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 needs policy vietnam needs policy agility despite strong economic recovery: WBERY: WB
- Ministry proposes amending rice import regulations
- EVN has completed a framework for electricity prices of the transitional solar
and wind power projects - Prime Minister chairs meeting on vaccine diplomacy
Find more details as below:
1.Vietnam needs policy Vietnam needs policy agility despite strong economic recovery: WBery: WB
Some highlines are as below:
- As the country’s CPI and Core CPI are reaching 4 percent – the policy rate set by the authorities – monetary authorities should be ready to consider further tightening monetary policy to ensure inflation remains anchored.
- Furthermore, given the end of forbearance and tightening financial conditions, the financial sector faces heightened risks and prompt the State Bank of Vietnam (SBV) guidance would help dematerialize such risks at the wider sector level basis, potentially affecting the real economy.
- According to the WB, Vietnam’s GDP grew by 13.7 percent year-on-year in the third quarter. The record high growth rate was partly due to the low-base effect, as the economy had shrunk by 6 percent in Q3- 2021 following prolonged lockdowns to contain the COVID-19 pandemic.
- Over the first three quarters, Vietnam’s GDP grew by 8.9 percent over the same period last year.
- Export and import growth moderated in September due to weakening demand from major export markets. The report says that FDI commitment fell in September, affected by the heightened uncertainty about global economic prospects, while FDI disbursement continued to improve.
2. Ministry proposes amending rice import regulations
Some highlines are as below:
- The Ministry of Industry and Trade (MOIT) has written to the prime minister proposing amending Decree 107/2018/ND-CP on rice exports.
- The ministry said Vietnam usually exports 6-6.5 million tonnes of rice annually while statistics from the general Department of Vietnam Customs showed that the nation imported one million tonnes of rice last year for food and beverage production, increasingly competing with domestic products and affecting local farmers.
- The draft on amending Decree 107 brings new regulations on rice import management. The ministry will join hands with the Ministry of Agricultural and Rural Development (MARD) and the Ministry of Finance to manage rice imports.
- In the short term, Vietnam’s rice prices would continue to stay high thanks to a strong demand fueled by economic and political turbulence, market observers said, adding that exporters should grasp the opportunity to expand to new markets.
3. EVN has completed a framework for electricity prices of the transitional solar and wind power projects
Some highlines are as below:
- The Electricity of Vietnam (EVN) has just sent a document to the Ministry of Industry and Trade and the Electricity Regulatory Authority on establishing a framework for electricity prices of transitional solar and wind power projects.
- Due to that Circular No. 15/2022/TT-BCT dated October 3, 2022 (TT15) has not yet taken effect and has not expired for investors SPPs and WPS to provide feasibility study reports or technical designs for EVN. EVN temporarily uses data for calculation based on feedback from investors of the 208 power projects mentioned above.
- Due to the urgent request of the Ministry of Industry and Trade (MOIT), EVN did not have enough time to hire independent consultants to calculate the framework for electricity prices as a basis for submission to the MOIT, so EVN proposed MOIT to use the independent experts., or an advisory council as prescribed in Article 10 of Circular 15/2022/TT-BCT dated October 3, 2022, to carefully study the calculations and proposals of EVN before deciding to approve it as a basis for determining electricity prices through the competition/auction mechanism as mentioned in Decision No. 13/2020/QD-TTG dated April 6, 2020, and Decision No. 39/2018/QD-TTG dated September 10, 2018, of the Prime Minister and the proposal of EVN in Document 5106/EVN-TTD dated September 12, 2022.
4. Prime Minister chairs meeting on vaccine diplomacy
Some highlines are as below:
- Prime Minister Pham Minh Chinh on November 30 chaired a meeting with People’s Committees of provinces and centrally-run cities and Vietnamese embassies and representative agencies abroad on vaccine diplomacy.
- The event, which was held in both face-to-face and virtual forms, focused on reviewing outcomes of the work in the past and drawing lessons to push up economic diplomacy in the new situation.
- Earlier, the Government launched a vaccine strategy with three contents: setting up a COVID-19 vaccine prevention fund, conducting vaccine diplomacy and establishing a Government working group on vaccine diplomacy with the Ministry of Foreign Affairs as the core, the PM noted.
- Highlighting the important role of diplomacy in the country’s socio-economic development, the Government leader said that valuable lessons learned from vaccine diplomacy work over the past time will apply to economic diplomacy for rapid recovery and sustainable development.