Vietnam Business and Policy Updates This Week: Key Developments

Energy Box
Nov 6, 2024
1 min read

📌 Vietnam Beverage Maker Fined for North Korea Sanctions Violation

Vietnam Beverage Company Limited has reached a settlement with the US Treasury's Office of Foreign Asset Control, agreeing to pay US$860,000 for breaching US sanctions against North Korea. Between 2016 and 2018, the company’s subsidiaries sold alcoholic beverages to North Korean entities with dollar-denominated invoices processed through US banks, inadvertently violating sanctions by "exporting financial services" to North Korea.

📌 State Bank of Vietnam Returns to Currency Market Intervention

In recent days, the State Bank of Vietnam has reentered the currency market, issuing US$2.46 billion in treasury bills and injecting US$315.5 million through reverse repos. This intervention follows weeks of buying back dollars in small lots after previously spending around US$9 billion from reserves to stabilize the Vietnamese đồng. The moves suggest an effort to maintain currency stability amid broader economic shifts.

📌 New Rooftop Solar Decree Sets 20% Cap on Grid Sales

Vietnam’s Ministry of Industry and Trade has issued Decree 135, capping grid sales from rooftop solar installations at 20% of their capacity. Feed-in tariffs will be based on the previous year's average market electricity price. This policy aims to prevent solar overcapacity similar to issues seen in 2020-2021, particularly as much of the new solar capacity had been concentrated in central Vietnam, far from high-demand industrial hubs like HCMC and Hanoi. The policy’s regional limitations have drawn mixed reactions, given the evolving energy demand landscape.

These updates signal significant regulatory and market dynamics as Vietnam seeks to balance compliance, currency stability, and renewable energy growth.