In March alone, Vietnamese tuna exports soared by 17% to reach nearly US$84 million compared to the same period from last year. The United States remains the country’s largest export market with turnover reaching more than US$32 million, up 16% on-year.

Along with the US, export orders to the EU rebounded in March, increasing by 30% to US$19 million. 

Furthermore, tuna exports to Israel and Canada also continued to witness rises of 95% and 143% on-year, respectively.

After a period of instability, Vietnamese tuna exports to the Russian market have also bounced back since the end of 2023, edging up by 4% in turnover in March.

Meanwhile, tuna exports to other major markets in March such as Japan, Mexico, Chile, and Thailand all experienced a downward trajectory of 18%, 38%, 34%, and 78%, respectively.

According to industry insiders, Vietnamese tuna export businesses are anticipated to face a number of challenges this year due to tension in the Red Sea, which has led to increases in logistic costs and shipping time.

In addition, local firms have also encountered difficulties in obtaining the certification of raw materials (S/C), which lasts for months, causing a major impact on their production activities. 

HCMC to establish its carbon credit market soon

The HCMC Institute for Development Studies and Advisory Council for the Implementation of Resolution 98 held a conference on the development of the carbon credit market in the city on April 22.

Resolution 98 of the National Assembly on piloting specific mechanisms and policies for the development of HCMC allows HCMC to develop a carbon credit market and implement a trial of a financial mechanism to carry out solutions for reducing greenhouse gas emissions by exchanging and trading Carbon credits with local and international investors. The city will enjoy 100 percent of the revenue from carbon credit transactions to invest in programs and projects to respond to climate change and develop a green economy, digital economy, and circular economy in the city.

According to Dr. Truong Minh Huy Vu, deputy director of the HCMC Institute for Development Studies, many international studies have highlighted the significant potential of creating carbon credits in HCMC. However, the current challenges are the incomplete legal framework and investment capital required to create sustainable, high-quality carbon credits. The creation and pricing of carbon credits are determined by foreign organizations. Awareness of the carbon market is not yet fully understood.

At the seminar, many experts said that HCMC needs to establish a voluntary carbon market as soon as possible.

According to Mr. Nguyen Hoang Nam from PwC Consulting Company, the strategy to approach carbon credit trading to offset carbon in the voluntary market should be implemented first at the current time due to its lower cost and higher efficiency. Meanwhile, the approach of carbon emission quota trading may be considered for implementation later as it requires more time.

Dr. Tran Du Lich, Chairman of the Advisory Council for the Implementation of Resolution 98, suggested the HCMC Institute for Development Studies to collect and gather opinions from experts to have a proposal on the necessary steps for the establishment and development of the carbon credit market in the city by the end of July.

Pangasius exports to UAE surge by 67% in Q1

Vietnamese Tra fish (pangasius) exports to the United Arab Emirates (UAE) market during the first quarter of the year surged by 67% to more than US$7 million against the same period from last year, according to data compiled by the General Department of Vietnam Customs.

In March alone, Vietnam exported pangasius worth more than US$2 million to the UAE, marking an increase of 62% compared to March.

The UAE mainly imported frozen fillet products coded HS 0304 from the Vietnamese market with a turnover reaching more than US$2 million in March, up 51% against the same period from last year and 81% compared to the previous month. This product accounted for 93% of the country’s total pangasius exports to the UAE.

The first quarter of the year witnessed the UAE import frozen Vietnamese pangasius fillets worth nearly US$7 million, up 56% on-year.

Furthermore, the country also imported fresh/frozen/dried pangasius and pangasius value-added products worth US$517,000 and US$152,000, respectively, representing a 15-fold rise and up 62% against the same period from last year.

Experts pointed out that there remains ample room for Vietnamese pangasius exports to the market due to the UAE's  large population, high income, and rapid urbanization rate.

According to the Food and Agriculture Organization of the UN (FAO), the UAE consumes more than 220,000 tonnes of seafood annually and has a per capita seafood consumption of 28.6 kilo per year, higher than the global average.

Moreover, the UAE Central Bank has raised its growth forecast for the UAE economy to 5.7% this year from the previous figure of 4.3%. 

Completed legal framework helps better manage virtual assets

Vietnam needs to complete a legal framework to better manage virtual assets (VAs) as well as virtual asset service providers (VASPs), experts said at an annual forum on Blockchain and AI held by the Vietnam Blockchain Association in Hanoi on April 24.

Some 20% of the Vietnamese population own crypto assets which are developed by blockchain technology, they said, stressing without strict management and failure to comply with global taxing principles, VA transactions will pose great challenges for the country in the coming time.

As of the end of December 2023, 32 countries regulated crypto-assets in their jurisdictions, including ten nations of the G20 group officially issuing regulations on VA and VASP, the Alantic Council’s surveys on anti-money laundering and combating the financing of terrorism (AML/CFT) and protection of users and the VASPs revealed.

Standing Vice Chairman of the Vietnam Blockchain Association Phan Duc Trung said 18 related documents have been issued in Vietnam so far. The notable one being the national action plan to carry out the Government’s commitment to preventing money laundering and financing of terrorism and the proliferation of weapons of mass destruction so as to lift Vietnam out of the Financial Action Tasks Force’s list of Jurisdictions under Increased Monitoring (grey list).

He said the plan has focused on the AML/CFT and VASP standard but neglected taxation of VA and protection of users. Therefore, a complete legal framework has not been shaped up yet.

The association hoped to collect opinions from the community and enterprises as well as have dialogue with state management agencies to develop a complete framework before May 2025.

At the event, the association announced the second Switch Up Accelerator, helping startups to call for funds, and highlighted an overview of the blockchain industry in Vietnam and the globe.

The Academy of Blockchain and AI Innovation was debuted on the occasion, aimed at providing blockchain and AI training strategies for 1 million people by 2030, including 100,000 students in 30 universities across the nation./.

Ca Mau: Conference connects Vietnamese, Chinese firms

A networking conference was held in the Mekong Delta province of Ca Mau on April 24, in a bid to connect 54 local enterprises, mostly operating in the seafood sector, to their Chinese peers.

In his remarks, Chairman of the provincial People's Committee Huynh Quoc Viet said this event marks the beginning of a new phase in the cooperative relationship between the province and Chinese localities. He expressed his belief that it will lead to the signing of contracts and implementation of many programmes.

Wei Huaxiang, Consul General of China in Ho Chi Minh City, considered the meeting a practical activity to carry out common perceptions between the two Parties and countries, tightening their cooperation and friendship.

He cited incomplete statistics that about 500 Chinese firms and customers annually place orders to purchase shrimp, crabs, and other seafood products from Ca Mau. Therefore, in the future, the sides’ business communities should learn about each other's customs and cultures, serving long-term and practical partnerships and creating mutual benefits.

He pledged the Chinese Consulate General in HCM City’s willingness to act as a bridge facilitating their connection and trade.

On the sidelines, Ca Mau firms showcased their fisheries products and specialties recognised under the One Commune, One Product (OCOP) programme.

In 2023, trade between Ca Mau and China reached 97 million USD, accounting for a very modest proportion of the overall Vietnam-China trade./.

Mining Vietnam 2024 opens in Hanoi

The 6th International Mining and Minerals Recovery Exhibition for Vietnam (Mining Vietnam 2024) kicked off in Hanoi on April 24.

Organised by Informa Markets Vietnam under the UK’s Informa PLC, the three-day event has seen the participation of 200 exhibitors from 17 countries and territories, including the UK, India, Poland, China, the US, Japan and Vietnam.

Covering an area of 6,000 sq.m, the biennial event is expected to attract over 3,000 industrial visitors and promises to be an ideal trading destination for businesses operating in mining and construction.

Speaking at the opening ceremony, Ben Wong, Country General Manager of Informa Markets Vietnam, said Vietnam is one of the largest mineral producers in ASEAN, having a world-class reserve of coal, bauxite, chromite, titanium, iron ores and rare earth metals.

Vietnam is renowned for its diverse mineral resources, boasting over 5,000 mines containing 60 different types of minerals, including coal, bauxite, apatite, titanium, rare earths and more. With a rich history spanning nearly 180 years, Vietnam's coal industry has been a cornerstone of national energy security.

Furthermore, Vietnam's substantial bauxite reserves, estimated at 5.8 million tonnes, solidify its position as the world's second–largest holder of bauxite ore potential (United States Geological Survey, 2023).

In recent years, the Vietnamese Government has implemented preferential policies designed to encourage more enterprises to participate in the mining and construction sectors. These policies prioritise sustainability and optimisation of mineral resources.

Notable initiatives include auction to exploit minerals right, the amended Environmental Protection Law, and the planning for exploration, extraction, processing and use of minerals used as building materials for the period of 2021 - 2030, with a vision to 2050. These measures clearly outline the goal of transforming the mining industry into a modern sector by applying science, technology and innovation in equipment to produce high value-added products with positive environmental impact and resource conservation.

Besides mining, the domestic construction market in Vietnam is also thriving, with a market size expected to reach 69.2 billion USD in 2024 and an annual growth rate projected to exceed 8.1% from 2024-2029 (Mordor Intelligence, 2023). This growth has caught the attention of foreign investors. The master plan for the road network from 2021 to 2030, further boosts this potential./.

Over 20,000 products exhibited at Global Sourcing Fair Vietnam 2024

The Global Sourcing Fair Vietnam 2024 hosted by Global Sources kicked off in Ho Chi Minh City on April 24 with the participation of over 400 Vietnamese exhibitors and those from other Asian nations who are showcasing over 20,000 export-standard products across various industries.

The fair provides an opportunity for visitors to explore unique products from member enterprises of various specialised associations and traditional craft villages.

According to Raymond Tang, Vice President of the Federation of Hong Kong Footwear Limited (FFHK), the fair gathers a diverse range of product categories from many Asian countries, opens doors for FFHK’s members to meet buyers from around the world, and introduces the latest trends in the industry and the market.

Hu Wei, CEO of Global Sources, said the exhibition serves as a strategic bridge for business communities to access export opportunities and expand their business activities globally.

The exhibition is expected to be a destination for connecting buyers worldwide who have a demand of sourcing export-standard products from Vietnam and Asia, he added.

With comprehensive online-to-offline services, the three-day fair provides a platform for international buyers to connect with verified suppliers, discover new product categories, and establish valuable business partnerships.

A series of other events in the framework of the exhibition include seminars, business-to-business events, fashion shows, online exhibition, and field tours./.

US$200-million AI factory to be built in Vietnam

It is expected that a US$200- million artificial intelligence factory (AI Factory) will be built in Vietnam in  the coming time.

FPT, the leading technology corporation in Vietnam yesterday announced a comprehensive strategic cooperation with Nvidia, an American semiconductor company and a leading global manufacturer of high-end graphics processing units (GPUs) to promote artificial intelligence (AI) research and provide services and solutions for Vietnamese and global customers.

The two sides planned to build an artificial intelligence factory, train high-quality human resources and become a global service development partner in NVIDIA's partner network.

Pursuant to a memorandum of understanding on cooperation, FPT will invest US$200 million to build an AI factory to provide a cloud computing platform serving AI research and development and to have sovereignty protection in Vietnam.

The factory includes supercomputer systems operating on Nvidia's latest technology breakthrough.

AI Factory will provide GPU cloud services to help FPT's business customers globally access the most core resources to improve research capacity and accelerate the speed of AI applications, especially generative AI.

Besides, AI Factory helps FPT accelerate the construction and development of AI platforms and applications to bring higher values for customers in all industries.

Central bank injects VND36 trillion into banking system

Vietnam’s central bank has injected VND36 trillion into the banking system through open market operations (OMO).

On April 23, nine banks borrowed VND36 trillion from the State Bank of Vietnam (SBV) at an annual interest rate of 4.25% for a 14-day period, a slight increase from the previous rate of 4%.

Simultaneously, the central bank continued issuing bonds, with VND2.15 trillion worth of debt issued with a 28-day term and a yearly coupon rate of 3.73%. This move follows the maturity of a bond tranche issued on March 26, pumping VND3.7 trillion into the market.

Through bond issues and OMO, a net amount of VND25.5 trillion was funneled into the market on April 23. These money injections ensure ample liquidity for banks, keep interest rates as low as possible, and alleviate pressure on the exchange rate by narrowing the interest rate gap between the Vietnamese dong and the U.S. dollar in the interbank market.

The central bank quoted the central exchange rate between the dong and the dollar at VND24,275 on April 23, a VND3 increase from the previous day.

On April 19, the bank sold foreign currency to banks with a negative foreign currency balance at a rate of VND25,450 per dollar.

“This is a strong measure by the central bank to alleviate market concerns, ensure market liquidity, and meet the legitimate demand for foreign currency in the economy,” said Pham Chi Quang, head of the SBV’s Monetary Policy Department.

EVN seeks PM's solutions for solving challenges in PPA negotiations

Vietnam Electricity (EVN) has submitted a proposal to Prime Minister Phạm Minh Chính, seeking measures to tackle challenges encountered during negotiations of power purchase agreement (PPA) with investors of liquefied natural gas (LNG) projects in the National Power Development Plan VIII.

Việt Nam aims to build 13 LNG power plants totaling 22,400MW by 2030, with two more plants of 3,000MW planned for 2035.

Gas power projects scheduled for commercial operation before 2030 include those in Ô Môn Power Centre, Nhơn Trạch 3, Nhơn Trạch 4, and Hiệp Phước, totaling 6,634 MW in capacity. Other projects are contingent on completing PPA negotiations and loan arrangements by 2027 to start operation by 2030. The progress of upstream projects such as Block B and Cá Voi Xanh (Blue Whale) is crucial for the efficiency of the entire gas power chain.

EVN has begun PPA negotiations for the Nhơn Trạch 3, Nhơn Trạch 4, Hiệp Phước, Ô Môn II and Bạc Liêu projects, in which only PPAs of Nhơn Trạch 3 and Nhơn Trạch 4 whose investor is Petrovietnam Power Corporation have progressed. They have agreed on most PPA terms outlined in Circular No 57/2020/TT-BCT, except for electricity pricing which is still being discussed.

According to EVN, a major challenge in PPA negotiations involves the requirement for fixed electricity consumption rates in long-term contracts since July 1, 2012, when the electricity market began. To manage risks from market price fluctuations, LNG project investors usually seek EVN’s agreement on electricity consumption rates in long-term contracts, typically from 72 per cent to 90 per cent of the contract period. These requests aim to ensure steady cash flow for debt repayment and stability in production and fuel prices for LNG suppliers, given Việt Nam’s status as a new and small LNG market.

Under existing regulations, the rates for electricity consumption in long-term PPAs are subject to negotiations between power plant investors and EVN. However, in the absence of an agreement, it will be determined based on the rate set forth by the Ministry of Industry and Trade. Yet, agreeing to high power rates in such contracts may entail the risk of escalating electricity prices and creating market inequities.

Currently, the cost of importing LNG to Việt Nam stands between US$12 and $14 per million British Thermal Unit (BTU). Consequently, gas power plants utilising LNG fuel incur generation costs ranging from VNĐ2,400 to VNĐ2,800 per kWh, significantly exceeding the generation costs of other prevailing power sources in the system.

With LNG projected to contribute about 15 per cent to the national power capacity by 2030, its high costs and long-term output commitments will significantly impact EVN's purchasing costs and, consequently, retail electricity prices.

In the report to the PM, EVN said: "Endorsing the high electricity consumption rates proposed by project investors in long-term PPAs poses financial risks for EVN during periods of low electricity demand. Additionally, committing to these rates lacks fairness to other participants in the electricity market, as current market players operate without long-term commitments, with rates adjusted annually based on supply-demand balance.”

EVN's report suggests that in line with the electricity market's development trajectory, the share of electricity via long-term contracts will progressively diminish, fostering increased competition through the spot market.

EVN estimates that if LNG power sources in National Power Development Plan VIII don't start operating on schedule, electricity supply assurance for 2028-30 could be jeopardised, leading to an annual shortage of 800-1.2 billion kWh. Beyond 2030, high demand could result in a larger deficit exceeding three billion kWh per year.

Thus, EVN has proposed committing to a 65-per-cent power consumption rate through long-term contracts.

Other bottlenecks in PPA negotiations include the requirement of dispute resolution venues, government’s guarantee of foreign currency conversion for projects generating revenue in Vietnamese đồng, as well as the need for compensation mechanism for legal changes and termination payment mechanisim.

In the proposal, EVN suggested to the PM to adjust the electricity consumption rate in long-term contracts to incentivise investment in LNG power projects, mitigate effects on retail prices and maintain competitiveness, suggesting the inclusion of imported LNG prices and associated costs in contract electricity rates to ensure fairness and affordability for consumers. 

Vinacomin gears up for key Bauxite-Aluminum projects in Đắk Nông Province

Việt Nam National Coal and Mineral Industries Group (Vinacomin) announced it is mobilising all necessary resources to undertake two exploration projects and five bauxite-alumina-aluminum projects Đắk Nông Province in Central Highlands region.

With an expected investment exceeding VNĐ182 trillion (US$7.3 billion), particular priority will be placed on the prompt implementation of the Đắk Nông 2 aluminum electrolysis plant project in 2024, striving for its completion by 2030.

The project expects by 2030, aluminium production will reach between 0.7 to two million tonnes per year, generating revenue of VNĐ49.5 trillion (nearly $2 billion) and contributing VNĐ8.4 trillion to the State budget, while providing jobs for 4,000 local workers.

From 2031 to 2045, annual aluminum production is forecasted to reach four million tonnes with revenue of over VNĐ1.1 quadrillion and budget contribution amounting to VNĐ195 trillion, employing 7,000 residents.

Preparation emphasis will be directed towards consumer markets, investment capital, power sources and human resources.

Negotiations over payment agreement for LNG power stuck in deadlock

Negotiations between Vietnam Electricity (EVN) and investors for a power purchase agreement (PPA) for liquified natural gas (LNG)-to-power projects have once again stalled.
 
EVN has been in negotiations with PV Power — the investor of the Nhon Trach 3 and 4 LNG power plants, and Siemens – the investor of the Hiep Phuoc power plant, but they have yet to reach a compromise on the purchase ratio of power.

The investors want EVN to buy between 72 per cent and 90 per cent of the power capacity of these plants, but EVN is refusing to budge past 65 per cent to avoid creating pressure on selling prices.

The investors are also asking for the power purchase ratio to remain constant for the duration of the PPA following a proposal made by creditors to ensure they have stable cash flow to repay their loans. In addition, LNG suppliers are asking for a high fuel purchase ratio to ensure stability in quantity and price. This stability would help them to develop international maritime transport, especially given that Vietnam is a small market for international LNG suppliers.

However, according to EVN, the proposals made by investors are unfeasible because of the risk of power price hikes.

The cost of importing LNG to Vietnam is high, currently between $12-14 per million BTU. As a result, selling prices using imported LNG are from VND2,400-2,800 per kWh, which is much higher than power produced by coal-fired plants.

Approving a high purchase price for the contract's duration would cause financial risks for EVN if the demand for LNG power drops.

In addition, a higher price for LNG power would be unfair on power plants that use other fuels and have no long-term power purchase commitments with EVN.

According to Vietnam's Power Development Plan VIII, power produced using domestic gas and imported LNG will reach 37,000MW by 2030, or 25 per cent of the country's total production. Of this, 24,000MW will come from imported LNG-to-power, or 15 per cent.

EVN explained that with high electricity generation costs, large fluctuations, and long-term output commitments, EVN's purchasing costs will be affected, strongly impacting the retail selling price.

Hence, EVN has proposed a power purchase commitment of 65 per cent.

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