Our long-standing GBA board member Dr. Oliver Massmann, Partner at Duane Morris Vietnam LCC, is sharing the most relevant legal updates with you.
- Vietnam approves programme for green energy transition
- Vietnam’s efforts to realize COP26 commitments
- New rule permits payment of video game prizes in foreign currencies
- Vietnam halves import tariff on gasoline to 10pct
- Seven marine economic clusters targeted for sustainable development
Find more details as below:
- Vietnam approves programme for green energy transition
Some highlines are as below:
- On July 22, deputy prime minister Le Van Thanh signed Decision No.876/QD-TTg approving an action programme on the green energy transition and the reduction of carbon and methane emissions in the transport sector. The move aims to develop a green transport system in the push for net-zero emission by 2050.
- The green energy transition roadmap for 2022-2030 highlights enhancements in manufacturing, assembly, import, and the use of electric vehicles. It aims to expand the use of E5 petrol and develop charging infrastructure, new car parks, and rest stops that meet green development standards.
- In the railway industry, there will be studies and pilots on the use of electricity and green energy with investments in new modernised routes, a roadmap for replacing old railway vehicles, and upgrades to facilities and stations.
- Inland waterways will carry out policies to encourage investment in the manufacturing of new vehicles, the replacement of fossil fuels, and the development of green ports and transport routes.
- By 2025, the country aims to have 100 per cent of its buses using electricity and green energy. By 2030, the use of electricity and green energy for all transportation will be at least 50 per cent and 100 per cent for taxis. By 2050, the rate of public transport in special urban areas and tier-one urban areas will be at least 40 per cent and 10 per cent respectively.
- Vietnam’s efforts to realize COP26 commitments
Some highlines are as below:
- Reduction of greenhouse gas emissions in such spheres as energy, transportation, construction material production, agriculture and waste treatment is one of the main objectives of a scheme to realize the country’s commitments made at the 26th United Nations Climate Change Conference of the Parties (COP26).
- Prime Minister Decision 888/QD-TTg dated July 25, approving the Scheme on tasks and solutions to implement outcomes of the COP26, says that by 2030, greenhouse gas emissions in the energy industry will be cut by 32.6 percent; agriculture, 43 percent; and forestry and land use, 70 percent.
- By 2030, renewable energy, including hydroelectricity, and wind, solar and biomass power, will make up at least 33 percent of the total electricity output, according to the Scheme.
- To that end, the Scheme puts forth major tasks and solutions, including the improvement of mechanisms, policies and laws, promotion of administrative reform, and improvement of the business investment environment; development of renewable energy and energy storage technologies; green urban development; development of ecological, circular, low-carbon agriculture; protection, conservation and sustainable use and development of forests; protection and restoration of natural resources and development of natural ecosystems; climate change response; and scientific research and innovation promotion.
- It mentions the establishment of a national renewable energy center, the possibility for Vietnam to join the International Renewable Energy Agency (IRENA), the International Solar Alliance (ISA).
- New rule permits payment of video game prizes in foreign currencies
Some highlines are as below:
- Foreign players of prize-winning video games may exchange their won tokens for foreign currencies or Vietnam dong, according to a circular recently issued by the State Bank of Vietnam.
- Under Circular 09 dated July 12, the par value of video game tokens may be nominated in Vietnam dong or convertible foreign currencies. Enterprises are allowed to convert the foreign-currency par value of tokens into Vietnam dong or other foreign currencies.
- Worthy of note, players receiving foreign-currency prize money amounts in cash may choose to sell such amounts to licensed banks to get Vietnam dong, remit such amounts abroad via licensed banks, obtain licensed banks’ certificates for bringing abroad such amounts, or deposit such amounts in their foreign-currency payment accounts opened at licensed banks.
- In case of receiving foreign-currency prize money amounts by bank transfer, players may transfer such amounts from enterprises’ special-use foreign-currency accounts to their foreign-currency payment accounts opened at licensed banks or their accounts opened overseas.
- They may also authorize enterprises to contact licensed banks for conducting foreign-currency payment and transfer transactions and obtaining certificates for bringing abroad foreign-currency cash amounts.
- Vietnam halves import tariff on gasoline to 10pct
Some highlines are as below:
- Vietnam halved its Most Favoured Nation (MFN) tariff on gasoline to 10 percent Monday as it seeks to diversify supply.
- The MFN import tariff is a standard rate applied for trade between World Trade Organisation (WTO) members unless a separate trade agreement exists.
- The cut is unlikely to reduce gasoline prices since Vietnam imported over 90 percent of its fuel from Asean member countries and South Korea under free trade agreements (FTAs) at 8 percent tariff.
- It will reduce Vietnam’s dependence on those sources and help diversify its supply.
- Taxes account for 19.4-22 percent of gasoline prices in Vietnam, lower than in many other countries.
- After four downward adjustments in recent days a litre of RON 95 gasoline now costs VND25,600 ($1.09), the lowest since late-February.
- Seven marine economic clusters targeted for sustainable development
Some highlines are as below:
- The country is scheduled to have seven maritime economic clusters by 2030, which aims to turn Vietnam into a strong marine country, and promote sustainable development in relevant regions, sectors and fields.
- Accordance to Decision 892 formulated on July 26 by the Prime Minister to approve a scheme on the development of marine economic clusters associated with building strong centers by 2030.
- The scheme aims to build seven marine economic clusters in the next ten years in advantageous coastal areas and develop three to four leading maritime economic centers in the Southeast Asian region.
- The clusters will prioritize services, products with added value; attract large-scale enterprises and high-tech projects to contribute to green growth; and protect the marine ecological environment as well as the marine economy.
- They are also expected to contribute to consolidating and strengthening national defense and security in seas and islands.
- Developing sea and island tourism is one of the priorities for effectively tapping the potential and strengths of tourism resources in each region and the entire coast of Vietnam.
- The scheme spotlights the importance of tourism-based economy development with eco-tourism and leisure centers, complexes and sea and island resorts that meet international standards in the central region, the southwestern coastal area (Kien Giang – Ca Mau) and other areas with suitable conditions.