Vietnam Economic News: 19.10 – 26.10.2024
Summary of Vietnam Economic News: 19 - 26.10.2024
---
Summary of Vietnam Economic News: 19 - 26.10.2024 ---
VIETNAM PLANS CAPITAL INJECTION INTO VIETCOMBANK TO SUPPORT POLICY GOALS
Reuters News – 23 October 2024
Vietnam is planning to inject 20.695 trillion ($815 million) of capital into state-owned commercial lender Vietcombank, the country's biggest bank, to boost its capacity to support government policy, the deputy prime minister said on Wednesday. The move was in line with the banking industry development plan for 2025 and the 2021-to-2025 restructuring and bad debt resolution plan, deputy prime minister and finance minister Ho Duc Phoc told parliament. The State Bank of Vietnam (SBV), the country's central bank, has a 74.8% stake in Vietcombank. Last week, the SBV said Vietcombank would take over smaller lender Construction Bank as part of its restructuring program to tackle nonperforming loans. Phoc said the government would fund the capital injection using the share dividends it received from Vietcombank in 2018 and the lender's retained profits from 2021. Vietnam's parliament is expected to approve the plan at a vote on November 30.
GERMANY'S PNE SEEKS VIETNAM APPROVAL FOR $4.6 BLN OFFSHORE WIND PROJECT
Reuters News – 23 October 2024
Germany's PNE AG is seeking approval from the Vietnamese government to develop a $4.6 bln offshore wind farm in the country, local authorities said on Wednesday. If licensed, the company would develop the wind farm with a capacity of 2,000 megawatts in Binh Dinh province in central Vietnam, the province's Department of Planning and Investment said in a statement. Vietnam is seeking to boost wind and solar energy development, with a target of having 6 gigawatts capacity of offshore wind by 2030, but the target is at risk due to regulatory hurdles. PNE CEO Per Hornung Pedersen visited the province on Tuesday and worked with local authorities on ways to move the project ahead, the department said, adding PNE had been pursuing the plan since 2019. PNE was part of a business delegation that accompanied the German president on a visit to Vietnam in January.
VIETNAM PARLIAMENT ELECTS ARMY GENERAL AS STATE PRESIDENT
Reuters News – 22 October 2024
Vietnam's parliament elected on Monday army general Luong Cuong as the new state president in a widely anticipated move that is expected to bring some stability to Vietnamese politics after a turbulent phase of departures and reshuffles. Cuong, 67, takes over the role from To Lam, who was appointed president of the party in May and then also took on the more powerful job of party chief following the death in July of general secretary Nguyen Phu Trong. In his inaugural speech he committed to boosting defence capabilities and pursuing an independent and multilateral foreign policy. Vietnam has long been seeking to diversify its arsenal from mostly Russia-made weapons but has not reported any significant deal in recent years. Before the election, Cuong held a key position in the secretariat of the Communist Party, which made him the fifth-highest ranking official in the country after party chief, president, prime minister and parliament's chairman. Cuong is also a member of the Politburo, the party's top decision-making body. The state president holds little direct power but represents the country in high-level meetings with foreign dignitaries.
VIETNAM TO AMEND NATIONAL POWER PLAN TO INCLUDE NUCLEAR ENERGY
Reuters News – 21 October 2024
Vietnam will amend its national power development plan, known as PDP8, to include options for nuclear energy and hydrogen, the Minister of Industry and Trade said on Monday. The PDP8 will be amended in a way to also add more renewables to the mix, including solar and wind, Nguyen Hong Dien told the National Assembly at a meeting in Hanoi. The PDP8, approved in May last year, would raise the country's total installed power generation capacity to over 150 GW by 2030 from over 80 GW at the end of last year. However, offshore wind and LNG development targets are at risk due to regulatory and pricing hurdles. The amendment of the power development plan is aimed at "fully tapping the country's energy potentials and staying proactive in energy supplies," Dien said. Vietnam is considering resuming plans to develop nuclear power to ensure energy security and to support economic growth. The country has a target of raising its power generation capacity by 12%-15% a year to "ensure national energy security and support an annual economic growth of 7%." Officials have said Vietnam has discussed small, modern nuclear reactors with a number of countries including South Korea, Canada and Russia.
VIETNAM PM SAYS AIMING TO LIFT 2024 GROWTH ABOVE 7%
Reuters News – 21 October 2024
Vietnam's gross domestic product is expected to grow by 6.8%- 7.0% this year, Prime Minister Pham Minh Chinh told parliament on Monday, before adding that the government was aiming to lift growth above the top end of that range. The country's public debt is under control and well below a mandated ceiling set by the National Assembly, Chinh said at the start of a month-long parliament session in Hanoi. In 2025, Chinh said Vietnam would aim for growth of 7.0%-7.5%, supported by a credit growth target of 15% and public investment, including spending on transport infrastructure. He said Vietnam will also seek to attract foreign investment and expand its export markets. "Numerous challenges are lying ahead, but no challenge can slow us down," Chinh said. The country, a regional industrial hub, reported its strongest economic growth in two years in the September quarter, lifted by exports, industrial production and rising foreign investment, although Typhoon Yagi caused extensive damage last month that could affect future growth. Chinh pledged there would not be any power shortages next year. In 2023, rolling power cuts affected industrial production. He also said Vietnam would continue its fight against corruption and strengthen its defence capabilities.