Green, circular production in combination with well-connected supply chains will create a foundation for sustainable agricultural exports, experts have said.

Speaking at a recent conference held by the HCM City Department of Industry and Trade, Nguyen Dinh Tung, General Director of Vina T&T Group, and Vice President of the Vietnam Fruit and Vegetable Association, said Vietnam is home to diverse agricultural products, especially fruits.

However, he pointed out that the bottlenecks in agricultural export lie in product quality and connectivity between farmers and businesses, adding that both sides need to make commitments to benefit sharing.

Dr. Ha Thuy Hanh, Vice President of the Vietnam Farms and Agricultural Enterprises Association, said closed-loop production can help improve the quality of farm produce, and raise the value of the agriculture-based economy. Some models of circular production have seen their economic values increasing by 20-30%.

Models where agriculture and tourism are combined have also proven effective, she said.

However, she continued, there have been no exclusive mechanisms and strategies to promote such models yet. She suggested that new policies should be rolled out to encourage enterprises to process agricultural by-products and attract investments in the field. This will create a foundation for the agricultural sector to grow sustainably in terms of product quality, economic efficiency and environmental protection.

Hanh also proposed stepping up the communication work to change the mindset of leaders of agencies and localities, farmers and consumers.

Sharing Hanh’s view, Tung said the communication work plays an important role in building Vietnamese brands and attracting attention of international customers to Vietnamese agricultural products.

Huynh Kim Tuoc, Co-Chair of the Digital Economy & Technology Committee at the American Chamber of Commerce in Vietnam (AmCham), said apart from traditional trade channels, online business has opened a new space for farm produce, suggesting domestic firms optimise it to expand their markets.

OCOP-based tourism yields new development spaces for rural areas

The “One Commune-One Product” (OCOP) programme and another on rural tourism in new-style rural area building for 2021-2025 have helped spur economic development in rural areas.

The optimisation of OCOP products in tourism development is expected to create new development spaces, and raise competitiveness of both OCOP products and tourist destinations.

Therefore, Minister of Agriculture and Rural Development Le Minh Hoan said each locality should invest more in product quality and packaging, and provide more information about materials, production and processing.

Tran Anh Thu, Vice Chairman of the People’s Committee of the Mekong Delta province of An Giang, which is home to many specialties and handicrafts, said the locality will roll out more incentives to facilitate production and planning of material areas.

An Giang will also promote market access and build a number of OCOP models, toward developing special OCOP products, the official said, adding that strengths of craft villages will be utilised.  

Meanwhile, to create added value for OCOP products and tourism services, the Mekong Delta province of Dong Thap has enhanced its connectivity, duplicated effective models and opened more showrooms.

Vice Chairman of the provincial People’s Committee Doan Tan Buu affirmed that Dong Thap places importance on the products with high connectivity such as eco-leisure tourism, cultural tourism and agritourism in association with the OCOP programme.  

To make tourism development go in parallel with OCOP products, it requires agencies and sectors to coordinate with a common purpose in mind. It is also necessary to promote cultural values in rural tourism and new-style rural area building.

Nguyen Trung Khanh, head of the Vietnam National Administration of Tourism, said his agency has partnered with units under the Ministry of Agriculture and Rural Development and localities in building new rural areas in the 2021-2025 period, while preserving and upholding values of traditional culture sustainably and inclusively.

Dao Thi Diem Trang, a lecturer of Van Lang University, said not many people are interested in OCOP products as their cultural and humane values are yet to be highlighted.

Given this, there should be cultural and historical stories relating to the products to increase their attractiveness among tourists and consumers, she said.

OCOP programme adds diversity to tourism activities in Mekong Delta

Showcasing the cultural essence conveyed through each item made under the One Commune, One Product (OCOP) programme for tourists is adding diversity to tourism activities in the Mekong Delta, while stepping up new rural development and improving people's income in the region.

With the starring of OCOP products, localities have made initial positive efforts in developing tourism associated with them. They are attracting visitors by combining the development of various types of tourism such as cultural, rural agricultural, ecological and shopping tourism.

According to a report from the Central Coordination Office for New Rural Development, the OCOP programme has been widely carried out in all 63 cities and provinces with six main product groups, including food and beverages, apparel, souvenirs, décor and furniture, herbs, hospitality services, and community tourism and tourist destinations. Currently, there are over 8,800 OCOP products nationwide.

In the Mekong Delta - a region known for its large-scale production of fruits, rice, and aquaculture in the country, numerous OCOP products have been recognised and supplied to both domestic and foreign markets. These products drive the formation of many tourism and service offerings that are unique and distinctive.

The country currently has over 60 OCOP products belonging to the category of community tourism services and tourist attractions. Many regions, including the Mekong Delta, have taken their advantages in terms of natural conditions, agricultural production, culture, and traditional craft villages to develop unique tourist destinations as OCOP products.

Vice Chairman of the Dat Mu People’s Committee Lam Quoc Trach said the commune is gradually improving traditional craft chains and establishing craft villages, such as those specialising in making dried fish, dried shrimp and fish sauce. These craft villages promote tourism as they allow visitors to witness and immerse themselves in the authentic and vibrant labor-intensive production activities.

Businesses contribute to economic stability and development: Official

Prosecutor General of the Supreme People's Procuracy of Vietnam Le Minh Tri has described businesses as particularly important entities, contributing to the economic stability and development, generating jobs for people and paying taxes to the national budget.

Addressing a dialogue as part of the Business Programme at the 26th St. Petersburg International Economic Forum (SPIEF) in Russia on June 16, Tri said, in an increasingly difficult and complex context, it is essential to pay attention to resolving difficulties and adopting pro-business policies. To achieve this, he urged the procuracy sector to attach importance to evidence in settling criminal cases and pay attention to protecting enterprises and those who do business legally or face temporary difficulties and risks.

The Supreme People's Procuracy of Vietnam also suggested improving transparency and openness, amending and supplementing the legal and policy systems to address gaps and shortcomings in regulations and state management, thus promptly removing difficulties and protecting the legitimate rights and interests of enterprises, making it easier for them to foster innovation and overcome challenges.

Tri also urged procuracy and prosecutorial institutions of countries to strengthen cooperation and share experiences in relevant matters of concern.

The dialogue focused its discussions on the protection of the rights of entrepreneurs and investors, including foreign partners, and creating more favourable conditions for business activities, which are of particular importance given the unfavourable economic and external factors.

Terminal 2 at Phu Bai international airport inaugurated

The Airports Corporation of Vietnam (ACV) and the People's Committee of central Thua Thien-Hue province held a ceremony on June 17 to inaugurate Terminal 2 of the Phu Bai International Airport.

Speaking at the event, Chairman of the Commission for the Management of State Capital at Enterprises Nguyen Hoang Anh said the operation of Terminal 2 will contribute to fostering socio-economic development of Thua Thien-Hue province while providing important transportation infrastructure for regional connectivity and ensuring national defence and security.

Construction of Terminal 2 began in 2019 at a total cost of nearly 2.3 trillion VND (97.75 million USD) funded by the ACV. It was designed to serve 5 million passengers each year.

It is also the first terminal of the ACV to apply digital transformation, upgrade digital infrastructure, and digitalise operational processes to standardise operational procedures and provide convenience for passengers.

Can Tho city works to attract Japanese investment

A seminar was held in Can Tho on June 17 to call for Japanese investment in spheres where the Mekong Delta city has demands.

Speaking at the event, Vice Chairman of the municipal People’s Committee Nguyen Van Hong said Can Tho is now home to six Japanese-invested projects worth 1.35 billion USD, helping Japan rank first in the city in terms of registered capital.

The city's export value to Japan reached 40.6 million USD in the first four months of this year, with export staples mostly being seafood, apparel, farm produce, steel and steel products, pharmaceuticals, chemicals, feather and others, while its import turnover was estimated at 9.8 million USD, with key products being pharmaceutical raw materials, fabrics, leather, machinery and equipment.

Nobuyuki Matsumoto, Chief Representative of the Japan External Trade Organisation (JETRO) in Ho Chi Minh City, said Can Tho now boasts seven universities and serves as a major human resources training centre in the Mekong Delta, making it attractive for enterprises. The city's workforce, particularly in the field of information technology, are highly sought after for skills in digital transformation, automation, smart factories, mechanical engineering and electrical engineering.

Deputy Consul General of Japan in Ho Chi Minh City Ogawa Megumi said several Japanese firms have invested in food processing in Can Tho as the city has abundant natural resources in agriculture and aquaculture from the Mekong River.

She hoped that when the construction of expressways is completed in the future, the transportation of goods from Can Tho to Ho Chi Minh City, the largest market, will become easier.

Hai Phong calls for investment from Japan’s Chiba prefecture

A delegation of Hai Phong city led by Secretary of the municipal Party Committee Le Tien Chau paid a working trip to the Japanese prefecture of Chiba on June 16.

Governor of Chiba prefecture Toshihito Kumagai welcomed the delegation's visit which coincided with the 50th anniversary of Vietnam-Japan diplomatic ties. He informed them about Chiba's socio-economic situation and the Hai Phong community in the prefecture.

Chau suggested Chiba share experience in the development, management and efficient operation of seaports, towards signing cooperation agreements for future development in the near future.

At a working session with Aeon Mall group on the same day, Soichi Okazaki, Executive Officer in charge of ASEAN Business of the Company, highlighted the city’s support for the construction of Aeon Mall Le Chan Hai Phong, making it a prominent symbol in the group's promotional activities.

He pledged that Aeon Mall will carry out even more activities in celebration of the 50th anniversary of bilateral diplomatic ties this year.

Chau suggested the Japanese giant retailer continue expanding operations in Hai Phong, with a specific goal of building the second Aeon Mall in the city.

Hai Phong commits all possible support to Aeon Mall during the project implementation process, he said.

At a working session with Senior Vice President of the Japan International Cooperation Agency (JICA) Keiichiro Nakazawa on June 15, Chau proposed JICA offer assistance to two projects on the sustainable development of the Southeast of Hai Phong in adaptation with climate change, and the construction and upgrade of medical stations in the districts of Do Son, An Lao, An Duong, Tien Lang, Kien Thuy and Vinh Bao.

The two sides also discussed the city's proposals and JICA's orientations to development support in the future.

Working with the Sojitz Corporation, Chau suggested the company invest in an industrial park in Hai Phong and affirmed that the city's authorities would accompany and support Sojitz throughout the investment process.

Hai Phong wishes to cooperate with Sojitz in various areas such as deep-water ports and healthcare, he said, suggesting CEO Fujitomo Masayoshi, who is also Co-Chairman of the Vietnam-Japan Economic Committee of the Japan Business Federation (KEIDAIREN), convey Hai Phong's projects calling for investment to Japanese enterprises.

Vietnamese seedless lychees now available in UK market

The first batch of Vietnamese seedless lychees arrived in the UK on June 16, becoming the fourth specialty fruit of Vietnam exported via the official channel to the demanding market this year.

The batch was imported by TT Meridian – a distributor of Vietnamese lychees and agricultural products in the UK. The seedless lychees were grown in the north central province of Thanh Hoa’s Ngoc Lac district.

Thai Tran, managing director of the company, said the retail price of the seedless lychee ranges from 16-18 GBP per kg, 3-4 GBP higher than the normal one.

If its quality and price are welcomed by the UK market, the company will import about one tonne a week in June and July – the harvest season of lychees in Vietnam, he noted.

He said that the company's whole process from harvesting the fresh fruits at farms in Vietnam to selling them in the UK takes only 36 hours.

According to Thanh Hoa’s official portal, Ngoc Lac seedless lychees are produced following VietGAP, GlobalGAP, and organic standards qualified for export to Japan, Canada, and Europe. The fruit when ripen has a bright red colour, with its crispy pulp tasting slightly sweet. This variety, imported from Japan, has been grown across about 30ha in Ngoc Lac by Ho Guom - Song Am High Tech Agriculture Limited Liability Company since 2019. This is its first year of harvest with an estimated output of over 20 tonnes.

Trillions of VND expected to move into property market

Recent interest cuts by the State Bank of Vietnam (SBV) could send trillions of VND in savings into the property market, according to the Vietnam Association of Realtors (VARs).

This could send investors hunting for good deals in the property market despite the tightening of monetary policies by the central bank and recent downturns in the market. The flow of capital could give a lifeline to the market, as well as dozens of industries including construction materials, machinery, equipment, furniture, and labour that are traditionally dependent on property sales. 

There have been signals from the government that starting from the second quarter of 2023, additional policies will take place to provide additional money to the market. 

In the meantime, local authorities have been told to step up efforts in resolving legal bottlenecks to allow property projects to take off. This time around, according to the association, developers have taken steps to address the market's demand.

Factors that favour the market's recovery include reduced interest rates, a move by commercial banks that have allowed developers access to much-needed capital injections, and where to start new projects or to finish ongoing ones. 

Nguyen Van Dinh, Chairman of the VARs, said with credit room starting to open up and additional capital flowing into the market could look at a recovery phase in the near future. Traditionally, he added, properties were the preferred investment channel among Vietnamese investors that often yielded higher returns than others.

He said now could be a good time for investors to start looking for good deals as prices have had time to cool down significantly during last year. 

According to the association, the tightening of monetary policy by the central bank and the government have shown signs of slowing down and could start opening up as soon as the second quarter of 2023.

Capital inflow could also be expected by the third quarter, he said.

Last year, total deposits by businesses and individuals in the banking system reached 900 trillion VND with individuals accounting for more than 565 trillion VND. The third quarter of 2023 would be a critical period as a large portion of said deposit would mature, with investors sitting on piles of cash looking for more profitable investments. 

Reports from property brokers have been so far positive, with the market starting to see upticks in transactions and a higher number of requests for information by potential buyers. 

Dang Quoc Viet, a representative from Smartland Real Estate Trading Floor in the northern province of Nghe An, said more prospective investors had made calls and visited his trading floor in recent weeks.

He said many had shown great interest in projects with good reputations and infrastructure, a markedly improved situation compared to last year. He added this could be a sign that investors' confidence in the market was returning.

Ben Tre develops value chains for agricultural products

The Cuu Long (Mekong) Delta province of Ben Tre is expanding the development of value chains for key agricultural products.

The key agricultural products include coconut, rambutan, green-skin and pink-flesh grapefruit, longan, flowers and ornamental plants, pigs and cattle.

Ben Tre, which is the country’s largest coconut producing province, has more than 78,000ha of coconut with an annual output of 688 million nuts. More than 70% of the province’s population earns their income related to coconut growing and production.

Thirty-two co-operative groups and 28 cooperatives, with a total of more than 6,200 members, have developed value chains for a total of more than 5,648ha of coconut.

More than 348ha of rambutan, 98.5ha of longan and 374ha of green skin and pink flesh grapefruit in the province have value chains to secure the quality of the fruits, buyers and stable prices for farmers.

Nguyen Van Nhip in Giong Trom district’s Phuoc Long commune has linked with a processing company to grow coconut under organic methods for two years.

After linking with the company, he has secured buyers and gets a selling price of 5,000 - 8,000 VND per dozen of coconut higher than the market price.

The company teaches him organic growing techniques, and this helps reduce the cost of chemical fertilisers and pesticides.

The province has 67 cooperative groups and 67 cooperatives which link with companies to develop value chains for their agricultural production, according to its Department of Agriculture and Rural Development.

Ngo Tuong Vy, General Director of Chanh Thu Export and Import Fruit Company Limited in Cho Lach district, said her company supported the linkage between farmers, cooperatives and companies, and this linkage needed to focus on the long term and sustainability.

The company hopes the department will assist it to develop a value chain for 100-200ha of durian.

It is willing to invest in co-operatives and assist in managing and operating them properly, according to Vy.

Huynh Quang Duc, deputy director of the department, said cooperative groups and cooperatives were weak in linkages with other related stakeholders in their production.

The linkage between farmers and companies in some localities was not sustainable and effective, he said.

Most companies participating in value chains which buy agricultural produce, except coconut, were small or medium sized, did not have stable buyers and were easily affected by many reasons, he said.

“The province will strengthen implementing advocacy activities, transfer farming techniques and provide consultancy for developing value chains,” he said.

Nguyen Minh Canh, Vice Chairman of the provincial People’s Committee, said the province would take measures to effectively develop value chains for key agricultural products and improve the lives of people.

The measures would include developing linkages among farmers through cooperative groups and co-operatives, between cooperative groups and cooperatives and companies, and developing companies which lead related stakeholders to develop strong value chains, he said.

Dam Van Hung, owner of Huong Mien Tay in Mo Cay Bac district, which is the province’s largest establishment specialising in exporting green skin and pink flesh grapefruit, said that to develop a value chain for an agricultural product, it should be developed through the collective economy.

His establishment has linked with cooperative groups and cooperatives which grow green skin and pink flesh grape fruit to buy the fruit, and this secures both buyers for farmers and quality fruits for his establishment to export, he said.

The province aims to get production value of 1 billion USD for coconut and shrimp each in 2025, and 500 million USD for cattle, and flowers and ornamental plants each.

It will develop six concentrated coconut growing areas, including five organic coconut growing areas for a total of 1,826ha and a 20ha coconut growing area for harvesting young nuts for drinking juice.

More farmers in the province have switched to growing their agricultural produce with good agricultural practices (GAP) standards, along with origin traceability and brand names, to improve value.

The province has more than 24,240ha of coconut, fruits and aquaculture which are cultivated under GAP or organic standards.

Hanoi certifies over 500 new OCOP products

Hanoi’s Department of Agriculture and Rural Development on June 16 hold a conference to announce 518 products that meet the criteria of the One Commune-One Product (OCOP) programme to get three starts and more in 2022.

Of the newly-certified OCOP products, one is promising to be rated five stars, 271 with four stars, and 246 with three stars.

Speaking at the conference, Deputy Director of the department Ta Van Tuong said that the city considers the OCOP programme important to promote rural areas’ advantages and increase incomes for people.

The programme also helps to restructure the city’s agricultural sector in association with the development of handicrafts, trades, services, and rural tourism; and promote sustainable rural economic development based on the increased applications of digital transformation and circular economy, preservation of cultural values, resources management and the preservation of biodiversity, rural landscapes and rural environment.

Deputy chief of the Hanoi New-style Rural Construction Programme Coordination Office Nguyen Van Chi said that Hanoi is a leading locality in Vietnam in implementing the OCOP programme with 2,167 products having been recognised, accounting for 22% of the total recognised products across the country.

After certifying OCOP products, Hanoi always pays attention to and organises events, fairs, and seminars to promote the products. Up to now, the city has opened 85 sites to promote OCOP products.

In addition, individuals and organisations with OCOP products continuously improve product quality, design, packaging, and branding. Many products have been exported to demanding markets including Australia, Europe, and Japan.

Nguyen Thi Nhan, Deputy Director of Thien Phuc Herb Joint Stock Company which has a product promisingly rated five stars in 2022 by the National OCOP Product Classification and Evaluation Council, said that participating in the OCOP Programme brings benefits to businesses, particularly in trade promotion and market expansion.

Once participating in the programme, businesses receive technical support in production, product quality, and management processes, she said.

Solutions for stable and sustainable power sources

There should be a clear and transparent mechanism so that investors can rest assured in spending money to build renewable power sources.

Thanks to the policy of encouraging investment in renewable energy and attractive electricity prices, many investors invested money in building power sources five to seven years ago, according to Prof. Dr Tran Dinh Long.

The growth of wind and solar power sources is increasing rapidly, so there is a situation of investing in factories but not knowing who to sell to, or encountering the situation that the power grid is not invested in time, leading to overload, investors could not generate electricity for the grid, causing losses.

Therefore, the State has stipulated that before businesses apply for a licence to invest and build power sources, they must clearly know who the customers consuming their products are, and must be able to sign a purchase contract before spending money on building power sources.

"We have also repeatedly suggested to the State that there should be a clear and transparent mechanism so that investors can rest assured to spend money to build renewable power sources. Specifically, the State should research and issue a policy on long-term electricity prices so that investors can calculate economic and financial indicators for the power projects they intend to invest in. In fact, electricity prices can be calculated and forecast for the next 5-10 years," said Long to Suc Khoe & Doi Song (Health and Life) online newspaper.

Although renewable energy is abundant, it is unstable and dependent on the weather, according to the expert.

Therefore, no matter how much natural gas is available, it needs to be exploited to the maximum to generate electricity.

Renewable energy development must take into account storage. However, the problem of storage batteries is also very expensive, they are not long life and there are many studies that need to be calculated for environmental issues.

Therefore, Long said that Viet Nam should use the form of pumped-storage hydroelectric power plants, specifically, building a power plant that could both pump water and generate electricity. "Our country has so much potential," he said.

Viet Nam should pilot a number of projects, if they prove beneficial, they should be applied on a large scale, he noted.

The pilot time to build this system is equivalent to that of a hydroelectric power plant, which takes about three to five years.

Therefore, to ensure the target of renewable energy by 2030, it is necessary to start piloting as soon as possible, according to Long.

Proposing to transfer the National Load Dispatch Centre from EVN to MoIT

The Ministry of Industry and Trade (MoIT) has just submitted Report 3711/TTr-BCT to the Prime Minister on the transfer of the National Load Dispatch Centre (A0) to this Ministry.

Accordingly, the ministry offers two options for converting the A0 model.

The first option is that A0 becomes a public non-business unit providing electricity system and market operation services under the Ministry of Industry and Trade.

The second option is that A0 becomes a one-member limited liability company that operates the power system and operates the electricity market with 100 per cent State capital under MoIT.

According to the Ministry of Industry and Trade, both options above ensure the criteria of A0's independence and objectivity compared to the current one, the ability to coordinate with related units and the ability to be flexible in innovation and creativity.

Reviewing current regulations, MoIT does not have the function to directly manage and administer A0. Therefore, in order to adjust the management and direction of A0 to this ministry, the Ministry of Industry and Trade proposes to amend a number of Government Decrees.

Previously, in the Government's plan to restructure the electricity industry from 2016 to 2020, with an orientation to 2025, A0 will transform into Power System and Market Operation One Member Limited Liability Company, applying independent accounting within EVN in the 2019 – 2020 period.

From 2021 - 2025, this unit will be transformed into an independent unit in terms of personnel, legal and finance, not sharing the interests of the electricity seller and buyer, with 100 per cent charter capital managed by the State.

However, at present, A0 has not yet had the restructuring policy approved and has not yet implemented this project.

Quang Binh to grant certificates to 18 investment projects totaling $1.4 billion

The Quang Binh People Committee is gearing up to award investment cooperation certificates to 17 investors who will be investing in 18 projects, amounting to a significant total of VND32.6 trillion (equivalent to US$1.4 billion), during the upcoming investment conference in Ha Noi, scheduled to commence on June 25.

Under the theme of "Bring Quang Binh Closer to Investors", the conference aims to inform businesses and organisations in Ha Noi and other Northern provinces about the province's development and investment policies.

Furthermore, the event serves as an opportunity for the province to unveil its 2021-30 development plan, with a vision extending to 2050. The plan's objective is to facilitate the province's rapid and sustainable economic growth by effectively leveraging its advantages and technological advancements.

Its goal is to transform the province into an active economic zone within the Central region, focusing on service and tourism, clean industry, renewable energy, processing industry and high-tech agriculture.

The projects to be announced in the event include 14 real estate projects valued at a combined VND19.3 trillion, three infrastructure projects worth over VND9.8 trillion and one industry-minerals project with an investment cost of VND3.5 trillion.

Additionally, 10 investors engaged in 10 projects each exceeding $13 million in the fields of tourism, industry, agriculture, education and infrastructure are expected to receive the provincial People's Committee’s investment policy decision during the conference.

The conference is expected to welcome about 500 participants from the governmental and ministrial agencies, foreign organisations, business associations, as well as domestic and foreign investors. 

HCMC’s budget revenue below half-year target

HCMC has collected VND57,700 billion for the State budget so far this year, representing nearly 40% of the half-year target of VND145,800 billion, said Dinh Ngoc Thang, director of the HCMC Customs Department.
Budget revenue in the first half of this year has dropped 8% compared to the same period in 2022, equivalent to over VND5,200 billion.

As of June 14, HCMC had collected an average of VND349.5 billion per day for the State budget, reaching 87.5% of the target of VND399.5 billion.

Regarding anti-smuggling and trade fraud, the department has detected nearly 1,200 cases of violations, resulting in fines totaling over VND1,400 billion for the State budget.

Thang explained that the outcome was anticipated due to various signs of economic downturn both domestically and internationally.

Therefore, several measures were implemented at the beginning of the year to address this issue, including the reform of administrative procedures, modernization of customs operations, and extensive digital transformation in management activities, aiming to provide favorable conditions for businesses and households facing financial difficulties.

Wind farm project in HCMC proposed for inclusion in national power plan

The HCMC Department of Industry and Trade has thrown its support behind a proposal for including an offshore wind farm project in Can Gio District in the National Power Development Plan VIII.

In a recent document sent to the HCMC People’s Committee, the Department of Industry and Trade mentioned the investor’s proposal for adding the project to the list of potential offshore wind power projects in the National Power Development Plan for the 2021-2030 period, with a vision to 2050, also known as Power Development Plan VIII.

The project, projected to cost VND400 trillion, is a joint effort of Asia Petroleum Energy Corporation, Tokyo Gas, and Shizen Energy. It is expected to have a combined installed capacity of 6,000MW.

The wind farm off the coast of Can Gio District would cover over 325 hectares of water surface. The project would need eight hectares of land in Nha Be District to facilitate connection to the national grid.

HCMC Power Corporation suggested that the investors register the 6,000 MW capacity to be generated by the project with the relevant authorities in order to include it in the power mobilization scenarios of the Power Development Plan VIII.

A thorough evaluation of the project’s environmental impact on Can Gio District would also be required as it would need a huge area of water surface.

The HCMC Department of Industry and Trade said the project, if included in Power Development Plan VIII, would contribute to providing more renewable energy to the city and ensuring its power security.

HCMC requires VND128 trillion for 2021-23 investment development

The People’s Committee of HCMC has projected that the city’s investment development will cost more than VND128 trillion in the period of 2021-2023.

The rate for retained budget revenue for the period of 2022-2025 has increased to 21% compared to 18% in 2017-2021, according to HCMC’s mid-term report on the rate of budget revenue retained by the city in 2022-2025, with a vision to 2026-2030

The higher rate of retained budget revenue has created an opportunity for the southern metropolis to boost socio-economic expansion, with a particular focus on strategic breakthroughs and investments in infrastructure development.

The total expenditure for development investment in 2021-2023 is projected at VND128,129 billion, or 100.2% of the estimate, up an impressive 83.66% compared to the period of 2016-2018.

Bright outlook for energy sector

The recently approved national power development plan VIII, covering the period 2021-2030 with a vision to 2050, has brought positive news to the energy industry and caught the attention of stock investors.

Promoting the use of renewable and gas-fired energy while reducing coal-fired power is a key objective of the plan. Specifically, it aims to eliminate 13,220 megawatts of coal-fired power, gradually phasing out this power source. Coal-fired power is projected to grow at a compound annual rate of at least 2% from 2021 to 2030, slowing down to 1% in the 2030-2050 period, accounting for 19% and 4% of total power capacity, respectively.

Gas-fired power is expected to be the backbone of Vietnam’s development plan for 2021-2030, with a compound annual growth rate of 26% and accounting for 27% of total power capacity. In the 2030-2050 period, gas-fired power is projected to experience a slowdown with a growth rate of 4%, representing 15% of the total power capacity by 2050.

Wind power will be a key focus in the short and long terms. Onshore wind power is expected to grow at a compound annual rate of 25% from 2021 to 2030 and 6% from 2030 to 2050, accounting for 14% and 13% of total power capacity in these respective periods. Additionally, Vietnam plans to develop offshore wind farms with a capacity of 6,000 megawatts by 2030, representing 16% of the total power capacity, with an expected growth rate of 15% in the 2030-2050 period.

Although the power development plan VIII highlights the Government’s commitment to transitioning to green energy, it also presents financial challenges due to the promotion of gas-fired power and renewable energy generation.

VNDirect, in its report, has identified several stocks that may benefit from the power development plan VIII. Energy infrastructure companies and gas-fired and renewable energy producers are expected to reap the rewards.

Prominent power infrastructure construction companies such as PC1 Group JSC (HOSE: PC1), Power Engineering Consulting JSC 2 (HOSE: TV2), and Fecon Corporation (HOSE: FCN) may see immediate benefits. PetroVietnam Technical Services Corporation (HNX: PVS), specializing in building offshore wind farms and having projects like Thang Long and La Gan, is also expected to gain in the long run.

Gas-fired power plants, including liquefied natural gas (LNG), are anticipated to experience rapid growth with projects mentioned in the power development plan VIII. These include Nhon Trach 3 and Nhon Trach 4 projects by PetroVietnam Power Corporation (HOSE: POW), LNG Long Son project by Power Generation Joint Stock Corporation 3 (HOSE: PGV) and TV2, O Mon 3 and O Mon 4 power plants by Power Generation Joint Stock Corporation 2 (Stock code: GE2), and LNG terminal warehouse projects by PetroVietnam Gas Joint Stock Corporation (HOSE: GAS).

The plan is also expected to accelerate the progress of long-stalled mammoth gas projects such as Blue Whale and Block B projects in the coming years, ensuring domestic gas supplies and reducing dependence on LNG imports for electricity generation.

Companies with experience in developing renewable energy projects such as Bamboo Capital Group Joint Stock Company (HOSE: BCG), Ha Do Group JSC (HOSE: HDG), Refrigeration Electrical Engineering Corporation (HOSE: REE), and Gia Lai Electricity JSC (HOSE: GEG) are also expected to perform well in the stock market.

Gia Lai Electricity JSC’s transitional renewable energy projects, including the second phase of VPL Ben Tre offshore wind farm with a capacity of 30 megawatts and Duc Hue solar farm with a capacity of 49 megawatts, are ready for operation in 2023-2024. Ha Do Group JSC is actively investing in the energy industry, with a generation capacity of 314 megawatts of hydroelectricity, 50 megawatts of wind power, and 82 megawatts of solar power.

Bamboo Capital has successfully operated renewable energy plants with a total capacity of 592 megawatts, including solar farms BCG Long An 1, BCG Long An 2, BCG Vinh Long, and Phu My 1 Power Plant, along with other rooftop solar power projects. The company is currently implementing the first phase of wind power projects Khai Long Ca Mau and Tra Vinh, with a total capacity of 180 megawatts.

In terms of stock market movements, most utilities, gas, and construction stocks have experienced an increase since mid-May, especially those associated with gas-fired power plants. However, it’s important to note that the current market movement only reflects the initial temporary reaction of investors, while the long-term impact of the power development plan VIII on these stocks is yet to be fully realized.

HCMC proposes 6,000MW Can Gio offshore wind power plant in PDP8

Ho Chi Minh City Department of Industry and Trade has put forth a proposal to incorporate the Can Gio offshore wind power plant, boasting a capacity of 6,000MW, into the forthcoming Power Development Plan VIII (PDP8).
 
Accordingly, a consortium comprising Asia Petroleum Energy Corporation, Tokyo Gas Group, and Shizen Energy Group is set to invest over VND300 trillion ($12.5 billion) in this joint venture.

The project encompasses an expansive offshore area of 325 hectares, complemented by an estimated 8-hectare onshore site within the city's Hiep Phuoc Industrial Park.

Ho Chi Minh City Power Corporation (EVNHCMC), firmly supports the integration of this initiative into PDP8, urging immediate registration from the relevant authorities to include the 6,000MW of wind power capacity into the mobilisation scenarios.

The assessment must also account for power surge implications on the operational grids in the broader southern region, which are presently undergoing the final stages of approval by the Prime Minister's Office.

Furthermore, EVNHCMC recommends a meticulous reassessment of turbine technology selection. Given the substantial marine territory utilised by the project, the evaluating entities must carefully consider its environmental impact on the globally recognised Can Gio Mangrove Biosphere Reserve, acknowledged as a World Cultural Heritage site by UNESCO.

Additionally, the project's proposed offshore location within Can Gio district necessitates attention from specialised agencies responsible for national defence and security, ensuring the proper maintenance of public order.

Despite the city's lack of legal provisions to endorse the inclusion of the project in PDP8, Ho Chi Minh City Department of Industry and Trade has formally issued a recommendation, advising the consortium to liaise directly with the Ministry of Industry and Trade and the Ministry of Natural Resources and Environment for comprehensive guidance on the surveying procedures and proposed integration within PDP8.

Hong Kong firm acquires hotels in Vietnam and Indonesia for $106 million

The Ibis Saigon South Hotel, Capri by Frasers in Vietnam, and Pullman Jakarta Central Park in Indonesia have finally found their path to new ownership after a lacklustre three-year struggle in the market, having recently been sold for a combined price of $106.1 million.

Jones Lang Lasalle (JLL), a prominent real estate conglomerate, played a key role in advising and facilitating the sale of this unique hotel portfolio, marking the first hotel transaction in Southeast Asia this year.

Everland Opportunities IX Limited, a real estate development firm based in Hong Kong, acquired these three properties from Strategic Hospitality Holdings Ltd., a subsidiary of the Thai conglomerate Strategic Hospitality Extendable Freehold and Leasehold Real Estate Investment Trust (SHREIT), for a total investment of $106.1 million.

The portfolio includes the 3-star Ibis Saigon South Hotel and the 4-star Capri by Frasers Hotel, both situated in District 7 of Ho Chi Minh City, and the 5-star Pullman Jakarta Central Park Hotel located in Indonesia.

The transaction involved the sale of the Pullman Jakarta Central Park and Ibis Saigon South hotels, along with their management rights held by Accor for the Pullman and Ibis brands. However, the sale of Capri by Frasers Hotel did not include ownership rights.

Julien Naouri, senior vice president of Business and Investment for Asia-Pacific at JLL Hotels & Hospitality Group remarked, "This distinctive sale of the hotel investment portfolio not only signifies the resurgence of transactional activities in Southeast Asia but also confirms the sustained recovery of cash flows for hotels in the region."

In early 2020, LT Rubicon, a UK-based company, expressed interest in acquiring the aforementioned three hotels for $118 million. However, the proposed transaction failed to secure shareholder approval during SHREIT's extraordinary general meeting held in June.

Subsequently, in October 2020, SHREIT's subsidiary listed the three hotels for sale again, this time with an asking price of nearly $133 million. The valuation included $14.7 million for the 140-room Ibis Saigon South Hotel, $23.7 million for the 175-room Capri by Frasers Hotel, and $94.3 million for the Pullman Hotel in Jakarta.

During that period, SHREIT's leadership acknowledged the financial challenges faced by the hotels, as they operated at a loss and struggled with significant costs and debts. Operating at limited capacity, the properties faced difficulties in securing additional short-term funding.

The ongoing impact of the pandemic on revenue, the current financial conditions, and a lack of cash flow exacerbated the challenges faced by the group, with no clear indication of a swift recovery. Moreover, SHREIT encountered multiple breaches of contractual agreements and potential litigation risks from both partners and lenders.

Given these circumstances, the Board of Directors decided to divest the hotels in Vietnam and Indonesia, despite the lower purchase price offered by potential buyers.

Over US$278mln invested in Vung Tau – Binh Thuan coastal road expansion project

The People’s Committee of Ba Ria – Vung Tau yesterday hosted a groundbreaking ceremony for upgrading and expanding the Vung Tau – Binh Thuan coastal road – the DT994.

The project has a total length of nearly 77 kilometers with a design of six to eight lanes and a total investment of over VND6,534 billion (US$278 million).

The project’s starting point shall intersect with 991B Street of Phu My Town and its ending point would intersect with National Highway No.55 in Binh Chau Commune, Xuyen Moc District.

The component project will be finished and put into exploitation from the end of May, 2025 to the third quarter of 2026.

The project will connect infrastructure and create an economic corridor connecting Cai Mep – Thi Vai Port with Long Thanh International Airport, Bien Hoa – Vung Tau Expressway and develop tourism in the locality.

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