mai hien


PM DEMANDS SOLUTIONS FOR SHIPPING FIRMS
Thursday, 22 August 2019 07:52

The Prime Minister has asked ministries and Government agencies to support marine shipping firms.

 

The PM instructed the Ministry of Transport to collaborate with the Ministry of Industry and Trade, the State Capital Management Committee and other Government agencies to work with shipping companies – especially those with high shipping volumes – to improve their performance in accordance with Document 118/VPCP-KTN, issued by the Government Office on January 7, 2014.

 

At the same time, the Ministry of Transport was told to work with the ministries of Planning and Investment and Finance, the State Capital Management Committee and other agencies to help shipping firms use funding to develop their fleets.

 

Companies must also hasten their equitisation and strengthen their association with both domestic and foreign partners to raise their productivity and efficiency.

 

The Prime Minister also assigned the ministries of Transport, Finance, Planning and Investment and Justice, the State Bank of Vietnam, the State Capital Management Committee and relevant agencies to study policies to bolster the quality of the nation's waterway transportation system and report back to the Prime Minister in the first quarter of next year.

 

Vietnamese shipping firms, most of which are State-owned, have been performing poorly in recent years due to ineffective corporate governance and rising competition on international markets.

 

The Vietnam National Shipping Lines Corporation (Vinalines), one of the biggest shipping companies in the country, reported that its revenue in the second quarter of 2019 dropped 9 per cent year on year to VNĐ5.56 trillion (US$239 million).

 

At the end of the quarter, the company posted a loss of VNĐ496 billion, up 325 per cent from the previous year.

Vinalines attributed the loss to the fact that the company earned less from its dividend payouts and also failed to sell its assets and ships.

 

In late May, Vinalines received back 30.3 million shares as the biggest shareholder at the Quy Nhơn Port JSC after the equitisation of the port operator was determined to be illegal. The company also had to return VNĐ415 billion to the buyer of the deal from 2013-15.

 

Vinalines now has stakes in 20 companies and associates in 27 other firms. At the end of the second quarter, Vinalines recorded VNĐ2.05 trillion of cash and cash equivalents and VNĐ3.45 trillion in short-term assets. The company’s total borrowings were worth VNĐ8.1 trillion, including VNĐ5.36 trillion worth of bank loans.

 
MEKONG DELTA WILL BE UPGRADED SOME NATIONAL HIGHWAYS
Tuesday, 20 August 2019 07:29

 

From now until the end of the year, a number of important national highways in the Mekong River Delta (Mekong Delta) will be upgraded to meet the demand for travel and trade when the number of vehicles increases.

According to the report of the plan of implementing projects of the Ministry of Transport, from now to the end of 2019, it will start to upgrade 10 road projects with a total investment of VND 8,000 billion.

 

In the Mekong Delta region, will upgrade and upgrade Quan Lo - Phung Hiep route with a length of 112 km, passing through 4 provinces including Hau Giang, Soc Trang, Bac Lieu and Ca Mau. This road was built in 2005 and put into operation since 2009, breaking the monopoly of National Highway 1A, shortening the distance of about 50km from Can Tho to Ca Mau. However, after 10 years of use, the road has not been upgraded so the road surface does not meet the transport demand.

 

The project of upgrading Quan Lo - Phung Hiep line was approved by the Ministry of Transport in March 2016 and is in the technical design phase. Expected, in quarter 4-2019, will start construction and completion in 2020. This project has a total investment of 900 billion.

 

Another important route in the Mekong Delta is the national highway 53 section of Tra Vinh - Long Toan, 52 km long. Currently, the project is in the design phase, in September 2016, it will be bidding to start the project in October 2016. The project has a total investment of VND 1,202 billion.

 

The next project in the Mekong Delta was renovated and upgraded as national highway 57, from Dinh Khao ferry (Vinh Long province) to Mo Cay town (Ben Tre province). The project has a total investment of VND 875 billion. According to the MOT's plan, the project will start in September 2016 and be completed by the end of 2020. After upgrading, expanding National Highway 57 from Dinh Khao ferry to Mo Cay Town will be connected smoothly. system of national highways between Ben Tre - Vinh Long - Tra Vinh and other provinces in the region.

 

In Dong Thap province, the project to upgrade the National Highway 30 section of Cao Lanh - Hong Ngu was approved by the Ministry of Transport. The project has a total investment of VND 800 billion, of which the clearance cost is VND 276 billion. It is expected that the time to start construction of the project in September 2016.

 

In the northern region, the Ministry of Transport also upgraded a series of national highways, including the Hanoi - Hai Phong highway with Cau Gie - Ninh Binh expressway; the project of connecting national highways 4C and 4D (km238 - km414); Highway 3B project ...

 

According to the report from the Department of Planning and Investment (Ministry of Transport), out of 10 upgraded projects, the Ministry of Transport approved 8 projects, the remaining 2 projects are Highway 24 and Highway 25 Comments are also approved in 2019.

 

For 8 projects that have been approved for investment, currently surveying, technical design, construction drawing design and organizing bidding to select construction and installation contractors. It is expected that many bidding packages of 8 projects will start from now until the end of 2019.

 

Regarding the progress of road upgrade projects, at the recent meeting, Minister of Transport Nguyen Van The asked investors and project management to accelerate the next, slowest steps in In 2020, all 10 national highway upgrading projects must be completed.

 
VIETNAM LNG SECTOR: UNLOCKING POTENTIAL FOR FOREIGN INVESTORS
Tuesday, 13 August 2019 10:11

 

The deals have caught public attention as Vietnam is shifting to other power sources to feed its growing economy. 

During the participation of Vietnamese Prime Minister Nguyen Xuan Phuc at G20 Summit in Japan late in June, he and US President Donald Trump discussed and expected the soon signing of the memorandum of understanding on long-term cooperation between Vietnam’s Ministry of Industry and Trade and the US Department of Energy for large scale import of LNG.Liquefied natural gas (LNG) has a greater role in feeding Vietnam`s growing demand for electricity amid its efforts to reduce coal power.

 

Strong demand for liquefied natural gas (LNG) from gas-fired power projects in Vietnam leaves this sector potential for foreign investors as some entered the market with big deals and bright prospects ahead.

Vietnam plans to import one million metric tons (mt) per year of LNG by 2021, around four million mt/year by 2025, and between six million mt/year and 10 million mt/year from 2026 to 2035, according to the government’s gas market development master plan.

The country’s first LNG import facility, the 1 million mt/year Thi Vai terminal in the southern province of Ba Ria Vung Tau, is under construction and due to commence operation in 2020.

PetroVietnam Gas Corp (PV Gas), the largest gas supplier in the country, in 2014 signed two LNG sale and purchase agreements with Russia’s Gazprom Marketing & Trading and Anglo-Dutch Shell for deliveries into Thi Vai.

PetroVietnam, through its gas arm PV Gas, supplies natural gas to meet 35% of the country's electricity demand and 70% of its fertilizer requirements.

LNG consumption in Vietnam is expected to grow at an annual rate of 10% in the next decade, driven by the government’s efforts to gradually move away from coal-fired power in favor of cleaner alternatives. 

Despite efforts to raise the ratio of renewable sources such as solar and wind, challenges in regulatory framework, long-term planning, and grid capacity are weighing on the government’s efforts. 

Meanwhile, hydropower potential is nearly exhausted and increasingly being scrutinized due to impacts on the environment.

This opens up room for gas-fired power generation to assume a larger role in the national power mix, as a cleaner, less- environmentally hazardous alternative to coal and hydropower with a more reliable baseload power source compared with most renewables, according to Vietnam News Agency.

In the country’s current power plan (the Power Plan VII) revised in 2016, the room for construction of 8,000 MW of newly-built gas-fired projects is available between 2021 and 2027 in the southern provinces of Kien Giang and Dong Nai, and the central provinces of Quang Nam and Binh Thuan.

In addition, gas-to-power projects become more feasible thanks to a combination of supportive factors including the availability of funding, rising foreign capital inflows into the domestic power, and government’s support for greater gas use, accordingly to analysts from Fitch Solutions.

Foreign presence

Korea Gas Corporation (Kogas) has become the latest player when it inked last week a memorandum of understanding with Energy Capital Vietnam (ECV) to serve the development of a privately-funded LNG regasification terminal, storage, gas supply system and a 3,200MW gas-fired power project near the Ke Ga cape in Binh Thuan.

David Lewis, CEO of Energy Capital Vietnam, said the partnership between Kogas and ECV allows both companies to leverage each other’s strengths to bring low-cost LNG to Vietnam and help address critical energy security needs.

In early July, Japan JXTG Nippon Oil & Energy (JXTG) tied up with Vietnam National Petroleum Group (Petrolimex) to build liquefied natural gas (LNG) receiving stations and joint procurement. 

In an MoU signed in Tokyo, Hanoi-based Petrolimex expects to invest roughly US$4 billion in LNG receiving facilities and power plants in Vietnam while JXTG – which has LNG receiving facilities in Japan – will offer operational expertise, according to Nikkei. 

The partnership marks a new Vietnamese foray for JXTG – Japan’s largest direct seller of crude oil – which had planned to conduct an oil refinery project in Vietnam. In 2016, JXTG’s unit named JXTG Holdings took an 8% stake in Petrolimex for JPY20 billion (US$185 million at current exchange rate).

Meanwhile, Vietnam News Agency reported that the deal aims to serve Petrolimex’s upcoming LNG import port in Vietnam’s central province of Khanh Hoa where Petrolimex will provide LNG to gas-fueled power plants in the locality run by Vietnam Electricity (EVN). 

On this occasion, Petrolimex also inked an MoU with Japan Cooperation Centre Petroleum (JCCP) in which JCCP will focus on human resources, technical training in downstream oil and gas industry.

The deals have caught public attention as Vietnam is shifting to other power sources to feed its growing economy. 

During the participation of Vietnamese Prime Minister Nguyen Xuan Phuc at G20 Summit in Japan late in June, he and US President Donald Trump discussed and expected the soon signing of the memorandum of understanding on long-term cooperation between Vietnam’s Ministry of Industry and Trade and the US Department of Energy for large scale import of LNG.

 
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