Vietnam Economic News: 16.11 – 23.11.2024
Summary of Vietnam Economic News: 16.11 - 23.11.2024
---
Summary of Vietnam Economic News: 16.11 - 23.11.2024 ---
VIETNAM SAYS LOANS WILL NOT EXCEED 30% OF $67 BLN COST OF RAIL PROJECT
Reuters News – 20 November 2024
Vietnam will rely largely on state funding to build a high-speed rail link between its capital and the business hub of Ho Chi Minh City at a cost of more than $67 billion, the transport minister said on Wednesday. Expected to be approved by the National Assembly at the end of this month, the 1,541 km (958-mile) line will be the nation's largest infrastructure project, going operational from 2035. "Loans will not exceed 30% of the total estimated cost," Nguyen Van Thang told the parliament in Hanoi, adding that the government had not decided whether to take domestic or foreign loans for the project. "If official development aid (ODA) that bears low interest rates and has no binding conditions, then it's good," Thang said. "Otherwise, we'll take domestic loans." Last month the ministry said Vietnam would fund the railway entirely on its own, a goal some experts said might be unrealistic. On Wednesday, Thang said the government would arrange $5.6 billion a year over the 12-year construction period of the railway, which will mostly carry passengers, but have an option for cargo after 2050. "Cargo transport will be handled mostly by the systems of waterways, roads and the existing rail line," he said.
VIETNAM SAYS ITS COAL-FIRED POWER PLANTS TO OPERATE AT HIGH LEVELS NEXT YEAR
Reuters News – 18 November 2024
Coal-fired power plants in Vietnam are expected to operate at high levels next year to meet the country's rising demand for electricity, the government said on Monday. Most of the coal-fired power plants will operate for 6,400- 6,500 hours in the year, the government said in a statement, adding that power consumption was forecast to rise 11% to 14% next year. The regional manufacturing hub has been seeking to boost its use of renewable energy sources, but regulatory hurdles put its offshore wind and LNG power targets at risk while coal maintains a prominent role in its power mix. Coal-fired power plants accounted for 48.7% of Vietnam's total electricity output of 256.7 billion kilowatt hours in the first 10 months of this year, according to data from state utility EVN. "The mobilisation rate of coal-fired power plants will remain high, especially in the northern area," the government said. All coal power plants must be ready with coal supplies plans by the end of this year, it said.
VIETNAM RAISES $244 MLN FROM GOVT BOND AUCTION
Reuters News – 16 November 2024
Vietnam's State Treasury raised 6.2 trillion dong ($244.4 million) at its government bond auction this week, up slightly from 6.1 trillion raised a week earlier, a filing to the Hanoi Stock Exchange showed. The uptake was lower compared to last week's auction, with 56.4% of the offer sold compared with 61.0% at the previous auction, the filing showed. Wednesday's auction took revenue from bond sales this year to 310 trillion dong, exchange data showed. The government is aiming to raise 400 trillion dong via bonds this year, mainly to fund its public investments, a key driver of economic growth. On the corporate front, Vietnamese companies have raised 348 trillion dong from bond sales this year up to Nov. 8, according to bond market association data. The value of corporate bonds maturing in the remainder of 2024 is 54.4 trillion dong, 42.7% of which belongs to the real estate sector and 12.3% to the banking sector, it added. ($1 = 25,370 dong)
SOLARVEST AND FINHERO LAUNCH VIETNAM'S FIRST SOLAR FINANCING FINTECH SOLUTION
Dow Jones International News – 19 November 2024
Solarvest Holdings Berhad ("Solarvest"), a leading clean energy expert, has officially launched its Powervest solar financing program in Vietnam to support clean energy transition among Vietnamese businesses. Driven by the recent introduction of Direct Power Purchase Agreement (DPPA) framework, the demand for renewable energy solutions has surged significantly among Vietnamese businesses. Many companies in Vietnam are turning to sustainable energy solutions for cost saving and to achieve sustainability goals. However, the high upfront cost of solar photovoltaic (PV) systems remains the key barrier. Solarvest's Powervest program offers two key financing options - Powerflex and Powerlease - designed to address varying financial requirements for Vietnam businesses. Powerflex provides flexible packages with zero upfront costs, allowing businesses to either fully own the solar PV system with 100% financing or co-own the asset with Solarvest through 50% financing. Powerlease allows companies to lease solar PV systems and purchase the generated electricity at an agreed tariff, through DPPA model. Dang Khai Hoang, Business Development Director, Solarvest Vietnam said: "Powervest provides a timely and practical solution to finance companies keen on adopting solar energy in Vietnam. The program offers tailored financial models designed to make clean energy more convenient, affordable, and accessible for all business sizes. Solarvest has successfully implemented this financing model in Malaysia, with over 600MW solar asset development pipeline. Leveraging this expertise, we are now extending its innovative financing solutions to support the growing renewable energy demands in Vietnam." At the summit, Solarvest, through its Vietnam entity, Solarvest (Vietnam) Company Limited, signed a Memorandum of Understanding (MoU) with a fintech company from Malaysia, Finhero to enhance Powervest's offering through advanced technologies. The MOU formalises the collaboration to introduce Vietnam's first solar financing fintech platform. This technology simplifies and speeds up financing applications, enabling access to solar financing for businesses in Vietnam.