Vietnam Economic News: 14.12 – 21.12.2024
Summary of Vietnam Economic News: 14.12 - 21.12.2024
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Summary of Vietnam Economic News: 14.12 - 21.12.2024 ---
VIETNAM SIGNS COOPERATION AGREEMENT WITH CHINA RAILWAY SIGNAL AND COMMUNICATION
Reuters News – 18 December 2024
China Railway Signal & Communication has signed a memorandum of understanding with state-run Vietnam Railways Corp for railway development in the country, its government said on Wednesday. Vietnam has approached China for funding and technology for its massive rail development projects, including three railway lines connecting its capital Hanoi with China, and a high-speed railway from Hanoi to southern business hub Ho Chi Minh City. The agreement between the two companies will pave the way for cooperation in railway planning, construction, training and operations, the government said in a statement. Deputy Prime Minister Tran Hong Ha on Tuesday said Vietnam wanted to speed up construction of three new railways connecting the two countries.
PHAROS ENERGY SAYS LICENCES AT 2 VIETNAM OIL-GAS FIELDS EXTENDED TO 2031/32
Reuters News – 20 December 2024
UK-based oil and gas explorer Pharos Energy said on Friday its two joint ventures in Vietnam have received local government approval to extend their licences by five years to the early 2030s. The Te Giac Trang (TGT) field, operated by the Hoang Long Joint Operating Company, will be allowed to operate until Dec. 7, 2031, Pharos said in a statement. TGT is located in Block 16-1 of the Cuu Long Basin in offshore Vietnam and the licence had been set to expire in December 2026. The Ca Ngu Vang (CNV) field, located in Block 9-2 and operated by Hoan Vu Joint Operating Company, will have its licence extended until Dec. 15, 2032 from December 2027, Pharos said. As a result of the extensions, the TGT field will begin drilling an appraisal well in the fourth quarter of 2025, and both fields may drill additional infill wells, it added. The extensions will increase proven and probable reserves at both fields by about 10% by the end of this year, Pharos said. Pharos' working interest in Block 16-1 (TGT) will fall to 25.33% from Dec. 8, 2026, from 30.5% currently, and its interest in the CNV field to 20% from Dec. 16, 2027, from the current 25%, the company said. State firms PetroVietnam and Thailand's PTTEP are among Pharos' partners in the fields.
UNESCO TO STUDY DEVELOPMENT RISKS TO VIETNAM'S HA LONG BAY
Dow Jones Newswires German – 20 December 2024
UNESCO will deploy a team of experts to assess possible risks for the conservation of Ha Long Bay in Vietnam as it is worried about development projects that may threaten the heritage-listed tourist attraction, the U.N. agency told Reuters. The bay and the adjoining Cat Ba archipelago of limestone islets celebrates this year the 30th anniversary of inscription on the UNESCO world heritage list, being considered by the agency "the most extensive and best known example of marine-invaded tower karst." The UNESCO designation contributed to the site becoming a massive tourist destination, drawing millions of visitors every year and boosting Vietnam's revenue from tourism. However, the United Nations' education, scientific and cultural agency, in a statement attributed to its World Heritage Centre, said there were long-standing concerns that "multiple development projects for new tourism and urban residential areas along the coastline in Ha Long City had been approved and implemented" without a proper assessment of their impact. The assessment mission, if it led to sanctions or even removal from the heritage list, could have a significant impact on Vietnam’s tourism sector, which accounted for 8% of GDP last year according to official estimates. "If threats are identified which jeopardize the integrity of the property and the reasons for which it was inscribed on the World Heritage list, the Committee may request corrective measures to strengthen the protection of the site," UNESCO said. The mission, which will include experts from UNESCO and the International Union for Conservation of Nature, will be deployed in the coming months, UNESCO said.
VIETNAM SAYS ADMINISTRATION REFORM WILL NOT IMPACT PROJECT APPROVALS
Dow Jones Institutional News – 20 December 2024
Vietnam's government said on Friday that plans to significantly overhaul its administration will not affect project approvals amid investor concern it could lead to delays in the coming months. The country, a regional industrial hub, is planning its boldest bureaucratic reform in decades, which in its current proposals would involve cuts to multiple state bodies, including the abolition of five ministries, four government agencies and five state TV channels. "The restructuring process will not affect the implementation of investment procedures and processes in Vietnam because the state management function remains unchanged," foreign ministry spokesperson Pham Thu Hang said. Investors, diplomats and officials have welcomed the reforms, which are designed to reduce red tape and bureaucracy, but many anticipate administrative delays in the coming months. Vietnam relies heavily on foreign investment in manufacturing to fuel its booming export-oriented economy. But in recent years, investor discontent has grown louder over delays in project approvals and regulatory reforms compounded by a sweeping anti-corruption campaign. The administrative overhaul, which could be amended ahead of a vote in parliament in February, is meant to address those concerns. "Along with the restructuring process, Vietnam continues to have strong regulations on simplifying investment processes to facilitate foreign enterprises' operations in Vietnam for the long term," Hang said.