Vietnam Power Plant Seeks Jump-Start by Foreign Investors
Tan Tao Investment and Industry Corporation (Itaco), the investor of the long-delayed $6.7-billion Kien Luong 1 thermal power plant, is looking to foreign investors to help kick-start the stalled operations after more than six years of interruption.
Itaco’s General Director Thai Van Men said that foreign investors from Korea, Japan and Australia were interested in joining the project.
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.
JICA Helps Vietnam Modernize Agriculture
The Japan International Cooperation Agency (JICA) is expanding its support for Vietnam to develop the country’s hi-tech agro-fishery sector through more Japanese agricultural investment projects.
JICA will spend $103 million on developing agricultural, fishery, and environmental studies at Can Tho University. These projects will be implemented in the next five years by Japanese universities and enterprises, as well as by Can Tho University and Vietnamese enterprises. The projects will include the construction of greenhouses, laboratories, and aquaculture developments.
JICA will also spend $10 million to help Vietnam manage sustainable natural resources from now to 2020.
Vietnam Firms Join Samsung’s Supply Chain
An Phu Viet Trading & Production Plastics Co. and three other local firms namely Thang Long Packaging Production Export-Import, Viet Hung Packaging, and Chien Thang Industrial were selected by Samsung as providers three months after they joined a seminar on the development of Vietnam’s supporting industries which Samsung organized to seek local suppliers.
The selection came after Samsung sent four experts from South Korea to Vietnam to support the firms in their production and supply upgrading process. Three months later, Samsung Vietnam’s Chief Executive Officer Han Myong-sup visited the firms to check the final results.
Following the completed support plan for these businesses, Samsung will reach out to more local firms in the near future.
Da Nang City Calls for Investment in PPP Projects
The central city of Da Nang has called for investment in 19 Public-Private-Partnership (PPP) projects, with total capital of 16.5 trillion dong ($733 million).
Among the 19 key projects are Hoa Lien Water Station, Lien Chieu port, Software Park No. 2 and a new waste treatment plant and trash-powered generator, as well as Ngu Hanh Son Cultural and Historical Park. These are the largest projects, each requiring funds of 2.2 trillion dong ($98 million) to four trillion dong ($178 million).
Garment Exports to U.S Rise 12% y/y to $10 Billion in Jan-Nov
Total exports of textiles and garments from Vietnam to the U.S. increased 11.7% year-on-year to $9.88 billion between January and November 2015, according to the Vietnam Textile and Apparel Association (Vitas).
During the 11 months, the country’s export value to other major export markets was also optimistic with $3.09 billion to the EU, $2.53 billion to Japan and $1.98 billion to South Korea.
Vietnam’s textile and garment exports to the U.S. are expected to gain much higher when the Trans-Pacific Partnership (TPP) comes into force.
World Bank Debars Vietnamese Firm for Alleged Fraud
The World Bank has debarred SFC Vietnam Investment Development for Environment Corporation and its affiliates for a minimum of 10 years and its General Director Nguyen Phuong Quy.
This desicision followed evidence of fraudulent and collusive practices found under the Vietnam Project Preparation Technical Assistance Facility Project and the Vietnam Danang Priority Infrastructure Investment Project.
The World Bank investigation revealed the company has engaged in repeated patterns of misconduct which involved the general director.
More specifically, the debarred entities provided false experience-related documentation to an international bidder while cooperating with an international firm in preparing a fraudulent financial proposal, suppressing a conflict of interest and coordinating bids with an international competitor for a works contract.
Thailand Arises to Become Top Car Exporter of Vietnam
Thailand shipped a total of 23,516 cars to Vietnam in the first 11 months of this year, up 84%, becoming the biggest auto seller in the country, according to customs data.
In comparison, South Korea exported 23,232 cars to Vietnam during the period and China, 22,496 cars.
The market shift came as Thailand was boosting its auto exports amid falling domestic sales. Vietnam has become one of its key markets given tariff cuts the country is obliged to apply under an ASEAN agreement, local analysts were quoted as saying in news website VnExpress.net.
Vietnam to Privatize Construction Machinery Corporation
The Vietnamese government has decided to sell shares in state-owned Construction Machinery Corporation (COMA), rub by the Ministry of Construction.
Under the equitation plan, the government will hold 17.85 million shares or a 51% stake in COMA. By 2018, it will reduce the state ownership to 40%.
As many as 10.5 million shares or a 30% stake will be sold to strategic investors, 5.34 million shares will be sold at an initial public offering and the rest to employees. COMA is expected to have a registered capital of 350 billion ($15.5 million) after equitation.
Thai Bank Allowed to Open Branch in HCM City
The State Bank of Vietnam (SBV
), the country’s central bank has allowed Thailand’s Siam Commercial Bank Pcl (SCB) to open a branch in Ho Chi Minh City.
The SCB branch will operate with a capital of $25 million for a period of 99 years, and will carry out activities as prescribed by SBV, such as receiving deposits and giving credit, as well as offering domestic payment services.
U.S. multinational technology company Google
Inc. will expand operations in Vietnam as Southeast Asian countries have sign landmark free trade agreements, Google CEO Sundar Pichai
told PM Nguyen Tan Dung at a meeting in Hanoi on Tuesday morning.
Google sees Vietnam as one of its most important markets and is committed to doing more to contribute to Vietnam’s socio-economic development as well as the country’s information technology industry, Mr. Panchai added.
Vietnam possesses great allure as a destination for foreign investment, Prof. Nguyen Mai, chairman of the Vietnam Association of Foreign Invested Enterprises (VAFIE) told BizLIVE in an exclusive interview.
The expert said that the country is now gathering many favorable conditions, domestically and overseas, to attract FDI.