[Round-up] PM Expects Better Vietnam-U.S. Relationship, Ha Tinh Rejects Licensing Taiwan-invested Project

Tuan Minh

18:28 18/11/2016

BizLIVE - PM Nguyen Xuan Phuc has expressed hope that the Vietnam-U.S. relationship will be better in the time to come under the new American administration. The Vung Ang Economic Zone Management Board in Ha Tinh province has refused to grant a license to a Taiwan-invested project.

[Round-up] PM Expects Better Vietnam-U.S. Relationship, Ha Tinh Rejects Licensing Taiwan-invested Project

U.S. President Barack Obama speaks during a meeting with young people in his Vietnam visit in May 2016. Photo: Reuters

PM Expects Better Vietnam-U.S. Relationship under New Administration
Vietnam is willing to cooperate with the U.S. to moving the relationship forward in the spirit of mutual respect for the two countries’ independence, sovereignty and territorial integrity. “With that spirit in mind, I believe the Vietnam-U.S. relationship will be better in the time to come,” said PM Nguyen Xuan Phuc.
The PM made the statement at the National’s Assembly’s Q&A session on Thursday when asked about the government’s stance after the U.S. presidential election.
Number of Korean Firms Operating in Vietnam to Reach 6,000 by End-2016
The number of South Korean companies doing business in Vietnam is poised to hit 6,000 by this year's end, growing from 4,042 in 2014 and 4,619 in 2015, Do Nhat Hoang, head of the Foreign Investment Agency, said in an interview with the Korea Economic Daily.
As many as 4,493 South Korean companies were operating in the Southeast Asian country as of last month. The cumulative volume of investment by Korean enterprises is in excess of $50 billion, Hoang added.
Lion Air to Launch Franchise in Vietnam Next Year
Indonesia’s biggest airline Lion Air will create a new joint venture airline in Vietnam around the second semester next year using the Batik Air brand, the company’s Director Edward Sirait told The Jakarta Post.
Lion Air is currently negotiating with a local partner in Vietnam. According to the plans, the carrier will take a portion of 49% and the remaining 51% will be the local partner's equity.
Hanwha Life’s Vietnam Operation Earns First Profit
Hanwha Life Insurance Co., the first among Korean insurers to venture into Vietnam in 2009, said it was celebrating its first profit from its Vietnamese operation.
Korea’s second life insurer raked in net profit of around 300 million won ($255,689) in July-September period, a rare feat for a foreign entity doing business solo instead of joining up with a local player, according to Pulsenews.co.kr.
20 Korean Firms Seek Opportunities in Quang Ngai
A delegation of 20 small- and medium-size enterprises from South Korea’s Ulsan city on September 17 made a fact-finding trip to the Dung Quat Economic Zone in the central province of Quang Ngai to seek investment opportunities in the province.
Tran Ngoc Cang, chairman of the provincial People’s Committee, said the local government will grant a number of incentives regarding land leasing, site clearance and infrastructure development to encourage investment in the province.
Ha Tinh Rejects Licensing Taiwan-invested Project
The Vung Ang Economic Zone Management Board in Ha Tinh province has refused to grant a license to a project invested by Taiwan’s Ju-Kao Vietnam Engineering Company.
The license was denied because the project belongs to a non-productive sector that may lead to higher imports and consumes excessive energy, the board explained.
EU, Vietnam Agree in Principle on Timber Trade Deal
EU Environment Commissioner Karmenu Vella and Vietnamese Minister of Agriculture and Rural Development Nguyen Xuan Cuong on Nov. 18 agreed in principle to work together towards reducing illegal logging and promoting trade in legally produced timber between the EU and Vietnam through an ambitious licensing system for Vietnamese timber and timber products.
This will ensure that Vietnam’s exports of timber and timber products to the EU come from legal sources, the EU Delegation to Vietnam said in a press release.
GDP May Contract 0.6% Annually Due to Disasters, Pollution
Vietnam’s gross domestic product (GDP) may shrink by about 0.6% per year between 2016 and 2020 due to natural disasters and environmental pollution, an official has warned at an international symposium in Hanoi on November 18.
Dang Duc Anh, head of the analysis and forecast board at the ministry, said climate change and environmental pollution affect all regions and aspects. Among them, water resources, agriculture and rural development, health care and coastal areas are the most susceptible.
Hanoi Facilitates Foreign Investment in Infrastructure, Energy
Hanoi is ready to provide information for Ukrainian and Spanish enterprises to enhance investments in infrastructure and energy with the Vietnamese capital city, the Vietnam News Agency reported.
Chairman of the municipal People’s Committee Nguyen Duc Chung made the remarks while meeting on November 17 with Ukrainian Ambassador to Vietnam Oleksyi Sovkoplias and vice president of Spain’s IDOM group Rafael Higes Cachon, who is seeking cooperation in infrastructure and energy.
Three investment vehicles under Ho Chi Minh City-headquartered fund management company VinaCapital will receive some $110 million in net proceeds by divesting from their private equity and real estate holdings, according to filings on the firm’s website.
Vietnam Opportunity Fund Limited (VOF) will receive minimum net proceeds of $100 million from the sale of an asset to a newly form consortium, VOF said, without specifying the asset or the consortium.
Ho Chi Minh City-based asset management company VinaCapital and U.S.-based Warburg Pincus LLC have agreed to form a hospitality joint venture (JV) to invest in leading markets in Southeast Asia.
The JV will span development, acquisitions and operations of hotel in the region, where tourist arrivals are expected to more than triple over the next decade, especially from China, the firms said in a joint statement on November 17.
South Korea’s food-making conglomerate Daesang Corp. has announced it has completed the acquisition of a 99.99% stake in Vietnam-based meat processor and distributor Duc Viet Food JSC for $32 million in September, in a move to expand its presence in Vietnam’s fast-growing food processing market.
Vietnam will need nearly $40 billion to construct power plants and develop the transmission grid in the upcoming five years to meet demand for energy and buttress economic growth, according to the Power Institute.