Newsletter
Vietnam Environment Spotlight June 2022
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.
PUBLICATIONS
ESG in Vietnam
We are pleased to share the article in Vietnam Investment Review recently written by Chris Milliken, Counsel of our Ho Chi Minh City office. He observes global interest in ESG in Vietnam and discusses about what would be the challenges and opportunities for Vietnamese companies as well as international investors who are looking to make investments in Vietnam. His article sets out more details about his observations and insights on ESG in Vietnam. Source: Vietnam Investment Review
Hydrogen fuel in Vietnam
Tony Foster and Emily Taylor of our Vietnam offices have also written an article in The Investor about hydrogen fuel in Vietnam. Their article looks at the current status of hydrogen fuel in Vietnam, the obstacles, and the mechanism that the Ministry of Industry and Trade (MoIT) could consider based on a review of the development of the global industry. Source: The Investor
MARKET UPDATES
Decisions, decisions…
The Prime Minister late last week ordered the MoIT to recalculate the ratio of LNG-fuelled power in the energy mix contemplated in Vietnam’s draft Power Master Plan (PDP VIII), as the soaring price of imported LNG might make LNG-to-power plants financially untenable until 2030. The Prime Minister also ordered the MoIT to reconsider PDP VIII’s exclusion of new solar power generation until 2030 as it might run counter to the Politburo’s Resolution 55, while the cost of producing this kind of energy source is on the decline. Source: The Investor
A cold wind blows in from Scandinavia
Large foreign firms are interested in Vietnam’s offshore wind power industry. Some major Danish and Norwegian businesses including Equinor and Ørsted have expressed their special abilities in this sector and wish to invest in Vietnam during recent meetings with officials of the MoIT. Source: Vietnam Plus
Let’s hope the buyers don’t live in the Old Quarter
Mercedes-Benz will start delivering its EQS electric sedan to Vietnamese customers in October, although the selling price has yet to be disclosed. Mercedes EQS is the second luxury electric vehicle to be sold in Vietnam after the Porsche Taycan. A charging station will be installed at buyers’ homes as well as at authorized showrooms. Source: Vn Express International
EV race
Vietnamese electric vehicle maker VinFast plans to open more than 50 stores in Germany, France and the Netherlands. The first confirmed German locations include Frankfurt, Berlin, Cologne, Oberhausen and Hamburg. In France, locations include Paris, Marseille, Nantes, Rennes, Nice, Montpellier, Aix-en-Provence and Metz. It is expected that Amsterdam would open the first VinFast store in the Netherlands. Source: The Investor
Green hydrogen
TGS Green Hydrogen from Germany plans to develop Vietnam’s first green hydrogen project in Ben Tre province with investment capital of about US$850 million. The construction of the green hydrogen plant is expected to start in late June and a trial run could occur in the first quarter of 2023. Source: Vietnam Investment Review
A project half as old as time
The Prime Minister has requested that the socio-economic, environmental, and social welfare impacts of the gigantic Thach Khe iron ore mining project in Ha Tinh province be taken into consideration before deciding whether or not to deploy it. Thach Khe is currently the biggest iron ore mine in Southeast Asia with an estimated reserve of over 544 million tonnes, accounting for half of the national reserve. Source: Vietnam Plus
Tipping point
The total amount of wastewater collected and treated in urban areas is very low, only about 15 per cent, whereas wastewater in most rural residential areas is not treated at all. A Government report has just been sent to the National Assembly warning that environmental pollution in some places is at risk of exceeding the tolerance threshold of ecosystems, affecting many aspects of economic life – society, locals’ living conditions and health. Source: Vietnam Net
What would Mr Kirk say?
HSBC has raised around US$1.3 billion to support Vietnamese businesses in making long-term investments and transforming their business models in a green and sustainable manner. HSBC Vietnam announced its commitment to arrange up to US$12 billion in sustainable financing for Vietnam and the local corporate sector by 2030. It aims to support the country’s climate goals and COP26 commitment to become a net-zero economy by 2050. Source: The Investor
Public partnerships
Vietnam is seeking a partnership with G7 countries including Canada, France, Germany, Italy, Japan, the UK, and the US, in energy transition amid efforts to achieve net-zero transmissions by 2050. The country has requested the United Nations Development Program (UNDP) to support it in establishing an agreement with advanced economies to seek their financial support. Source: Hanoi Times
