This is a brief rundown of what is being reported today in Vietnam’s state-approved media and about Vietnam in the international press.
It endeavours to highlight the narratives currently shaping the country’s economic, financial, and business news landscape.
Ed’s note: I’m always looking for new sources with unique insights. If you’re operating a business or working in Vietnam and want to talk about it, reach out: mark.barnes@the-shiv.com
Ethical / cultural business standards framework
Vietnam Plus is reporting that Deputy Prime Minister Pham Thi Thanh Tra signed a decision on June 26 establishing a national framework for business ethics and corporate culture based on national values and international standards.
The framework is built around six core values: humanity, integrity, transparency, responsibility, innovation and international integration, the article says. View source→
Floating solar project
The Investor is reporting that KN Holdings has begun construction of the 304-megawatt KN Srepok 3 floating solar power plant in Dak Lak Province, with an investment of VND7.66 trillion (US$290.7 million).
The project will be built on the Srepok 3 hydropower reservoir and include a battery energy storage system, a 500-kilovolt substation and transmission infrastructure.
KN Holdings said the plant is scheduled to begin commercial operations in the fourth quarter of 2027. View source→
Embattled construction firm investment spinoff
The Investor is reporting that Hoa Binh Construction Group has said it plans to establish Hoa Binh Invest Holdings to attract strategic capital as part of its restructuring, while expecting another two years before relisting on the Ho Chi Minh City Stock Exchange.
Board member Nguyen Kinh Luan said the new holding company will help improve liquidity and funding access, while the company also plans a VND514 billion (US$19.5 million) debt-for-equity swap.
Vice Chairman Le Viet Hieu said accumulated losses of more than VND2 trillion (US$75.9 million) remain the main obstacle to relisting despite improvements in profitability and outstanding receivables. View source→
Ed.’s notes: Article does not make clear why investment vehicle is necessary or how it will function — This is the company that announced it had built a 70-meter underground gold-plated train earlier this year.
Raising public debt ceiling
Vietnam Finance is reporting that the government has proposed raising the public debt ceiling to 50 percent of GDP from 45 percent and increasing the budget deficit target to around 5 percent of GDP by 2030.
The proposals, contained in a Decision signed by Deputy Prime Minister Nguyen Van Thang, are intended to create additional fiscal space to support development investment. View source→
Ed.’s notes: A lot of pressure is put on private business to shoulder the costs of the government’s development agenda. This latest announcement could be interpreted as recognition that private sector funding may not be enough for everything it is hoping to achieve.
Selling excess residential solar
VnExpress is reporting that the maximum proportion of surplus electricity that self-consumption rooftop solar systems can sell to the national grid has been raised to 50 percent under Decree 243, effective June 26.
The decree also allows sales above 50 percent until the end of 2030, where local grid capacity can safely accommodate additional electricity. View source→
Ed.’s notes: How are they monitoring how much excess a household is producing in order to work out how much 50 percent is? Why only 50 percent?
Japan support strategic oil reserve
Vietnam Plus is reporting that the Japan International Cooperation Agency is conducting a survey to assess Vietnam’s oil reserve and supply chain needs as the two countries explore cooperation on a strategic petroleum reserve system.
The project will analyse Vietnam’s current oil reserve system, develop policy recommendations and provide training with support from Japanese and Vietnamese government agencies. View source→
Ed.’s notes: Japan stepped in to provide fuel from its own reserves when Vietnam’s supply was disrupted on the back of the war in Iran, so not exactly selfless — will strengthen its own fuel security by extension. Also, there are already regulations on minimum reserves for businesses, though it seems many were not meeting these requirements prior to the war, so it will be interesting, in this context, to see what they come up with.
Movement on competitive retail electricity market
Tuoi Tre is reporting that Vietnam’s Ministry of Industry and Trade has proposed ending the single-buyer electricity market model in which EVN remains the dominant purchaser of power, in a draft Electricity Law.
The draft also proposes expanding direct power purchase mechanisms and allowing electricity retailers to buy power directly from generators. View source→
Ed.’s notes: It’s difficult to see this moving forward in an environment where retail electricity prices are fixed, sometimes below cost.
Women employed in FDI sector
VIR is reporting that foreign multinational enterprises employ nearly one in two women in Vietnam’s formal workforce, according to a report released by the Organisation for Economic Co-operation and Development on June 25.
The Organisation for Economic Co-operation and Development said foreign investment has driven female employment primarily in manufacturing, with around 90 percent of women working for foreign firms employed in the sector. View source→
Royalties for cafe music
Vietnam News is reporting that businesses, including cafes, restaurants, hotels and karaoke venues that play music for customers, will be required to pay copyright royalties from July 1 under a new decree.
The decree introduces a standardised method for calculating royalties for the commercial use of copyrighted works, sound recordings and video recordings, based on the statutory base salary and location.
The annual fee for a 30-square-metre cafe in Hanoi or Ho Chi Minh City will be about VND2.4 million (US$91), with annual charges capped at VND20 million (US$759).
Royalties will be collected by the Vietnam Centre for Protection of Music Copyright and the Recording Industry Association of Vietnam on behalf of copyright and related rights holders. View source→
Ed.’s notes: Not clear how those funds will be distributed to copyright holders. Not clear why this needs to be regulated by the government as opposed to copyright holders setting their own prices.
Stock market Friday
The VN-Index closed at 1,871.91, up 8.84 points or 0.47 percent, with a total trading value of VND 16,109.64 billion or US$611.37 million, and foreign traders net-buying US$12.37 million worth of equities, Friday, according to the latest data from the Ho Chi Minh City Stock Exchange. View source→
LPG imports May
Vietnam imported LPG to the tune of US$206 million in May, down from US$387 million in April, a change of -46.84 percent, according to preliminary data from Vietnam’s General Department of Customs. View source→
Friday’s Vietnam news roundup
the-shiv is reporting that In today’s Vietnam news: GS TL on AI, Saigon Economic Times last issue, Fuel prices cut, Vinhomes issuing more bonds, Counterfeit Korean cosmetics store, Biometric authentication business transactions, VN-US customs data exchange agreement, Agoda data Vietnam tourism growth, Stock market Thursday, Exchange rates Thursday, Fertiliser imports May, State Bank of Vietnam to exclude some major projects from credit growth limits, Yesterday’s Vietnam news roundup, and more. View source→