Tata Group to set up $5 billion steel factory in Vietnam

[Yogi]

its a win win situation for both TATA's will get increased capacity n better access in ASEAN
whereas Vietnam will get a boost in heavy industry n more employment opportunities as well as such big plant also help in development n growth of various other small industries

lon live india-vietnam friendship

 

[Diamond_Gold]

are u a chinese or a pakistani?

i am guessing pakistani because u insulted only india and left out vietnam.

why did u choose singapore though?

Believe it! I am your MIRROR. LOLOL.

 

[jbond197]

Yet POSCO's 7-year old $12 billion Indian steel mill project is going nowhere thanks to India's red tapes.

Posco submits revised land plan for 8 MTPA steel plant

How is that even relevant to an Indian private company investing in Vietnam?

Btw, at times land acquisitions is not an easy task in India .. It's not China that you go and throw the people out on gun point!!

 

[Alchemy]

Looks like TATA has taken Vietnamese for a ride. In due time Vietnamese will realize they had wrong impression of "friend".

I think someone is getting Jelous ... dont worry , chinese will come and surely invest in bangladesh

A strong and prosperous Vietnam is in Indias best interest , It will be interesting to see the views of Chinese members about this development....

 

[dunhill]

Tata can't build a $5 billion steel plant for the tiny $123 billion Vietnamese market

I want to follow up on why I said Tata's proposal for a $5 billion steel plant in Vietnam is ridiculous.

Vietnam's economy is only $123 billion (see List of countries by GDP (nominal) - Wikipedia, the free encyclopedia).

Tata's proposed investment would equal 4% of Vietnam's economy! That's unheard of. Who will consume all of that steel production? You can't export it, because the Chinese have much larger economies of scale and lower prices. The domestic Vietnamese economy is way too tiny to make use of all that steel production.

In conclusion, Tata's proposed steel plant in Vietnam makes absolutely no economic sense.

If Tata had announced a $5 billion steel plant for China, I would have shrugged. It's a drop in the bucket for China's $8 trillion economy. Since China is producing 18 million cars a year and is the world's largest producer of white goods (e.g. refrigerators, clothes washers, dryers, etc.), it is economically feasible. However, putting a $5 billion steel plant in Vietnam is hogwash.

You know why India put up 5 billion dollars in Viet Nam? India like to help Viet Nam economics grow then its could use 3 more billion to by Kilos the rest for Brahmos to shooting China Navy in SCS.

India never put 5 billion dollar to China even though China loves to get it due to its instinct greedy. Moreover, under China eyes India is a poor countries then your IF that could not be happens.

On topic: Great news for both India-Vietnam for trade, plus for our friendship getting better to best then best of the best.

 

[Tshering22]

When Tata makes a stupid announcement that makes no sense, I will expose the propaganda.

TATA empire is much more than a bunch of Communists paid to blab on the internet with a gunpoint behind their heads. You clearly don't know them.

 

[Yogi]

Tata can't build a $5 billion steel plant for the tiny $123 billion Vietnamese market

I want to follow up on why I said Tata's proposal for a $5 billion steel plant in Vietnam is ridiculous.

Vietnam's economy is only $123 billion (see List of countries by GDP (nominal) - Wikipedia, the free encyclopedia).

Tata's proposed investment would equal 4% of Vietnam's economy! That's unheard of. Who will consume all of that steel production? You can't export it, because the Chinese have much larger economies of scale and lower prices. The domestic Vietnamese economy is way too tiny to make use of all that steel production.

In conclusion, Tata's proposed steel plant in Vietnam makes absolutely no economic sense.

If Tata had announced a $5 billion steel plant for China, I would have shrugged. It's a drop in the bucket for China's $8 trillion economy. Since China is producing 18 million cars a year and is the world's largest producer of white goods (e.g. refrigerators, clothes washers, dryers, etc.), it is economically feasible. However, putting a $5 billion steel plant in Vietnam is hogwash.

By ur logic no new plant should be set up outside china

do you think TATA's r stupid enough to invest $5 billion in Vietnam for nothing???
U r forgetting that it will cater to not only the needs of vietnam but could also be easily exported to other ASEAN countries
As india don't have any FTA with asean yet

In addition TATA's r experts in both regular steel n value added steel (due to Corus acquisition)

So, they will make whichever will provide them better results...

plz come out of ur fantasies n smell the coffee...

 

[ADAMANSKA]

Bata Pakistan to setup $30 billion shoe factory in somalia.
we will talk about it when its setup, right now its just talk
with this speed tata own half of this world.

Read post #29 and don't make fun of yourself.

By the way any link to support your stupid claim of $30 Billion shoe factory?

 

[Martian2]

By ur logic no new plant should be set up outside china

do you think TATA's r stupid enough to invest $5 billion in Vietnam for nothing???
U r forgetting that it will cater to not only the needs of vietnam but could also be easily exported to other ASEAN countries
As india don't have any FTA with asean yet

In addition TATA's r experts in both regular steel n value added steel (due to Corus acquisition)

So, they will make whichever will provide them better results...

plz come out of ur fantasies n smell the coffee...

The facts support my logic. Most of the world's FDI is invested in China and the United States (see citation below). This makes sense, because of economies of scale and locating manufacturing inside the world's two largest markets.

Unless you can provide a compelling reason, a large investment by Tata in Vietnam makes no sense. Labor is just as cheap in India. Setting up a steel plant in Vietnam creates higher costs in extra steps for warehousing and shipping. This also causes additional delays due to complex logistics.

Additionally, Vietnam suffers from power problems and constant brownouts (see second citation below). This is not conducive to large-scale steel manufacturing.

----------

FDI outlook darkens amid European debt crisis - China.org.cn

"Jun 15, 2012 – China is the largest destination for FDI among emerging markets and the second-largest worldwide after the United States. Last year, FDI ..."

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Frequent brown out starting again in Vietnam

"Posted 18 May 2011 - 12:10 PM

I've had two brown out last night, one lasting 15 minutes the other a couple of hours. And the last few days as well.

It's been a while since brown out was so frequent. I remembered a few years ago it was really frequent, almost every other day and my company will not have power on every Thursday."

 

[Skull and Bones]

^^^

Unless you don't know, TATA can make their own power. Google TATA power.

Tata Power :: Home

Then more business opportunities selling power to Vietnam.

 

[Cherokee]

Bata Pakistan to setup $30 billion shoe factory in somalia.
we will talk about it when its setup, right now its just talk
with this speed tata own half of this world.

I Can Die Happily now . Utter blasphemy on your part on many accounts . For one Bata is a Czech Company headquartered in Switzerland . 30 billion for a shoe factory in Somalia . They can buy more than half of somalia for 30 billion .

I will report this port of yours to your local police station and press blasphemy Charges . Now god save you .

 

[Martian2]

^^^

Unless you don't know, TATA can make their own power. Google TATA power.

Tata Power :: Home

Then more business opportunities selling power to Vietnam.

If Tata can make its own power, why is India having frequent brownouts? Why doesn't your government ask Tata to solve the problem?

----------

India's brownouts cost the environment, too | GlobalPost

"Jun 29, 2012 – India's brownouts cost the environment, too, India diesel generators cause environmental damage."

 

[Skull and Bones]

If Tata can make its own power, why is India having frequent brownouts? Why doesn't your government ask Tata to solve the problem?

----------

India's brownouts cost the environment, too | GlobalPost

"Jun 29, 2012 – India's brownouts cost the environment, too, India diesel generators cause environmental damage."

As i said land acquisition is a pain in the A$$ in India, google Tata plant in Singur or POSCO plant in Orissa to get the picture.

 

[Yogi]

The facts support my logic. Most of the world's FDI is invested in China and the United States (see citation below). This makes sense, because of economies of scale and locating manufacturing inside the world's two largest markets.

Unless you can provide a compelling reason, a large investment by Tata in Vietnam makes no sense. Labor is just as cheap in India. Setting up a steel plant in Vietnam creates higher costs in extra steps for warehousing and shipping. This also causes additional delays due to complex logistics.

Additionally, Vietnam suffers from power problems and constant brownouts (see second citation below). This is not conducive to large-scale steel manufacturing.

----------

FDI outlook darkens amid European debt crisis - China.org.cn

"Jun 15, 2012 – China is the largest destination for FDI among emerging markets and the second-largest worldwide after the United States. Last year, FDI ..."

----------

Frequent brown out starting again in Vietnam

"Posted 18 May 2011 - 12:10 PM

I've had two brown out last night, one lasting 15 minutes the other a couple of hours. And the last few days as well.

It's been a while since brown out was so frequent. I remembered a few years ago it was really frequent, almost every other day and my company will not have power on every Thursday."

I have no doubts that China is one of the best investment markets in the world but that doesn't mean that people should either invest in China or do not invest at all

N have u read earlier my post correctly half ur doubts would have gone by now

1.Vietnam is a member of Asean so better chances of dealing within Asean as India doesn't have FTA with Asean

2.Vietnam is a new n developing market so TATA's will easily gain first mover advantage with such a large investment.

3.As indian economy is booming TATA's indian plants would be able to better cater to indian demands n export to Asean can be easily handled through Vietnam plant as it will save cost n time of shipment from india

4.there has been continous increase in labour cost in china over the last 5-10 years so again Vietnam is a better option

5.don't worry about the power problem whenever such plants r set up generally there is a agreement between the govt. n the party on such issues

Further more TATA's may also produce power on there own as they do own coal mines in indonesia through which they produce power in india i m sure they can work out something

 

[IND151]

this is win win situation

TATA group will add one more plant in its empire and they may get tax exemptions from viet govt to encourage them to invest further

it will also create thousands of jobs in Vietnam