[Round-up] Hanoi Courts Italy Investors, Rise of Toxic Assets Warned

Tuan Minh

08:58 30/03/2016

BizLIVE - Hanoi has invited Italian companies to invest in the city’s infrastructure development projects. Local experts are concerned about new bad debts rising significantly.

[Round-up] Hanoi Courts Italy Investors, Rise of Toxic Assets Warned

Hanoi has invited Italian companies to invest in the city’s infrastructure development projects.

Hanoi Calls for Italian Investment in Infrastructure Projects
Chairman of the Hanoi People’s Committee Nguyen Duc Chung has invited Italian investors to the capital city, saying that Hanoi is looking for promising and established investors for its urban infrastructure development projects, local media reported.
Hanoi will soon announce 52 projects which need total investment of about $20 billion, including urban railways, four bridges across the Red River, dykes along the Red River and various belt roads and axis roads, Mr. Chung said at a meeting with Italian Ambassador Cecilia Piccioni and Nicola Colella, an executive of Astaldi Group.
In reply, Nicola Colella said his company is interested in the city’s elevated railway project and will explore this project as well as other investment possibilities in Hanoi.
Indonesia Retains AD Tax on Vietnam Steel
The Indonesia Anti-Dumping Committee (KADI) will continue imposing anti-dumping (AD) tax rates of 12.3 – 27.8% on cold rolled steel coil and sheets imported from Vietnam for five years, the Vietnam Competition Authority (VCA) under the Ministry of Industry and Trade has said.
The rates were quite higher than those imposed on steel imported from the Republic of Korea and Taiwan, but much lower than Japan (18.6%-55.6%) and China (13.6%-43.4%).
Conference on Vietnam Opens in France
Representatives of more than 250 Vietnamese and French businesses participated in the “Vietnam, a new Asian dragon” conference and several seminars in France on March 25 to discuss bilateral economic co-operation, reported the Vietnam News Agency (VNA).
Henri Baissas, general director of Business France, said about 2,000 French firms exported goods to Vietnam. The Southeast Asian country might become a major trading partner of France, as the former has a bright economic outlook that promises fruitful cooperation.
Vietnam Ministry Proposes Plans to Spur Industry Growth
Domestic business groups, corporations and enterprises should focus on intensive industrial development to create industrial products with a national brand and high competitiveness on the world market, said Deputy Minister of Industry and Trade Tran Tuan Anh in Hanoi on Monday.
Enterprises under the ministry should follow global and local markets and consult state offices to solve difficulties in production and business of local firms, and promote exports in the future, he added.
They should also improve competitiveness, reform technology and promote restructuring, while the state would develop policies to attract foreign investment, improve domestic production skills and increase exports.
Experts Warn of New Bad Debts
Experts are concerned about new non-performing loans rising significantly while Vietnam Asset Management Company (VAMC) still has to devise radical measures to resolve bad debts acquired from banks, according to VNA.
Deputy Chairman of the National Financial Supervisory Commission Truong Van Phuoc warned that though the consequences are not clear now, banks face a potential risk in the future when credit continues to rise.
Vietnam Failing to Meet Workforce Demand
Vietnam receives a failing grade when it comes to producing sufficient skilled workers to meet the demands of industry, VOV reported, citing the latest report from the Ministry of Labor, Invalids and Social Affairs.
Nguyen Duc Thanh, head of the Vietnam Institute for Economic and Policy Research, cited opinions from Japanese experts who said Vietnamese workers lack creativity along with problem solving and communication skills.
Da Nang City to Invest $133 million in Lien Chieu Port
Da Nang plans to turn Lien Chieu Port into a major cargo port in the central region and the East-West Economic Corridor No. 2 connecting Thailand, Myanmar, Laos and Vietnam with total investment of three trillion dong ($134 million).
Lien Chieu Port, which currently handles 50,000 deadweight tonnage (DWT) container ships, will be built to allow access to 100,000-ton ships and cargo ship with loading capacity of 8,000 twenty-foot equivalent unit (TEUs).
Vietnam Transitions to Renewable Energy
The Vietnamese government has big plans to more than double its renewable energy usage and transition to a sustainable energy future, reports German magazine for climate and energy transition klimretter.info.
In its March 28 issue, the magazine said in an article the Vietnam government has announced plans to bring the nation’s total solar power capacity to 850MW and wind power capacity to at least 800 MW.
The Vietnamese modern retail market is expected to continue taking the positive course in the upcoming years, which will encourage heavy investments in this lucrative sector, industry insiders said at a conference in Ho Chi Minh City on Monday.
The appeal of Vietnam stems from the fast-growing retail market, which reached nearly $110 billion in 2015, according to official data.
Moreover, the country’s rapid economic growth, young demographics, and tremendous potential of the modern retail channel stimulate investors’ appetite, experts said.
Vietnam is set to become one of the most rapidly aging countries in the world and turn into an aged society by 2040, leaving socio-economic consequences that require policy action and behavioral change, the World Bank (WB) has said in a report released in Hanoi on March 28.
Based on United Nations projections, the absolute number of people of working age will start to fall soon after 2035. The number of Vietnamese older than 65 years will grow from around 6.3 million today to over 18 million by 2040, accounting for 18% of the population.