Vietnam Roundup: President resigns, carbon credits, rubber exports
President resigns
Vietnam is experiencing political upheaval and anti-corruption purges, leading to the resignation of its president and a leadership vacuum. This has raised concerns about the country's stability and reputation, particularly as factions within the ruling Communist Party vie for position ahead of a crucial party congress in 2026, Fox News reported. The resignation of President Vo Van Thuong comes amidst an intense anti-corruption campaign.
Data centre market
In addition to the political developments, Vietnam's data centre market is rapidly growing, with domestic companies leading the way. The market value surged to over 1 billion USD last year, and major players like Amazon Web Services have announced projects in Hanoi and Ho Chi Minh City. According to local media agency Vietnam Plus, although there are challenges such as a lack of global-scale infrastructure and skilled labour, experts believe large-scale projects in southern provinces could be particularly successful.
Investments
PepsiCo commits to sustainable business practices as it plans to invest $400 million in Vietnam to build two new manufacturing facilities powered by renewable energy sources. This investment further strengthens Vietnam's position as an attractive destination for international businesses seeking to expand their operations, reports media agency Live Mint.
Carbon credits
Vietnam has received a payment of US$51.5 million from the World Bank for reducing deforestation and forest degradation, resulting in the largest single payment for verified carbon credits. This success is attributed to the Forest Carbon Partnership Facility (FCPF), which has supported Vietnam's efforts to reduce emissions and enhance forest carbon stocks, according to reports from media agency The Star. The program's impact is expected to benefit forest owners and neighbouring communities, as well as contribute to Vietnam's climate commitments, allowing the country to sell excess credits in the global carbon market.
Rubber exports
Vietnam's rubber exports in February reached 110,000 tonnes and generated over 160 million USD in revenue. The total for the first two months of 2024 amounted to 320,000 tonnes, worth 458 million USD, with China remaining the largest buyer, media agency Live Mint reports. The increase in exports to major international markets, along with rising rubber prices due to heightened demand for tyres in China, has contributed to the substantial revenue from rubber exports.
