Vietnam to pilot direct power purchase agreement scheme: PM
Vietnam is heading toward implementing a pilot direct power purchase agreement (DPPA) scheme which, for the first time, will enable renewable energy generators to directly sell electricity to buyers, Prime Minister Pham Minh Chinh said.
The PM, who is in Japan’s Hiroshima to attend the expanded Group of Seven (G7) Summit, made the statement to Sojitz Corporation CEO Masayoshi Fujimoto on Friday.
Chinh said the Vietnamese government issued the country’s latest power development plan, or PDP VIII, on Monday with a focus on decarbonization for the economy and promoting renewable energy sources like solar, wind, biomass, and hydrogen power. The next step is to introduce a DPPA pilot scheme to make the market competitive.
The PM asked Sojitz to expand its investment in Vietnam and help bring more Japanese investors to the country.
At present, state-run Vietnam Electricity (EVN) has a statutory monopoly over the transmission, distribution, wholesale, and retail of electricity.
Fujimoto said to the PM that many Japanese companies, including major corporations, want to expand their production in Vietnam or shift production to the country. He proposed Vietnam should rapidly launch a DPPA scheme.
Sojitz has 17 joint ventures in Vietnam, including one with Vinamilk, the country's largest dairy producer. This partnership started to build their $500-million complex in Vinh Phuc province bordering Hanoi this March to raise cows and supply beef located in northern Vietnam. This project is expected to advance Vietnam’s livestock industry. Sojitz Corporation earns revenue of an estimated $1 billion or so each year.
Two years ago, Vietnam's Ministry of Industry and Trade rolled out a draft DPPA pilot scheme for reference, with a limit of 1,000 megawatts. Major international companies including Samsung said they wanted to take part in the scheme.
At the Vietnam Business Forum (VBF) in March, the American Chamber of Commerce (AmCham) said Vietnam should promptly allow DPPAs. AmCham said the proposed scheme is “an important mechanism to attract investors and private investments, not only in the energy sector but also in other sectors where companies have made commitments in the space of renewable energy, carbon reduction, and sustainability.”
According to AmCham, in 2022, private companies in Asia Pacific signed a record 7 gigawatts of DPPAs, an 80% increase from 2021, and this demonstrated their willingness to drive new clean energy investments.
“Approval of the DPPAs could unlock billions of dollars in investment from the private sector. More could be done to finance Vietnam’s move away from fossil fuels,” the chamber noted.
Also in Hiroshima on Friday, the Vietnamese PM held talks with South Korea’s President Yoon Suk Yeol. He suggested the two sides continue to promote economic, trade, and investment cooperation, with the goal of achieving balanced trade of $150 billion by 2030.
Chinh said Vietnam welcomes Korean businesses to invest in major infrastructure projects, and the country will continue to create favorable conditions for Korean firms.
The PM proposed that South Korea continue to cooperate and support Vietnam in five areas, namely capital sources, technology, human resources, institutional building, and management.
Yeol said his country is ready to work with Vietnam for closer cooperation in various fields, especially in areas where Korea has strengths and Vietnam has needs, like science and technology and innovation in order to contribute to socio-economic development and improving the lives of people in both countries.
- Read More
Vietnam’s benchmark VN-Index to reach 1,400-1,420 points in 2025: broker
The VN-Index, representing the Ho Chi Minh Stock Exchange (HoSE), may hit 1,400-1,420 points in 2025, driven by an 18% market-wide profit growth and a price-to-earnings (P/E) ratio of 12.5-13x, according to broker MBBank Securities (MBS).
Finance - Sun, December 22, 2024 | 7:52 pm GMT+7
HCMC's first metro line officially operational after nearly 2 decades
The first urban railway line in Ho Chi Minh City, named Ben Thanh-Suoi Tien, officially started commercial operations on Sunday after nearly two decades of waiting.
Infrastructure - Sun, December 22, 2024 | 2:17 pm GMT+7
Vietnam's 2025 GDP to grow 6.5% on robust infrastructure investment, consumer spending recovery: VinaCapital
Domestic factors, including a ramp-up in Government infrastructure spending, a revival of the real estate market, and a recovery of consumer spending, will help sustain Vietnam's GDP growth at a circa 6.5% pace next year, in-line with the National Assembly’s official target and with 2024 GDP growth, write Michael Kokalari, chief economist at VinaCapital.
Consulting - Sun, December 22, 2024 | 2:00 pm GMT+7
Vietnam shipping, seaport stock rally driven by rosy outlook in 2025
Many shipping and port stocks have risen sharply since November on an optimistic outlook for the industry driven by increasing throughput and a shift in container shipping alliances in 2025.
Companies - Sun, December 22, 2024 | 10:00 am GMT+7
Singapore’s Platinum Victory seeks to raise stake in Vietnam’s REE to nearly 45%
Singaporean fund Platinum Victory Pte. Ltd. has registered to buy another 16.8 million shares in Ho Chi Minh City-based utility firm Refrigeration Electrical Engineering Corporation (REE), aiming to increase its ownership to nearly 45%.
Finance - Sun, December 22, 2024 | 9:29 am GMT+7
1.8 km road connecting Lach Huyen Port terminals to be built in northern Vietnam
The Hai Phong Economic Zone Management Board has taken a significant step forward in enhancing infrastructure around Lach Huyen Port by establishing a council to appraise the environmental impact assessment for the road connecting terminals No. 3 to No. 6.
Economy - Sun, December 22, 2024 | 8:00 am GMT+7
Hanoi TikToker internationally wanted for involving in multi-billion-dollar scam
Hanoi police have issued an international arrest warrant for Le Khac Ngo, known as "Mr. Hunter," a key accomplice in a recently-dismantled massive foreign exchange and securities fraud ring.
Society - Sat, December 21, 2024 | 10:57 pm GMT+7
Unlocking Phu Quoc’s potential to become the 'Hawaii of the East'
Leading global tourism companies have remarked that Phu Quoc has "yet to receive the recognition it deserves," despite its impressive and unexpected growth rate.
Travel - Sat, December 21, 2024 | 7:20 pm GMT+7
Thai central bank maintains policy interest rate at 2.25%
The Thai Chamber of Commerce (TCC) has said it backs the decision by the Bank of Thailand, the country's central bank, to maintain the policy interest rate at 2.25%, considering the move as suitable for a reviving economy.
Southeast Asia - Sat, December 21, 2024 | 5:43 pm GMT+7
Vietnam's military-run tech giant Viettel strikes big deals at international defence expo
Subsidiaries of Military Industry and Telecommunications Group (Viettel) signed a string of significant contracts with major global partners during the first two days of the Vietnam International Defence Expo 2024 in Hanoi.
Companies - Sat, December 21, 2024 | 5:36 pm GMT+7
Taiwan’s Wistron acquires 37ha land lot in northern Vietnam for expansion
Taiwan-headquartered Wistron, a top electronics provider and an Apple supplier, will further its investment in Vietnam’s northern province of Ha Nam by acquiring another 37.1-hectare land lot.
Companies - Sat, December 21, 2024 | 2:08 pm GMT+7
VAFIE seeks to promote sci-tech development, intellectual property policies
The Vietnam’s Association of Foreign Invested Enterprises (VAFIE) aims to enhance policies for the development of science, technology, and intellectual property, creating a more conducive investment environment.
Companies - Sat, December 21, 2024 | 1:59 pm GMT+7
Vietnamese dong likely to depreciate 3% in 2025: VinaCapital
The Vietnamese dong is likely to depreciate 3% in 2025 on anticipation that the US Dollar/DXY Index will finish 2025 nearly unchanged, says Michael Kokalari, chief economist at Vietnam's leading fund manager VinaCapital.
Economy - Sat, December 21, 2024 | 11:23 am GMT+7
First luxury railway journey across Vietnam features Indochine architecture
PYS Travel has launched the first luxury railway journey across Vietnam named Sjourney, marking a new milestone in the railway tourism sector.
Travel - Sat, December 21, 2024 | 10:09 am GMT+7
Vietnam among 40 most beautiful countries: US publication
Vietnam has secured the 36th position in the ranking of the 40 most beautiful countries in 2024 in a testament to its undeniable charm and appeal, according to US News & World Report.
Travel - Sat, December 21, 2024 | 10:04 am GMT+7
Foxconn to invest $16 mln more in Vietnam’s Quang Ninh province
Competition Team Technology (Vietnam) Company Limited, a subsidiary of Foxconn, will invest an extra $16 million in its “S- Vietnam” project in the northern coastal province of Quang Ninh.
Industries - Sat, December 21, 2024 | 9:53 am GMT+7