law to avoid losing the property of the State and people and ensure the safety and stability of the banking system.

According to the SAV’s report, the financial situation of the banks was still very difficult. Specifically, bad debts and mortgaged assets remained high; equity was negative; while accumulated losses continued to increase and failed to meet safety regulations in banking activities. 

Việt Nam attends Asia’s biggest food, hospitality expo in Singapore

Five Vietnamese enterprises operating in the fields of food and hospitality are attending the Food & Hotel Asia (FHA) 2024 which is taking place in Singapore from Tuesday to Friday (April 23-26).

This year’s event attracts over 1,500 businesses from more than 50 nations and territories and expects to welcome 60,000 visitors.

Vietnamese booths draw the attention of many visitors with their wide variety of products such as confectionery, beverage, frozen foods, pepper and other spice products, and canned and dried fruit.

Speaking at the opening ceremony, Singaporean Minister of Trade and Industry Low Yen Ling said that FHA-F&B was an equal playground for enterprises to seek collaboration in free trade agreement networks. It also aims at internationalisation, continuous innovation and sustainable development in the field of food and hospitality.

Vietnamese Ambassador to Singapore Mai Phước Dũng emphasised that the participation of Vietnamese enterprises showed their enormous efforts in studying food and hospitality development trends in the world.

He affirmed that the event also helped promote more Vietnamese products in foreign markets.

Through the event, Vietnamese enterprises anticipate opportunities to meet potential partners, bringing more Vietnamese agricultural brands to international markets.

Michael Duck, Executive Vice President of Informa Markets, said that Việt Nam was a supplier of many important food items and the event was an occasion to expand the market further. 

Techcombank concluded its fourth offshore syndicated loan of US$20 million

Techcombank has successfully concluded its fourth offshore syndicated loan with a total of 15 banks participating and providing a strong oversubscription of the US$200 million facility.

The syndicated loan facility of 3-year tenor was launched on a selective basis in January this year. It was well-received and oversubscribed by a consortium of leading international financial institutions, highlighting Techcombank’s credibility and reputation within the global financial community.

The financing was fully underwritten and pre-funded by the following Mandated Lead Arrangers, Underwriters and Bookrunners: First Abu Dhabi Bank PJSC, Landesbank Baden-Württemberg, Mizuho Bank, Ltd, MUFG Bank Ltd and Oversea-Chinese Banking Corporation Limited. The participating lenders were from diversified regions including Middle East, the Philippines, People’s Republic of China and Taiwan. The syndication was also successful in expanding Techcombank’s lender-base with more than half being first-time lenders.

The successful conclusion of this transaction further solidifies the market’s trust and confidence in Techcombank as well as its robust capital and earnings profile even during a prolonged period of economic slowdown and market headwinds.

The proceeds raised from this syndicated loan are used for Techcombank’s general corporate and working capital purposes, and will bolster the bank’s ability to meet the increasing medium- and long-term funding needs of its customers in both foreign and local currencies.

Petrol prices fall in latest adjustment

Retail prices of petrol have been revised down in the latest adjustment at 15:00 on April 25 by the Ministry of Industry and Trade and the Ministry of Finance.

Accordingly, the price of biofuel E5 RON92 was capped at VND23,910 per litre, dropping by VND310 per litre, while that of RON95-III was cut by VND320 per litre to no more than VND24,910.

Meanwhile, oil prices were also adjusted down, with diesel oil and kerosene being sold for a maximum of VND20,710 per litre and 20,680 per litre, respectively. Both of them were decreased by VND730.

However, only the price of mazut oil was adjusted up by VND200 to VND17,400 per kilogram.

In this adjustment, the two ministries decided not to use the petrol price stabilisation fund.

Phu Yen, Ninh Thuan attractive to energy project developers

The south-central coastal provinces of Phu Yen and Ninh Thuan have become attractive destinations for investors operating in the energy industry thanks to great potential for renewable energy development.

The Minh Thach DL Green Hydro JSC has recently proposed the People's Committee of Phu Yen province invest in a complex of green hydro - ammonia production plants, for an annual production of 45,000 - 55,000 tonnes of hydrogen or 270,000 tonnes of ammonia.

The investor planned to carry out the construction of power supply infrastructure facilities in Song Cau town and Son Hoa to produce 450 MW of wind power and 707 MWp of solar power to serve the project.

Besides, the company proposed building the 20-ha project in the Hoa Tam Industrial Park in the South Phu Yen Economic Zone.

The project aims to export green hydrogen and ammonia to China, the Republic of Korea (RoK), and Japan, as well as serve domestic demand, contributing to developing renewable energy, reducing CO2 emissions, and adapting to climate change towards promoting local economic growth and budget revenue.

Meanwhile, in late March, Nexif Ratch Energy SE Asia Pte., Ltd of Singapore and the Binh Dinh provincial People’s Committee signed a memorandum of understanding (MoU) on investing in developing a 150-MW wind power plant with a total investment of 5.5 trillion VND (nearly 217 million USD) in Van Canh district.

According to Cyril Dissescou, Managing Director of Nexif Ratch Energy, about 143 MW of onshore wind power generated by the plant will be distributed in Binh Dinh by 2030, laying a foundation for renewable energy developers like his firm to expand business in the locality.

Chairman of the provincial People’s Committee Pham Anh Tuan, the local authority has granted Nexif Ratch Energy permission to install wind measurement poles to assess the wind potential in Van Canh, aiming to serve investment research for the project.

Previously, at a conference to announce the Master Plan of Binh Dinh in the 2021 – 2020 period, with a vision to 2050 late last year, the provincial People’s Committee handed over three MoUs related to an onshore, nearshore, and offshore wind power project worth 4.8 billion USD; and a 2.4-trillion-VND biomass power plant project to investors.

Additionally, the German Chamber of Industry and Commerce in Vietnam (AHK Vietnam) has proposed developing an offshore wind power project worth 4.6 billion USD in Phu My district./.

Petrovietnam posts US$9-billion revenue in Q1

The Vietnam National Oil and Gas Group (Petrovietnam) saw total estimated revenue of VND231 trillion (US$9 billion) from production and business activities in the first quarter of 2024.

The Vietnam National Oil and Gas Group (Petrovietnam) saw total estimated revenue of VND231 trillion (US$9 billion) from production and business activities in the first quarter of 2024, exceeding the set quarterly plan by 33 percent and up 19 percent year-on-year, head a conference held by the group recently.

Key production indices of the Vietnam National Oil and Gas Group in the first quarter showed growth compared to the same period last year, with the output of crude oil, gas, urea, NPK fertiliser surpassing quarterly targets by 19.4 percent, 32 percent, 7 percent and 59 percent, respectively. The production of oil and petrol also exceeded the plan for Q1 (excluding the output of Nghi Son Refinery) by 22.5 percent.

Compared to the same period last year, the production of petroleum, electricity, urea, and NPK fertilizer also increased by 9.8 percent, 17.5 percent, 3.2 percent and 41 percent, respectively.

The group contributed over VND31.3 trillion to the State budget, exceeding the quarterly plan by 40 percent and increasing by 5 percent compared to the same period in 2023. Its total investment value reached VND4.93 trillion, up 44.6 percent year-on-year.

Production and business activities of Petrovietnam’s member units remained stable, with many units completing their targets. They include the Binh Son Refining and Petrochemical Joint Stock Company (BSR), the Petrovietnam Oil Corporation (PVOIL), the Petrovietnam Gas Joint Stock Corporation (PV GAS), the Petrovietnam Fertiliser and Chemicals Corporation (PVFCCo), the Petrovietnam Insurance Corporation (PVI), and the Petrovietnam Drilling & Well Service Corporation (PV Drilling).

Chairman of Board of Members of the Vietnam National Oil and Gas Group Le Manh Hung emphasised the need for solutions to maintain oil and gas production, ensure fuel supply for the operation of power plants during peak periods of hot weather. The group will also apply measures to manage supply chain risks for oil refineries amidst escalating political tensions in many regions, and promote investment activities.

Attention will be paid to investing in localities expected to develop energy industrial centres such as Ca Mau, Ba Ria - Vung Tau, Quang Ngai, Thanh Hoa, Ha Tinh, and Hai Phong. The group will also work to address existing issues in underperforming projects, promote international cooperation, and develop a human resources management strategy, he stressed.

Petrovietnam General Director Le Ngoc Son instructed all units to continue closely working with ministries and relevant agencies to finalise legal documents. Firstly mechanisms and policies related to LNG and electricity need to be addressed, as these are crucial tasks for the group’s ongoing development across all stages, from exploration, and exploitation to production and sale.

He underlined the urgency to remove difficulties to projects such as Long Phu 1, Nhon Trach 3 and 4, accelerate the construction of power plant projects like O Mon 3 and 4, and organise financial investment conferences to review difficulties and obstacles in the investment process.

In March, the Vietnam Oil and Gas Group signed a memorandum of understanding (MoU) on cooperation in renewable energy with Denmark’s Copenhagen Infrastructure Partners (CIP).

Under the document, the two companies will exchange knowledge and best practices on energy transition issues, including technology, supply chain, logistics, infrastructure, and skills development.

Vietnam commits $1.08 billion to train 50,000 semiconductor engineers by 2030

Vietnam has underscored its ambition to develop a skilled workforce for the semiconductor industry, aligning with its vision to deeply integrate into the global value chain, spurred by robust industry growth and strategic international partnerships.

Prime Minister Pham Minh Chinh on April 24 chaired a pivotal conference focusing on human resources development within the burgeoning semiconductor industry.

Minister of Planning and Investment Nguyen Chi Dung noted, "From 2001 to 2021, the global semiconductor industry's revenue has expanded 14 per cent annually, reaching close to $600 billion in 2023, and is expected to continue its robust growth trajectory, potentially reaching $1 trillion by 2030."

The minister outlined the strategic direction for Vietnam. "There's a high political resolve from central to local governments to succeed. We offer a business-friendly investment climate that's already appealing to major foreign players in the electronics sector. Moreover, our skilled yet cost-effective workforce operates actively within the electronics industry, and we've established comprehensive strategic partnerships with nearly all nations hosting advanced industries," he said.

He added, "Vietnam is presented with a once-in-a-millennium opportunity to deeply integrate into the global semiconductor industry's value chain."

As part of this ambition, the government has delegated the Ministry of Planning and Investment to develop the "Semiconductor Industry Human Resources Development Project towards 2030, with a vision to 2045", requiring a total investment of roughly $1.08 billion, blending state funding and private capital.

The project targets the cultivation of 50,000 engineers across the value chain, specialising in various segments, including a minimum of 5,000 engineers with deep expertise in AI, and about 1,300 lecturers of international calibre.

Minister Dung highlighted the importance of cross-sector cooperation for the project's success, "All ministries, localities, businesses, research institutions, and experts, both national and international, must engage collectively to harness this rare opportunity for deep integration into the semiconductor value chain."

Localities on first step towards training microchip labour force

A number of localities are coordinating with manufacturers to train workers for the semiconductor industry, mostly in the basic stages of assembly and testing.

Three manufacturers in the northern province of Bac Giang - Hana Micron Vina, Si Flex Vietnam, and Synergie Cad Vietnam - have plans to recruit thousands of workers from now until 2030.

They are projected to recruit more than 1,800 additional workers this year and 6,300 in 2025–2030. They expect to recruit 1,200 of the 6,300 students who graduated from college onwards, and the remaining will be unskilled workers.

The total number of employees working for enterprises in semiconductors in the locality has now reached more than 8,000 people, only 20 per cent of whom are skilled labourers, experts, and engineers.

To meet these demands, they are collaborating with training facilities to raise the labour force. Within the framework of a conference organised by Bac Giang People’s Committee on April 16, South Korean semiconductor and memory chip manufacturer Hana Micron Vina signed agreements with the two colleges located in the province.

Hana Micron and Vietnam-Korea College of Technology (VKTech) signed a joint contract for the second time to train the labour force for outsourced semiconductor assembly and testing or back-end manufacturing. Besides this, the manufacturer and the Industrial Technical College, headquartered in Bac Giang city under the Ministry of Industry and Trade, also signed a cooperation agreement.

Despite the increasing demand, the training activity currently focuses on basic tasks like back-end manufacturing, assembly and testing, which accounts for low added value.

“The training contents are at a basic level. After this step, it is necessary to organise an in-depth training programme so that students can clearly understand the equipment and technology, stages and raw materials needed in the chip and semiconductor manufacturing process,” said Chung Won Seok, general director of Hana Micron Vina.

Along with Bac Giang, the central city of Danang will also devise special policies for its development, including one on the microchip and semiconductor industry development, to submit to the National Assembly for approval.

Danang launched a programme on the development of the microchip and semiconductor industry in October 2023 when it announced the establishment of the Danang Semiconductor and AI Centre.

Le Quang Nam, Vice Chairman of Danang People’s Committee, told VIR, “Developing the human resources and attracting investment capital in the semiconductors is one of the key and long-term strategies of the city. Danang will focus on training the labour force for the design, and assembly/testing stages, which match with the city’s investment attraction direction.”

Localities said that training plans also faced challenges.

Nguyen Xuan Ngoc, deputy head of Bac Giang Industrial Zones Management Authority, said, “The semiconductor production is a new industry in Vietnam. The main source of trained labour is limited. Therefore, Vietnamese workers do not meet the professional requirements set by producers, so businesses must train them from the beginning to understand the operations and work process.”

According to the information collected by the Bac Giang authority, after being trained for a few months, workers can grasp the job but still need supervision from managers and technical experts. After a period of six months to one year, workers will be proficient in their jobs and can work independently and proactively in their work.

For unskilled workers, the training period is about one month, after which the worker must still be trained and monitored further during the working process.

Hana Micron said that the company has received over 110 students from two colleges in the province to work at the company as interns. However, at present, just 64 students have become official staff at the company. Of all the students, around 40 per cent did not meet the work performance requirements, and 20 per cent had an unsatisfactory attitude.

Meanwhile, many of the interns had a desire to change jobs and a desire to study abroad. Just 2 per cent expected to study at university.

“The company has cooperated with VKTech in the training segment for a short time. Thus, it is still quite early and difficult to accurately assess the quality of human resource training programmes. I also hope that, when the training programme is deployed more widely, it will improve students’ awareness and interest in this profession,” said Seok of Hana Micron Vina.

Investment in infrastructure and high-tech equipment for training requires huge investment from the government, institutions, and businesses, according to Vietnam’s National Innovation Centre. In addition, coordination programmes between institutes, schools, businesses and university’s formal training programmes are currently inconsistent and do not meet international standards, causing difficulties in the sustainable development of the industry.

Central highlands opens conference on import-export development

The Ministry of Industry and Trade (MoIT) and Đắk Lắk Province will open a conference on trade promotion and import-export development in the Central Highlands region in Đắk Lắk Province on April 26.

According to MoIT's Trade Promotion Agency, the conference will focus on discussing co-operation among production chains to increase the value of export products in the Central Highlands region; and linking Central Highlands localities’ trade promotion and import-export activities.

This conference is an opportunity for State management agencies and businesses to find advantages, expose barriers and identify possible solutions in trade promotion and import-export activities this year and in coming years, especially for potential and key products of the Central Highlands.

Along with that, the conference also mentions the results of trade promotion activities on social networks and e-commerce platforms.

These contents will be shared by representatives of localities in the Central Highlands region, MoIT, the Việt Nam Fruit and Vegetable Association, the Việt Nam Coffee and Cocoa Association, and some businesses.

On the sidelines of the conference, the enterprises will open booths introducing their goods and service products.

The Trade Promotion Agency also co-ordinates with Việt Nam trade offices abroad to organise online trade connections between manufacturing and trading enterprises of vegetables, tubers, fruits, coffee and processed foods with nearly 30 importers from important markets of Việt Nam such as the Philippines, mainland China, the US and Hong Kong.

The Central Highlands region encompasses the five provinces of Kon Tum, Gia Lai, Đắk Lắk, Đắk Nông and Lâm Đồng. This is a particularly important strategic area in the Laos - Việt Nam – Cambodia development triangle. 

In addition, it is a region with great potential for forest economic development, agricultural and forestry product processing, and mineral exploitation and processing.

Source: VNA/SGT/VNS/VOV/Dtinews/SGGP/VGP/Hanoitimes