$44 million investment in Tien Yen District

The Vietnamese Chamber of Commerce in Singapore, known as VietCham Singapore (www.vietcham.org.sg), was established in 2013 to support Vietnamese businesses with their regional and global expansion. VietCham drives bilateral and multi-lateral trade and investments in five countries On August 19, VietCham Singapore will host a workshop entitled “Singapore as a launch-pad for Vietnamese businesses” in Ho Chi Minh City, aiming to help local firms expand their horizon and move beyond boundaries (www.vietcham.org.sg/be-phong-singapore-cho-doanh-nghiep-viet). The workshop will focus on establishing and operating company in Singapore, taxation, multilateral trade, banking facilities, capital mobilisation, initial public offerings, and mergers and acquisitions in both Singapore and Vietnam. Over the years, VietCham Singapore has been supporting various Vietnamese firms to reach out to regional and global market through Singapore gateway. According to Dr. David Nguyen Quang Vu - VietCham Singapore’s president, his organisation’s goal is to enable Vietnamese businesses with setting up and maintaining companies in Singapore, obtaining all necessary licences and certificates, product distribution and marketing, exhibition, tradeshow and roadshow, business matching, market research and business intelligence, trademarks and   intellectual property protection, wealth and asset management, deal-making, M&A and corporate advisory. “In Singapore, most procedures and applications can be processed online, helping to save time and travel. Businesses may acquire Singapore business licences within 24 hours,” Vu said at a recent workshop on export promotion via Singapore in the Mekong Delta region this April. VietCham Singapore…... [read more]

Together with strong interests in real estate, construction, and manufacturing, Singaporean investors have been trending towards healthcare and renewable energy projects in Vietnam to cash in on rising local demand and the government’s supporting policies. Bich Thuy reports. Singaporean firms are finding robust opportunities in a wide variety of local industries In April, SHS Holdings and Singapore’s Sinenergy Holdings signed a memorandum of understanding with Ninh Thuan province to develop a $360 million solar power and high-tech agriculture complex. The 300MW solar farm project is slated for completion in July 2019. That same month, Singapore-based The Blue Circle and Vietnam’s TSV commenced work on the Dam Nai wind farm in Ninh Thuan, marking the official entry of The Blue Circle into the local renewable energy market. The $80 million project is scheduled for completion in October 2018. According to the Singapore Business Association in Vietnam (SBAV), renewable energy is an emerging trend among Singaporean investors in Vietnam, where electricity consumption outpaced the country’s economic growth rate by two-fold over the past few years. Last year, Armstrong S.E. Clean Energy Fund, a dedicated renewable energy private equity fund based in Singapore, and IFC, a member of the World Bank Group, announced an investment in Gia Lai Electricity JSC (GEC), which is one of the largest private sector hydropower players in Vietnam. “With the current introduction of the feed-in-tariff of 9.35 US cents/kilowatt-hour and Decision…... [read more]

As the ASEAN bloc celebrates 50 years since its establishment on August 8, 1967 – with Vietnam present for 22 of those years – now seems an opportune time to look back on the successes of this bloc. Deputy Prime Minister and Minister of Foreign Affairs Pham Binh Minh talks VIR’s Thanh Tung about the positive effects that ASEAN membership has had on Vietnam in these years, and vice versa. What impacts has the ASEAN Community had on Vietnam’s expanding trade and in attracting foreign direct investment (FDI)? The ASEAN Economic Community (AEC), which is one of the ASEAN Community’s three major pillars, is the realisation of the end goal of regional economic integration of the 10 ASEAN economies. It facilitates the free flow of goods, capital, services, investment, and skilled labour. AEC has created a single market home to a population of over 600 million people, with a GDP of about $3 trillion. ASEAN is now the world’s seventh-largest market. In terms of investment, Vietnam has received strong investments from ASEAN member states. This was seen not only after ASEAN became a community, but also before the community was born, thanks to the bloc’s agreements on fostering trade and investment. Regarding trade, since the community was established, the trade volume among ASEAN member states has soared. But this has not been the case for Vietnam, which has seen its trade with other ASEAN markets…... [read more]

HSBC: ASEAN enterprises continues strong investment in VietnamT Thu Shoppers are seen inside a wholesale store of Metro Cash & Carry Vietnam which Thailand’s TCC Group has acquired and renamed as MM Mega Market - PHOTO: QUOC HUNG HCMC – Enterprises from other ASEAN countries have invested massively in Vietnam over the last three years and the trend is expected to continue in at least five more years, said Pham Hong Hai, chief executive officer of HSBC Vietnam. Speaking to the media just ahead of the ASEAN anniversary celebration which will be held in the Philippines next Tuesday, Hai said investors in ASEAN consider Vietnam not only a consumption market but also a production base. For the last three years, HSBC Vietnam has held road shows in some ASEAN nations to call for investment in Vietnam. Particularly, Thai companies claimed that Vietnam is the top priority in their investment plans. There will be massive investments from ASEAN firms in Vietnam for at least the next five years, Hai said, and many of them are now waiting for opportunities from the equitization of many Vietnamese state-own firms. This investment trend is helped by Vietnam’s political and macroeconomic stability, low-cost labor and government incentives. Besides, Vietnam is right next to China, so ASEAN firms can get supplies from this country easily. Considering Vietnam a consumption market, companies from Thailand have invested heavily in the domestic retail market and production of consumer goods, said Winfield K Wong, head of wholesale banking of HSBC Vietnam.…... [read more]

Harvesting coffee in Dak Lak (Source: VNA)   Dak Lak (VNA) – The Central Highlands province of Dak Lak has attracted many official development assistance (ODA) and foreign direct investment (FDI) projects as well as non-governmental assistance, including funds from the Republic of Korea (RoK). The provincial Department of Planning and Investment reported that Dak Lak now houses three ODA projects valued at a total 12.5 million USD funded by the Korea International Cooperation Agency. Two other projects worth 47.3 million USD cover food, cosmetics and medicine production and solar power. Dak Lak recently held an investment promotion seminar in the RoK’s Joellabuk province with more than 40 businesses participating. During the seminar, Solarpark Global I&D of the RoK inked a memorandum of understanding with Dak Lak on a solar power project, and asked for the province’s licence to carry out another project worth 45 million USD. RoK firms have also invested in education, water supply and waste collection and treatment in Dak Lak. Such projects have helped the locality improve its infrastructure and reduce poverty, especially in remote, far-flung and ethnic minority-inhabited areas. The province wants RoK investments in high-tech agriculture, with priority given to projects in Ea Kpam commune and Ea Pok town in Cu Mgar district, and Ea Tu and Hoa Xuan communes in Buon Ma Thuot city. In the first six months of this year, Dak Lak lured 29 investment…... [read more]

Tay Ninh province has gradually restructured its industrial production to increase scientific and technological contents and the localisation rate in products, and shift from outsourced production and assembly to manufacturing and processing. On the whole, Tay Ninh province industry will attract projects to develop industrial zones and gradually become a quality and sustainable economic sector. Synchronous and efficient At present, Tay Ninh industry has formed a relatively synchronous system of five sectors (agricultural product processing, brick and cement, rubber and plastic, garment and textile, and tanning), which make up 77.73 per cent of the province’s industrial production value. The processing industry has 126 active enterprises, mainly producing refined sugar and tapioca. In the 2010 - 2016 period, the industrial production value increased 11.46 per cent a year on average. The garment and textile currently has 59 operating enterprises, mainly engaged in textile, yarn and costume production. In the 2010 - 2016 period, the industry posted an average annual growth of 23.4 per cent. The leather and footwear industry has changed dramatically. While it occupied only 1.9 per cent of local industrial value in 2005, it jumped to 18.68 per cent in 2016. On average, in the 2010 - 2016 period, it climbed 61.94 per cent a year. The rubber and plastic industry now has 40 active companies, which make tyres, technical rubber and plastic products. In the 2010 - 2016 period, its production value increased 23.64 per cent a year on average. The…... [read more]

Several current and former leaders of Vietnam National Chemical Group (Vinachem) will face deciplinary action after the Central Inspection Committee discovered numerous severe violations and mismanagement at Vinachem's loss-making projects. RELATED CONTENTS: Vinachem turns to government for aid Ninh Binh province appeals to PM to save fertiliser plant Vinachem loses big-time in fertiliser plant Another Vinachem plant announces huge losses Ninh Binh fertiliser plant permanently suspends operation Massive losses in recent years Vinachem has been plagued with massive losses in recent years, with some of its projects making losses for two years in a row, especially Ninh Binh Fertilizer plant, which has been running in the red for four years in a row during 2012-2015. The Ninh Binh Fertilizer plant has been constantly losing from 2012 to 2015. According to the feasibility report, the plant reported to lose $47.9 million in the first three years of operation and started making profit since the fourth year (2015). However, as of currently, the project has yet to make profit and must cease operation. So far, the project has incurred accumulated loss of approximately VND3.058 trillion ($134.5 million). The plant is also struggling with huge loans from Eximbank China and other credit institutions. According to the Ministry of Finance, as of June 28, 2016, the plant was VND10.25 trillion ($451.3 million) in debt, with VND227.3 billion ($10…... [read more]

Eins Vina, a unit of South Korean Sea-A Group, is planning to increase investment in its projects in Song Than II Industrial II Park of the southern province of Binh Duong. Tran Thanh Liem held talks with Tony Pyeon At a meeting with Tran Thanh Liem, chairman of the Binh Duong People's Committee on July 31, Tony Pyeon, general director of Eins Vina, said that the company is operating two factories in Song Than II Industrial Park (IP) in Di An town and in Binh Chuan ward of Thuan An town, creating jobs for 9,000 labourers. Tony Pyeon said that in the coming time, the company will continue to enlarge its projects. He also discussed with local leaders the province's policy to relocate manufacturing factories into IPs. Liem, in response, said that the province has a policy on restraining the licensing of investment projects outside IPs, as well as labour-intensive works in southern areas. Binh Duong is now calling on investors to renovate business lines and technologies towards enjoying the country's tax incentive policies. Liem affirmed that the province will continue to improve the business climate, develop IP infrastructure, and intensify administrative reform to facilitate business activities. Keeping manufacturing and textile and garment operations in Binh Duong since 2005, Eins Vina has achieved good business results over the past 12 years, with 80 per cent of its products exported to the US. …... [read more]

Tokyo Gas acquires stake in local firm to penetrate VietnamMinh Tam Representatives of the two firms at the signing ceremony - PHOTO: PV GAS HCMC - Tokyo Gas Asia Pte Ltd (Tokyo Gas Asia), a member of Japan’s Tokyo Gas, has just bought a 24.9% stake in PetroVietnam Low Pressure Gas Distribution Joint Stock Company (PV Gas D), a member of PetroVietnam Gas Joint Stock Corporation (PV Gas). In addition to the acquisition, Tokyo Gas Asia signed a strategic partnership agreement with PV Gas D, according to PV Gas’ press release issued on August 1. PV Gas D will receive Tokyo Gas Asia’s support in energy and technical solutions to boost the effectiveness of its natural gas business operations. The agreement and the acquisition deal between Tokyo Gas and PV Gas D is in line with a memorandum of understanding signed in March 2012 on comprehensive cooperation for the development of liquefied natural gas (LNG) in Vietnam between Tokyo Gas and PV Gas. In July 2016, Tokyo Gas and PV Gas established LNG Vietnam Joint Stock Company to develop LNG infrastructure facilities and trading in Vietnam. Tokyo Gas Asia was founded in December 2014 with 100% capital funded by Tokyo Gas. The Singapore-based company is entrusted by the parent firm to manage investment projects in Southeast Asia. Tokyo Gas is a gas corporation in Japan specializing in both upstream and downstream operations like exploration, transport and distribution of natural gas. Tokyo Gas has expanded in many countries and become PV…... [read more]

The SOE restructuring process is being implemented very slowly and poorly, according to the report on strengthening state-owned enterprises in the 2016-2020 period (facts and effects), released by the Central Institute of Economic Management (CIEM). From 2016 to May 2017, only five SOEs were equitised, while the assets of 38 SOEs were evaluated but they did not receive approval for equitisation. Another 107 SOEs are in the evaluation process. Till date, equitisation has been slow and the quality of equitisation activities has not improved.  Selling state-owned shares continues to be difficult, the report says. The reasons are that the policy for selling shares has not changed, and many of the regulations are not grounded in reality. As a result, state-owned shares have not attracted investors outside of enterprises. The report also pointed out that during the 2011-15 period, eight SOEs were declared bankrupt, but from 2016 till date, only one SOE has been declared bankrupt. This is a low figure when the huge losses incurred by SOEs are taken into account. "The primary reason for this low bankruptcy rate is that the managers and employees of SOEs facing losses do not want them to be declared bankrupt," said Phạm Đức Trung, head of CIEM’s corporate development and reform department.  The other reasons for low equitisation rate are poor fiscal discipline and weak corporate management. Also, SOEs have received a lot of aid when they encountered difficulties, so they have not…... [read more]

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