HCM City Begins $450 Million Flood Prevention Project
The government of HCM City on June 3 signed a $450-million contract with a private company for a project to prevent tidal flooding in a 570-sq km area of the inner city and along the bank of the Saigon River.
With the first phase of the Build – Operate project, Trung Nam Group will focus on building six large sluice gates as well as embankments, drains and three pumping stations.
Firms Welcome SBV’s Lifting of Foreign Money Loan Ban
Export enterprises and commercial banks welcomed the State Bank of Vietnam (SBV)’s decision to allow banks to resume provision of foreign currency loans two months after it was banned, according to the Vietnam News Agency.
Truong Dinh Hoe, general secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP), which had requested the SBV to extend the foreign currency loans in early April, said the decision to issue the circular was timely and proper.
Foreigners Step up M&As in Vietnam Electronics Market
Foreign companies are increasing mergers and acquisitions (M&As) of Vietnamese electronic retailers as they see this as a shortcut to boost their footprint in the local electronic and electrical retail market.
Dang Chuong Linh, an official at the Institute of Trade Research of the Ministry of Trade and Industry, said M&As currently have developed in quantity quickly in the country.
Through M&As, domestic electronic and electrical retailers can work together to enhance their strength. However, small-scale and ailing retailers could lose to new competitors, Linh was quoted by VNA as saying.
Vietnam Foresees Continued Trade Deficit in 2016
Vietnam is predicted to continue running a trade deficit in 2016 that will be under 5% of total export revenue although the nation enjoyed a trade surplus equivalent to 2% of total export value in the first five months, VNA reported, citing the Ministry of Industry and Trade (MoIT).
Demand for imported machinery and materials for infrastructure building is still high. In addition, there is also a growing need for industrial equipment imports to expand production and optimize opportunities brought about by many free trade agreements that the country has joined in.
Car Imports Surge in Vietnam ahead of Tax Adjustment
Vietnam spent $195 million on importing about 12,000 completely built-up (CBU) cars in May, an increase of 33% in quantity compared to April and 12% against the same period last year.
Auto businesses said imports increased sharply as consumers wanted to buy cars before the government’s tax hikes on imported automobiles come into effect.
Japanese Electronic Manufacturing Plant Inaugurated in Quang Ngai
Sumida Electronic Vietnam Ltd, a unit of Japan-based Sumida Company, has put into operation an electronic spare parts manufacturing factory in Tinh Phong Industrial Park in the central province of Quang Ngai on June 5, according to VNA.
The plant, which has a registered capital of $10 million, is able to produce 132 million electronic units per year.
Vietnam Prime Minister Asks Hanoi to Facilitate Startups
Prime Minister Nguyen Xuan Phuc urged authorities of Hanoi to promote reform and take initiatives in order to further support startups while addressing an investment promotion conference in Hanoi on June 4, VNA reported.
Hanoi should be the vanguard in startup promotion, and become a startup and creative center of the country, he said.
Vietnam Seeks Stronger Economic Links with Italy
A delegation from Vietnam’s Ministry of Industry and Trade (MoIT) and 20 businesses participated in a series of events in Italy to cement partnerships and help Vietnamese goods enter the European nation’s market.
At a recent workshop in Italy’s northern city of Bologna, MoIT Deputy Minister Ho Thi Kim Thoa highlighted Vietnam’s political, economic, trade and tourism relations with more than 200 countries and territories, which made the country a relatively good investment environment.
Hanoi’s government has granted investment licenses to 23 projects worth a combined 36.9 trillion dong ($1.65 billion), seven of which will be invested by foreign companies at a total cost of $700 million.
Among the notable projects, a consortium led by Oman’s State General Reserve Fund will build a water supply plant, JX Nippon Oil & Energy Vietnam will offer petroleum distribution services, and Arimi Retail Co. will proceed with the construction of a shopping mall.
A direct flight route between Auckland and Ho Chi Minh City
, which was inaugurated on June 4, is expected to further encourage links in education, business and tourism between New Zealand
and Vietnam, said New Zealand Minister of Economic Development Steven Joyce.
The service will stimulate the shipment of New Zealand goods, especially fresh farm produce such as fruits and milk, to Vietnam, he was quoted by the Thanh Nien (Youth) newspaper as saying on June 5, after touching down in Vietnam’s metropolis.