[Round-up] Vietnam Seeks More Investment from S. Korea, AES Corp. Wants to Invest in Gas-Fired Power Project

Tuan Minh

19:00 11/09/2017

Vietnamese Minister of Planning and Investment Nguyen Chi Dung visited South Korea on Sept. 5-8 to strengthen bilateral investment and trade. AES Corporation has said it wants to join the PetroVietnam Gas JSC in the Son My 2 gas-fired thermal power project.

[Round-up] Vietnam Seeks More Investment from S. Korea, AES Corp. Wants to Invest in Gas-Fired Power Project

AES Corporation has said it wants to join the PetroVietnam Gas JSC in the Son My 2 gas-fired thermal power project. Photo: Nikkei

Vietnam Seeks More Investment from South Korea
At meetings with South Korean ministers on September 5-8, Vietnamese Minister of Planning and Investment Nguyen Chi Dung talked measures to boost bilateral investment and trade, and effectiveness of the employment of official development assistance (ODA) and foreign direct investment (FDI), the Vietnam News Agency (VNA) reported.
As part of his visit, Minister Dung held separated receptions for leaders of Samsung, LG, Hyundai Motor, and Lotte, among other South Korean groups, who stated they considers Vietnam a strategic market and are committed to helping Vietnamese firms be part of their supply chains in the future.
U.S. Power Company Wants to Invest in Gas-Fired Power Project
U.S.-based power company AES Corporation has said it wants to join the PetroVietnam Gas JSC (PV Gas) in the Son My 2 gas-fired thermal power project.
PetroVietnam’s Deputy Director General Nguyen Hung Dung affirmed that the group is ready to work with U.S. investors, including AES, in the oil and gas sector, especially gas-fired thermal power projects.
PetroVietnam to Cut its Stake in PV Gas to 65% from 95%
The Vietnamese government expects to reduce its ownership in PetroVietnam Gas, or PV Gas, to 65% from more than 95% between 2018 and 2019, following the announcement of a massive restructuring at PetroVietnam, the parent company of the big Vietnamese gas wholesaler.
A detailed divestment plan will be submitted to Prime Minister Nguyen Xuan Phuc in the fourth quarter of this year, according to Nikkei Asian Review.
Vietnam-China Freight Route Opens to Traffic
Deputy Prime Minister Truong Hoa Binh on September 11 announced the opening of a freight route connecting Vietnam and China at the Huu Nghi (Friendship) International Border Gate in Vietnam’s northern province of Lang Son.
The opening of the route as an important event marking a milestone in promoting exchanges as well as economic and trade cooperation between Lang Son and China’s Guangxi province, contributing to deepening the comprehensive strategic partnership between the two countries, said Vice Chairman of the Lang Son provincial People’s Committee Nguyen Cong Truong.
ASEAN, Hong Kong Wind up FTA Negotiations
The Association of Southeast Asian Nations (ASEAN) and China’s Hong Kong on September 9 announced the conclusion of their negotiations on a Free Trade Agreement (FTA) and a related Investment Agreement.
Hong Kong’s Secretary for Commerce and Economic Development Edward Yau said that the two agreements will be signed in November this year.
Leather, Shoe Exports Top $9.6 Billion
Leather and footwear exports in the first eight months topped $9.64 billion, a year-on-year increase of 12.2%, VNA cited the Ministry of Industry and Trade as saying.
Vietnam’s leather and footwear products went to 100 countries, with the US, EU, Japan, China, and South Korea being the main buyers, it said.
Ministry Proposes Doubling Tax on Imported Used Car
The Vietnamese Ministry of Finance has issued a draft which seeks to double the import tax rate on used cars with nine seats and less in a move to minimize the import of used cars and contribute to developing the domestic automobile industry.
A ministry official said the tax rate on most imported used cars with nine seats and less was currently lower than that to which Vietnam is committed with the World Trade Organization (WTO). Therefore, the ministry has proposed an increase to the highest level acceptable.
Vietnam’s Strong Growth Likely to Persist: Singaporean Media
Vietnam’s strong growth is likely to persist thanks to its young, ambitious, and business savvy population, said an article published by Singapore-based Channel News Asia.
Urbanization and a growing middle class are fuelling economic growth and driving the creation of new commercial opportunities. At the same time, Vietnam has become increasingly attractive for new investors, and local talent is developing rapidly, even as the country has to compete against Singapore, Hong Kong (China) and other regional stars, says the article.
Vietnamese Startups Face Too Many Barriers
A report from the Ministry of Information and Communication (MIC) released in 2016 showed that about 1,000 startups are registered every year in Vietnam. However, only 10% of them now exist.
Nguyen Viet Dung, director of the HCMC Science & Technology Department, said there is a long distance between the idea of starting a business to commercializing products. The lack of capital, experience and supporters, plus the limited knowledge about laws, are the biggest hurdles for entrepreneurs.
Microsoft Vietnam Appoints New CEO
Microsoft Vietnam has officially announced it was appointing Aung San Maung from Myanmar as its new acting CEO in Vietnam, a position which was held by Vu Minh Tri for seven years.
Maung would continue to implement strategies and business activities as well as development initiatives of Microsoft in Vietnam.
Foreign investors on Friday net sold Vietnamese shares for a third day in a row as the benchmark VN Index reached the highest in nearly ten years.
Foreign-invested enterprises operating in Vietnam posted a trade surplus of $2.97 billion in August, bringing their surplus to $13.21 billion in the first eight months of this year, versus a deficit of $14.06 billion by Vietnamese companies in the period, according to customs data.
AC Energy Holdings Inc., the power generation unit of conglomerate Ayala Corp., has plans to build renewable energy plants with a combined capacity of several hundreds of megawatts (MW) in Vietnam over the next two to three years.
The company was in talks with several potential partners in Vietnam to implement the strategy, AC Energy President John Eric Francia was quoted by Manila Standard as saying.