[Round-up] Kolon Industries Plans $1 Billion Project, Foreign Banks Keen on HCM City’s Infras Projects

Tuan Minh

18:19 24/11/2016

BizLIVE - South Korea’s Kolon Industries, Inc. has selected Bau Bang Industrial Park in Binh Duong province to locate its $1-billion automobile tire cord and airbag factory. Banks from South Korea and Japan have expressed their interest in providing capital for infrastructure projects in HCM City.

[Round-up] Kolon Industries Plans $1 Billion Project, Foreign Banks Keen on HCM City’s Infras Projects

South Korea’s Kolon Industries, Inc. has selected Bau Bang Industrial Park in Binh Duong province to locate its $1-billion automobile tire cord and airbag factory.

International Textile, Garment Exhibition Kicks off in HCM City
The 16th Vietnam International Textile and Garment Industry Exhibition opened in Ho Chi Minh City on November 23, drawing the participation of more than 400 agencies and businesses from 17 countries and territories.
They bring up-to-date machinery and equipment to the exhibition, such as sewing machines, power looms, automatic fabric cutting and printing machines, garment materials, apparel and accessories, the Vietnam News Agency (VNA) reported.
Czech Businesses Learn about Vietnamese Market
Companies from the Czech Republic which are interested in the Vietnamese market were updated with information about Vietnam’s socio-economic development as well as trade and investment links between the two countries at a workshop in Prague on November 23.
Commercial Counsellor Tran Hiep Thuong said the workshop aims to clear up Czech businesses’ concern about risks when investing in Vietnam, VNA reported.
South Korea Highly Values Vietnam’s Consumer Goods Market
Businesses of South Korea should boost the export of consumer products to Vietnam to maintain the current export growth in this market, VNA said, citing a report by the Korea International Trade Association (KITA) released on November 24.
The report stated that the Vietnamese government’s policy on promoting domestic consumption may create opportunities for Korean businesses. It also predicted the spending rate of Vietnam in 2017 will increase 11.5% against this year.
Foreign Banks Express Interest in Infrastructure Projects in HCM City
Banks from South Korea and Japan have expressed their interest in providing capital for infrastructure projects in HCM City, according to VNA.
At a recent meeting with the city’s authority, Hong Young Pyo, vice chairman of South Korea’s Export-Import Bank (KEXIM), said the lender is interested in infrastructure and transport projects in Vietnam and HCM City in particular, including urban railway route No. 4b-1 and phase two of urban railway route No. 5.
Kolon Industries Plans $1 Billion Project in Binh Duong
Kolon Industries, Inc. from South Korea has selected Bau Bang Industrial Park in the southern province of Binh Duong to locate its $1-billion automobile tire cord and airbag factory.
The firm will pour $220 million into the project in the first stage in the 2017-2018 period. The investment capital is scheduled to rise to $600 million in the second stage between 2018 and 2026, and about $1 billion in the third stage after 2026.
CII to Sell $40 Million Bonds to South Korea’s RAM
Ho Chi Minh Infrastructure Investment JSC (CII) has inked a deal to sell $40 million worth of unsecured convertible bonds to South Korea’s Rhinos Asset Management, aiming to raise funds for its sizable projects.
The five-year notes will carry a coupon rate of 1% per annum, CII said in a statement.
South Korean food conglomerate CJ CheilJedang seeking to buy a 47.33% stake in Ho Chi Minh City-based food processor Cau Tre JSC, aiming to expand its foothold in the local market.
CJ wants to buy the shares via put-through transactions from three existing shareholders, which are VinaCapital’s Transwell Enterprises Limited, Vietnam Investment Fund and Song Da Corp, according to a document Cau Tre JSC has prepared for an extraordinary general meeting.
Lottery firms in Vietnam are expected to have combined revenue of 75 trillion dong ($3.3 billion) this year, 1.3% of which will come from computerized lottery, according to the Ministry of Finance.  
Ho Chi Minh Stock Exchange-listed sauce maker Masan Group (MSN) is seeking shareholders’ approval on a plan to issue up to $300 million worth of USD-denominated bonds overseas.
The non-convertible notes will be issued in accordance with Regulation S and/or 144A of the U.S. Securities Act, the firm said in a statement filed on its website, adding the bonds will be listed overseas.
Actual foreign direct investment (FDI) in Vietnam grew 8.3% to $14.3 billion in the year to November 20, statistics of the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment showed.
The State Bank of Vietnam (SBV), the country’s central bank, has not tapped into its foreign currency reserves to intervene in the forex market although the U.S. dollar is appreciating considerably against the Vietnam dong.
Local commercial banks, still having positive forex positions on November 23, were selling U.S. dollar to meet their clients’ demand, VnEconomy reported.

TUAN MINH