On October 28, Vietnam and the US signed 7 memorandums of understanding consecutively for many projects worth billions of US dollars, including 3 large gas power plant projects and 1 LNG port project.
The southern region will have two more gas-fired power plants with a capacity of more than 6,000 MW
According to the US Embassy in Vietnam on October 28, the US and Vietnam have signed 7 cooperation agreements at the Indo-Pacific Business Forum, of which the outstanding projects are energy projects with the participation of many leading American businesses such as General Electric, ExxonMobil, Delta Offshore Energy …
The first is a comprehensive cooperation agreement between Delta Offshore Energy, Bechtel Corporation, General Electric, and McDermott to develop a gas-fired power project from Bac Lieu liquefied gas, using US equipment and services worth more than USD 3 billion.
The project has a capacity of 3,200 MW, said to “help address the clean, stable energy demand and at a competitive price”. The purpose of the signing is to use $ 3 billion worth of engineering equipment and services using America’s best technology and engineering from Bechtel, General Electric and McDermott.
The project has a total investment of nearly USD 50 billion over 25 years and is expected to import to 3 million tons of liquefied gas per year. This is the first power generation project using LNG (liquefied natural gas) to generate electricity owned and operated by the private sector, and approved in the national electricity development master plan under 100% the Foreign Direct Investment.
The project is consulted by leading US companies, including: JP Morgan – project finance consultant, Hogan Lovells – international consultant, Black & Veatch – technical consultant, Marsh – insurance and risk consultant.
ExxonMobil wants to invest in gas power plant in Hai Phong
The third is a MOU signed between ExxonMobil, the Hai Phong People’s Committee and the Japanese power generation company JERA to cooperate in developing a gas power plant project in Hai Phong. ExxonMobil and Hai Phong have also submitted proposals for an addition to the National Electricity Development Plan, including information on electricity demand, expected location for project implementation and infrastructure for LNG import and waiting for Government’s approval.
The fourth is the joint venture agreement between AES Group and PetroVietnam Corporation (PV Gas) to develop LNG Son My Warehouse Project with a value of about USD 1,4 billion.
The signing takes place near the 1-year anniversary of the historic agreement between AES and the Vietnamese Government to build a $ 1.8 billion Son My 2 combined cycle gas turbine power plant witnessed by US Secretary of Commerce Ross.
The fifth is the signing of funding between the United States Trade and Development Agency (USTDA) and the Vietnam National Power Transmission Corporation (EVNNPT) worth USD 935 million, aiming to modernize the information technology system, telecommunications and power transmission, creating favorable conditions for future smart grid technology investment.
The project between USTDA and EVNNPT will be a prerequisite for promoting US exports in the technology sector to modernize the grid system.
The sixth, also a MOU related to the energy sector, is on Ethanol between the US Coke Council (USCG) and the Ministry of Industry and Trade to expand the use and supply of ethanol in Vietnam. .
USGC has partnered with Tung Lam Company – the only Vietnamese ethanol-produced company, to partially convert ethanol production facilities from cassava to corn ethanol production to improve economic efficiency of the copany’s facilities. Under this MOU, USGC will be able to provide technical assistance to help Vietnam achieve its goal of increasing E10 gasoline blending ratio in the future.
Vietnam increases imports of pork from the US
In addition to 6 MOU related to the energy sector, Vietnam and the US also signed a memorandum of understanding on US-Vietnam pork cooperation between the Vietnam Trade Union and a series of US suppliers. .
Accordingly, the Vietnam Trade Union (VTA – a food importer based in Vietnam and has a significant share of US ownership), represents many Vietnamese buyers and manufacturers, agreed to a 3-year program to buy USD 300-500 million US pork and frozen pork products for further processing and distribution in the Vietnamese market.
The US pork exports and pork products to Vietnam increased from $ 4 million in 2015 to a record $ 35 million in the first eight months of 2020, and VTA estimates the potential sales under this deal to be able to raise to USD 500 million in a 5 year period.