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The Hanoitimes – Economic achievements are absolutely crucial for Vietnam’s overall growth, its reputation and contribution to Vietnam’s soft power.

Vietnam moved up three places from 50th to 47th in the Global Soft Power Index 2021, which ranks the world’s top 60 soft power nations by the London-based independent brand valuation and strategy consultancy Brand Finance.

Medical worker conducts Covid-19 testing on locals. Photo: Pham Hung

The report noted given its effective dealing with the Covid-19 pandemic, the country “was spared a year of lockdowns, and besieged hospitals, and has one of the lowest Covid-19 infection and death rates in the world.”

Not only the response to the pandemic impressive – given its shared border with China where the first cases of Covid-19 infection were confirmed – but Vietnam also experienced one of the highest economic growth rates globally in 2020 – being among a handful of countries with positive growth in 2020 – while neighboring countries continue to wrestle with deepening recessions, stated Brand Finance.

“Vietnam seems to have managed all aspects of its perception [of soft power] quite well,” said Samir Dixit, managing director of Brand Finance Asia Pacific.

Vietnam moves up three places to 47th in the Global Soft Power Index 2021. Source: Brand Finance

According to Dixit, Prime Minister Nguyen Xuan Phuc approved the Vietnam National Brand Program from 2020 to 2030, which aims to increase the value and rankings of the nation brand while targeting over 1,000 products to become strong national brands.

The brands from the country are managed through specific efforts and initiatives undertaken by Vietrade, under their nation mark program “Vietnam Value”.

At a national level, Vietnam had established diplomatic relations with 187 out of 193 member states of the United Nations and completed the process of negotiating and signing new-generation FTAs – including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement – making the country an important factor in all regional and intra-regional economic links, which is a booster for Vietnam’s imports and exports.

Meanwhile, the “Vietnam Value” program management agency and the Ministry of Industry and Trade of Vietnam (MoIT), have actively supported Vietnamese enterprises to improve their capacity through consulting business development, establishing information systems, and updating branding knowledge, he noted.

Thanks to the efforts of the “Vietnam Value” program, Vietnam’s processed food industry now contributes upwards of US$17 billions of Vietnam’s exports. The apparel industry makes up over US$22 billions of the country’s exports.

“These economic achievements are absolutely crucial for Vietnam’s overall growth, its reputation and contribution to Vietnam’s soft power,“ he suggested.

In the Global Soft Power Index this year, Germany replaced the US at the top rank, with the latter was relegated to sixth. Japan and the UK claimed the second and third spots respectively in the index.

Foreign visitors walk in Dien Bien Phu Street, Ha Noi. Viet Nam was the only country among 10 member states of the ASEAN to see improvement in Brand Finance’s Global Soft Power Index Report 2021. — VNA/VNS Photo Lam Khanh

Viet Nam has climbed three spots to rank 47th out of 105 countries in Brand Finance’s Global Soft Power Index Report 2021.

Viet Nam was the only country among the 10 member states of the Association of Southeast Asian Nations (ASEAN) to improve its ranking this year.

Its overall score was 33.8 out of 100 points, 2.5 points higher than last year, putting it ahead of the Philippines (53rd), Cambodia (89th) and Myanmar (90th).

Among other ASEAN countries, Singapore was 20th, Thailand 33rd, Malaysia 39th, and Indonesia 45th.

According to Brand Finance, the improvement was largely due to the fact that Viet Nam has managed the COVID-19 pandemic extremely well.

“Viet Nam was spared a year of lockdowns and besieged hospitals, and has one of the lowest COVID-19 infection and death rates in the world,” the report said. “Not only is the response to the pandemic impressive – given its shared border with China – but Viet Nam also experienced one of the highest economic growth rates globally in 2020 – one of a handful of countries with positive growth in 2020.”

Prime Minister Nguyen Xuan Phuc has approved the Viet Nam National Brand Programme from 2020 to 2030, which aims to increase the value and ranking of the national brand while targeting more than 1,000 products to become strong national brands.

The brands from the country are managed through efforts and initiatives undertaken by the Ministry of Industry and Trade (MoIT)’s Department of Trade Promotion (Vietrade), under their ‘Viet Nam Value’ programme.

At a national level, Viet Nam has established diplomatic relations with 187 out of 193 member states of the United Nations and completed the process of negotiating and signing new-generation free trade agreements, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Viet Nam Free Trade Agreement (EVFTA), making the country an important factor in regional and intraregional economic links.

At the same time, Vietrade and the MoIT have supported Vietnamese enterprises to improve their capacity through consulting business development, establishing information systems and updating branding knowledge.

All these initiatives and efforts have helped increase the awareness of the public, international consumers, and customers about the programme and Viet Nam Value products through various domestic and international media channels.

The MoIT also focuses on promoting geographical indications and collective marks of Viet Nam in foreign markets and helping improve the competitiveness of businesses based on quality reputation, environment-friendly production, and professionalism.

The Brand Finance Global Soft Power Index is a research study on the perceptions of 100 nation brands from around the world. It surveys the public as well as specialist audiences, with responses gathered from more than 75,000 people across some 100 countries. — VNS

The Hanoitimes – The strategy by 2030 and vision to 2045 will focus on three pillars namely oil, coal, and renewable energy.

Vietnam plans to more than double its power generation capacity to 125-130 gigawatts (GW) from about 54 GW over the next decade to feed its fast-growing economy.

The strategy is aimed at ensuring national energy security and sufficiently supplying power for fast and sustainable socio-economic development as stated in a resolution by the Communist Party’s powerful decision-making Politburo.

Vietnam’s power generation capacity to be more than double in the next decade

The strategy by 2030 and vision to 2045 will focus on three pillars namely oil, coal, and renewable energy.

Accordingly, it will invest more in oil exploration and exploitation domestically and internationally to raise the ratio of oil energy in the power mix.

The strategy calls for oil refineries to meet at least 70% of domestic demand for refined petroleum products. Vietnam will also develop infrastructure to be able to import 8 billion cubic meters of liquefied natural gas annually by 2030, Reuters reported.

It will raise the proportion of renewable energy to 15%-20% by 2030 while trying to lower reliance on coal which now accounts for about 38% of the total capacity.

Seek for other investment sources

To ensure the power development strategy, Vietnam will seek foreign and domestic private investment to help develop new power plants and speed the privatization of state-owned power companies.

The World Bank said in its “Maximizing Finance for Development in Vietnam’s energy sector” report that Vietnam’s electricity sector requires new investments of about US$10 billion annually frontloaded through 2030, higher than the average of US$8 billion for the period 2011–2015.

While Electricity of Viet Nam (EVN) and PetroVietnam (PVN) will continue to play an important role in developing new infrastructure, the vast majority of new gas and electricity investments will need to come from private players, the report argues.

“We observe a large interest from private investors to participate in the vast growing energy market in Vietnam, especially in renewables and LNG development. They are willing to invest as long as the projects are well-structured and bankable,” said Franz Gerner, the World Bank’s lead energy economist and the study’s lead author. “What investors need is a transparent and stable regulatory environment which incorporates a proper risk-sharing mechanism among all parties,” he added.

The resolution also requires paying more attention to power generation projects and the wholesale and retail power markets.

The Hanoitimes – Vietnam is estimated to need at least US$7-US$9 billion of investment in LNG import infrastructure.

Liquified natural gas (LNG) energy in Vietnam is estimated to account for 12% of the country’s power generation capacity by 2030, or 17 gigawatts, according to Deputy Prime Minister Trinh Dinh Dung.

Deputy Prime Minister Trinh Dinh Dung. Photo: VGP

Power demand in Vietnam grows 10% annually on average and the country is pursuing the energy transition in which LNG power and renewable energy will be prioritized over coal-fired power, Dung said at a meeting on February 11 with investors from the US and South Korea.

At the meeting, the deputy PM said Vietnam has welcomed and facilitated foreign investment in the LNG sector.

Vietnam’s energy mix by 2030. Source: MOIT

Vietnam, with GDP growth averaging 6.5% in the last few years, has a long-standing policy orientation that emphasizes the crucial role of natural gas in supplying reliable, competitive electricity while meeting national carbon emissions targets.

Based on the current outlook for domestic production, Vietnam will need to import significant volumes of LNG beginning within the next 5-10 years, necessitating at least US$7-US$9 billion of investment in LNG import infrastructure, according to the World Bank.

Power generation output in Vietnam in 2018 (219 billion kWh in total). Source: MOIT

The Vietnam’s Ministry of Industry and Trade estimated that the country’s imported LNG volume will be 5 million, 10 million and 15 million tons by 2025, 2030 and 2035, respectively.

According to the World Bank, the primary issue is how to establish appropriate pricing structure to integrate the new gas/LNG supply. Other issues include ensuring government support for new gas projects, and ongoing investment in infrastructure and business development models.

To help the country proceed with its energy transition process, the World Bank has identified the key constraints on mobilizing investment in LNG-to-power, namely: a) lack of a modern regulatory and planning approach; b) lack of a bankable integrated commercial framework for LNG-to-power; and c) limited government experience with managing LNG pricing and volume risks.

Apt solutions sought for local solar power

Prime Minister Nguyen Xuan Phuc last week asked the Ministry of Industry and Trade (MoIT) and Electricity of Vietnam (EVN) to review issues related to Vietnam’s solar power development as well as avoid massive solar development without a proper plan, which could cause power grid overload.

According to the updated data, as of December 25, 2020, there were 83,000 rooftop solar power projects connected to the power system with a total installed capacity of nearly 4,700 megawatts-peak. The total power generation output to the grid from rooftop solar power has reached more than 1.13 billion kWh, contributing to ensuring power supply for the national power system.

Meanwhile, there is no new decision or guidance for implementation of the policy after Decision No.13/2020/QD-TTg issued last April on encouraging mechanisms for solar power development in Vietnam, which had its deadline set for December 31 last year for solar systems of any scale to attain a certificate of delivery and enjoy the feed-in tariff 2 (FiT2) rate, in which the price of each kilowatt-hour generated from ground-mounted, floating, and rooftop solar initiatives were 7.09, 7.69, and 8.38 US cents, respectively.

As a result, it remains uncertain which pricing mechanism will apply to grid-connected solar power projects reaching commercial operation date in 2021.

EVN announced its power companies had ceased buying rooftop solar power after December 31 to wait for further guidance from the government. It will also handle requirements for connection and signing power purchase and sales contracts from solar power systems started before the deadline.

Deputy general director of locally-invested Son Ha Group Hoang Manh Tan said the fact that there is no policy available will make it difficult for businesses to formulate strategies and implement them. Enterprises need continuous and consistent policies, and the gap issue creates difficulties for EVN, other enterprises, and their partners, Tan said.

Thus, ministries and authorities in the coming time must find the right supporting mechanism that enables an organic development of rooftop solar, and minimises loopholes and speculative projects, such as solar farms disguised as rooftop systems.

The prime minister also asked the MoIT to carry out the work of inspecting solar power development in localities and power companies, ensuring compliance with regulations.

It must promptly correct and handle any mistakes, especially operating policies that benefit outdoor voltage deployment over time as well as take measures to minimise the shutdown of renewable energy sources in operation, and minimise the economic losses of investors and waste of renewable energy sources.

At the same time, the boom in solar development also poses a question for the grid operator about how to optimise renewable electricity feeds into the grid, while considering the best interests of electricity producers.

Solar energy expert Mai Van Trung told VIR that in order to keep the average selling price there are several options, including increasing the curtailment or adding more solar power plants and rooftop solar systems with a very low FiT3 rate to compensate the subsidisation of EVN.

The former option over a wide scale could however hurt financial indicators of many projects because of leverage from bankers.

Meanwhile, the latter option could distract potential investors to put the money down. Moreover, the capacity absorption of the national grid is limited due to the intermittency of solar power, Trung said.

There is a declining trend of engineering, procurement, and construction costs of rooftop solar systems over time that can be utilised if the absorption capacity of the grid is available even with the storage added.

Vietnam has plans for solar power auctions but the qualified projects are small and located in lower solar irradiance. Green and cheap credits from international institutions are ready to enter, but the room left for additional capacity is currently being narrowed.

According to the MoIT, there are currently 16 national standards promulgated by the Ministry of Science and Technology related to solar power in the country. However, there is a lack of specific standards for the two main components of rooftop solar power projects – panels and inverters.

In late 2020, the National Assembly passed the new Law on Environmental Protection, which stipulates extended producer responsibility (EPR) for businesses in Vietnam. This means that businesses and producers now bear the responsibility for the waste of their products, including solar panels.

EPR is intended to reduce the cost of managing end-of-life products by reducing waste volume and increasing recycling, thereby contributing to the prime minister’s new target of reducing the amount of waste that goes to landfills by 80 per cent by 2025.

EPR has the potential to create new economic opportunities and share the financial burden of solid waste management more fairly.

According to the new law, businesses can implement EPR in one of three ways including doing the recycle themselves, conducting recycling through a third-party product recycling organisation, and making a financial contribution to the Vietnam Environmental Fund.

According to the draft EPR decree, businesses that recycle themselves or do so via a third party will have to report through a national EPR data portal managed by the Ministry of Natural Resources and Environment.

If a business that does the recycling itself fails to reach the target over 3-5 years in a row, it will be forced to participate in one of the other two mechanisms.

A business that refuses to choose any mechanism will be fined; and if it exceeds its recycling target, it can sell credits to other businesses through a tradable credit system.