OneStepVietnam presents
Monthly Newsletter of October 2024

ECONOMIC NEWS

This October, Vietnam is projected to experience strong economic growth this year, according to several reputable international organizations. The World Bank’s October report points to new trade opportunities for Vietnam, as rising international trade tensions elevate the status of East Asia-Pacific countries. Meanwhile, HSBC has projected that Vietnam’s economy will grow by 7 percent in 2024, making it the fastest-growing in ASEAN. Tim Evans, CEO of HSBC Vietnam, highlighted the country’s impressive progress, placing it among the world’s top 40 economies by GDP and top 20 in trade. The young population, high internet usage, and strong e-commerce foundation indicate great digital consumption potential, requiring ongoing investment in education and technology. Climate change poses both risks and opportunities, with Vietnam’s renewable energy potential attracting foreign investment despite vulnerability to climate impacts.

Additionally, Standard Chartered Bank has revised Vietnam’s 2024 GDP growth forecast upward to 6.8 percent, driven by stronger-than-anticipated Q3 performance. Economists at the bank attribute this growth to robust activity across various sectors, such as trade, retail, real estate, tourism, construction, and manufacturing.

On November 1, S&P Global released its report on Vietnam’s Manufacturing Purchasing Managers’ Index (PMI). October data indicates that the manufacturing sector began to recover from the Typhoon Yagi impact, with both production and new orders rebounding. The Manufacturing PMI reached 51.2 in October, up from 47.3 in September, rising above the 50-point threshold after disruptions from the disaster. However, some storm-related effects lingered into October, with input and output price increases accelerating slightly but remaining modest.

Source: Online Newspaper of the Government, VnEconomy

NEW LEGAL REQUIREMENTS

1. Circular No. 19/2024/TT-BCT on Promulgation of Amendment 1:2024 QCVN 05A:2020/BCT National Technical Regulation on Safety in Production, Commerce, Use, Storage And Transportation of Hazardous Chemicals.

This circular includes amendments to certain regulations in QCVN 05A:2020/BCT. Below are some new provisions of the regulation.

a. Point 3.6 is added as follows:

“3.6. “collection system” means one of the means: dikes, booms, collection ditches, recovery pits/tanks and storage trays for the purpose of collecting chemicals and preventing chemical spills and escapes to the environment.”

b. Point 5.8 is added as follows:

“5.8. Each factory or warehouse containing hazardous chemicals must have a length or width of 3m (≥ 3m) or more and at least two doors, including an entrance door and an exit door. The exit door must not be installed on the same side as the entrance door, can be opened from the inside and must have an “Exit” sign.

For any factory or warehouse having a length and width of less than 3m, the exit door is not required.”

c. Point 5.9 is added as follows:

“5.9. Factories and warehouses containing hazardous chemicals must be equipped with mobile eyewash equipment or emergency eyewash and shower equipment, except for the case specified in the second paragraph of this point.

Factories and warehouses containing corrosive chemicals must be equipped with emergency eyewash and shower equipment within a maximum range of 17m from the storage area.”

d. Point 5.12 is added as follows:

“5.12. Chemicals in a warehouse shall be placed to meet the following specifications:

– Bagged chemicals must be placed on pedestals or racks, at least 0.5 m from the wall;

– Water reactive chemicals must be placed on pedestals or racks at least 0.3m above the ground;

– Chemicals must be placed at least 1.5m from the warehouse ceiling;

– Paths in factories and warehouses must be at least 0.75m wide. In case forklifts are used, the paths must be at least 2m wide”.

e. Point 5.14 is added as follows:

“5.14. Chemical containers must be stacked in such a manner as to ensure that the permissible load capacity of a pallet is not exceeded. Containers with a capacity of less than 1,000 liters and over 1,000 liters must not be stacked more than three (03) and two (02) tiers high respectively. Chemicals must not be placed at a height of more than 2 m if stacks are not available.”

f. Point 9.1.1 is added as follows:

“9.1.1. Factories and warehouses having corrosive chemicals in liquid form must have a chemical collection system. The minimum capacity of the collection system must be at least 110% of the capacity of the largest container.”

The Circular was issued on October 10, 2024. It will come in to force from April 15, 2025.

2. Decree No.  135/2024/ND-CP on Policies Encouraging Development of Self-produced and Self-consumed Rooftop Solar Power.

This Decree provides for policies encouraging development of self-produced and self-consumed solar power installed on rooftops of construction works. It applies to organizations and individuals involved in managing and developing self-produced and self-consumed rooftop solar power in Vietnam.

a. Self-produced and self-consumed rooftop solar power not connected to the national power system:

Before installing self-produced and self-consumed rooftop solar power not connected to the national power system, an organization/individual shall:

– Notify installed capacity and location for installation to the Department of Industry and Trade and local electric utilities.

– Notify local agencies managing construction and fire safety to manage, monitor and provide guidance on installation according to regulations of law.

b. Self-produced and self-consumed rooftop solar power connected to the national power system

When developing self-produced and self-consumed rooftop solar power, the organization/individual shall send a notification or apply for registration according to regulations of this Decree.

When developing self-produced and self-consumed rooftop solar power with an installed capacity of under 100kW, the organization/individual/household/single-family house shall:

– Give notification, using Form No. 04 in the Appendix enclosed with this Decree to the Department of Industry and Trade and local electric utilities.

– Give notification, using Form No. 04 in the Appendix enclosed with this Decree to each local agency managing construction and fire safety to manage, monitor and provide guidance on development according to regulations of law.

Before installing self-produced and self-consumed rooftop solar power with an installed capacity ranging from 100kW to under 1.000kW, the organization/individual shall:

– Give notification, using Form No. 04 in the Appendix promulgated together with this Decree enclosed with a design dossier to the Department of Industry and Trade;

– Give notification, using Form No. 04 in the Appendix enclosed with this Decree to each local agency managing construction and fire safety to manage, monitor and provide guidance on installation according to regulations of law;

– Give notification, using Form No. 04 in the Appendix enclosed with this Decree to each local electric utility to manage, monitor, dispatch and safely operate the power system. If the installed capacity is conformable with local generation planning and plan for execution thereof, the excess electricity may be sold back to the national power system in accordance with regulations in this Decree. In other cases, regulations in point b clause 1 Article 8 of the Decree shall be applied.

This Decree was issued and came into effect from October 22, 2024.

ONESTEPVIETNAM NEWS

This month, we provided regular audit, assessment, Higg FEM and SLCP verification services for its customers as our usual business. Besides, we provide the training to improve the CSR system for two factories.

This month, we had one-year anniversary for the event that OneStepVietnam proud of being the consulting organization for the Tan Hoa Village, which was awarded the title of the Best Tourism Village by UNWTO on October 19, 2023. This recognition is based on the assessment of 17 sustainable development criteria established by the United Nations. You can refer to this link for how we consulted this village to be recognized: https://onestepvietnam.com/onestepvietnam-consults-for-the-best-tourist-village-tan-hoa-village/

OneStepVietnam team – October 2024