The Saigon Asset Management Corporation (SAM) signed strategic cooperation agreements on Dec. 16 with three local companies to increase the efficiency of investments in real estate projects.
Under the terms of a deal inked with the Phu My BOT Joint Stock Company (PMC), the two firms will join forces to provide consultancy services and encourage investors to pour investment into other businesses.
SAM and the Thanh Danh Trade and Construction Co. Ltd, one of the major stakeholders of PMC, agreed to work as consultants and arrange investment for the 120 million USD Sai Gon II bridge project, the 250 million USD No. 1 tramcar route in Ho Chi Minh City , and the 800 million USD Ca Pass tunnel project.
SAM, which now manages two funds listed on the German stock market - Vietnam Equity Holding and Vietnam Property Holding, also agreed upon a deal with the SAVIMEX Joint Stock Company (SAV) to jointly develop real estate projects funded by SAV investment.
Wednesday, December 17, 2008
Saigon Asset Management signs deals with local partners
Monday, December 15, 2008
HCMC dangles incentives to infrastructure developers
Ho Chi Minh City will offer tax breaks and land plots to developers investing money in infrastructure, officials have said.
The city’s infrastructure, including roads, drainage and wastewater treatment utilities, most of which are decades old, is unable to meet the needs of eight million people, said Lu Thanh Phong, deputy director of the Department of Planning and Investment.
For infrastructure developers, corporate tax would be waived for the first four years and it would later be just 10 percent instead of the normal 25 percent, he said.
If, after completing their infrastructure projects, they want to invest in non-infrastructure projects, the city would give them priority in land allotment, he added.
Ly Chung Dan, deputy general director of the public utility Saigon Water Corp., said non-state businesses investing in water supply could even be subsidized.
The city water supply system needs an investment of around VND5.85 trillion (US$344 million), he said.
The transport department has said it needs $15 billion through to 2020 for building and expanding roads and developing subways and railways.
Japanese company builds auto part factory in Ben Tre
Japan ’s Fukukawa Automotive Systyne Co, Ltd will invest 16 million USD in a factory producing electric wires for automobiles in the Mekong Delta province of Ben Tre .
Located at the Giao Long Industrial Park in Chau Thanh district, the 3.5 ha factory is designed to have an annual capacity of 3.6 million units, mainly for export.
Once operational in late 2009, the factory is expected to generate 2,900 jobs.
The company now runs a similar factory at the Tan Thuan Export Processing Zone in Ho Chi Minh City.
Sunday, December 14, 2008
Steel prices increase
Just after the Ministry of Finance adjusted import tariffs on structural steel, steel producers have increased steel prices by VND0.8m (US$48) per ton compared with prices in November.
Structural steel is currently sold at about VND12m (US$717) per ton in the market. However, prices are still 50 percent lower than peak prices in August.
Steel retailers say that demand for structural steel has increased toward the end of the year, contributing an increase in steel prices.
Vietnam Steel Association says that steel output grew to 300,000 tons in November, double the previous three months.
It is predicted that output will continue to rise by 300,000 tons by December and January, as builders try to finish construction before the Tet holidays.
Steel prices have also been affected by the sharp rise in prices of steel ingots. A ton of steel ingots costs between US$400-450, up from November by US$100-150.
Lam Dong asked to speed up economic restructuring
The Central Highland Province of Lam Dong needed to quicken its economic restructuring, Deputy Prime Minister Hoang Trung Hai said during a meeting with its senior officials yesterday.
The province had not fully explored, or exploited, its potential for the processing of agricultural produce or small thermal power generation, he said.
The deputy prime minister asked participants at the meeting to focus on the implementation of group solutions, the exploration of comparative and potential advantage and sustainable socio-economic development.
Proposals to seek Government help in basic transport and irrigation construction, the support of economic groups and co-ordinated investment for major projects were all approved at the meeting.
