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This includes roughly $595 million in loans from the World Bank (WB) and approximately $125 million in local counterpart funding.

Nghe An is set to launch a $720 million climate change adaptation and eco-tourism infrastructure project in the province's western region. This includes roughly $595 million in loans from the World Bank (WB) and approximately $125 million from local counterpart funding.

According to the proposal, the project is divided into four components. Among them, the component on developing Vinh’s urban infrastructure to adapt to climate change is the largest, with a total estimated capital of about $415 million.

The funds will be used to upgrade urban infrastructure by integrating stormwater drainage and transportation systems at a cost of around $258 million; expand the wastewater collection and treatment system with about $65 million; and strengthen the drainage capacity of major rivers and canals with about $60 million.

Additionally, a component dedicated to strengthening solid waste management through a circular economy approach has a projected investment of $50 million. This segment focuses on improving waste management efficiency, developing material recovery facilities, and promoting circular economy models.

Another notable feature of the project is the $170 million component dedicated to upgrading infrastructure to drive tourism development in Western Nghe An. Under this plan, the province will prioritize the construction of roads connecting to tourist sites along National Highway 7A, upgrade technical infrastructure at central hubs, and support local villages in developing community-based tourism.

Furthermore, between $78 million and $85 million has been allocated for technical assistance and capacity building to ensure the effective management and implementation of all investment items.

During a working session on June 19 between the Provincial People’s Committee and the World Bank Vietnam to consult on the adjusted investment list and conduct a preliminary investment screening for the project, World Bank representatives stated that their task force had previously conducted several field surveys and held specialized meetings with local authorities and relevant agencies to assess the current situation, identify investment needs, and finalize the project proposals.

The State Bank of Vietnam has proposed raising the maximum ratio of short-term capital used for medium and long-term lending by credit institutions from the current 30 per cent to 40 per cent.

HÀ NỘI — The State Bank of Vietnam (SBV) has proposed raising the maximum ratio of short-term capital used for medium and long-term lending by credit institutions from the current 30 per cent to 40 per cent.

If approved, the new regulation would give credit institutions more room to provide capital to businesses and investment projects to help promote high economic growth in the next few years, while increasing flexibility in the SBV’s monetary policy management.

The proposal has been made under a draft circular amending and supplementing several articles of Circular 22/2019/TT-NHNN, which focuses on limits and safety ratios in the operations of banks and branches of foreign banks in Việt Nam. Public comment is being sought on the proposed draft.

According to the roadmap stipulated in Circular 22, the maximum ratio of short-term capital used for medium and long-term lending reduced from 40 per cent to 30 per cent from October 1, 2023, to control maturity risk and ensure liquidity safety for the banking system.

However, amid increasing demand for medium and long-term capital in the economy, the SBV said that adjusting the ratio back to 40 per cent would help credit institutions be more proactive in using short-term funds to provide credit to businesses and investment projects.

According to the SBV, the amendments are based on the policies and resolutions of the Party and the Government, aiming to promote high economic growth during the 2026-2030 period.

If enacted, the new regulations will expand the banking system's capital supply capacity, thus contributing to meeting the medium and long-term capital needs of the economy.

In addition to relaxing the short-term capital use ratio, the draft also amends the regulation on how to determine total deposits when calculating the loan-to-deposit ratio.

Under current regulations, when determining total deposits, credit institutions must exclude all demand deposits of the State treasury and exclude 80 per cent of the treasury's time deposits.

The new draft circular retains the exclusion of demand deposits from the State treasury, but adds a more flexible mechanism for time deposits. In addition to the current 80 per cent exclusion rate, the SBV’s governor can decide to apply a different rate depending on market developments in each period.

According to the SBV, this amendment aims to create additional tools for managing monetary policy, helping the central bank be more proactive in balancing liquidity and supporting credit growth when necessary.

Both amendments aim to increase the operating space for credit institutions while still ensuring system safety.

Increasing the ratio of short-term capital used for medium and long-term lending will help banks retain more resources to meet the investment capital needs of businesses, especially as many manufacturing, infrastructure and real estate sectors require more long-term capital.

Meanwhile, adjusting the method of calculating total deposits will help the regulatory authority be more flexible in managing safety ratios, in line with developments in the money market and economic growth goals.

The draft also stipulates that after the new circular takes effect, some related provisions in Circular 08/2020/TT-NHNN and Circular 08/2026/TT-NHNN will be repealed to ensure the consistency of the legal system.

If enacted, these amendments are expected to create more room for credit in the banking system, improve businesses' access to medium- and long-term capital and enhance the SBV's role in managing monetary and credit policies, helping to support economic growth targets.

Vietnam’s state utility EVN has urged regulators to clarify the economic and operational benefits of solar power projects equipped with battery energy storage systems (BESS), warning that the technology could raise electricity costs while delivering uncertain benefits to the national grid.

In comments submitted to the Electricity Authority of Vietnam on the proposed 2026 power generation price framework for ground solar power and BESS-integrated floating solar power projects, EVN said the addition of battery storage significantly increases project investment costs, resulting in higher electricity tariffs than conventional solar plants.

According to current pricing frameworks issued by the Ministry of Industry and Trade, solar projects integrated with battery storage receive tariffs that are approximately VND140-190 (0.53 - 0.73 U.S. cent) per kilowatt-hour higher than equivalent projects without storage, or up roughly 11-14%.

However, EVN said the actual effectiveness of battery storage investments and their contribution to grid operations remain unclear.

“The efficiency of investment and the effectiveness of energy storage systems in power system operations have not yet been clearly demonstrated,” the utility said in its submission.

EVN has recommended the ministry define the rights and obligations associated with battery storage systems, including dispatch authority, operational objectives, storage utilization mechanisms, and developers’ responsibilities for maintaining system availability.

The utility also urged regulators to assess the actual needs of Vietnam’s power system before approving large numbers of renewable projects combined with storage.

Without careful planning, EVN warned, Vietnam could face excess investment similar to situations seen in some neighboring countries where renewable generation and storage capacity expanded faster than system requirements.

Under EVN’s proposed calculations, generation price ceilings for utility-scale solar projects equipped with storage would range between VND1,104 - VND 1,550 (4,2-5.9 U.S. cents) per kWh for ground-mounted projects, depending on location and storage investment assumptions.

For floating solar projects with battery storage, proposed price ceilings would range from VND1,299 - VND1,823 per kWh.

The highest tariff would apply to floating solar projects in northern Vietnam, while the lowest would be available for ground-mounted solar plants in the south.

The utility’s calculations assume storage systems equivalent to 10% of a solar plant’s installed capacity. Investment cost estimates were derived from domestic power-sector tenders, Chinese market data, and global industry averages.

EVN noted that several key assumptions remain preliminary and recommended that the ministry seek additional input from independent consultants and international organizations before finalizing the pricing framework.

The debate comes as Vietnam seeks to rapidly expand battery storage capacity to support growing renewable energy deployment.

Battery Energy Storage Systems (BESS) store electricity during periods of excess generation and discharge power when demand rises, helping stabilize grid operations and improve the integration of intermittent renewable sources such as solar and wind.

Under the revised eighth Power Development Plan VIII (PDP VIII), Vietnam aims to develop between 10,000 MW and 16,300 MW of battery storage capacity by 2030 as part of its broader energy transition strategy.

EVN also requested guidance on how newly merged administrative provinces should be classified into northern, central and southern regions for tariff-setting purposes, warning that the ongoing administrative restructuring could create implementation challenges if regional pricing rules are not clarified.