Seven Foreign Contractors Eye Mega Long Thanh Airport Project
Seven contractors from the U.S., Japan and Europe have expressed hopes to join the Long Thanh International Airport project as the feasibility study contractor.
According to the Aviation Corporation of Vietnam (ACV
), contractors’ profiles will be considered for approval in December and early January 2016. After the Ministry of Transport approved the contractors, the corporation will launch the bidding before the Lunar New Year 2016 holiday.
Long Thanh International Airport will be built in Dong Nai province, adjacent to Ho Chi Minh City, as a 4F-category airport under the criteria of the International Civil Aviation Organization (ICAO). The project is estimated to have an investment of $16.03 billion.
Vietnam Transport Ministry to Sell Shares of Ciencos in Large Batch
Vietnam’s Ministry of Transport will sell shares in lots it owns in partly-privatized Civil Engineering Construction Corporations No. 5 and No. 6 via auctions on the Hochiminh Stock Exchange on December 31.
The share sale in lots is seen as an effective method for divestment of state-owned capital. With this method, the transport ministry has divested nearly 4 trillion dong ($177.8 million) in the last two years.
Belgium Group Expands Investment at Dinh Vu IZ
Belgium-based Rent-A-Port on Dec. 14 started the construction of South Dinh Vu Industrial Zone II – Deep C II and the Gateway Commercial and Logistics Business Center – CDC Haiphong at South Dinh Vu IZ.
The project called “Gateway Commercial and Logistics Business Centre” starts in Deep C II, with an investment of around $2.2 million to develop office buildings and open storage for lease. The project is scheduled for operation from January 2017.
The existing Dinh Vu Industrial Zone has accommodated over 55 multinational projects, attracting almost 30% of the total FDI into Hai Phong city.
Work Restarts on Kien Luong 1 Power Plant
Tan Tao Energy JSC (TEC), a subsidiary of Tan Tao Corp., and the General Department of Energy under Ministry of Industry and Trade have signed a memorandum of understanding on developing Kien Luong 1 thermal power plant project after more than six years of interruption.
The project will be carried out under the BOT (build-operate-transfer) format and is expected to come into operation in the next 10 years.
The plant is designed to have two generators with a combined capacity of 1,200 megawatts and is located in Kien Luong District in the Mekong Delta province of Kien Giang.
Vietnam Insurance Market Grows 22% This Year
Sales of insurance companies in Vietnam have grown nearly 22% this year to 68.3 trillion dong ($3 billion), the highest growth rate over the past five years, according to the Insurance Supervisory Agency.
Non-life premiums are expected to reach nearly 31.4 trillion ($1.4 billion) this year, representing a year-on-year increase of 14%. Life insurance premiums would increase 30% year-on-year to 37 trillion ($1.7 billion).
Vietnam now has 61 insurance companies with 752 branches and over 350,000 agents.
Gov’t Urges Firms to Transfer Assets to SCIC
The Vietnamese government has asked government agencies and localities to speed up the transfer of state ownership in state-owned enterprises to State Capital Investment Corporation (SCIC).
For unprofitable businesses or the ones who have lost state capital, the existing representative of state capital must tackle all shortcomings by law before transferring their ownership rights to SCIC, as well as specify liability and penalty of the collectives or individuals who have caused the damages to state capital, if any.
SCIC is holding stakes of between 30% and over 50% in many large-scale companies including dairy producer Vinamilk
, FPT Telecom, Bao Minh Insurance Corporation, Tien Phong Plastics, Binh Minh Plastics, Hau Giang Pharmaceuticals and insurer Bao Viet Holdings.
The World Bank has approved a $415 million loan for a project in Vietnam aimed to enhance safety to 450 irrigation dams in the country, and benefit some 6.8 million people who rely on these dams.
The Vietnam Dam Rehabilitation and Safety Improvement Project, which supports the government’s dam safety program, will rehabilitate about 450 irrigation dams that have been prioritized based on their age and degraded condition, the World Bank said in a press release on Wednesday.
A number of Vietnamese banks have hiked interest rates on deposits by 10-20 basis points (bps), mainly of short terms as demand for credit rises towards the year-end and the central bank pumps forex into the money market.
Market forces may cause the Vietnamese dong to depreciate 5%-10% in 2016, but the monetary authority will likely limit this decline at 5%, an economist has said.
Quach Manh Hao, a lecturer at the University of Lincoln, England, assessed that the U.S. Federal Reserve (Fed) will sooner or later raise its policy interest rate, either rapidly or gradually. The Fed’s moves will cause investors to repatriate the cheap greenback to the U.S.
Vietnam earned $13.89 billion from exports and spent $13.63 billion on imports in November, resulting in a trade surplus of $263.11 million, the General Department of Vietnam Customs (GDVC) said in a report released late on Tuesday.
In the 11 months through November, the country’s exports increased 7.9% year-on-year to $148.24 billion, while its imports grew 12.7% from a year earlier to $151.11 billion, according to GDVC.
The Southeast Asian country, as a result, ran a trade shortfall of $2.87 billion in the 11-month period.