Category: Electronics

Retail News Asia is committed to providing both local and global retailers with the latest Electronics news throughout the Asian market. This on a daily base.

  • Apple supplier Pegatron to expand Vietnam operations

    Apple supplier Pegatron to expand Vietnam operations

    Pegatron Corp, an assembler for Apple, Microsoft and Sony, plans to increase its investment in Vietnam for electronics production by $101 million.

    Taiwan’s Ministry of Economic Affairs, which has to approve overseas investments by local companies, as saying Pegatron’s investment in Vietnam would be for the production of computers and peripherals, communications equipment and electronic components.

    The company has not disclosed details of the investment.

    It invested $19 million to build its first plant at the Dinh Vu Industrial Zone in Hai Phong City in March last year to produce computers, communications equipment and consumer electronic products.

    It plans to build its second and third plants at a cost of $481 million and $500 million and also move its research and development center from China to Vietnam.

  • Apple will not force you to update to iOS 15 if you’re happy running iOS 14

    Apple will not force you to update to iOS 15 if you’re happy running iOS 14

    With the 2021 edition of WWDC (Worldwide Developers Conference) finally underway earlier today, all the media attention is naturally directed at the next versions of Apple’s many popular operating systems, set to be released in their stable form at some point in the fall.

    But in an unusual move, the Cupertino-based tech giant is keeping iOS 14 in the limelight after unveiling and fully detailing its sequel by… essentially taking a page out of Google’s book.

    Apple plans to make the iOS 15 update optional for every single owner of all current and previous-gen iPhones eligible to make the software leap starting in September. Obviously, no one was ever forced at gunpoint to install iOS 14 or any older OS builds as soon as they were made generally available.

    But until this year, if you wanted to keep your handset’s security up-to-date, you had to first embrace whatever major iOS version was latest. In other words, you could refuse to jump on the iOS 14 bandwagon, for instance, until you felt comfortable leaving iOS 13 behind, but from a security standpoint, it was pretty dangerous to hold off for too long.

    That will no longer be the case when iOS 15 rolls out to the masses, as said masses will be offered a real choice between “the latest features and most complete set of security updates” on one hand and slightly older features nonetheless combined with “important security updates” on the other.

    While that may feel like a no-brainer for many users, others will undoubtedly relish the opportunity to wait and see just how stable and smooth iOS 15 proves at launch before committing to an update. You can also hang onto your beloved iOS 14 if you fear your ancient iPhone 6s, 6s Plus, first-gen SE, or iPhone 7 will have trouble making the most of Apple’s “latest features.”

    Separately delivering major OS promotions and “important” security patches for the exact same devices, of course, is what Google and its mobile hardware-making partners have been doing since, well, forever. In the short run, Apple’s very uncharacteristic move is bound to impact the adoption rate of iOS 15, but after a while, we don’t expect many people to stick with the older version.

    Besides, something tells us the company is fully aware that this could lead to a mini-fragmentation problem of sorts, which probably means you will eventually need to get iOS 15 to continue receiving security updates.

  • Qualcomm’s true Snapdragon 888 sequel is already shaping up as a huge upgrade

    Qualcomm’s true Snapdragon 888 sequel is already shaping up as a huge upgrade

    Smartphone processors don’t typically get the same kind of attention that, well, actual mobile devices do ahead of their official announcements, but while it’s still early to know for sure how the industry will look in 2022, a number of recent rumors and a vague AMD confirmation seem to suggest some big breakthroughs might be right around the corner.

    To fend off Samsung’s high-quality graphics-focused Exynos 2200 chip and whatever A-series monsters Apple has in the pipeline after revolutionizing tablet power with the M1 iPad Pro, Qualcomm is apparently working on a “next-gen premium” SoC carrying model number SM8450.

    Right off the bat, we should mention this thing is different from the oft-rumored and recently benchmarked Snapdragon 888 Plus, aka SM8350+, which is widely expected to follow in the footsteps of the regular SM8350 (better known as the Snapdragon 888) with relatively modest performance gains by the end of 2021.

    Likely to see daylight inside 2022’s first wave of Android flagships, the SM8450 could bring way more than your routine yearly upgrades in CPU and GPU muscle to the table. If the latest information shared by Evan Blass on Twitter proves reliable (which is almost always the case), the unnamed next-gen Snapdragon powerhouse will combine ARM Cortex v9-based Kryo 780 CPU cores with an Adreno 730 graphics processing unit.

    While these types of monikers can certainly be misleading (just think of the Snapdragon 888, which isn’t that much more impressive than the 865), the Adreno 730 name gives us hope for something truly game-changing. We’re talking something a lot better than the Adreno 660-integrating Snapdragon 888, which came after the Adreno 650-packing Snapdragon 865.

    The last jump of a similar magnitude came when the Snapdragon 845 chipset replaced the 835’s Adreno 540 with a 630 model, also upgrading the Kryo 280 CPU cores to 385. The Kryo-replacing branding scheme has actually stayed consistent ever since, so the impending jump from Kryo 680 to 780 may not signal anything groundbreaking… at least at first glance.

    Unsurprisingly, the SM8450 is tipped to come with many other changes and improvements as well, including a key switch from a super-advanced 5nm fabrication process to… even more advanced 4nm technology and a leap from a built-in X60 to an integrated X65 5G modem.

    The rest of the specifications and capabilities seemingly leaked today are just as promising, from the Spectra 680 image signal processor (up from a Spectra 580 on the Snapdragon 888) to an Adreno 665 video processing unit, Adreno 1195 display processing unit, and support for up to 1GHz mmWave downlink and 400MHz Sub-6 D.

    That’s… a lot of numbers you may not know what to make of, and of course, we don’t really know either how they’ll translate into real-world performance. But because we don’t believe in coincidences, it sure looks like Qualcomm is preparing something big on the mobile graphics front to keep the newly formed alliance between Samsung and AMD at bay.

    Previous rumors suggested 2022’s Snapdragon 888 successor will be manufactured by TSMC instead of Samsung, by the way, but something tells us the world’s largest smartphone vendor can’t afford to completely break up with Qualcomm yet.

    Like the vast majority of the overall best phones available in 2021, the Galaxy Note 20 and S21 families still use Snapdragon processors rather than their Exynos counterparts (in some regions), and we fully expect that to be the case for next year’s Galaxy S22 lineup as well.

  • Apple updates AirTags to fix major privacy issues

    Apple updates AirTags to fix major privacy issues

    Apple announced earlier today that an important update is rolling out to its new AirTags, which is meant to address privacy concerns raised by many users soon after the gadget’s market launch.

    It’s enough to slip an AirTag into someone’s backpack and you’ll be able to track the person for as long as it carries it. The privacy issue doesn’t affect iPhone users, since they will be notified if a stranger’s AirTag is moving with them for a certain period of time (usually several hours).

    Until now, Android users would only be notified after three days if they would be stalked/tracked by someone with the help of an AirTag. Thankfully, Apple announced that it’s now rolling out an update that addresses this privacy issue.

    Following up on our commitment to continue to improve AirTag’s privacy and security, starting today we will be updating the time period after which an AirTag that is separated from its owner will play a sound when moved. This time period is changing from three days to a random time between 8 and 24 hours.

    Obviously, Apple is referring to Android users who will now be notified if any AirTags are moving with them for up to 24 hours. In addition to the new update, Apple confirmed that an Android app that will be able to detect AirTags will be released soon.

  • Apple TV app fully entering the world of Android TV

    Apple TV app fully entering the world of Android TV

    Once in a blue moon, something beautiful happens when it comes to the relationship between Apple and Google, and in this case, that is the complete introduction of the Apple TV app to all modern devices with Android TV.

    The search engine giant said that starting today, the Apple TV app will be available throughout the “Android TV OS ecosystem,” which means that the streaming service is no longer limited to just Sony Bravia TVs and Chromecast with Google TV but is now released to other media and streaming devices manufactured by companies like Xiaomi, OnePlus, Nvidia, and more.

    The news of Apple lowering its ecosystem garden walls broke when Nvidia shared that the Apple TV app will be coming to their Shield TV streaming box at the Computex virtual conference this week. Later on, a tweet from a Xiaomi executive further cemented the news by confirming that the app is coming on all of their Android TV products.

    Apple extends an extra pair of hands for those who own one or more of their devices in the form of a one-year subscription to the Apple TV+ streaming service. A very welcome gesture that will without a doubt attract even more people to their already popular streaming service, especially considering the generous periodic extensions of this offer that they’ve showcased up until now.

    In a very Apple fashion, they also make it easier for you to set up and sign in through your device by offering the option to do it via scanning a QR code that shows up in the app with your iPhone or iPad.

    All’s to say, it seems that Apple is starting to loosen up its historical tight grip on its ecosystem, resulting in a wider audience reach for them and more flexibility for us in our choice and preference, which I will welcome any day.

  • Intel Reiterates Chip Supply Shortages Could Last Several Years

    Intel Reiterates Chip Supply Shortages Could Last Several Years

    Intel Corp’s CEO said on Monday it could take several years for a global shortage of semiconductors to be resolved, a problem that has shuttered some auto production lines and is also being felt in other areas, including consumer electronics. Pat Gelsinger told a virtual session of the Computex trade show in Taipei that the work-and-study-from-home trend during the COVID-19 pandemic had led to a “cycle of explosive growth in semiconductors” that has placed huge strain on global supply chains.

    “But while the industry has taken steps to address near-term constraints it could still take a couple of years for the ecosystem to address shortages of foundry capacity, substrates and components.”

    Gelsinger had told The Washington Post in an interview in mid-April the shortage was going to take “a couple of years” to abate, and that it planned to start producing chips within six to nine months to address shortages at U.S. car plants.

    Intel announced a $20 billion plan in March to expand its advanced chip manufacturing capacity, building two factories in Arizona and opening its plants to outside customers.

    “We plan to expand to other locations in the U.S. and Europe, ensuring a sustainable and secure semiconductor supply chain for the world,” Gelsinger said, without elaborating.

    Intel’s plans could directly challenge the two other companies in the world that can make the most advanced chips – Taiwan Semiconductor Manufacturing Co Ltd (TSMC) and South Korea’s Samsung Electronics Co Ltd.

    The two have come to dominate the semiconductor manufacturing business, moving its centre of gravity from the United States, where much of the technology was once invented, to Asia, where more than two-thirds of advanced chips are now manufactured.

  • Foxconn suppliers resume operations in coronavirus hotspot Bac Giang

    Foxconn suppliers resume operations in coronavirus hotspot Bac Giang

    Two electric component manufacturers for Foxconn in Bac Giang resumed operations Friday following a temporary suspension due to the coronavirus crisis.

    Fuhong Precision Component and New Wing Interconnect Technology, located inside two industrial parks, were allowed to resume operations as they satisfy Covid-19 prevention standards. Both firms produce electric components for Taiwanese electronics contract manufacturer Foxconn, a major assembler for several Apple products.

    Both firms have to abide by Covid-19 prevention protocols like maintaining distances between workers, providing them accommodation and testing them for Covid-19.

    As originally planned, eight firms in four industrial parks across Bac Giang were supposed to resume operations Friday. But only four firms filed documents to have their production process evaluated, and only two among them, Fuhong and New Wing, made the cut.

    Nguyen Xuan Ngoc, deputy head of the management board of Bac Giang industrial parks, said it would take weeks before all local industrial zones could resume operations due to strict evaluation procedures.

    Bac Giang, home to 13 Samsung suppliers and Apple partners Foxconn and Luxshare, is the most severely hit locality in Vietnam’s latest Covid-19 wave, recording 1,927 cases over the past month. It is followed by neighbor Bac Ninh with 736 cases.

    Bac Giang had to shut four local industrial parks: Van Trung, Quang Chau, Dinh Tram and Song Khe-Noi Hoang starting May 18 after the province recorded a staggeringly high number of new coronavirus cases due to the parks’ large scale and high number of workers. The province has around 240,000 people employed at its six industrial parks.

  • Chip delays reach crisis territory; Apple, Qualcomm and others are affected

    Chip delays reach crisis territory; Apple, Qualcomm and others are affected

    The worldwide chip shortage is about to hit a benchmark indicative of more serious problems ahead for tech companies. This benchmark measures the lead times for chip orders, or the time it takes between ordering semiconductors and actually receiving the shipment. Bloomberg reports that this measure hit 17 weeks last month according to Susquehanna Financial Group which says that it is a sign that users are getting desperate to obtain the needed components

    Su.squehanna Financial notes that the 17 weeks is the longest period of time it has recorded for this measure since it started tracking it in 2017. Based on that figure, the research firm says that when it comes to purchasing sufficient chips, consumer electronic firms and automobile outfits are in “the danger zone.” Last year at this time, the lead time was 12.53 weeks.

    Susquehanna analyst Chris Rolland disseminated a note to clients yesterday in which he wrote about lead times for analog chips, power management chips, and others. “All major product categories up considerably. These were some of the largest increases since we started tracking the data,” he stated. Apple has said that it could lose up to $4 billion in revenue during the current quarter thanks to shortages of chips and other components, while automakers are on track to report a revenue shortfall of $110 billion this year.

    Rolland wrote that demand for chips might be overstated by actions taken by customers afraid of missing out on supplies. “Elevated lead times often compel ‘bad behavior’ at customers, including inventory accumulation, safety stock building and double ordering. These trends may have spurred a semiconductor industry in the early stages of over-shipment above true customer demand.”

    The analyst said that the 17 week lead time expanded from the previous 16 week lead time and marks the fourth consecutive month that lead time has risen by a “sizeable” amount. Power Management chips lead time weighs in at 23.7 weeks, up about four weeks over the last month. Industrial microcontroller’s order lead times have recently risen by three weeks.

    Susquehanna says that delays are longer for smaller manufacturers; for example, headphone manufacturers have lead times longer than 52 weeks! The expanded lead times has forced firms to redesign, and even drop projects. Rolland says that 70% of the companies he tracks in the chip industry are reporting expanding lead times while 20% have seen lead times drop.

    NXP Semiconductors NV, a company that supplies chips to automakers, has seen lead times rise from 12 weeks late last year to 22 weeks. And STMicroelectronics, another chip supplier for the auto industry, had its lead times rise by 4 weeks in April to 28 weeks.

    Taiwan, the home of the world’s largest independent foundry TSMC, has been dealing with a couple of issues that could impact chip production in the country. The number of COVID-19 cases in the country has been rising and in addition, drought has impacted the country. Water is an important ingredient when it comes to chip making and TSMC has ordered huge deliveries of the ultra-pure water required to run its assembly lines.

    TSMC has plenty of important customers that rely on it to turn chip designs into chips. Among those firms are Apple, Qualcomm and MediaTek. Today, Taiwan’s Centers for Disease Control raised the island’s alert level which spreads COVID-containment measures to the whole country.

    Also today, Taiwan’s Water Resources Agency said that the country needed to use more aggressive water-saving methods thanks to the low amount of rain that has fallen in the country. TSMC responded by saying that it will continue to tighten up its water usage, although it doesn’t believe that it will have to make any changes to its operations even with the countries’ new measures announced today.

  • Global smartphone shipments forecast to fall during the current quarter

    Global smartphone shipments forecast to fall during the current quarter

    Global smartphone shipments will decline during the current quarter (which is the calendar second quarter and runs from April through the end of June). The report said that top brands in the industry including Xiaomi, Oppo, and Vivo, are being impacted by the global chip shortage. As for the first quarter, Digitimes said that the consumer recovery from the start of the pandemic helped smartphone deliveries recover 47% on a year-over-year basis.

    The top three phone shippers during the opening three months of this year were Samsung, Apple, and Xiaomi. Sammy shipped 75 million units, an annual gain of 15.9%, and recaptured the top spot from Apple. Shipments of iPhone handsets rose 49.5% during the first quarter to reach 56 million units.

    With Huawei no longer the big factor that it once was, several Chinese firms are battling it out to replace the one-time dominating Chinese phone manufacturer. U.S. restrictions preventing the firm from accessing its U.S. supply chain (including Google Mobile Services), and blocking it from obtaining cutting-edge chips, led Huawei to sell its Honor sub-brand. But as it ran out of parts and components during the first quarter of 2021, Huawei saw the number of handsets it shipped during the period declined nearly in half on an annual basis.

    But even Xiaomi and Oppo have had to drop their shipment estimates for this year because of the chip shortage and shortages of other parts. Shipments from first-tier smartphone brands are expected to decline in the current three-month period before business picks up with the launch of new models during the second half of the year. Digitimes Research expects shipments of 1.35-1.4 billion units for all of 2021 which is the approximate number of phones delivered globally in 2019.

  • Xiaomi Wins Ban Reversal

    Xiaomi Wins Ban Reversal

    Xiaomi and the U.S. government have come to an agreement to remove the Chinese smartphone giant from a blacklist of military-linked companies.

    The U.S. Defense Department agreed in a final order to remove the «Communist Chinese Military Company» designation for Xiaomi, according to a court filing.

    The Parties have agreed upon a path forward that would resolve this litigation without the need for contested briefing, according to the filing.

    Negotiations over specific terms are underway and a separate joint proposal will be filed before May 20.

    Earlier this year, Xiaomi sued the U.S. government over the bans, calling the designations «factually incorrect» with no evidence to back the claims.

    In March, U.S. District Judge Rudolph Contreras said Xiaomi was likely to win a reversal to declare the designation as illegal and issued a ban halt to prevent irreparable harm at the smartphone firm.

    Still, the U.S. government said it remained concerned about investments into military-linked firms in China.

    The Biden Administration is deeply concerned about potential U.S. investments in companies linked to the Chinese military and fully committed to keeping up the pressure on such companies, said White House National Security Council spokesperson Emily Horne.

    Xiaomi’s removal from the blacklist occurs less than one week after the Biden administration was reportedly maintaining pressure on China by preserving some restrictions issued by the Donald Trump administration with preliminary discussions underway about military-linked bans.

  • Vingroup shuts down smartphone, TV manufacturing

    Vingroup shuts down smartphone, TV manufacturing

    Vietnam’s biggest private conglomerate, Vingroup, will stop manufacturing smartphones and televisions, focusing instead on producing equipment for VinFast cars.

    Its VinSmart unit, established nearly three years ago, will start making “infotainment” features for VinFast cars to make them more competitive in the global market, Vingroup said in a statement Sunday.

    VinSmart will also research, design, and manufacture electric engines, electronic parts and batteries for electric vehicles to increase the localization ratio of its products.

    The unit will also push research on devices for smart cities and smart homes.

    “The production of smartphones or smart TVs no longer brings breakthroughs and creates unique values for users,” said Nguyen Viet Quang, vice president and CEO of Vingroup.

    But developing smart cars, smart homes and smart cities will bring many “outstanding” benefits to humanity, therefore, the company wants to devote all its resources towards doing this, he added.

    VinSmart will continue to produce TVs and smartphones to complete the products’ lifecycle.

    Later, a part of VinSmart facility will be used to manufacture products for partners and the remaining part will be expanded to make its own new products.

    Since its establishment in June 2018, VinSmart has introduced 19 smartphone models and five TV models to the market.

  • Samsung Internet gets a bucketload of new features after latest beta update

    Samsung Internet gets a bucketload of new features after latest beta update

    Samsung Internet has become a very decent mobile browser thanks to the many updates Samsung released in the last year or so. Less than a month ago, the South Korean giant released Samsung Internet 14.0, but work on the next version of the browser has already begun.

    Those of you who don’t mind installing beta apps can now download Samsung Internet 14.2 beta, a new version of the browser that brings a wide range of new features and improvements.

    An important new feature involves site permission. This beta version of Samsung Internet lets users customize individual site permission, as they can now activate or deactivate permissions by switching on/off at the sites list. For the time being, permissions are available for Location, Camera, and Mic.

    A Bookmark Bar now shows up in the upper toolbar area in DeX mode and on tablets. You’ll need to enable the “Show bookmark bar” menu so that the bookmark bar is shown. Context menus like “Open in new tab” and “Edit bookmark” are supported too.

    The “Continue Apps on other devices” feature is getting a couple of improvements. For example, you can now use Samsung Internet on a different Samsung device and automatically sync clipboards across devices for copying and pasting text and images. However, for the feature to work, devices will need to be on the same Wi-Fi network with Bluetooth enabled to use Continue Apps.

    Several other features and enhancements have been included in Samsung Internet beta 14.2, such as S Pen Air Action, tab bar GUI enhancement, update popup for new password fill, quick access page at fresh launch, and tip card for desktop view setting.

    The new beta version of Samsung Internet Browser is available for download via Galaxy Store and Google Play Store.

  • 40% of Android phones have modem vulnerability allowing an attacker to listen in to your calls

    40% of Android phones have modem vulnerability allowing an attacker to listen in to your calls

    A vulnerability discovered by security firm Check Point Research could allow a malicious app to skip the usual security features giving it access to call and text history. It also gives an attacker the ability to record conversations. The Qualcomm Modem Interface (QMI) software is normally impossible for third-party apps to access, but if key aspects of Android are hacked, the QMI vulnerability can be used to listen in and record an active phone call, and as we already pointed out, steal call and SMS records.

    QMI is used on as much as 40% of Android handsets including those made by Google, Samsung, OnePlus, LG, Xiaomi, and more. Check Point kept certain information out of its report to make sure that the attack can not be easily copied. There is no indication that the attack has been used by a malicious hacker.

    Check Point revealed all of this to Qualcomm last October calling it a high-rated vulnerability. The chipmaker told the phone manufacturers that use Qualcomm’s modem chips. So far, the vulnerability has not been fixed and we can only hope that Qualcomm and Google will patch this in a future security update.

    However, Qualcomm says that it did make fixes available to “many” Android phone manufacturers last December and that these firms passed along security updates to end-users. The vulnerability will be part of the June Android bulletin.

    Qualcomm issued a statement today that said, “Providing technologies that support robust security and privacy is a priority for Qualcomm. We commend the security researchers from Check Point for using industry-standard coordinated disclosure practices. Qualcomm Technologies has already made fixes available to OEMs in December 2020, and we encourage end-users to update their devices as patches become available.”

  • Apple practically begged Netflix to allow new subscribers to pay using the App Store’s platform

    Apple practically begged Netflix to allow new subscribers to pay using the App Store’s platform

    As game developer Epic continues its legal battle against Apple, some emails, documents and other internal communications have appeared in the courtroom. Among this treasure trove is evidence that demonstrates how Apple tried to convince video streamer Netflix to continue using Apple’s App Store In-App Payment (IAP) system. As many of you know, Apple takes a 15%-30% cut of transactions that are rung up through this platform and doesn’t allow developers to use their own IAP system (which is what Epic did).

    You might recall that in December 2018, Netflix no longer allowed new users to sign up for service via the App Store. An internal Apple email thread has come to light revealing discussions that were taking place as Netflix rolled out an A/B test to determine whether it should stop offering new subscriptions via the App Store.

    An email thread that ran from February through April of 2018 kicked off with a missive from Carson Oliver, the Director of App Store Business Management who said that subscribers paying for a Netflix subscription using Apple’s In-App Payment system were more likely to cancel their subscription than those who signed up using other platforms. Apple blamed this on those who received Netflix gift cards which forced them to pay using the Netflix website.

    Oliver wrote in one email, “Do we want to take any punitive measures in response to the test (for example, pulling all global featuring during the test period). If so, how should those punitive measures be communicated to Netflix?” Both companies tried to get together to talk things over and Apple Services Chief Eddy Cue tried to meet with Netflix CEO Reed Hastings.

    Five months before Netflix dropped support for Apple’s IAP, Apple created a presentation to show to Netflix trying to get the streamer to commit to Apple’s App Store payment platform. Apple also tried to show Netflix why it deserves the cut it takes from in-app payments run through its platform. Apple also pointed out the things that it was doing to help promote Netflix in the App Store such as featuring it more than any other partner.

    Another presentation showed how Apple and Netflix could work together if the latter would agree to use Apple’s IAP. Among the suggestions, Apple said that it would allow Netflix to determine which shows Apple would feature in Netflix promos. Apple also pointed out other things that the two firms could do together including the bundling of Netflix with an Apple service and more.

    The bottom line is that Apple could not convince Netflix to use the App Store IAP. In late 2018, Netflix said, “We no longer support iTunes as a method of payment for new members.”

  • Samsung Vietnam proposes direct purchase of renewable energy

    Samsung Vietnam proposes direct purchase of renewable energy

    Electronics giant Samsung Vietnam has proposed that it joins a trial program to purchase power directly from renewable power plants instead of monopoly distributor Vietnam Electricity.

    Choi Joo Ho, CEO of Samsung Vietnam, submitted the proposal to the Ministry of Industry and Trade last week. He asked that the company participates in the Direct Power Purchase Agreements (DPPA) policy that is being studied for a three-year trial.

    Three to four other big companies also want to join the program, a person familiar with the matter told VnExpress.

    The program will allow manufacturing companies with a minimum of 22-kilovolts power lines to negotiate and buy directly from solar and wind power plants.

    In the first three years, when the policy will be trialed, the customer needs to buy at least 80 percent of the agreed amount of power.

    Solar and wind farms with a capacity of 30 megawatts or more can sign these agreements and need to begin commercial operation within nine months of joining the pilot program.

    The program with a total capacity of around 1,000 megawatts is set to start this year and run until 2023. At the end of the trial period, the ministry will review it and take a decision on making the arrangement permanent.

    The program is being considered amid the challenges solar power plants face in running at full capacity due to the limited capacity of the country’s transmission lines. Vietnam is set to cut up to 1.74 billion kilowatt-hours of renewable energy in the second half this year to deal with national grid overload, Vietnam Electricity, has announced.