Tokyo Electric Power Co., Asia’s biggest utility, has won an Asian Development Bank (ADB) contract to draft a plan to build transmission lines linking Cambodia, Laos and Vietnam.
The contract is worth about US$1.03 million, the utility said in a statement in Tokyo Thursday. A team of five employees, including engineers specializing in transmission, would work on the plan, company spokesman Hiroshi Itagaki said by telephone Thursday.
The Manila-based bank selected Tokyo Electric in response to requests from the three countries to build lines to transmit electricity from Laos.
Source: Bloomberg
Saturday, December 13, 2008
Tokyo Electric wins $1.03 million consulting contract
City earmarks $104 million for new apartment blocks
Trillions of dong will be earmarked for overhauling dilapidated apartment buildings in Ho Chi Minh City and relocating thousands of affected households, the municipal administration announced Friday.
HCMC Deputy Mayor Nguyen Thanh Tai instructed the Department of Construction to oversee the demolition of 20 ramshackle apartment buildings between now and 2010.
Under the overhaul blueprint, around 2,000 households will be relocated and offered compensation of around VND1.78 trillion (US$104.4 million), Tai’s dispatch said.
The compensation fees would depend on which floor evicted residents lived on in their apartment buildings.
The department was told to ensure evicted residents were properly housed after their apartments were knocked down to make way for new buildings.
The apartment buildings at 289 Tran Hung Dao Street in District 1, 192 Nam Ky Khoi Nghia Street in District 3 and 727 Tran Hung Dao Street in District 5 will be the first to be demolished.
After 2010, another 156 crumbling apartment buildings would also be revamped with some 14,300 households to be resettled, the dispatch said.
In July 2007, the central government issued a decree instructing Hanoi and HCMC to expedite the upgrading of dilapidated apartment buildings by 2015.
Source: Thanhnien
Vietnam – the most attractive newly-emerged market
VietNamNet Bridge – In a report on future markets of the UK Trade and Investment Agency (UKTI), Vietnam is regarded as the most attractive newly-emerged market, even more so than Brazil, Russia, India and China (BRICs).
The report says that in the past decade, Vietnam’s economic growth ranked only behind China. The country has not been greatly affected by the recent global crisis thanks to its young and low-level integrated finance sector.
The second meeting of the Joint Economic and Trade Committee of Vietnam and the UK (JETCO) was held recently in London, chaired by the General Director of the UKTI, Andrew Cahn. The Vietnamese delegation was led by Deputy Minister of Industry and Trade Le Danh Vinh.
The two sides discussed methods to help UK trade representatives get visas to Vietnam more easily, transparency in financial information, imposing natural resource taxes on mining and mine leasing, import taxes on wine, the market mechanism and the UK’s assistance in anti-dumping efforts, etc.
Established in September 2007, JETCO is a tool to promote and develop trade, identify trade barriers and create a better business environment between the two countries. The committee also helps convey the messages of businesses to the government of the host country.
The Vietnamese delegation paid visits to some UK companies which are interested in the Vietnamese market and learned about the UK’s experience in implementing the Law on Competition.
After the first JETCO meeting, HSBC and Standard Chartered Bank became the two first foreign banks licenced in Vietnam in September 2008. Vietnam also cut the tax rate on brandy from 60% to 45%.
Source: VNN
HCM City requires 1 billion USD each year for infrastructure
Ho Chi Minh City needs at least 1 billion USD a year to develop its infrastructure from now to 2015 and is calling for investors into the field.
In such a bid, the municipal authorities organised a conference on Dec. 11 introducing projects in need of investment, including the upgrade of six sections of national highways and the construction of seven inter-region expressways and four urban expressways.
The economic hub also plans to develop six metro routes with 107 km in total length plus three tram routes with 35 km in length and build about 10 waste water treatment plants and several water supply stations.
At the conference, the municipal authorities said investors into infrastructure will be given exemption or reduction in corporate income tax, land lease and import tariffs for equipment and materials used in those projects.
Source: VNA
Deputy PM launches construction of Da Lat complex
Deputy Prime Minister Hoang Trung Hai ceremonially broke the ground to begin construction of the Da Lat cultural and urban complex in the resort city of Da Lat on Dec. 12.
The project, with investment capital of approximately 3.5 trillion VND (205.8 million USD) will cover 19.7 ha of land in a valley next to Xuan Huong lake in central Da Lat.
The complex will contain a park, three, four and five-star hotels, an office building, apartments, villas and other facilities.
The investor, the Da Lat Real Estate Joint Stock Company, said the project is expected to help improve urban planning standards in the city, as well as ease the demand for luxury apartments and villas.
The first phase of the project is scheduled to be completed by 2011 with the opening of the park and villas, and the second phase, by 2015 with the hotels and office building becoming operational.
Source: VNA
First oil refinery to sell all products
VietNamNet Bridge - The PetroVietnam Corporation (PV Oil) has announced that it is building oil storage facilities and a distribution network to enable the sale of 3.2 million tonnes of products from the Dung Quat oil refinery.
The nation’s first oil refinery in the central province of Quang Ngai is scheduled to commence operations by the end of next year.
PV Oil said that its storage system will include oil tanks with total volume exceeding 780,000 cu.m., as well as an international transit and reserve warehouse with a capacity of 1.8 million cu.m.
Its development plan will enable the corporation to store 1.2 million cu. m. of all grades of oil by 2009, fully meeting the Dung Quat refinery’s storage needs.
The business is also expanding its nationwide distribution network to 2,825 sale points by 2009 and 3,620 sale points by 2010.
It is taking steps to increase its overseas market share by opening branches and representative offices in Cambodia , Laos , Thailand , Singapore , Venezuela , the United Arab Emirates and the Great Britain .
The corporation has signed contracts with the Vietnam Air Petrol Company (Vinapco) regarding the sale of all aeroplane fuel produced by the Dung Quat refinery.
Source: VNA
ADB grants highway construction loans to Vietnam
VietNamNet Bridge - The Asian Development Bank (ADB) signed agreements with the State Bank of Viet Nam (SBV) on Dec. 12, granting a 26 million USD loan to Vietnam for the implementation of three highway construction projects.
The three highway projects include a 120-kilometre highway from Hanoi to Lang Son, a 120-kilometre highway from Ha Long to Mong Cai and the 60-kilometre Ben Luc – Long Thanh highway, an integral section of the Eastern Economic Corridor of the Greater Mekong Subregion (GMS).
The loan also aims to help Vietnam Highway Investment and Development Company, that will be responsible for carrying out the projects, to enhance its operational and management capacities.
ADB has also agreed to provide 1.5 million USD in non-refundable aid from the Japan Special Fund for the Ben Luc – Long Thanh highway project, as well as additional technical assistance worth 1.5 million USD for the designing of the other two highways.
Speaking at the signing ceremony, SBV’s Governor Nguyen Van Giau highlighted the ADB’s support for Vietnam and said that the construction of the highways will not only contribute to the development of key economic regions in the country, reducing traffic congestion and the number of road accidents, but will also help to improve the trade relationship between Viet Nam’s northern provinces and China’s Guangxi province.
ADB’s Country Director for Viet Nam , Ayumi Konishi, affirmed that the bank would continue to provide financial and technical assistance for the construction of Vietnam ’s highways in the future.
Source: VNA
Friday, December 12, 2008
PM approves foreign-funded projects
The Prime Minister gave his approval to a project to build and upgrade the drainage and sewerage treatment systems in Quang Tri town, Quang Tri province on December 10.
The project requires total investment capital of 6 million EUR, including over 5 million EUR in preferential credits from the Norwegian Government.
The PM also approved another project to develop the urban transport network in Hai Phong city, which is to be financed by the World Bank.
This project, worth more than 240 million USD (approximately 185 million EUR) aims to help Hai Phong city to upgrade its public transport services and increase traffic safety, enhancing capacity of the municipal traffic management institutions.
Source: VNA
Thursday, December 11, 2008
WB, ADB to lend $110 mln to Vietnam
The World Bank (WB) and the Asian Development Bank (ADB) will offer a combined credit of US$110.3 million to help Vietnam improve its agriculture, reduce poverty and rebuild rural infrastructure damaged by typhoons.
According to an agreement signed in Hanoi Tuesday, the WB will loan $59.8 million to help Vietnam improve its agricultural competitiveness.
The loan, funded by the International Development Association (IDA) – the WB’s concessional lending arm for low-income countries – will be used to help smallholding farmers in eight central Vietnamese provinces through the Agriculture Competitiveness Project.
The funds will also be used to help smallholding farmers access markets through the provision of technology services, public infrastructure for agriculture, and will facilitate farmer organizations and linkages to agribusiness.
Meanwhile, the ADB will provide a $25 million loan to help Vietnam carry out policy reforms for its poverty reduction program in cooperation with a number of other development partners, according to a press release Tuesday.
The ADB will also offer $25.5 million in supplementary financing to an existing emergency assistance loan to Vietnam for the rebuilding of rural infrastructure severely damaged by typhoons and storms in 2005.
The project was initially approved in 2006 by ADB with a loan of $50.97 million. However, high inflation has increased the cost of civil works, materials and labor. Additional damage to rural infrastructure caused by typhoons in 2006 and 2007 has contributed significantly to cost overruns.
The supplementary ADB funding will ensure completion of the project, which targets 10 of the most badly affected provinces in Vietnam’s northern and central regions.
Source: TN
Tan Tao seeks contractors for $7.7 bln power plant
Tan Tao Investment Industry Corp. Wednesday opened up the bidding for construction engineers for a US$7.7 billion power plant and seaport in the southern province of Kien Giang.
The Ho Chi Minh City-based industrial park builder and operator, also known as ITA Group, said the complex will be located in Kien Luong Town and comprise Kien Luong 1 and Kien Luong 2 power plants and the Nam Du deep seaport.
Construction of Kien Luong 1 plant will begin next year at an investment of $2.5 billion, said Tan Tao’s vice president Nguyen Tuan Minh. Its capacity will be between 1,200-2,000 megawatts with initial generation of 600 megawatts by late 2013.
In an interview with Bloomberg, Minh also said that the complex would supply a total 4,400- megawatts after its completion.
The plant will require about 3 million tons of coal imported from Indonesia, Australia and Russia in the first stage, according to Minh.
The UK's International Power Corp., Japan's Sojitz Corp., and Kyushu Electric Power Co. are Tan Tao Investment's strategic partners who will help secure loans and seek appropriate technology for the project, Minh said.
The plants, about 300 kilometers (186 miles) from Ho Chi Minh City, falls under a government program that guarantees up to 80 percent of the loans earmarked for investment, Minh said, adding that the project will be the nation's largest thermal power project by a private company.
ITA group is involved in infrastructure, industrial parks and power projects like the Tan Son Nhat Express Way, Nam Na 3 Hydro Power and Long An Water plants.
Source: TN, Bloomberg
New grade-A building for HCMC
Centec Tower, the first new grade-A office building in Ho Chi Minh City since 1999, will open in April next year, Sao Phuong Nam (Southern Star) Corporation said in a statement.
Space in the 23-story building, at 72-74 Nguyen Thi Minh Khai Street in HCMC’s District 1, will be leased for US$57-65 a square meter a month, according to Chris Currie, head landlord representative of CBRE Vietnam.
Source: thanhnien
Vietnam joins efforts to ensure human rights, president says
Vietnam, as a member of the international community, has been participating in concerted efforts to ensure and enforce human rights, President Nguyen Minh Triet said Wednesday.
President Triet made the statement as he gave a message of congratulations to UN Secretary General Ban Ki-moon during a ceremony marking the 60th anniversary of the adoption of the Universal Declaration of Human Rights.
Vietnam, Triet said, believes that the lofty values contained within the Universal Declaration of Human Rights would continue to be a foundation for cooperation, mutual understanding and trust among countries in the 21st century and beyond.
The country’s success in reducing poverty, improving the living conditions of its people and creating a more prosperous society were concrete outcomes of the process of building and promoting democracy in the country, he said.
Meanwhile, Vietnamese Minister for Justice Ha Hung Cuong Wednesday described the two-day Bali Democracy Forum, which opened Wednesday in the Indonesian resort island of Bali, as a good chance to share opinions and experiences in promoting democracy.
Close to 200 government officials from 32 Asian countries, including Indonesian President Susilo Bambang Yudhoyono, and delegates from eight observing nations in Europe and America attended the event.
Source: VNA
Vietnam to spend $143.6 mln on climate change program
Vietnam will set aside VND2.37 trillion (US$143.6 million) between 2009 and 2015 to address climate change, according to the Ministry of Natural Resources and Environment.
Under a national target program recently approved by Prime Minister Nguyen Tan Dung, the money, half from foreign funds, will be spent on assessing climate change impacts in Vietnam, identifying response strategies and developing a science technology program on the issue.
It will also be used to increase the capacity of organizations and institutions, raise awareness and develop human resources and action plans.
According to international nongovernmental organizations, implementation of climate change programs at full capacity is needed by all sectors at every level to ensure an appropriate response and behavior change to cope with inevitable impacts.
“Strong leadership, multi-stakeholder and cross-sectoral cooperation and coordination are essential to addressing the diverse impacts and causes of climate change,” they said.
In order for Vietnam to mitigate climate change, it should implement more sustainable agricultural production systems such as organic agriculture, rice intensification and biogas that reduces chemical inputs and waste and reduces water use.
Vietnam is among the ten countries most vulnerable to climate change, according to a recent Oxfam report.
Annual temperatures here rose by 0.1 degrees centigrade per decade between 1939 and 2000, and between 0.4 and 0.8 degrees centigrade in its three main cities from 1991 to 2000.
The sea level has risen between 2.5 to 3.0 centimeters per decade over the last 50 years, with regional variations, said Oxfam, concluding that Vietnam is one of the top two countries in the world most at risk from a one meter rise in sea levels by 2100 and the most at risk in East Asia.
Rising sea-levels, more intense typhoons, higher temperatures and increased flooding and drought threaten to drag millions of Vietnamese people back into poverty, the report said.
Source: thanhnien
China, Vietnam consolidate investment links
The Chinese government attaches great importance to increasing its investment ties with Vietnam , particularly with regard to turnkey projects, a representative of the Chinese Embassy in Vietnam said during a press briefing in Hanoi on Dec. 10.
Sharing this view, Chinese Trade Counsellor Hu Suo Jin pointed out that, since the two countries established diplomatic ties in 1991, Vietnam and China have recorded a total of 10 billion USD in turnkey contracts. Vietnam is now China ’s second largest turnkey project market, he said.
The Chinese Ministry of Trade will organise an exhibition featuring mechanical engineering technology in Hanoi between Dec. 11-13, he added, saying he hoped that the exhibition would offer opportunities for businesses from both countries to stimulate investment cooperation and coordination to help cope with the global financial crisis.
More than 40 Chinese businesses involved in the construction, engineering and equipment manufacturing industries will be present at the exhibition, showcasing the latest in advanced technologies, materials and equipment for the civil engineering, power, telecom and irrigation sectors.
Vietnam and China have experienced rapid development in trade cooperation and China has become one of Vietnam ’s leading trade partners.
During the first ten months of 2008, the two countries’ bilateral trade turnover surpassed 17 billion USD, a year-on-year increase of 43 percent and 1 billion USD more than 2007’s figure.
The figure is expected to hit 21 billion USD for the whole year.
Source: VNA
Govt approves additional central hub
The Prime Minister has signed off a project regarding Chan May-Lang Co economic park, in the central province of Thua Thien-Hue , adding an additional economic hub to the central region to join the Dung Quat economic zone in Danang city.
Once completed in 2025, the 27,108 ha economic park will serve as a major port city to provide deep-water seaport services and handle shipments of cargo for the key central economic zone.
The Chan May urban area and other key centres, such as those involved in commerce, financing, information, healthcare and training, will eventually occupy more than 1,500 ha near the banks of the Bu Lu and Thua Luu rivers and at the foot of Phuoc Tuong mountain.
The Prime Minister has signed off a project regarding Chan May-Lang Co economic park, in the central province of Thua Thien-Hue , adding an additional economic hub to the central region to join the Dung Quat economic zone in Danang city.
Once completed in 2025, the 27,108 ha economic park will serve as a major port city to provide deep-water seaport services and handle shipments of cargo for the key central economic zone.
The Chan May urban area and other key centres, such as those involved in commerce, financing, information, healthcare and training, will eventually occupy more than 1,500 ha near the banks of the Bu Lu and Thua Luu rivers and at the foot of Phuoc Tuong mountain.
Source: VNA
Vietnamese businesses in Germany look home for opportunities
The Association of Vietnamese Businesses in Germany met with a visiting delegation from the Bank for Investment and Development (BIDV), led by its Vice General Director Hoang Huy Ha in Berlin on Dec. 9.
The two sides exchanged views on the future prospects for 8,000 businesses run by overseas Vietnamese in Germany , including 200 companies that specialise in import-export.
They discussed avenues of opportunity for cooperation between Vietnamese businesses in Germany and BIDV and other businesses in Vietnam .
The Duc-Viet (Germany-Vietnam) Company of the Association of Vietnamese Businesses in Germany and BIDV are partners in a joint project to construct a Duc-Viet urban area in Xuan Phuong, Hanoi .
The Association of Vietnamese Businesses in Germany , officially launched in September 2006, has established close ties with many provinces, cities and partners in their home country.
The association is carrying out a number of joint venture projects in central Binh Thuan province, HCM City and Hanoi , and is eager to expand the scope of its cooperation with domestic partners, as well as helping Vietnamese businesses at home and in Germany to establish economic links with one another.
Source: VNA
Provincial Competitiveness Index 2008: Da Nang ranks first
VietNamNet Bridge – The Provincial Competitiveness Index 2008 (PCI 2008), which was announced this morning in Hanoi, partly reflects the dull economic panorama this year.
The number of provinces which are listed as having very good economic management quality is less than last year while the number of localities with low economic management quality is higher. The two provinces of Binh Dinh and Vinh Long have been ousted from the very good group while the group of provinces with low competitiveness indexes has increased from 4 to 6 members.
Reductions of points occurred most often in the two fields of labour training and policies to develop the private economic sector, reflecting businesses’ displeasure with public service quality and the administration of local leaders.
A representative of the Vietnam Chamber for Commerce and Industry (VCCI), Tran Huu Huynh, said that these numbers show the negative changes of PCI 2008. Huynh said the index was complied based on surveys conducted up till May 2008. At that time, inflation was just beginning. If the index had been compiled based on current surveys, the results would have been different.
VCCI Chairman Vu Tien Loc said despite progress related to business registration (from 15 days to 12.25 days), taxation policy-related improvements and others, the provincial business environment still faces three problems: administrative formalities, labour and infrastructure.
Troublesome problems associated with administrative formalities increase compared to 2007 with 22.99% of surveyed businesses saying that they spent 10% of their time on this and 22.71% saying that unofficial fees caused difficulties for their business.
Labour and human resources continue to be a problem with just 18.5% saying they were satisfied with labour quality. Infrastructure is also a burden on businesses. Each company lost 7.5 days of work and 71% of production businesses were affected by poor infrastructure. Businessmen also complained a lot about power cuts.
There are changes on the PCI 2008 ranking list. Binh Duong loses its top position that it held for three consecutive years to place second, after Da Nang. Vinh Phuc, Vinh Long, Dong Thap and Long An occupy the following positions. Dien Bien stands at the bottom, replacing Dak Nong. Above Dien Bien are Bac Kan and Bac Lieu.
The new feature of PCI 2008 is a comparison of provinces’ previous positions on the list, through which one can see the progress of Ca Mau, Long An and Ha Nam.
US Ambassador to Vietnam Michael Michalak said PCI 2008 is “the voice of businesses”, as surveys are conducted of 7,820 companies from all 64 provinces and cities.
The index is a way for provinces and cities to realise their weakness and strengths to promote reforms and also a reference for international agencies in defining priority for their aid.
The PCI has been annually released by the VCCI and the Vietnam Competitiveness Initiative project (VNCI) since 2005.
FDI – implemented and registered figures
VietNamNet Bridge – By early November 2008, registered foreign direct investment (FDI) in Vietnam had hit $61 billion. According to the Foreign Investment Agency under the Ministry of Planning and Investment, the figure may reach $65 billion for the whole year. However, FDI forecast for 2009 is merely $30 billion.
Will the FDI in Vietnam in 2009 fall due to the world economic slowdown, Vietnam being less attractive, or Vietnam refusing FDI projects?
First of all, it has to be remembered that Vietnam’s conception of FDI is different from the rest of the world’s. While Vietnam talks about registered and implemented FDI, the world prefers realised FDI.
Registered FDI is the total FDI registered in investment licences, including equity capital and credits. Equity capital includes foreign capital and capital contributed by domestic partners. Credits include loans from foreign and local banks.
Implemented FDI is the implemented capital, comprising foreign and local capital. The registered and implemented FDI is compiled by the Ministry of Planning and Investment.
Realised FDI is the real flow of foreign capital invested in Vietnam and it is shown in the international balance of payment. This figure doesn’t include capital of local partners or local banks. This figure is prepared by the State Bank of Vietnam (SBV).
To see the differences that these three different measurements can produce, let’s make a comparison: In 2005, Vietnam announced registered FDI of $6.8 billion and implemented FDI of $3.3 billion. However, statistics of the Association of Southeast Asian Nations (ASEAN) showed that FDI in Vietnam was only $2.36 billion. Three different numbers that reveal three quite different views about FDI.
According to the 2005 statistics of the ASEAN, Vietnam accounted for 15% of the total population of the ten ASEAN countries but it made up just 4.5% of the total FDI flow into the region (the figure is realised FDI, not registered FDI).
High numbers favoured
According to the Foreign Investment Agency, the gap between registered FDI and implemented FDI is increasing. It is similar for the gap between implemented and realised FDI. The rate of local capital is increasing, with many FDI projects based on capital contributed by state corporation and credits from local banks.
It is clear that local capital and local credits, which are not foreign capital, are added to FDI statistics. It is quite easy to understand this add-on. To all agencies from management bodies to investment promotion agencies and local governments, high numbers mean great achievement and pride in the attractiveness of the investment environment.
Investors also benefit from high figures. It is easier for real estate projects with a lot of capital to be granted larger land plots. When real estate prices in Vietnam were at the highest level in the world, the land area allocated to investors became an attractive “option”. If real estate prices climb highly, investors will implement their projects. If the prices are low and they can’t raise capital, they will allow their land to be revoked without paying any expenditures.
When capital raising is difficult, investors of big projects can easily ask for extensions for implementing their projects. And land, thus, is still hold.
Therefore, the number of real estate projects has suddenly increased. In the January-October period of 2008, real estate projects had registered capital of more than $22 billion, compared to nearly $19 billion in the 1998-2007 period.
Investment in processing industry drops
Registered FDI in real estate, heavy industry (steel, oil and gas) projects is increasing highly. These are projects that don’t create many jobs. Meanwhile, FDI in processing, labour-intensive projects (light industry, food processing, agro-forestry-fishery projects) is falling.
Is the attractiveness of Vietnam’s labour cost down or the attractiveness of real estate and heavy industry up?
In any case, the registered FDI figure is not meaningful in making policies. Especially, in the global financial crisis, it is more difficult for big projects to get access to capital sources and more easily for them to be cancelled.
Vietnam economy in good shape
VietNamNet Bridge – Speaking at a ceremony, held in Tokyo on Wednesday, to release a new World Bank report about East Asian economies, Vikram Nehru, the WB’s chief economist for East Asia and the Pacific, advised the economies that have a strong reliance on foreign investment to be cautious to avoid risks.
Nehru said the world is now in the most serious financial crisis in history, which is affecting even countries with good management capability. However, Vietnam has taken suitable measures to deal with difficulties and stabilize its economy.
While East Asian countries have entered the current crisis substantially better prepared than they were for the 1997 Asian financial crisis, none have been spared the full fury of the global economic storm, says the WB’s latest six-month assessment of the East Asia and Pacific region’s economic health.
The report notes that the downside risks to East Asia are substantial in the near-term, but highlights that countries will be better positioned to deal with the crisis if they are able to maintain macroeconomic stability, shift exports to faster growing regions in the world, substitute external with domestic demand, and continue with structural reforms to strengthen competitiveness.
According to the WB, economic growth in all East Asian countries, except for Malaysia and Indonesia, was slowing down before the crisis reached its peak in mid-September. Despite efforts to encourage demand in many countries, economic growth is anticipated to continue slowing down in 2009. Despite the slowdown, East Asia will contribute to approximately one-third of total global growth in 2008.
World Bank Vice President for the East Asia and Pacific region, Jim Adams, applauded East Asian governments for their swift and effective policy interventions to avert the worst impacts of the global crisis so far.
"Thanks to the quick action of policy makers from virtually every East Asian country, banking systems have been able to deal with the crisis so far and in a number of countries, economic stimulus packages are being put in place. These actions are helping East Asia to continue playing a key stabilizing role and are acting as a growth pole for the global economy," Adams said.
"Despite the difficult road ahead, those countries that sustain sound policies pursued thus far and tackle new challenges decisively will be the ones to emerge in a strengthened position when the global economy begins to recover," said Nehru.
With regards to Vietnam, Nehru said Vietnam has had an outstanding economic development period. In the difficult situation, the country had suitable measures to stabilize its economy.
In Hanoi, the WB Acting Country Director, Martin Rama, said the global economic downturn would hit Vietnam but at slower pace than other economies. But the expert emphasized that Vietnam needs to take flexible and quick responses to possible impacts.
Vietnam is perceived as reacting well to the crisis with its impressive performance this year, demonstrating the resilience of its economy, Rama said.
The growth of the economies of developing East Asia countries will slow down to 6.7% in 2009 and 7.8% in 2010, from 8.5% in 2008, as the impact of the financial crisis reaches the region, the latest economic update of the WB said.
The WB’s report forecasted approximately a 6.5% economic growth rate for Vietnam in 2009, which is similar to the Vietnamese Government’s goal. However, Martin Rama said that the figure may be closer to 6% or just over.
Related to the Vietnamese Government’s $1 billion package to stimulate production and consumption, the WB said the spending may increase. Rama said the most important thing for Vietnam is that it has to “take this opportunity to perform financial reforms.”
The report warns that the region’s most vulnerable countries are those with more open capital accounts, large non-resident holdings of equities, and a strong reliance on foreign portfolio investment. According to WB, the outside capital flow accounted for 30% of Vietnam’s GDP in 2006.
Poverty rates are likely to fall further in 2009, declining to 10.68 percent for developing East Asia as a whole, compared with the 10.36 percent projected earlier this year. While the number of poor people in the region will continue to decline, an estimated 5.6 million more people would have emerged from poverty next year if not for the slump.
Developing East Asia includes China, Indonesia, the Philippines, Thailand, Vietnam, Cambodia, Lao, Mongolia, Papua New Guinea and the island economies of the Pacific.
Source: VNN
Wednesday, December 10, 2008
Hanoi flooding a construction lesson: official
Hanoi authorities and urban planners often “ignore the infrastructure factor when approving the city’s urban projects” and floods due to heavy rains are the consequence.
The argument was put forward by Ngo Trung Hai, deputy head of the Institute for Urban and Rural Zoning under the Ministry of Construction.
How do you evaluate Hanoi’s urban planning given the recent flooding?
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Ngo Trung Hai: The floods show the worst flaw in the city’s urban planning and the heavy price it has to pay.
According to a plan approved in 1998, Hanoi was supposed to prevent flooding with around 40 lakes – more than 10 percent of the city’s area – and four rivers running into the Red River, but the city’s development has meant that those are not enough. Meanwhile the city’s drains are surely only 40 to 50 percent as big as those designed in another plan to improve the city’s drainage system. It’s easy to understand how roads can turn into rivers.
But even according to the design, Hanoi’s drains can only handle rainfall of 170 millimeters a day or less. How can it be blamed for the flooding?
- Of course the drains were not designed for the maximum rainfall, because it would be very costly. But in case of such heavy rains, the city should have emergency drainage systems or measures to control the water flow. For example, instead of waiting for the water to flow outhward into Yen So Lake, the city authorities should save time by driving it northward into the Red River. Hanoi, just like most of our cities, is unable to do that.
The recent flooding hit the city’s new construction works heavily while the ancient ones and those built by the French many years ago are untouched, what’re the reasons?
- There’re two reasons. First, the old ones were built on high areas. Second, the new urban areas have very low-quality infrastructure. In many countries developers aren’t allowed to sell houses when the infrastructure in that area is unfinished. In our country, they are, and the residents have to suffer afterward. The National Conference Center was also hit because it’s too low and should be raised by about one meter or so.
How important is infrastructure to urban planning?
- It should be the primary concern in urban planning but actually it’s not. Recently construction inspectors have found many urban projects lack detailed planning on infrastructure but they are still approved by Hanoi authorities. It’s against construction laws.
What do you think Hanoi should do to prevent flooding?
- It should enlarge lakes, canals and small rivers. It may even have to remove some slums to do this. Recently in Seoul a river was dug to replace a highway while the Netherlands is going to destroy three roads in Amsterdam to give space to waterways.
According to the Construction Ministry, Hanoi has been expanded to have more land for urban development. Do you think the new Hanoi can avoid floods?
- The Institute for Urban and Rural Zoning and international construction experts have suggested that the new urban areas should reclaim land from rivers or lakes. Then the new areas will not be flooded
Source: thanhnien
Foreign investment should focus on effective sectors, academics advise
VietNamNet Bridge - Vietnam needs to ensure foreign investment is directed to sustainable industries and the country needs to do more to train rural workers.
These are some of opinions voiced by international and local scholars at a three-day conference on Vietnamese studies, “Vietnam: Integration and Development”, which ended in Ha Noi on December 7.
At the opening ceremony, Vietnamese Vice President Nguyen Thi Doan said the Vietnamese government required in-depth studies to scientifically map its strategies and policies
The country was facing great challenges from climate change and the global financial crisis as it worked on socio-economic development, she said.
Ms. Doan expressed her hope that Vietnamese and foreign scientists will boost their cooperation to develop Vietnamese studies into a strong science.
Dr. Phung Xuan Nha of the Ha Noi National University said foreign direct investment (FDI) had made great contributions to the country’s economic growth. However, it has not enhanced the quality of the country’s growth and had caused severe environmental pollution.
FDI, therefore, must be used to benefit both partners - Vietnam and foreign investors, he said.
The government needs to limit investment licenses in sectors that don’t boost exports but exhaust the country’s material resources and pollute the environment, such as heavy industry, real estate and construction of golf courses, Dr. Nha added.
Former deputy prime minister Vu Khoan said policy makers, management agencies and enterprises must be more concerned about the latest developments and forecasts for the global economy because the situation was changing so unpredictably.
Scholars said the country’s international economic integration and globalization process has boosted Vietnam’s development but it had badly affected farmers and poor urban inhabitants.
Dr. Duc Vuong from the Institute of Science Studies for Talents and Human Resources said Vietnam’s rural labor force was not being used to its full potential. About 90 percent of farmers and rural management authorities had not received adequate training, he said.
At the same time, Vietnam’s agricultural land was dwindling. The government reclaimed 72,000 hectares of farming land per year from 2000 to 2007 for industrial development, putting many farmers out of work, he added.
Dr. Vuong said the government should improve its financial polices, develop infrastructure, modernize education and ensure its workers were well-trained, especially those in rural areas.
A study by Eren Zink from Sweden’s Uppsala University revealed that young overseas-educated Vietnamese scientists, considered vital to the nation’s development, were not given favorable working conditions at Vietnam’s national science institutes.
The conference, which is the third of its kind, focused on practical issues facing Vietnam in the era of globalization and international integration.
The conference, organized by Ha Noi National University and the Vietnam Social Science Institute, attracted 700 local and 200 foreign scholars from 23 countries and territories, delivering 500 reports dealing with a wide range of aspects, including new issues relating to Vietnam’s agriculture and rural development, natural resources and the environment.
Source: SGGP
Japan suspends ODA grant, Hanoi cuts investments
VietNamNetBridge – Director of the Hanoi Department of Planning and Investment Nguyen Van Suu talked about the difficulties ODA-funded projects would face when Japan suspended its ODA pledges.
Japan has announced the suspension of its ODA projects in Vietnam, including projects for Hanoi. Did the Hanoi Department of Planning and Investment anticipate this situation?
We have not officially been informed about the suspension of Japanese ODA-funded projects in Hanoi.
At the Consultative Group Meeting last week, Minister of Planning and Investment Vo Hong Phuc said that two of three big projects which Japan had suspended grants of ODA for are the water drainage project, phase two, and the metro project in Hanoi. What will Hanoi do to continue pursuing these projects?
Japan has informed neither the Hanoi Department of Planning and Investment nor the Hanoi People’s Committee yet. The Japan International Cooperation Agency (JICA) and the Japan Bank for International Cooperation (JBIC) haven’t talked with us about this. When they officially confirm a reduction in capital or suspension of capital grant, we can work out alternative plans.
The US, Europe and Japan are facing difficulties due to economic slowdown. If Japan reduces its assistance for Vietnam, we will be affected because if we don’t have money, how can we invest in projects? So projects may slow down, be suspended or their scales be narrowed.
Of the five key works to celebrate the 1000th anniversary of Thang Long-Hanoi (Lang-Hoa Lac highway, Vinh Tuy Bridge, Hanoi transport capability improvement projects), some are funded by Japanese ODA capital. If Japan’s ODA is cut down, how will these projects be dealt with?
We still have to finish these projects. We are trying to complete the construction of Vinh Tuy Bridge before October 10, 2010. There are some problems associated with the Lang-Hoa Lac highway project. The recent historic flood seriously hit this project and it may affect the pace of construction.
Has the JICA-funded project to upgrade the Yen So pumping station been affected by problems related to Japanese ODA?
The second phase of this project has started. Generally, Hanoi gives priority to water drainage. The project will be carried out as planned.
Source: Dan Tri
Seminar discusses urbanisation in Southeast Asian
An international seminar took place in Ho Chi Minh City on December 9, focusing its discussion on urbanisation trends in Southeast Asia ’s big cities and their environs.
Reports presented at the seminar introduced a number of urbanisation models in Southeast Asia, including those of the region’s biggest cities, including Bangkok ( Thailand ), Manila (the Philippines ), Jakarta ( Indonesia ) and Ho Chi Minh City ( Vietnam ).
They said big cities play a key role in and have made great contributions to the development of national economy.
The reports also pointed out the growingly important role of big cities’ environs, saying that these areas house a large part of population and support trade and industrial activities in big cities, where environment and natural resources have been increasingly degraded.
Claude De Miras, Director of France’s Institute for Research and Development, said that urbanisation in Vietnam took place very quickly and actively and recommended the country design a macro strategy on urbanisation to cope with its adverse impacts, including environmental degradation.
Source: VNA
Construction exhibition opens in Hanoi
More than 100 businesses and management agencies are taking part in the Vietnam Construction, Building Materials and Real Estate Exhibition (Consmat 2008), which opened in Hanoi on Dec. 10.
Deputy Minister of Construction Nguyen Tran Nam said Consmat 2008 is a chance for producers and traders in the sector to introduce new products and technologies and to seek partners.
At 200 pavilions of Consmat, businesses show their products and services, including urban plans; housing, office building, hotel and industrial zone projects; construction technology, and a wide range of building materials.
Exhibits also include equipment for treatment of water, drainage, and waste, interior decorations, and firefighting and security equipment.
During the five-day exhibition, seminars on new construction materials and a programme for businesses’ bilateral contacts will be held.
An award ceremony will be organised to honour outstanding businesses and high-quality products.Source: VNA
Tuesday, December 9, 2008
Concern about quality of traffic construction consulting services
VietNamNet Bridge – A shortage of qualified labour, combined with the low quality of services, supplied by traffic construction consulting companies is of great concern to transportation authorities.
There are more than 80 companies supplying transport consulting services, according to the Transport Construction and Services Management Department (TCSMD). Despite the large number of companies, however, there are only about 6,000 employees – equivalent to the workforce of a medium-sized traffic construction company – working in this field. The number of professional engineers accounts for 60 per cent of that figure.
Currently, Transport Engineering Design Inc (TEDI) is the country’s only company operating under the parent-subsidiary model with 10 subsidiaries and 1,500 workers and engineers. Another few companies have 100-200 employees.
Le Thanh Ha, deputy director of the TCSMD, said that there were too many shortcomings in the consulting services provided to transport infrastructure projects from the surveying, technical designing phases and supervising phase.
These shortcomings are blamed for cost increases and delays in construction projects, Ha said.
After completion, many projects are already out-dated and pose problems related to transport safety, which has a negative influence on the sector’s development targets, he added.
Ha also said that some projects even violated construction procedures, because consultants did not clearly understand regulations on construction and investment management.
Breakdowns in Cai Lan Port, as well as the Thanh Tri and Can Tho bridges have exposed the lack of quality in advisory services and management oversight in this field, he continued.
Deputy Minister of Transport Ngo Thinh Duc said that given the current quality and quantity, it is likely that domestic transport consultants will be forced to concede their market shares to foreign counterparts. Meanwhile, in the next few years, the number of transport projects is expected to increase, especially large scale projects such as the North-South highway.
The fact that there were too few people for the volume of projects allowed domestic companies the luxury of picking and choosing projects, said deputy head of the Road Transport Department Vu Bay.
Even when they had to concede one part of their market share to foreign counterparts, domestic firms remained the main consultant suppliers of transport projects, he said.
Nguyen Ngoc Long, deputy head of the State steering board for key transport projects, said that consulting companies must develop human resources to remain competitive.
The lack of qualified engineers is a huge problem. Most competent and experienced engineers were promoted to management positions, which has led to a talent shortage for undertaking the technical work, Long said.
Ha added that the shortage also stemmed from unsuitable incentive policies and low salaries paid to consultants.
Foreign consultants working in transport projects using ODA funds were often paid six to 10 times more than domestic advisors in projects funded by domestic capital sources.
TEDI general director Pham Huu Son said that TEDI’s subsidiaries were State-owned companies; thus they were not allowed to take part in projects using ODA capital from the World Bank and the Asian Development Bank.
Son stressed that it was clear that much more attention should be paid to the sector, otherwise the domestic transport project consulting and supervising sector would become less and less competitive. Even worse, the quality of the transport projects would be in jeopardy.
Minister of Transport Ho Nghia Dung said the ministry always tried to meet targets on building groups of competent engineers, designers and consultants and has asked consulting companies in the transport construction sector to boost international co-operation, and apply advanced technology and knowledge to help build modern transport infrastructure.
Source: Viet Nam News
Japan road firm opens rep office in Viet Nam
VietNamNet Bridge – Major domestic roads will be built in Viet Nam by a leading Japanese company, Central Nexco Expressway Ltd Co, according to speakers at the opening ceremony of the company's first Viet Nam office yesterday.
Speaking at the opening ceremony, Deputy Minister of Transport Ngo Thinh Duc said: "The Vietnamese Government is prioritising transport infrastructure, especially expressways, which are still poor and out of date."
Duc added: "The government is encouraging the building of road traffic systems on highways to attract investors' attention."
He said that the expressway construction industry in Viet Nam was new and needed to be supported with advanced technologies and investment from experienced countries worldwide, such as, Japan.
Ambassador of Japan in Viet Nam Mitsuo Sakaba said: "Having the same idea on the important role of expressways in developing economies, the Japanese Government will assist Viet Nam on infrastructure and expressway building to reach the aim of industrialisation by 2020."
Nexco and Viet Nam Expressway Corporation (VEC) signed a Memorandum of Understanding (MoU) a year ago to share information, investment experiences and knowledge about expressway building in Viet Nam.
The chairman and Chief Executive Officer of Central Nexco, Hironori Yano, promised to co-operate and support partners to develop major roads in the future.
VEC is a State-owned company and operates in the fields of investment fund absorbing, construction management, operation, toll fee collection, maintenance and reinvestment. Established in 2005, Nexco is worth US$6 billion and controls more than 1,746 kilometres of road in Japan.
Source: Viet Nam News
New Phu Quoc airport holds key to island’s future
VietNamNet Bridge – Construction of the Phu Quoc International Airport which began last month is vital to the island’s development, local authorities have said.
Bui Ngoc Suong, People’s Committee chairman of Kien Giang Province – of which the island is a part – said he expected the new airport would help develop the local economy and tourism industry.
The airport is being built by the Southern Airports Corporation at a cost of 970 million USD. When completed in mid-2012, it will be able to handle B767 and B747-400 aircraft and up to 7 million passengers and 27,600 tonnes of cargo a year.
Suong said Phu Quoc was one of Vietnam ’s 12 biggest island districts of the size of Singapore , endowed with primeval forests, scenic landscapes and famous historical sites.
By September, the island had licensed 21 foreign and domestic projects with a total investment of 1.72 billion USD, mostly in tourism. But only three are operational now while most of the others have been tardy because of the poor infrastructure like roads, power supply, airport and ports.
In this context, Suong pointed out, the construction of the airport was vital to the island’s development since it would enable foreign investors to travel here to develop tourism and trade.
Island authorities have sped up detailed zoning plans, earmarking areas meant for tourism, urban development, and marine zones, to serve as a basis for developing infrastructure.
Under a master development strategy to turn Phu Quoc into a special economic zone, the Government has promised investors liberal land, tax, and licensing incentives.
Kien Giang authorities also plan to invest in infrastructure, especially for transport, like a trans-island road network. Construction of three trans-island routes at a cost of 320 billion VND (19.45 million USD) is under way and expected to be completed in the next two years.
The island is also set to build thermal and other power plants since the island now faces a severe electricity shortage that can badly affect its economic development.
To tap the potential of the new airport, the province has said it needed an estimated 5 trillion VND (303.95 million USD) by 2010 to build infrastructure to attract foreign investments.
The investment is likely to come from ODA funding, other foreign and domestic sources, and government bonds.
To support the island’s efforts, the province recently set up an investment management and development board to promptly settle problems with regard to investment procedures.
Source: VNA
Monday, December 8, 2008
HCMC infrastructure projects powering on
Work is continuing on two major Japan-funded infrastructure projects in the city, contrary to rumors sweeping the city that the projects had been halted by the suspension of Japanese aid loans to Vietnam.
Work was continuing on both the East-West Highway and HCMC Water Environment projects, HCMC Transport Department Deputy Director Le Toan said.
“I have not been informed by related authorities to halt the two projects,” said Toan, who was last month assigned to oversee the two projects. “I don’t think the situation is dire enough to stop the two projects but if it happened, it would be really bad for us.”
Toan replaced Huynh Ngoc Si, who was suspended on November 19 this year after being accused of taking bribes in exchange for helping Japanese Pacific Consultants International win consulting contracts on the project.
A Tokyo court last month heard Si received more than US$820,000 in bribes from PCI executives. The court was hearing evidence in the trial of the executives. Last week, Japan announced it was halting nearly US$700 million in official development assistance (ODA) loans to Vietnam until both countries had finished investigating the bribery scandal.
Toan said PCI is still consulting on the highway project while awaiting instructions from Prime Minister Nguyen Tan Dung. However, payments to PCI for its work on the HCMC projects had been halted.
A representative from Japanese contractor Obayashi Corporation, which is working on the East-West Highway Project, Sunday confirmed the project was continuing as normal, with most of the heavy work already completed.
“If the project was extended, the disadvantages would escalate for everyone involved,” he told Thanh Nien on condition of anonymity.
Head of the management division of East-West Highway Project, Vuong Hoang Thanh said the project was 65 percent complete.
Meanwhile, 97 percent of construction for two main packages of HCMC Water Environment Project’s first stage has been completed so far, according to the project’s management division head Dang Ngoc Hoi.
However, Hoi said more barriers would be erected on some streets in districts 5, 10 and 11 to carry out the work for the other packages. The barriers would remain in place until 2010, he said.
The East West Highway Project, which started in early 2005, became the city’s biggest infrastructure project when it attracted investment capital of VND9,863 billion (US$660 million); $428 million was Japan ODA and the remainder was funded by the HCMC government.
The 22-kilometer highway will run through eight districts. Work includes 16 bridges and the 1.5 kilometer Thu Thiem Tunnel being built under the Saigon River.
Meanwhile, the HCMC Water Environment Project’s first stage is to construct a sewage system on the lowlands of the canals of Tau Hu, Ben Nghe, Doi and Te.
PROGRESS OF THE TWO INFRASTRUCTURE PROJECTS
East-West Highway Project
• Calmette and Khanh Hoi bridges: due to be completed in January 2009
• Cha Va and Y bridges: due to be completed in March 2009
• Cat Lai roundabout (highway east’s end): due to be completed in 2010
• Highway opens for traffic due in late 2009
Water Environment Project (first stage)
• Street barriers due to be removed by late June next year on the streets of Tran Hung Dao, Ton Duc Thang, Tran Tuan Khai, Tran Dinh Xu, Nguyen Canh Chan and Nhieu Tam.
• More street barriers to be put up on Tran Binh Trong, Su Van Hanh, Chau Van Liem, Thuan Kieu and Ly Thuong Kiet streets.
• Dong Dieu Pump Station and Binh Hung Wastewater Treatment Plant in District 8 due to be completed in February 2009.
Source: thanhnien
Vietnamese businessman honoured by Laos
VietNamNet Bridge - Le Van Kiem, General Director of the Long Thanh Golf Company in Ho Chi Minh City was awarded the Labour Order, first class, of Laos on Dec. 5 in recognition of his contribution to assistance to the Lao War Veterans’ Association (LWVA).
Lieutenant General Nakhone Sisanom, President of the LWVA; and Lieutenant General Somphet Thipmala, Vice Minister of Defence attended the award ceremony in Vientiane .
In 2008, Mr. Kiem, who is also Vice President of the HCM City War Veterans Association, has spent hundreds of thousands of US dollars to build the LWVA office and houses for Lao war veterans and contribute to Lao fund for support of the poor.
Kiem’s assistance to Laos and a 1 billion USD project signed recently between the Long Thanh Golf Company and Vientiane city have contributed to strengthen friendship and cooperation between the war veterans associations of the two countries.
On this occasion, Kiem handed over three houses, built at a total cost of 15,000 USD, to three Laos war veterans in Khammouan, Sekong and Attapeu provinces.
Source: VNA
More investment in construction to prevent economic downturn
VietNamNet Bridge - The industrial production value has increased by 15.8-16 percent, but the construction industry has decreased by 2 percent.
The key task for 2009 that Prime Minister Nguyen Tan Dung urged ministries and departments to implement is to prevent economic depression. The solution is investment encouragement.
Minister of Planning and Investment, Vo Hong Phuc said that to prevent economic depression and achieve an industrial growth of 7.4 percent in 2009, Vietnam should directly encourage investment in construction and construction materials. It means that the country must consume all materials in stock and remove difficulties for businesses involved in the field.
What capital will be used for investment encouragement? Mr Phuc said the National Assembly (NA) has approved a State budget of VND112,000 billion, with allocations for provinces remaining at their current levels and those for the public investment sector decreasing.
The State will stop funding State-owned enterprises and only invest in public service corporations and businesses which get involved in generating electricity for the Central Highlands and developing railways and seaports.
The NA has also agreed to add VND6,000 billion to Government bonds. Vietnam should accelerate disbursement of Government bonds which is currently being implemented very slowly to ensure material consumption for businesses.
The Government has also demanded accelerating the disbursement of ODA capital which at present only meets 70-80 percent of donors’ requirements. If this is done it will enhance the capital flow.
Other key sources include the investment credit of State-owned groups and businesses, individual capital and foreign investment capital. The Government should create fabourable conditions for investors to disburse hundreds of billions of US dollars of FDI capital that has already been committed.
In terms of strengthening business in the private sector, Minister Phuc said that Government will provide more support to businesses and put the small- and medium-sized enterprise credit guarantee fund into operation as soon as possible.
Another issue drawing great attention of the Government is poverty reduction. This year due to the high inflation rate, the number of poor households rose. In the near future, the Government will approve a resolution on providing assistance to the 61 poorest districts, mainly in the northern mountainous and central provinces.
Minister Phuc emphasised that if poverty reduction is not given due attention, in the context of economic downturn, the real problem is sure to come home to roost.
Source: VNS
Vung Ro Oil Refinery plant plans postponed
VietNamNet Bridge – Construction of the Vung Ro Oil Refinery will be postponed, said Pham Ngoc Chi, Phu Yen Province People's Committee Chairman, at a recent provincial meeting.
Construction now would start at the beginning of 2009 instead of the end of this year as planned earlier, he said.
The postponement stems from a delay in the land clearance process. The province has yet to complete construction of the Phu Lac resettlement zone and the Hoa Tam New Administration Centre in order to provide housing for 5,100 displaced people.
Phu Yen People's Committee granted the investment licence for the Vung Ro Oil Refinery in November last year.
The US$1.7 billion project, with an investment capital of 51 per cent ownership by the British Technostar Management Ltd Co and 49 per cent by the Russian Telloil, will become the first wholly foreign-owned oil refinery to be built in the country.
Vung Ro Oil Refinery, the country's fourth, is expected to supply the domestic market with four million tonnes of petroleum products annually.
The project will be developed on a 200 ha inland area and 210 ha on the water's surface near Vung Ro Seaport in Tuy Hoa District.
Investors have also found stable supply of crude oil from the Middle East to increase product output.
The country's three other oil refineries are located in Quan Ngai, Thanh Hoa and Ba Ria-Vung Tau provinces.
When all four oil refineries are fully functional, their combined production output will total 20 million tonnes of petroleum per year through 2012.
Source: Viet Nam News
Vietnam to offer market-driven air service charge
Vietnam will allow its aviation sector to adjust its air transport and service charges in line with market prices as part of its fulfillment of WTO commitments.
The move is expected to be implemented as from this month as proposed in a report the Government has submitted to the National Assembly Standing Committee.
These changes will then be tabled to the National Assembly’s fifth session in May, 2009 so that they can be supplemented to the Law on Civil Aviation.
Source: VNA
Business opportunities in Vietnam remain unchanged, says asset manager
Vietnamese-Canadian asset manager Don Lam, who is working in Ho Chi Minh City has said business opportunities in Vietnam have not changed in the context of the global economic downturn.
“There has been great volatility this year but our view of the opportunity in Vietnam has not changed, we still see significant value and potential across the economy,” Don Lam told the Canadian Financial Post in a recent interview.
Vietnam had an enormous inflow of foreign investment in 2007 and this, combined with relatively free local money supply, lead to an overheating of the economy. However, the government has imposed a fairly comprehensive set of policies to cool the economy and slow credit growth, he said.
Vietnam, like every emerging market, will feel pressure from a global credit slowdown. However, it will also benefit from the strength of its agricultural commodities and because many of its manufactured products are not subject to big swings in demand. “The world still needs to eat and still needs affordable clothing,” he said.
According to Do Lam, the sectors where Vietnam can really compete with other countries in the ASEAN region or beyond to attract foreign investment in the long term are agribusiness, tourism and Vietnam’s relatively low labour costs.
Source: VNA
Malaysia to build ship hatch cover plant in Ben Tre
The Mekong Delta province of Ben Tre has licensed a Malaysian-invested project to build a ship hatch cover manufacturing plant at a total cost of 18 million USD in Chau Thanh district.
The plant, which will produce hatch covers for ships and other steel-based products at an annual capacity of 15,000 tonnes, is an investment of Vastalux-Anpha, a joint venture between Vastalux SDN-BHD of Malaysia and Anpha Trade and Service Co. Ltd of Ho Chi Minh City .
The JV said work will start soon on the 6-ha plant, which is expected to be put into production in July next year.
Source: VNA
Vietnamese enterprises receive Int’l Asia Pacific Quality Award
Deputy Prime Minister Nguyen Thien Nhan has expressed hope that more and more Vietnamese enterprises will participate in the Vietnam Quality Award and the International Asia Pacific Quality Award.
Addressing the awards ceremony held in Hanoi on December 7, Deputy Prime Minister Nguyen Thien Nhan highlighted efforts made by the Ministry of Science and Technology, the General Department of Standardisation, Measurement, and Quality and localities in supporting the Vietnam Quality Award.
Mr Nhan emphasised that over the past 13 years, the winning enterprises have established their position in both local and international markets by improving their quality and competitiveness.
Addressing the awards ceremony held in Hanoi on December 7, Deputy Prime Minister Nguyen Thien Nhan highlighted efforts made by the Ministry of Science and Technology, the General Department of Standardisation, Measurement, and Quality and localities in supporting the Vietnam Quality Award.
Mr Nhan emphasised that over the past 13 years, the winning enterprises have established their position in both local and international markets by improving their quality and competitiveness.
The deputy PM expressed hope that the organising board would continue to invite not only production and service enterprises but also enterprises involved in the health and education sectors to participate in the International Asia Pacific Quality Award.
This year, 117 enterprises have won the Vietnam Quality Award. Six enterprises that received the Vietnam Quality Golden Award and certificates of merit from the Prime Minister are Binh Long Rubber Company (southern Binh Phuoc province), the Vietnam Electric Cable Corporation (CADIVI), Khanh Hoa Yen Sao Company (central Khanh Hoa province), Viglacera Joint Stock Company (northern Quang Ninh province), Thanh Hoa Material - Pharmacy Joint Stock Company, and the Hai Duong Safe Water Co. Ltd.
The International Asia Pacific Quality Award went to Samsung Vina Electronics Co,Ltd and Minh Dung Veterinary and Medicines Production Co.,Ltd in Vietnam.
This year, 117 enterprises have won the Vietnam Quality Award. Six enterprises that received the Vietnam Quality Golden Award and certificates of merit from the Prime Minister are Binh Long Rubber Company (southern Binh Phuoc province), the Vietnam Electric Cable Corporation (CADIVI), Khanh Hoa Yen Sao Company (central Khanh Hoa province), Viglacera Joint Stock Company (northern Quang Ninh province), Thanh Hoa Material - Pharmacy Joint Stock Company, and the Hai Duong Safe Water Co. Ltd.
The International Asia Pacific Quality Award went to Samsung Vina Electronics Co,Ltd and Minh Dung Veterinary and Medicines Production Co.,Ltd in Vietnam.
Source: VOV
Sunday, December 7, 2008
Vietinbank to raise $65 million through IPO
The country’s fourth-largest lender by assets, state-run Vietinbank, said Friday it plans to raise at least US$65 million by selling 4 percent of its total capital in an initial public offering (IPO) later this month.
Vietnam Bank for Industry and Trade has set the minimum bid price at VND20,000 ($1.21) for each of its 53.6 million shares in the IPO on December 25 at the Ho Chi Minh Stock Exchange, it said in a statement.
Hanoi-based Vietinbank said the proceeds of its IPO would be used to raise its registered capital.
Vietnam Bank for Industry and Trade has set the minimum bid price at VND20,000 ($1.21) for each of its 53.6 million shares in the IPO on December 25 at the Ho Chi Minh Stock Exchange, it said in a statement.
Hanoi-based Vietinbank said the proceeds of its IPO would be used to raise its registered capital.
Separately, it said it has allowed its brokerage arm, Vietinbank Securities, to raise at least $8.7 million through an IPO next month by selling nearly 13.4 million shares, or 15 percent of the firm.
Saigon Securities is advising on the bank’s IPO, which is targeting domestic and foreign individual and institutional investors, the statement said.
Vietinbank's assets totaled VND194 trillion ($11.5 billion) in June-end, 11 percent higher than at the end of last year.
In September, the government allowed the bank to sell 20 percent of its shares to outsiders, including 10 percent to foreign strategic investors. It has said the bank could have a maximum of two foreign strategic investors.
One of Vietnam's three existing state-owned commercial banks, Vietinbank has delayed its IPO since October 2007, partly because the government worried that a wave of new shares would slow the small but fast-growing stock market.
Instead, the main Ho Chi Minh Stock Exchange has been among the world's worst performing stock markets this year, with the VN-Index slumping 67 percent in 2008, after a 23 percent rise last year.
Vietinbank's IPO comes almost exactly a year after Vietcombank became the first state bank to conduct an IPO, raising $652 million from selling a 6.5 percent stake. It has not yet announced a date for its listing.
Saigon Securities is advising on the bank’s IPO, which is targeting domestic and foreign individual and institutional investors, the statement said.
Vietinbank's assets totaled VND194 trillion ($11.5 billion) in June-end, 11 percent higher than at the end of last year.
In September, the government allowed the bank to sell 20 percent of its shares to outsiders, including 10 percent to foreign strategic investors. It has said the bank could have a maximum of two foreign strategic investors.
One of Vietnam's three existing state-owned commercial banks, Vietinbank has delayed its IPO since October 2007, partly because the government worried that a wave of new shares would slow the small but fast-growing stock market.
Instead, the main Ho Chi Minh Stock Exchange has been among the world's worst performing stock markets this year, with the VN-Index slumping 67 percent in 2008, after a 23 percent rise last year.
Vietinbank's IPO comes almost exactly a year after Vietcombank became the first state bank to conduct an IPO, raising $652 million from selling a 6.5 percent stake. It has not yet announced a date for its listing.
Source: Reuters
Vietnam eyes construction projects for pump priming
The government will lend most of its proposed US$1 billion economic stimulus package to feasible construction projects, Tuoi Tre newspaper has reported, quoting Minister of Planning and Investment Vo Hong Phuc.
The loans may focus on low-income housing, student lodgings and electricity plants, Phuc said, according to the newspaper.
The investment would help boost production of building materials, create more jobs and increase domestic consumption, all of which are showing signs of a slowdown, he said.
The loans may focus on low-income housing, student lodgings and electricity plants, Phuc said, according to the newspaper.
The investment would help boost production of building materials, create more jobs and increase domestic consumption, all of which are showing signs of a slowdown, he said.
Source: Bloomberg
Mekong fund closes US$5m investment
The Mekong Enterprise Fund II has completed an investment of US$5million in Digiworld Corporation, marking the eighth investment of the fund since it made its debut in June 2006.
"Viet Nam’s IT market has experienced impressive growth over recent years, and has strong long-term development potential. Digiworld is a leading distributor with an extensive distribution network and 10 years experience in the industry," Chris Freund, Managing Partner of Mekong Capital said.
He added that Digiworld, with its professional and systematic operations and strategic vision, would boost its well-established position in the country’s distribution market.
Digiworld CEO Doan Hong Viet said, "Digiworld chose the fund as its strategic partner to jointly build the company to be the top distributor for both suppliers and customers. We believe that with the assistance of the fund, Digiworld will also become one of the most attractive investment opportunities in terms of returns for potential investors."
Digiworld, founded in 1997, is the authorised distributor for Acer, HP-Compaq, Dell, Toshiba, Fujitsu, Lexmark, InFocus, and Logitech. 2007 marked a significantly successful milestone in Digiworld’s 10-year development when it reached VND1,000 billion ($57 million) in revenue.
It aims to generate VND5,000 billion in revenue by 2010. Digiworld runs offices and customer care centres in HCM City, Ha Noi and Da Nang.
The $50 million Mekong Enterprise Fund II, managed by Mekong Capital, is a private equity fund focusing on equity investments in unlisted companies.
Source: VNS
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