The University of Economics Ho Chi Minh City (UEH) officially inaugurated a centre for innovation and entrepreneurship in its branch in the Mekong Delta province of Vinh Long on May 30.

Assoc. Prof. Dr. Bui Quang Hung, UEH Deputy Director said the centre’s mission is to disseminate knowledge, inspire, and promote innovation and entrepreneurship activities in the Mekong Delta region, as well as to nurture and develop potential startup projects.

The centre mainly focuses on researching, advising, and training in innovation, technology application, and product commercialisation for localities in the Mekong Delta region; incubating innovative startups; disseminating knowledge about innovation, entrepreneurship, technology, and digital transformation for sustainable development, Hung said.

Vuong Khiet, Startup Incubator Manager of UEH Institute of Innovation and head of the centre said in the 2024 - 2025 period, the centre will concentrate on building and strengthening innovation capability for regional localities through research activities, consulting on specialised training programmes, and training courses based on the foundation of the local innovation index.

The centre will organise activities on innovation and entrepreneurship for students and rural youth, while popularising knowledge and connecting the community through inspiring activities, thus laying a foundation for building an innovation and entrepreneurship ecosystem in the Mekong Delta, with a focus on advisory networks for women and youth, he noted.

The Mekong Delta Innovation and Entrepreneurship Centre has been supporting 12 projects and startup companies, shared methods to design curricula related to innovative entrepreneurship with 130 teachers and lecturers, and held training courses for 800 students, rural youth, and university students in startup and innovation./.

Khanh Hoa introduces local investment potential, opportunities to US firms

A delegation of the south-central coastal province of Khanh Hoa led by Secretary of its Party Committee Nguyen Hai Ninh attended a seminar between Vietnamese businesses and US firms, investment funds and groups in New York during their working visit to the US from May 29-30.

Speaking at the seminar, Tran Hoa Nam, Vice Chairman of the provincial People's Committee, introduced the locality’s potential and advantages to US businesses, emphasising that Khanh Hoa prioritises attracting investment in developing three pillars of high-quality services such as tourism, finance, trade, logistics, education - training and urban development; processing, manufacturing, energy, information technology and telecommunications, and supporting industries; and large-scale agriculture.

Secretary Ninh said that Khanh Hoa identifies the US as one of the main markets where it wishes to expand cooperation for mutual development and attract more US investors to projects in its three key economic zones.

On this occasion, representatives of several US and Vietnamese enterprises shared their investment and business experiences in Khanh Hoa, with focus on the Van Phong Economic Zone; and discussed cooperation and investment opportunities.

During their stay, the Khanh Hoa delegation had a working session with the permanent delegation of Vietnam to the United Nations, during which Ninh expressed his hope that the delegation will continue to support the province's delegation in signing a memorandum of cooperation with Boston city’s administration; and assist it in establishing connections with US businesses in the fields of refining and petrochemical technology, logistics, urban development, high-class tourism, semiconductor technology, education - training, and high-quality human resources./.

AEON Group to export 30 tonnes of Hai Duong lychee to Japan

Aeon Global Merchandising Co. Ltd, a subsidiary of Japanese retailer AEON Group, plans to export about 30 tonnes of fresh lychees to Japan this year, up 120% from last year’s figure, according to the company’s representative.

A delegation of the company visited a lychee growing area in Thanh Ha district, the northern province of Hai Duong, on May 30. They also talked with local farmers to learn about the caring process, output, and harvest time.

Matsuda Naoki, a specialist in charge of purchasing fresh farm produce at Aeon Global Merchandising, said that the Hai Duong lychee sold at the Aeon supermarket system was well received by Japanese consumers.

In addition to putting lychee on the shelves of Aeon supermarkets, the company will also organise more promotional activities so that the fruit becomes more popular among Japanese people, he said.

This is the second time they have visited the lychee growing area in Thanh Ha, Matsuda said, adding that they are very satisfied with the fruit's quality as well as the farming and caring process following Global GAP standards.

Matsuda voiced hope that growers will seriously comply with Global GAP standards and strictly control pesticide residues. Meanwhile, authorities and agencies should create varieties that are more resistant to harsh weather conditions and bear seedless fruits to increase the export volume.

Aeon, which has imported the Thanh Ha lychee for five years, is set to continue to import the fruit into Japan in the coming years, he added.

According to the provincial Department of Agriculture and Rural Development, Hai Duong's lychee output in 2024 is estimated at 40,000-45,000 tonnes, with the early-ripening fruit estimated at 30,000 tonnes. The main crop is scheduled to be harvested from June 10 to the month's end./.

Quang Ninh launches centre to foster innovation, start-ups

The People's Committee of northern Quang Ninh province inaugurated a Centre for Innovation Startup and Digital Transformation Support on May 30.

Speaking at the event, Chairman of the provincial People’s Committee Cao Tuong Huy affirmed the centre’s role in driving economic growth. He said it will help increase the quantity and quality of firms in the locality, particularly those operating in innovation and sci-tech.

The centre will provide a space, tools and means to nurture a dynamic startup ecosystem. Its activities will include receiving and developing innovative business ideas and practical experiments, organising competitions to collect ideas that benefit the community, enhancing the sci-tech capabilities of small and medium-sized enterprises (SMEs), and collaborating with incubators, both within and outside the province, to support promising startup ventures.

The province aims to establish roughly 2,000 new enterprises annually from now to 2030. Additionally, it aims for the business sector to contribute some 70% of the province's gross regional development product (GRDP) and hopes to see at least 10 local enterprises among the top 500 in Vietnam by that same year./.

Fourth int’l milk, dairy products exhibition opens

The fourth Vietnam International Milk and Dairy Products Exhibition (Vietnam Dairy 2024) opened in Ho Chi Minh City on May 30.

The four-day event, co-organised by the Vietnam Dairy Association and Vietnam Advertisement and Fair Exhibition JSC), features nearly 200 domestic and foreign booths with such prestigious brands on display as Vinamilk, Nutifood, Nestle, Abbott, Mead Johnson, Vinasoy, IDP, Care Fore, Nutricare and Coco Milk.

It provides visitors an insight into the latest processing, packaging recycling and environment treatment technologies, animal feed and veterinary machines, milk testing equipment, and digital transformation service and solutions in the dairy sector, among others.

Nguyen Van Nga, head of the Ministry of Industry and Trade’s representative office in the south, said the event is expected to provide consumers with shopping skills, food safety knowledge as well as environmental protection information.

Several conferences discussing solutions for applying a circular economy in the dairy industry; facilitating consumption of milk and milk products in the Vietnamese market and speeding up digital transformation in the sector are also scheduled on the sidelines of the event.

Despite difficulties due to the COVID-19 pandemic, the domestic dairy industry still produced over 1.86 billion litres of fresh milk in 2023, up 7.5% year-on-year. Powdered milk production volume also saw a modest growth rate of 0.1% year-on-year to over 154,000 tonnes.

Last year, the sector recorded a revenue of over 25.88 trillion VND (4.95 billion USD) amid the challenging context. First introduced in 2017, biennial VIETNAM DAIRY aims to help the dairy sector better integrate into the global market and develop sustainably./.

Vietnam, Singapore promote cross-border e-commerce

A conference on promoting cross-border e-commerce and payment between Vietnam and Singapore was held in Shopee Singapore headquarters on May 30.

The event, held by the Ministry of Industry and Trade’s Asia-Africa Market Department and Vietnam E-commerce and Digital Economy Agency in collaboration with the Vietnamese trade office and Vietnamese Embassy in Singapore, took place in the context that both nations are ramping up efforts to develop their digital economy.

Vietnamese Ambassador to Singapore Mai Phuoc Dung highlighted the significance of the event, saying it met the requirements of the Vietnamese e-commerce enterprises while helping implement economic diplomacy activities that lay a foundation to upgrade the Vietnam-Singapore Comprehensive Strategic Partnership in the coming time.

Meanwhile, Director of the Asia-Africa Market Department Do Quoc Hung stated that e-commerce is an important component of the bilateral cooperation, describing the robust development of the e-commerce market of both sides as an opportunity for them to study and bolster cooperation and investment in the area.

President of the Singapore Manufacturing Federation Lemon Tan said Vietnam has become the most popular destination of Singaporean enterprises, given the country’s young and abundant workforce.

He suggested the two countries enhance trade promotion to ensure the efficacy of investment.

Doven Yap, Acquisition and Partnerships Lead at TikTok Shop Singapore, said Vietnam has wonderful agricultural products that will receive warm welcome in the Singaporean market if their production process as well as information are ensured./.

Bright spots abound, national economy expected to stay on a roll

The index of industrial production (IIP), foreign direct investment (FDI) and export-import were among the bright spots of the national economy in the first five months of this year, experts have said.

Such bright spots came from both the domestic and FDI sectors, signalling that exports will drive the economy in the year.

According to the General Statistics Office (GSO), the macro economy remained stable, inflation was under control, and major economic balances were ensured. The consumer price index (CPI) in the reviewed period rose 4.03% year-on-year, and core inflation, up 2.78%. The IIP increased 6.8%, with the industrial sector recovering more positively over time.

The FDI influx into Vietnam reached 11.07 billion USD in the five months, a year-on-year rise of 2%. Notably, the FDI disbursement was estimated at 8.25 billion USD, up 7.8%, the highest January-May figure over the past five years.

The country exported 156.77 billion USD worth of goods, up 15.2%, and imported 148.76 billion USD, up 18.2%, resulting in a trade surplus of 8.01 billion USD, statistics show.

Former General Director of the GSO Nguyen Bich Lam pointed to multiple favourable conditions for the economy like the recovery of major export markets, inflation controlled in world leading economies that are Vietnam’s important, big trade partners, and dropping goods inventory.

However, the economy has yet to completely bounce back, as seen in the increase of only 8.7% year-on-year in retail sales and services revenue (5.2% if the price factor is excluded), as compared with 9.3% recorded in the corresponding time last year, along with a host of difficulties facing businesses.

Besides, global uncertainties have also posed risks to the global economy’s stability and development, including Vietnam, said Minister of Planning and Investment Nguyen Chi Dung.

The minister proposed the Government order the drastic, uniform, and effective implementation of solutions and policies, with attention paid to support for domestic firms, and preparation for the wave of FDI shifting.

Localities should accompany enterprises, while helping them remove procedure bottlenecks, he continued, affirming that the Government will adopt more support policies towards enterprises in the time ahead.

Lam suggested the Government quickly complete legal documents on export-import; implement fiscal and monetary policies to help businesses increase supplies, reduce costs and raise the competitiveness of their products; step up trade promotion; and diversify export-import markets.

The economy is forecast to rebound better than the first five months thanks to world aggregate demand, and the effectiveness of disbursement of public investment capital, and FDI attraction, he said./.

Hanoi fair promotes choice products

Nearly 100 enterprises have brought their products of customers' choice in 2024 to a fair held by the Hanoi Department of Industry and Trade in Nam Tu Liem district.

The fair, opened on May 29, is showcasing a wide range of products, including consumer goods, industrial and agro-forestry-aquatic products, handicrafts, organic food, and "One Commune-One Product (OCOP) items of Hanoi and other localities.

Nguyen The Hiep, Deputy Director of the department, said the fair is among the activities that the city has been taking to recover and boost its socio-economic development, facilitate production and trade, stimulate consumption, promote trade connectivity, and bring Vietnamese goods closer to consumers.

It will run until June 2 at the Vinhomes Smart City urban area./.

Masan’s subsidiary, Mitsubishi Materials Corporation Group seal acquisition deal

The Masan High-Tech Materials Group (MHT) and the Japanese-based Mitsubishi Materials Corporation (MMC) signed a definitive agreement on May 30, with the latter fully acquiring the former’s member company of H.C. Starck Holding (Germany) GmbH (HCS) at a cost of 134.5 million USD.

The two sides will also enter into a long-term, win-win APT and tungsten oxide offtake agreement. As a part of the agreement, Masan is expected to retain its ownership in Nyobolt, a fast-charging Lithium-ion battery technology company based in the UK. Masan is also expected to retain potential monetary upside from future commercialisation of black mass technology intellectual property developed by the HCS.

The MMC’s acquisition of HCS plays to its strengths in the midstream and downstream tungsten value chain. It will provide the group with access to HCS’s production hubs in Europe, North America, and China as well as a comprehensive tungsten scrap recycling platform backed by proprietary intellectual property including 90 worldwide patents and another 53 patents in the application phase.

Transaction proceeds will be used to reduce MHT’s outstanding debt balance, consistent with targets set by its parent company – the Vietnamese conglomerate Masan Group. Masan anticipates a one-time profit of around 40 million USD from this deal and stands to benefit from a long-term increase in net after-tax profit of 20-30 million USD.

The transaction is expected to be completed by the end of 2024, subject to internal approval decisions and regulatory clearance./.

Quang Nam aims to create more opportunities for investors

Actively creating opportunities for investors instead of just waiting for them is among the contents in the central province of Quang Nam’s plan to seek high-quality investors and enhance the locality’s capacity to absorb investment through proper mechanisms and policies in the 2024-2025 period.

According to the provincial Department of Planning and Investment, with a list of 233 projects prioritised for investment attraction, Quang Nam aims to open up opportunities for cooperation in different areas, from investment to trade connections with foreign partners.

The department reported that in the first four months of this year, Quang Nam granted investment licences to 109 projects, including 16 foreign-invested ones.

Director of the department Nguyen Quang Thu said that the department has been assigned to select 30 strategic investors meeting the locality’s investment attraction orientations, along with five international organisations and associations to approach, enabling the province to set up and send working groups to work with them in 2024 and 2025.

One of the criteria for the projects is the capacity to attract satellite manufacturing businesses, forming a global value chain and production - manufacturing - supply - service clusters, he said.

For domestic investors, the locality targets enterprises in the top 500 firms of Vietnam, from which it will choose 30 prestigious economic groups with high financial capacity to call for investment in the period, said Thu.

The province takes the master plan for the 2021-2030 with a vision to 2050 as the foundation for investment attraction, focusing on areas that the locality has outstanding advantages.

Vice Chairman of the Quang Nam People’s Committee Ho Quang Buu said that the province will evaluate and select investors right from the beginning to avoid the postponements or extension of investment time.

The locality will set up a cooperation relationship with Vietnamese economic and diplomatic representative offices abroad to reach investors, he said.

At a working session with the provincial Department of Planning and Investment in late April, Secretary of the Party Committee of Quang Nam Luong Minh Triet pointed out that the locality boasts great development potential but its capacity to attract investment remains modest.

He stressed the need for the province to make documentaries introducing the potential and advantages of the locality to investors, while increasing investment promotion abroad./.

Petrol prices revised down in latest adjustment

Retail sale prices of petrol products were adjusted down from 3pm on May 30 by the Ministry of Industry and Trade, and the Ministry of Finance.

Accordingly, the price of E5RON92 bio-fuel was cut by 518 VND to 21,759 VND (0.85 USD) per litre, while that of RON95-III fell by 694 VND to 22,519 VND per litre.

Meanwhile, the price of diesel 0.05S reduces by 90 VND per litre to 19,747 VND while the kerosene is now priced at 19,931 VND per litre, up 29 VND.

Mazut oil 180CST 3.5S is sold at 17,538 VND per kg, 25 VND higher than the previous adjustment.

The two ministries also decided not to use the petrol price stabilisation fund./.

HCM City to host “Shopping Season" promotion

HCM City will promote "Shopping Season" from June 15 to July 15.

Participating retail businesses will be able to organise many promotional activities with attractive discounts up to 100 per cent of the value of goods and promote non-cash payments.

The promotion programme aims to ensure the goal of building the city into a modern shopping centre, connecting businesses with consumers, promoting goods consumption, and contributing to the recovery and development of production and businesses.

Nguyễn Nguyên Phương, deputy director of the city's Department of Industry and Trade, said that the programme will take place at most modern sales channels such as shopping centres and supermarkets in the city.

One of the highlights of this year's programme is promoting non-cash payments. Customers will receive a special discount voucher when shopping cashless at certain malls.

Non-cash payments are increasingly popular in Việt Nam. Specifically, in the first three months of the year, non-cash payment transactions increased by 56.6 per cent in quantity and 31.4 per cent in value.

Paying via the Internet channel increased by 48.8 per cent in quantity and 25.7 per cent in value; and doing so via mobile phone increased 58.7 per cent in quantity and 33.1 per cent in value.

By the end of 2023, Việt Nam had more than 182 million personal payment accounts and 87.1 per cent of adults owned payment accounts. 

Rubber group reveals development targets for 2024

The Việt Nam Rubber Group (VRG) is aiming for a revenue of nearly VNĐ25 trillion (US$1.02 billion) and profit after tax of VNĐ3.44 trillion this year, a year-on-year increase of 1.2 per cent and 2 per cent respectively.

To achieve these targets, the group's leadership has proposed solutions for key tasks.

VRG has directed its member units to focus all of their resources on investing and disbursing funds for major projects.

The group plans to implement legal procedures and investments in industrial parks and cluster projects that have been approved and are also seeking approval for a total area of ​​2,921ha from 2021 to 2025.

In addition, VRG will continue to work with relevant authorities to develop an additional 16,592ha in the provinces of Tây Ninh, Bình Dương, Đồng Nai and Bà Rịa - Vũng Tàu.

Of these projects, the group already owns 10,997ha and other units will invest in 5,615ha.

As for its business prospects over the next few years, the group's main growth driver -- in addition to industrial park real estate -- is also rubber.

VRG has just released documents for the 2024 annual general meeting of shareholders, which is scheduled for June 17.

US$200 million FDI to be poured into Viglacera industrial parks

Four Chinese businesses have just signed contracts, worth more than US$200 million, with Viglacera Corporation, JSC, to build factories in the corporation's industrial parks.

The People's Committee of Bac Ninh province and the Vietnamese Consulate General in Shanghai, China, the China Council for the Promotion of International Trade (CCPIT) – Pudong - Shanghai Branch and Viglacera recently hosted a joint investment promotion seminar in Shanghai which attracted more than 300 potential investors.

The Vietnamese projects will be located in Yen Phong II-C Industrial Park, an area considered one of the key investment locations within Bac Ninh.

Viglacera's industrial parks are currently investment destinations for more than 400 businesses from different countries and territories around the world and have already attracted US$18 billion of investment, including nearly 70 Chinese projects with a total investment of nearly US$3 billion.

A key growth driver of Viglacera has been the recovery of the country's construction materials sector.

This year, Viglacera will establish new legal entities and branches for seven industrial park projects with a total area of more than 2,700 hectares in many provinces and cities across the country.

It owns and operates 12 industrial parks across the country with a total area of more than 4,000 hectares, becoming one of the largest industrial park developers in the country.

Industrial real estate benefits from booming semiconductor sector

Driven by the surging demand for semiconductor manufacturing and assembly, companies are actively seeking factories and industrial parks with necessary infrastructure and services, according to Thomas Rooney, Senior Manager of Industrial Services at Savills Vietnam.

Stable power supply, high-speed internet, and an efficient water treatment system are top priorities for these firms, Rooney explained.

He said Vietnam is strategically located in Southeast Asia, easily accessing major regional markets. Additionally, the country boasts favourable natural conditions with abundant rare earth, a critical raw material in the semiconductor production. Political stability and various investment incentives also make it an attractive destination for foreign firms.

Rooney anticipated that the growing wave of semiconductor investment will significantly boost the development of industrial real estate in northern Vietnam, known for high-value projects producing computers, electronics, and electrical products.

By the end of 2024, the Vietnamese semiconductor industry is expected to surpass 6.16 billion USD, solidifying the country's position as a crucial manufacturing hub for leading global semiconductor manufacturers, he said.

Citing projections from the US Semiconductor Industry Association (SIA), he noted that the global semiconductor market is poised for significant growth, reaching an estimated 600 billion USD by 2025, up 14% against 2023.

To attract capital to semiconductors and industrial real estate, he suggested that localities and businesses refine mechanisms, policies, infrastructure, and human resources to best meet the stringent demand of this sector./.

Int'l Livestock, Dairy, Meat Processing, and Aquaculture Expo opens in HCM City

Some of the latest innovations in agriculture and livestock technologies are on display at an exhibition that opened in Ho Chi Minh City on May 29.

The 9th International Livestock, Dairy, Meat Processing, and Aquaculture Exposition (ILDEX Vietnam 2024) has brought together more than 220 exhibitors from more than 32 countries and territories, with 85% of the space featuring international brands and 15% highlighting local innovators.

With more than 230 booths, the event showcases models, technologies, machinery and equipment for barns, nutrition, animal health, and slaughtering and processing of livestock and aquatic products.

Speaking at the opening ceremony, Deputy Minister of Agriculture and Rural Development Phung Duc Tien said international integration has played a vital role in improving the productivity, quality, efficiency, and reputation of the livestock and fisheries industries.

So creating a favorable environment to encourage investment, research, development and technology transfer in these fields is essential.

Close cooperation is needed between State management agencies, businesses, researchers, farmers, and the international community, he said.

Agriculture has grown steadily and comprehensively and food production has increased rapidly in both quantity and quality, ensuring abundant supply for the needs of Vietnam’s 100 million population, millions of tourists and the global supply chain, he said. Last year the sector grew by 3.83%.

In pig farming, Vietnam continued to rank fifth in the world in terms of number of animals and sixth in output while in poultry farming it ranked first.

Igor Palka, managing director of VNU Asia Pacific Co., Ltd, one of the expo’s organisers, said event highlights include the Meat Pro Pavilion, the HAN Select Vietnam Conference and more than 50 sessions on sustainable agriculture, innovative farming, and the latest trends in livestock-farm businesses.

The newly introduced Meat Pro Pavilion hosts 11 top-tier international processing and handling companies, he said.

Organised also by International Technology Exhibition and Events JSC, the expo runs until May 31 at the Saigon Exhibition and Convention Centre./.

Pandora to use 100% renewable energy in production facility in Vietnam

Pandora, the world’s largest jewellery brand, announced that it will operate on 100% renewable energy and only use recycled gold and silver at its new crafting facility in Vietnam's southern province of Binh Duong.

According to Pandora, the facility with an investment of 150 million USD will contribute to long-term growth of the Danish group and create 7,000 jobs when the facility starts operation in 2026.

Environmental aspects of production are given special attention in this project.

The facility is located in Binh Duong province, about 40 km from the southern largest economic hub of Ho Chi Minh City, will produce up to 60 million pieces of jewelry each year.

Pandora CEO and President Alexander Lacik said that the company i sready to start its chapter in Vietnam.

He said the Binh Duong facility is an important milestone on the company’s growth journey.

The new crafting facility in Vietnam is needed to meet future demand and keep pace with its growth, he said./.

Ample room remains for Vietnamese rubber exports to US

Although Vietnam’s rubber market share in the US remains modest, the potential for the export of the product to the North American country is huge, according to the Agency of Foreign Trade (AFT) under the Ministry of Industry and Trade.

A report from the agency showed that the US was Vietnam’s 10th largest rubber buyer last month. In April alone, Vietnam exported nearly 1,090 tonnes of rubber valued at 1.87 million USD to the US, marking an increase of 0.3% in volume and 17.5% in value compared to the same period last year, the agency said, citing statistics from the General Department of Customs.

The country shipped nearly 7,460 tonnes of rubber worth 11.7 million USD in the first four months of 2024, up 37.1% in volume and 58.2% in value year-on-year.

Industry experts said that Vietnam’s rubber exports to the US is expected to bounce back this year.

According to the AFT, Vietnam's rubber exports to this potential market in the reviewed period were mainly natural rubber. Among them, latex accounted for 31% of the total rubber exports with 2,310 tonnes worth 2.89 million USD, down 7.3% in volume but up 12.3% in value.

During the reviewed period, the export volume and value of some types of rubber to the US also increased sharply compared to the corresponding period last year.

Statistics released by the US International Trade Commission showed that in the first three months of this year, the US imported 443,120 tonnes of rubber worth 893.4 million USD, up 0.2% in volume, but down 3% in value year-on-year.

Indonesia, Thailand, Canada, the Republic of Korea, and the Ivory Coast were the five largest rubber suppliers to the US during the period./.

Exhibition on precision engineering, manufacturing to be held in July

The 20th International Precision Engineering and Manufacturing Reinvented Exhibition & Conference (MTA Vietnam 2024) will take place in Ho Chi Minh City from July 2 to 5, its organiser Infoma Markets Vietnam and several domestic and foreign trade promotion agencies announced on May 29.

More than 450 exhibitors from over 20 countries and territories will display their cutting-edge technologies, innovative solutions, and high-quality products in the field at an exhibiting area of up to 17,600 square metres.

The MTA Vietnam 2024 will also feature various conferences and forums with leading domestic and foreign experts sharing precision engineering and manufacturing information, and a robot challenge contest that will draw the participation of young talents in HCM City.

According to Nguyen Thi Ngoc Dung, a representative from Informa Markets Vietnam, the “Industry Connect Series” event will be organised across the nation, providing enterprises with an opportunity to get the latest updates on production technologies and expand business relationship./.

PV Gas, Zarubezhneft, PVEP shake hands to tap Thien Nga-Hai Au gas field

Petrovietnam Gas (PV Gas), Petrovietnam Exploration Production Corporation (PVEP) and their Russian partner - the state-owned Zarubezhneft have agreed to continue their partnership to jointly exploit the Thien Nga-Hai Au gas field off Vietnam’s southeastern region.

The agreement was reached at a meeting at PV Gas’s headquarters in Ho Chi Minh City on May 20 among President and CEO of PV Gas Pham Van Phong, CEO of Zarubezhneft EP Vietnam Alexander I. Mikhaylov, and CEO of PVEP Tran Hong Nam.

At the meeting, representatives from Zarubezhneft EP Vietnam briefed the partners about the Thien Nga-Hai Au gas field in Block 12.11, located in the western part of the Nam Con Son basin.

According to the reserve assessment report approved by the Prime Minister in Decision No. 467/QD-TTg dated April 14, 2022, about 7.43 billion cubic meters of gas will be tapped from the Thien Nga-Hai Au field and provided for the southeast region in the 2026-2037 period. The first gas flow is expected in Q4/2026.

For its part, PVEP, a subsidiary of state-run Petrovietnam, also informed the parties about cooperation in exploiting the gas field and bringing gas onshore using the existing the Nam Con Son 1 gas pipeline infrastructure, through the Rong Doi platform in Block 11.2.

This cooperation will lay ground for the development of the Rong Doi Moi field and undiscovered reserves in Block 11.2, PV Gas said in a statement on its website.

CEO of PV Gas Pham Van Phong asked PVEP and Zarubezhneft to continue updating the firm on the progress of the Thien Nga-Hai Au field, and coordinate efforts to explore and implement new gas projects and provide gas for the southeastern region.

The PetroVietnam Exploration Production Corporation (PVEP) is the upstream arm of Vietnam Oil & Gas Group (PetroVietnam), conducting the core business of exploration and production. Over decades of building and development, PVEP has grown tremendously and contributed remarkably to the national economy. It is now one of the biggest companies in Vietnam and ranks among the top oil companies in the region.

Meanwhile, PV Gas is a leading gas enterprise in Vietnam. It is currently Vietnam’s biggest dry gas and LPG supplier, contributing to ensuring national energy and food security. Currently, each year the corporation provides a stable source of raw materials and fuel to produce nearly 11% of electricity output, and 70% of nitrogen demand and fuel for many industrial parks. It also occupies 100% of the dry gas market share, and about 70% of the wholesale market share and nearly 11% of the retail market share of LPG.

Zarubezhneft has been present in Vietnam for nearly 40 years with engagement in the Bach Ho (White Tiger), Rong (Dragon), and Thien Ung (Eagle) fields, among others. It holds a 49% stake in Vietsovpetro, a joint venture with Petrovietnam.

Zarubezhneft and PV Gas have been partnering to deploy gas projects in Vietnam. On March 15, 2024, they signed a memorandum of understanding on the purchase and sale of gas from the Thien Nga-Hai Au field, 320km southeast of the southern province of Ba Ria-Vung Tau./.

Source: VNA/SGT/VNS/VOV/Dtinews/SGGP/VGP/Hanoitimes