Newsletter
Vietnam Environment Spotlight - February 2023
Freshfields' Vietnam Environment Spotlight keeps you up-to-date with the key business and legal developments in this sector. Please contact us if you would also like to receive our Vietnam M&A Spotlight, Vietnam Infrastructure Spotlight or Vietnam Competition Law Spotlight.
MARKET UPDATES
How about a Vietnam Climate Bank? The Prime Minister’s Resolution No 1 of 2023 focuses on how to attract $15.5 billion of investment from international partners within the Just Energy Transition Partnership (JETP), plus additional investment from other international partners for green transition. According to the World Bank, Vietnam needs $368 billion in financing between now and 2040 (approximately 6.8 per cent of GDP per year) for a resilient solution. This includes $184 billion from private investments. The task for 2023 is to develop the Vietnam JETP Resource Mobilisation Plan. Source: Vietnam Investment Review
EU CBAM. Vietnam must start monitoring and issuing carbon certificates to exporters and retailers in response to the EU's recently passed carbon levy. The EU’s Carbon Border Adjustment Mechanism (CBAM) will put a price on the carbon emitted during the production of carbon-intensive goods that are entering the EU, and thereby encourage cleaner industrial production in non-EU countries. Source: Vietnam Plus
BIDV. The Bank for Investment and Development of Vietnam (BIDV) on 16 February 2023 issued a Sustainable Loan Framework in consultation with the Carbon Trust. This is believed to be the first comprehensive framework in Vietnam for sustainable financial products that follow international standards. Source: Vietnam News
EV - Vinfast. Vietnam’s electric-vehicle (EV) maker VinFast said North Carolina regulators had given the automaker one of the environmental permits it needs to begin construction of a planned US$4 billion EV assembly plant. VinFast wishes to expanhe U.S.’s General Motors and China’s SAIC, TMT will assemble the car in its factory in Hung Yen and distribute it. Source: VN Express International
A bargain at half the price. The Ministry of Industry and Trade (MoIT) has set the ceiling price for solar power at VND1,185 (ground-mounted) -1,508 (floating) per kWh and wind power at VND1,587 (onshore) -1,816 (offshore). According to the ministry's decision, the ceiling price excludes VAT and will be applied to solar and wind projects which became operational after substantially higher feed-in-tariff (FIT) policies expired in late 2020 and late 2021 respectively. Electricity of Vietnam (EVN) will still try to negotiate lower prices with investors before agreeing to buy electricity from their power plants. Source: Vn Express International
Forward thinking. Hydrogène de France SA (HDF) has signed an MoU with PetroVietnam Technical Services Corporation (PTSC) to jointly develop, finance, and build HDF’s hydrogen power plants in Vietnam. HDF and PTSC will also investigate how green hydrogen could be produced in other regional markets like South Korea, Japan, and Singapore. They will focus mostly on offshore wind farms, which can be used to generate green hydrogen to decarbonise local industries. Source: Vietnam Investment Review
Beam me up. Quang Tri province is trying to revitalize its US$2.3 billion power project after EGAT International (EGATi) of Thailand called off its proposed project last October because of a lack of funding for coal projects and Vietnam’s 2050 carbon-neutral target. Quang Tri has sent a proposal to the Prime Minister (PM) and the MoIT asking for the project to be included in the national power development plan (PDP VIII) with natural gas or LNG as the fuel rather than coal. Quang d in the United States, where it hopes to compete with existing automakers. Source: Deal Street Asia
EV - Volvo. Volvo Vietnam said it is planning to sell in Vietnam EVs that it has assembled in Malaysia. Volvo has been preparing for an all-electric future as of 2030. Source: VN Express International
EV - Wuling Hongguang/TMT/SGMW JV. The Wuling Hongguang Mini EV, the best-selling small EV in China, is set to be assembled and sold in Vietnam this year. Under a deal signed by Wuling with Vietnam’s TMT Motors Corp and SGMW, a joint venture between tTri will search for potential investors. Source: The Investor
Smart. An MoU was signed between Vietnam’s Becamex IDC Corporation and Singapore’s Sembcorp on 10 February 2023 to cooperate to develop five green, smart, and sustainable industrial parks (IPs) in Vietnam within the next three years with total investment capital of roughly US$1 billion. The ceremony took place within the framework of the PM’s visit to Singapore from 8-11 February 2023. Source: Vietnam Investment Review
