Foreign Investment in HEPZA Jumps 59% in 2015
Foreign investors poured a total of $553 million in Ho Chi Minh City’s industrial parks and export processing zones in 2015, soaring 59% year-on-year, according to the HCM City Industrial Parks and Export Processing Zones Authority (HEPZA).
The foreign enterprises come mainly from the British Virgin Islands, South Korea, Singapore, Hong Kong, Japan, Taiwan, France, the US, China and Australia. They operate mostly in textiles, food and chemicals, among other products and services.
HEPZA aims to attract investment worth $700 million from foreign and domestic firms this year, compared to $840 million in 2014.
Vietnam Mega Airport Likely to Lag behind Schedule
The construction of Long Thanh International Airport, Vietnam’s would-be largest airport, will likely be initiated in 2023, five years behind schedule if it follows procedures as required, the National Assembly’s Economic Committee said after a working session with Dong Nai
Airports Corporation of Vietnam (ACV
), the investor of the project, said that it would submit the feasibility study to the Ministry of Transport by July 2017, and the National Assembly would approve the project at the first sitting of 2018.
Not until 2018 will the prime minister allocate funds for the construction of two resettlement areas. After that, the site clearance would be implemented by 2020 and land acquisition by 2023.
Vietnam’s Largest Thermal Power Hub Comes into Operation
The 2,300 megawatt (MW) Mong Duong Power Center with an investment of nearly $4 billion in the northern province of Quang Ninh, Vietnam’s largest power hub, has come into full operation after four years of construction.
Power Generation Corporation 3 (Genco3), a subsidiary of Electricity of Vietnam (EVN), on January 16 inaugurated Mong Duong 1 Thermal Power Plant, one of the two thermal power facilities in the power center.
The second facility in the center is Mong Duong 2 Thermal Power Plant, a joint venture between the U.S.’s AES Corporation with 51%, Korean Posco Energy with 30%, and China Investment Corporation with 19%.
The $2.1 billion plant’s construction started in September 2011. The plant, including two turbines with a combined capacity of 1,240 MW, came into operation in April 2015 and will be handed over to Vietnam after 25 years.
Vietnam Firm Operates 99MW Wind Power Plant in Bac Lieu
Cong Ly Construction-Trade-Tourism Co. Ltd. on January 17 started the operation of the 99 megawatt Bac Lieu wind power plant, whose construction started in 2010 with an investment of 5.2 trillion dong ($231 million).
Since the first wind turbine was connected to the national grid in May 2013, the plant has produced 130 million KWh, earning revenue of 150 billion ($6.7 million).
Samsung to Open Phone Repair Center in Vietnam
Samsung Electronics Vietnam (SEV) has plans to open a repair service center in the country to fix or refurbish mobile phones and tablets from its users around the world, the Tuoi Tre (Youth) newspaper cited a document sent to the General Department of Vietnam Customs.
Vietnam Airlines Picks Techcombank as Strategic Partner for Subsidiary
National flag carrier Vietnam Airlines plans to sell a 49% stake of Vietnam Air Services Company (Vasco) to local lender Techcombank’s affiliates, as the airline seeks to turn its subsidiary into a joint stock company, according to local media.
Vietnam Airlines will retain a 51% stake through contributing existing assets that Vasco is operating, including several aircrafts. Meanwhile, Techcom Capital will hold 48% and Techcomdeveloper will hold the remaining 1%.
Vasco has a registered capital of 300 billion dong ($13.33 million).
Vietnam Footwear Exports Seen to Grow 20%
Export value of the domestic leather and footwear industry could grow between 15% and 20% this year due to opportunities from free trade agreements (FTAs), said Deputy Minister of Industry and Trade Ho Thi Kim Thoa at a recent conference of the Vietnam Leather and Footwear Association (Lefaso).
The Trans Pacific Partnership (TPP
) deal and other FTAs would present more opportunities in production and business for Vietnam’s enterprises, including firms from the textile, garment, leather and footwear industries, she added.
Apparel manufacturers from China, Japan, Taiwan and Hong Kong have flocked to Vietnam to set up production facilities in order to grab the advantage of duty-free access to the U.S. and other Trans-Pacific Partnership (TPP) markets.
Besides Japanese firms, big names from Northern Asia such as China’s Texhong Textile Group, Shenzhou International, Yulun Taiwan’s Forever Glorious, and Hong Kong’s TAL have been scaling up investments in Vietnam to capitalize on opportunities here.
Japan’s Nagano Techno Foundation on January 19 signed an agreement with the Integrated Circuit Design Research and Education Center (ICDREC), under the Vietnam National University-Ho Chi Minh City, to cooperate in the chip manufacturing industry, local media reported.
The accord came one month after the ICDREC showcased its chips and applications built with Vietnam-designed chips at SEMICON Japan 2015, the premier exhibition in Asia for semiconductor manufacturing and related processing technology.