Vietnam Economy Forum

[Viet]

HAGL pours $440 million into Myanmar


08:09 | 07/06/2013 VIR

Vietnam’s Hoang Anh Gia Lai Group on Wednesday started to build its hallmark project worth US$440 million in Myanmar which is a big complex of hotel, office for rent and luxury condominium facilities in a prime location in downtown Yangon.

The Hoang Anh Gia Lai Myanmar Center project will be carried out in two phases: in the first phase slated for completion by September next year, there will be a 27-story shopping mall and office for rent and a 23-story five-star hotel with 480 rooms. In the second phase, to be executed in 2015-16, there will be four residential blocks with 1,800 luxury apartments and an office tower.

Doan Nguyen Duc, Chairman of Hoang Anh Gia Lai Group, said the Myanmar Government leases the 16-acre land site in the heart of Yangon to the group for 70 years. Total investment for this project has been raised to US$440 million from the previous US$300 million, and about half of this investment capital will be credits from three top Vietnamese banks, namely BIDV, Eximbank and Sacombank.

Duc estimated the project would create about 2,500 jobs for local residents and pay millions of US dollars in taxes to Myanmar each year.

Tin Shwe, Deputy Minister of Hospitality and Tourism of Myanmar, told the ground-breaking ceremony that the HAGL Myanmar Center will help ease the pressure of supply on Yangon trade and tourist sector.

At present, the city lacks high-grade hotels and offices, so the rent rates remain very high, about US$75 per square meter per month, while the hotels there are fully occupied.

According to Tin Shwe, the HAGL Myanmar Center is so far the biggest foreign direct investment project in Myanmar’s tourism sector.

With this project, HAGL has invested US$1.5 billion in neighboring ASEAN countries.

 

[Viet]

Malaysian oil company wins US$35 million contract in Vietnam

Updated : 6/5/2013 6:19:03 PM

(VOV) - TL Offshore Sdn Bhd, a subsidiary of the Malaysian SapuraKencana Petroleum Group, has won a US$35 million contract to install offshore facilities for the Diamond Oilfield project with Vietnam’s PTSC Offshore Services.

The contract includes installing oil rigs, and pipelines at the Diamond oil field, which lies 18km north of the Ruby oil field and 155km east of Vung Tau city.

According to SapuraKencana the TL Offshore contract will contribute significantly to the net assets value of the group. SapuraKencana Petroleum is Malaysia's leading provider of integrated oil and gas services and solutions.

 

[NiceGuy]

power plant project in Vietnam
The firm wins a contract to develop two 660 megawatts coal-fired thermal power plants in south Vietnam
Elizabeth Roche
First Published: Fri, Jun 07 2013. 12 18 AM IST

A news report on the Vietnam Investment Review website said Tata Power made the pitch to invest in the project in January, although it started showing its interest in this project in early 2012. Photo: Priyanka Parashar/Mint
Updated: Fri, Jun 07 2013. 12 44 AM IST

New Delhi: India’s Tata Power Co. Ltd has won an estimated $1.8 billion (around Rs. 10,240 crore) contract to develop two 660 megawatts (MW) coal-fired thermal power plants in south Vietnam against competition from South Korean and Russian companies, in a move that bodes well for the company’s own ambitions for South-East Asia and India’s so-called Look East policy.
The Long Phu 2 project is being billed as the largest Indian investment in Vietnam, an important constituent of the Association of Southeast Asian Nations (Asean) grouping with which India has been seeking to build closer ties.

The Tata group, the global journey of which began, in some ways, with the announcement of the acquisition of Singapore’s NatSteel in 2004, has significant business interests in Indonesia and is also looking to establish a presence in Myanmar.
“Tata Power has been awarded Long Phu 2 project by government of Vietnam based on the pre-feasibility studies. The capacity is 1,200MW as per the master plan. Tata Power is pursuing further steps including formalizing a memorandum of understanding,” a statement emailed by company said.
The construction of the plants is expected to start in 2019.
The company will now need to complete financial closure and draw up a power purchase agreement, according to a person familiar with the development.
In a 21 May letter addressed to Ranjit Rae, the Indian ambassador to Vietnam, that was reviewed by Mint, Tata Power executive director S. Ramakrishnan thanked the Indian envoy for “the support to Tata Power which has enabled the award of this project to come in our favour in such a short period”.
“This is a milestone in a way for India,” said Charan Wadhva, an economist with the Centre for Policy Research in New Delhi.

“The Tata group is India’s No. 1 multinational company; they have the capacity and reputation to do such projects. This will help anchor India’s Look East policy,” he said, referring to India’s attempts, begun in the early 1990s, to develop strong economic linkages with high-growth South-East Asian economies. “Vietnam is one of the dynamic countries in the region and is considered as one of the major growth areas of the world,” he added.
A news report on the Vietnam Investment Review website said Tata Power made the pitch to invest in the project in January, although it started showing its interest in this project in early 2012. Long Phu 2 will be one of three plants at the Long Phu thermo-electricity centre planned by the Vietnamese government through 2025, the report said, adding that the first plant—Long Phu 1—being built by state-run PetroVietnam, is scheduled to start commercial operations in 2015.
“Tata Power’s preparations indicate that the Tata group still eyes Vietnam as a destination for investment, despite the deadlock of a $5 billion integrated steel project in the central Ha Tinh province,” the report said, referring to unsuccessful attempts by Tata Steel Ltd to get clearances for the plant. In 2007, Tata Steel first proposed the steel project to the Vietnamese government, but the plan has been stuck since then as the investor and the local government have failed to reach an agreement related to the site clearance cost.

According to the website of India’s external affairs ministry, “Vietnam continues to be an attractive investment destination for Indian companies. As of December 2011, India has 62 investment projects with total registered capital of $234 million. If investments by Indian companies from third countries are included as well, India has 86 projects with total investment capital of $868 million.”
“Indian companies are investing in oil and gas exploration, mineral exploration and processing, sugar manufacturing, agro-chemicals, IT (information technology), and agricultural processing,” the website said. Oil and Natural Gas Corp. Ltd ’s ( ONGC ) overseas investment arm ONGC Videsh Ltd , Venkateshwara Hatcheries, Philips Carbon Black Ltd and McLeod Russell (India) Ltd are some of the major Indian investors in Vietnam, it said.Tata Power wins $1.8 bn thermal power plant project in Vietnam - Livemint

 

[Viet]

TCIE Vietnam automobile factory debuts in Da Nang

June 11, 2013 by vovnews

(VOV) – TCIE Vietnam Co. Ltd—a member company of Malaysia’s Tan Chong Motor Group—has opened its Hoa Khanh industrial zone factory in Da Nang City’s Lien Chieu district.

TCIE Vietnam Factory is a 129,500 square metre manufacturing and assembly facility in Hoa Khanh Industrial Park, with investment capital totalling US$40 million. The factory’s modern assembly line has an annual capacity of 65,000 cars.

 

[Viet]

Samsung Electronics expands investment in Bac Ninh

Updated : 6/12/2013 3:03:33 PM

Prime Minister Nguyen Tan Dung (middle) at the ground breaking ceremony of Samsung hi-tech complex in Thai Nguyen

Samsung Electronics Vietnam, a wholly-owned subsidiary of Samsung Electronics of the Republic of Korea has received approval from the Government to raise its investment in northern Bac Ninh province from US$1.5 billion to US$2.5 billion.

According to the Bac Ninh provincial Department of Planning and Investment, the added capital will be invested in another plant with special incentives.

Samsung will continue to pay a preferential tax of 10 percent for 30 years, with corporate income tax exemptions for the first four years and tax reductions for the next five years. The normal corporate income tax in Vietnam is 25 percent.

Head of the provincial Department of Planning and Investment Nguyen Quoc Chung said the preferential tax was approved by the Government and related ministries and agencies.

The province has not offered additional incentives to the investors, he added.

 

[Viet]

Japanese businesses invest US$100 mln in Haiphong

Updated : 6/12/2013 9:23:47 AM Voice Of Vietnam

The northern port city of Hai Phong has licensed two new Japanese-funded projects with a total registered investment of nearly US$100 million.

The first project to manufacture automotive anti-vibration components and moulds has a capital of US$84 million invested by Y-TEC Vietnam Co., Ltd, a joint venture between Vietnam’s Technofront and Yamashita Rubber of Japan.

The project is expected to be operational in September 2014.

The other project, valued at US$14 million, will build a factory to process steel and nonferrous metal products. Once operational in July 2014, the factory will produce 50,000 tonnes of products per year.

The JFE SHOJI Steel Haiphong Company will be responsible for implementing this project.

 

[Viet]

Quang Ninh says yes to $2 billion hi-tech complex


Last update 19:00 | 13/06/2013 Vietnam Net

VietNamNet Bridge – The People's Committee of northern Quang Ninh Province has given the nod to co-operation between Thailand and Viet Nam in building a high-technology industrial complex.

At a recent meeting between the provincial people's committee and two groups, Amata (Thailand) and Tuan Chau, it was stated the complex was to cover 16,000ha of Quang Yen, Uong Bi districts and Ha Long City, the provincial newspaper reports.

It would provide high-tech centres, free trade zones, research and development centres, value-added products and education and urban areas.

Tuan Chau Group started 15 years ago in the province; its first project was a road linking Tuan Chau Island and National Highway 18. Now the group has 18 smaller companies operating mostly in tourism and real estate.

Amata is Thailand's leading developer and manager of industrial estates. In Viet Nam, the Amata city complex in southern Bien Hoa City has 112 factories and more than 700ha of land. It was established in 1994, Amata Group said phase 1 of the Quang Ninh project would span 500ha in Quang Yen Town at a cost of $1.5-2 billion. Phase 1 was expected to start this year's December and the first plant would go into operation next year.

Provincial chairman Nguyen Van Doc said Quang Ninh was lying in the northern economic hub. He said the investment was a step to convert Quang Ninh into an economic model focusing on industrial and tourism development.

Doc said the province would set up a steering committee for the project. Amata was understood to be working with Tuan Chau to prepare a final proposal to submit to the Government next week.

 

[Viet]

Now something different: Nguyen Tien Long’s ‘21st Century Ao Dai’ photo from Rennes won the first prize at the A Glimpse of Vietnam in France

 

[Viet]

First steel radial tire factory to open in Da Nang

TUOITRENEWS
UPDATED : 06/16/2013 12:23 GMT + 7

A steel radial vehicle tire factory with an annual capacity of 600,000 tires in Da Nang central city, the first of its kind in Vietnam, is expected to be in full operation on June 29, said a report by Vietnam News Agency (VNA).

The newspaper quoted the Vietnam National Chemical Group (Vinachem), its operator, as saying the construction of the factory began in 2011 and was built on an area of over 10 hectares in Lien Chieu Industrial Park.

The report said the factory is expected to satisfy domestic and foreign partners’ radial truck tire demand.

According to VNA, the Southern Rubber Industry Joint Stock Company or Casumina, a Vinachem affiliate, is speeding up the construction of another radial tire factory with an annual capacity of about one million tires.

 

[Viet]

Taiwanese company wins road contract in Quang Ninh

16:03 | 14/06/2013 VIR

A contract worth 5.8 trillion VND (US$300 mln) was signed on June 13 for the construction of a road linking Ha Long City and Bach Dang Bridge in the northern province of Quang Ninh.

The project will be implemented by Taiwan’s How Yu Vietnam Construction Company following the Build-Transfer (BT) mode.

The 19.8 kilometre road will connect directly with the Hanoi-Hai Phong Expressway. It will have four lanes and pass over eight new bridges on the way. A speed limit of 100 kilometres per hour will be set.

Addressing the signing ceremony, Chairman of the provincial People’s Committee Do Thong urged the contractor to complete all necessary documents so that work on the project can start imminently.

The government-funded project is scheduled for completion by 2015.

 

[Soryu]

Vietnam, Japan look to promote science, technology ties

Panasonic, one of Japan's businesses in Vietnam (Source: VNA)

Minister of Science and Technology Nguyen Quan has suggested that Vietnam and Japan should promote bilateral cooperation in science and technology to match potentials of both countries.

Minister Quan was speaking at a conference in Hanoi on June 19 to review achievements and prospects for cooperation between Vietnam and Japan in the field.

The event is among activities to celebrate the 40th anniversary of the diplomatic ties between the two countries.

He said besides enhancing bilateral ties within the existing cooperation framework, the two countries should also participate in multilateral cooperation mechanisms in science and technology.

He noted that since Vietnam and Japan set up their strategic partnership in 2009, bilateral cooperation has developed both on scale and in depth in various fields, including science and technology.

There are many favourable conditions for Vietnam and Japan to boost cooperation in the field, the minister emphasised, pointing out that many Vietnamese scientists have been trained in Japan, which make it easier for technological transfer between the two countries.

Hatoyama Yukio, President of the East Asia Research Institute and former Japanese Prime Minister affirmed that science and technology has been a top priority in Vietnam-Japan strategic partnership.

He said Japan will give priority in technological transfer and human resources to areas that Vietnam wants to develop, such as nuclear power.

Participants at the conference agreed that over the past years, Vietnam and Japan have recorded commendable achievements in science and technology cooperation. The signing of an agreement on Vietnam-Japan cooperation in the field in 2006 has laid a firm legal foundation for the two countries to foster cooperation in the field, they noted.-VNA

 

[Minjitta]

Vietnam can't even build road properly. I see Vietnam economy progress are in a stage of instance noodles (instance success) no long term plans and help from government. I see more of foreign companies than local companies in Vietnam. Viet nam weren't prepare to joint WTO.

 

[Viet]

Japan transfers rice processing technology

Updated : 6/21/2013 10:56:35 AM

(VOV) -Satake, Japan’s leading agricultural processing and sorting machine manufacturing company, has announced plans to transfer its technology to a Vietnamese company.

The group said their cooperation agreement with Vietnam’s An Giang Plant Protection Joint Stock Company (AGPPS) will see the latter receive equipment and technical assistance during the four processing stages of drying, polishing, assessing, and managing rice quality.

The agreement aims to help AGPPS independently manufacture modern dryers capable of producing germinated brown (GABA) rice. This rice variety’s abundance of amino acids is beneficial to consumers’ health.

As Asia is the world’s major rice production region, Satake plans to transfer its technology to local rice processing firms.

 

[Viet]

EU pledges nearly US$1 bln in aid for Vietnam

Updated : 6/18/2013 4:34:16 PM

(VOV) - The European Union has committed EUR743 million (US$965 million) in official development assistance for Vietnam in 2013, making it the country’s largest aid donor.

The EU believes that its assistance will help Vietnam accelerate reforms in legislation, public finance management, and health care, said Franz Jessen, EU ambassador to Vietnam, at a ceremony in Hanoi on June 18 to release the EU’s Green Paper 2013.

The EU will help Vietnam integrate into the region, directly support the civil society, and increase cooperation in such areas as energy, tourism, climate change, and the environment, he said.

The diplomat said total EU grants, including non-refundable aid, will fit in with socio-economic priorities in its socio-economic development strategy and support the Vietnamese government’s economic restructuring effort towards long-term development and social security.

The donor will allocate development aid to Vietnam’s priority areas in order to optimise the consistence between the government’s policies and development programmes, contributing to sustainable development, poverty reduction and global economic integration.

The Green Paper has examined challenges Vietnam faces to become a middle-income nation in the context of the slow global economic recovery and increased inequality. It also looked at ways to overcome these challenges.

 

[Viet]

Terumo builds medical equipment factory in Vietnam

Updated : 6/19/2013 11:00:31 AM

(VOV) - The Japanese Terumo Vietnam Ltd Company has inaugurated a medical equipment factory in Hanoi’s Quang Minh Industrial Zone.

At a ceremony on June 18, Oguma Akita, Managing Director of Terumo Group, said the US$96 million Terumo factory will manufacture and assemble medical machinery and equipment, especially Catheter tubes for patients suffering from heart disease.

It is expected to employ around 1,000 labourers from Vietnam and Japan. Terumo considers Vietnam as a major supplier of Catheter tubes for many countries in the world.