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Showing posts with label investment. Show all posts
Showing posts with label investment. Show all posts

Friday

Bosch expands operations in Vietnam

The world’s leading technology and services supplier Bosch has announced that it will continue expanding its operations in Vietnam following success in 2012.

Last year, the German group’s global sales reached US$68.3 billion (up 1.9 percent against 2011), with Asian sales fetching US$16.4 billion. 

In Southeast Asia alone, its revenue was US$912.6 million, of which US$286.4 million came from the Vietnamese market, up 31.3 percent.

At a press briefing in HCM City on June 26, Vo Quang Hue, Managing Director of Bosch Vietnam, said Bosch is the largest European investor in Vietnam, with its facilities operating in Hanoi, HCM City, Danang and Dong Nai. 

Sales of its products last year saw growth rates of between 14 and 40 percent, making Vietnam the group’s second key market in Southeast Asia. 

Bosch considers Vietnam as its strategic investment destination in Southeast Asia, said Hue. 

Despite the impact of the global economic recession, the number of the groups employees increased 36 percent in 2012 to 1,200. 

In 2013, Hue said Bosch Vietnam will market new products and solutions and open new distribution networks across the country. 

In the next 3-4 years, Bosch Vietnam is planning to hire up to 500 research and development engineers.
In the future, the group will help build vocational training centres meeting German standards, to supply human resources to the company.

Source: VOV on June, 26, 2013

Hong Kong Group invests US$200 million in garment project in Vietnam

The TAL Group from Hong Kong plans to invest US$200 million to produce fabrics, garments and textiles in Vietnam. 
 
This is the second project of its kind in Vietnam.
During a recent working session in Hanoi with Deputy Minister of Planning and Investment (MPI), Cao Viet Sinh, TAL Hong Kong Development  Director Roger Lee said that his group wants to expand its investments in Vietnam with a US$200 million project to manufacture fabrics, garments and textiles.
The products will be produced using modern technologies that do not cause pollution and the company will ensure environment standards, he said.

Lee said that the group will also work on the project with representatives from the Vietnam National Garment and Textile Group (Vinatex)  and the Ministry of Industry and Trade (MoIT).

The MPI is willing to support and create favourable conditions for TAL to expand investment in Vietnam and has assigned the Foreign Investment Agency to contact TAL on supporting the progress of the project, said Deputy Minister Sinh. 

Source: VOV on June, 22, 2013

Saigon Metro, Vietnam

Constituted in 1976, the Socialist Republic of Vietnam has emerged from a modern history including colonial rule and war to become one of south-east Asia's fastest growing economies (6.23% GDP growth in 2008), with unexploited reserves of coal, iron ore and oil. There has been rapid and continuing growth of the two dominant cities, capital Hanoi (pop. approx 6.4 million) in the north and, around 1,100km to the south, the largest settlement and economic centre, Ho Chi Minh City (formerly Saigon, approx 8 million in the metropolitan area).

Contrasting with important trading partner Germany, a country with a very similar size and population, railway transport has played only a minor part in Vietnam's development. Almost two-thirds of the predominantly metre-gauge heavy rail network is accounted for by the line between Hanoi and Ho Chi Minh City (HCMC), and there is little rail application in urban transit.
However, consideration has turned from reliance on buses – although public transport use for city journeys has been as low as 5% – to creating a metro system to address the problems of congestion, protracted journey times and extreme pollution.
The latter is a particular problem due to the high use of motor scooters/bikes – there is an estimated four million around the city – and with increasing road use in general, the accident and casualty rate has further encouraged the case for rail.
In October 2009, the Vietnamese Government sanctioned plans for building the underground metro line of the project at a cost of about $1.2bn. Spanish consulting company Ardanuy Ingenieria won a feasibility study contract in October 2009 to provide solutions to build Line 4 of the six-line project.
In April 2009 Spanish firm Idom Ingenieria Consultoria was awarded the contract to conduct feasibility studies for Line 5 and Line 6 of the metro. The two feasibility studies are expected to cost $1.7m and was completed within a year.
GEV signed an agreement with Ho Chi Minh City’s Management Board of Urban Railway to construct phase one of Line 5 between Saigon Bridge and Bay Hien Intersection in September 2010. The work is scheduled to begin in April 2011.
The construction of Metro line 2 began in August 2010 and is planned to be completed by 2015, with commercial services scheduled to commence in 2016. The funding is partly from the government and loans from the Overseas Development Administration, Asian Development Bank and European Investment Bank.

The project
Ten years into the formation of the current state, Vietnam loosened domestic economic controls and began supporting foreign investment in the country. Attracting interest from several countries, this process has helped to create a substantial project for Vietnam's first rail-based rapid transit system. At an estimated $1.1bn cost, the government has approved the scheme for the first line.
"With increasing road use in general, the accident and casualty rate has further encouraged the case for rail."
The Japan Bank for International Cooperation is providing 83% of the finance, the remainder coming from the HCMC municipal government. The metro route's consultant and designer is the Japanese Nippon Koei Group, who has maintained a presence in Hanoi since 1991. By March 2008, German interests in Vietnam's future metro developments had also been strengthened following ministerial visits between the countries. There have been indications of financial support via the German public sector KfW Entwicklungsbank for later line projects.

Line routes
The metro project will have six lines. Line 1 of the project is 19.7km long and consists of a 2.6km-long underground section and a 17.1km elevated section. Line 1 will connect Ben Thanh Market in the central area to the amusement park at Suoi Tien in District 9. The line goes underground from Station 1 at Quach Thi Trang Roundabout area in Ben Thanh Market. It consists of two horizontally aligned two tunnels. After Station 3 at Ba Son the line shifts from underground to elevated. The underground section has a total of three underground stations. Line 1 also consists of a crossing at Saigon River.
Line 2 of the project will be 10.18km long and will run between Ben Thanh Market and Tham Luong. Line 2 will contain 11 stations. Line 3 will be 10.4km long and will run between Ben Thanh Market and Bin Tan District.
Line 4 will be 16km long and will begin from Lang Cha Ca traffic circle and end at Van Thanh Park in Binh Thanh district. Line 5 will span 17km between Can Giuoc Bus Station in District 8 and Thu Thiem New Urban Town in District 2. The route for Line 6 will be 6km long and run between Ba Queo in Tan Binh District and Phu Lam in District 6.

Infrastructure
Ho Chi Minh City occupies a low-lying site 60km (37 miles) from the South China Sea coast, and difficult ground conditions are envisaged. Restrictions may need to be placed on building in the areas expected to be needed for the metro project. The start of construction was announced in February 2008, with work beginning on a $28m system depot in Long Binh Ward, District 9.
The tenders for construction were invited in 2008, and compensation and site clearance for the project was completed by 2009. Although system aspects are to be confirmed, the 1,435mm gauge will differ from the country's other lines.
Completion of Line 1, which is due to have 11 surface and three sub-surface stations, also related bus stations, is expected in 2014. There is a commitment to make the system accessible for users with physical disabilities and for bus routes to act as feeder services to rail. Planning indicates several interchange points on the system as later lines are opened.

Rolling stock
The supplier of rolling stock and other equipment is yet to be specified. Six-car trains are to be deployed with a target daily loading of 162,000 passengers up to 2020. An end-to-end time of around 29 minutes is planned, with a train every five minutes through a 20-hour operational day.
"The HCMC transport master plan proposes five further metro lines which, with Line 1, will approximate to 107km (66 miles)."
No suppliers have been yet announced, although the potentially diverse funding arrangements may lead to rolling stock being sourced from several companies and countries.
Those with rapid transit experience who have expressed interest have included Japanese conglomerate Sumitomo Corporation (lead contractor for the Manila MRT-3 Phase 1 project) and two Europe-based companies who are already active in Vietnam, Alstom and Siemens.
Japan's Kawasaki Heavy Industries has also expressed its interest in providing locomotives and carriages for the project. Neighbouring China may also see opportunities with this emerging market.
Signalling and communications
Signalling aspects are to be announced. Along with other potential suppliers, French company Alstom is already active in this area of the market through their work with Vietnam Railways on the existing rail system.

The future
Anticipated completion date for the first line is 2014. The HCMC transport master plan proposed five further metro lines which, with Line 1, will approximate to 107km (66 miles). The same plan, which also included three monorail routes totalling 37km (23 miles), indicated completion of the schemes by 2020, by which time the population forecast is 13.5 million. With Ho Chi Minh City as Vietnam's main economic centre, it remains to be seen if the earlier studies for rapid transit in the capital, Hanoi, will be revived in some form.

Source: railwaytechnology

Thursday

Panasonic will open a new factory in Vietnam

PANASONIC EXPANDS HOME APPLIANCE DEVELOPMENT THROUGH ITS
NEW WASHING MACHINE FACTORY IN VIETNAM

The inauguration of the factory with its integrated Research and Development facility will enhance Panasonic Appliances Vietnam Co., Ltd’s role in the appliance business in ASEAN region

Hung Yen, 20th March 2013 – Today marks a milestone in Vietnam as Panasonic Appliances Vietnam Co. Ltd (PAPVN) inaugurates its new washing machine factory in Thang Long Industrial Park II, Yen My district, Hung Yen province.
The US$32 million factory, fully invested by Panasonic Corporation, is the first in Vietnam that integrates Research and Development (R&D) function with its manufacturing business.
The new factory will focus on the development of high performance washing machines which incorporates Panasonic’s advanced eco and smart technologies  reflecting its commitment to environmental sustainability. The factory aims to achieve 50% of production for the local market and 50% for export to other ASEAN countries.
The inauguration of the washing machine factory is expected to bring economic growth, social benefits, and contribute to local employment. The manufacturing facility aims to provide hi-tech products which cater to local and regional needs. Local employees will also be trained and equipped with manufacturing expertise and technological know-how.
In 2007, Panasonic R&D Center Vietnam Co.,Ltd was established, focusing on the innovation and development of software and electronic products. With the opening of an additional R&D center in Vietnam, the facility functions as a launch pad for innovation of home appliances, developing cutting-edge products with advanced designs for Vietnam and other ASEAN countries.
“This year marks the 40th anniversary of the establishment of diplomatic relations between Japan and Vietnam, and PAPVN will also celebrate its 10th anniversary. We are delighted to open our new washing machine factory and R&D center in light of this commemorative year. We are committed to contribute to Vietnam’s economy by enhancing our role in the refrigerator and washing machine business in the ASEAN region. In addition to creating more job opportunities for the locals,” said Mitsuhiko Nakamura, General Director of PAPVN.
“We are impressed with Panasonic’s new establishment in Hung Yen Industrial zone. This factory not only invests in manufacturing, but also in the R&D field. R&D investments are important in Vietnam so as to transform the local industry into a modern and developed model step-by-step. The locals in Hung Yen too will greatly benefit from this initiative by Panasonic,” commented Mr. Dang Minh Ngoc, Vice Chairman of Hung Yen People’s committee.
Construction of the facility commenced in March 2012. The factory targets to reach manufacturing capacity of 600,000 sets of washing machines per annum and provide employment to around 300 locals by 2014. Panasonic Vietnam Group currently has a total workforce of over 7,200 locals.
The factory’s establishment strengthens Panasonic’s presence in the Vietnam market and contributes to economic growth of the country. It also serves as a milestone for Panasonic in its next stage of business expansion in this emerging market.

Source: Panasonic VN

Tuesday

Starbucks to open first outlet in Vietnam in early February

Starbucks Corp said it will set up its first outlet in Vietnam early next month as the U.S. chain continues to expand in fast-growing Asian markets.

Starbucks said it will partner with Hong Kong's Maxim's Group to open its first store in Ho Chi Minh City and reiterated that Asia continues to be a significant growth driver for the company.
"Vietnam is one of the most dynamic and exciting markets in the world and we are proud to add Vietnam as the 12th market across the China and Asia-Pacific region," said John Culver, president, Starbucks China and Asia Pacific.


Starbucks already buys some of the highest-quality arabica coffee from Vietnam and said it is committed to sourcing more from the region in the long-run.
Vietnam is the second-biggest coffee producer in the world after Brazil.


Starbucks operates more than 3,300 stores across 11 countries in the China and Asia-Pacific region.


Through its licensed partner, Coffee Concepts (Hong Kong) Ltd, a unit of Hong Kong's Maxim's Group, Starbucks operates more than 130 stores in Hong Kong and Macau. Last year, Starbucks opened its first store in India.


Jan 3, 2013- Reuters

Southeast Asian business groups buying into Vietnamese firms

The merger and acquisitions (M&A) market in Vietnam is heating up thanks to the participation of big regional firms, who own majority stakes in local firms like Prime Group, Cai Lan, and Maybank Kim Eng Securities Co.


1. Thai SCG’s acquisition of Prime Group
Thailand’s Siam Cement Group (SCG) has announced it will spend some $7.2 billion baht (US$240 million) to buy an 85 percent stake in Prime Group, a Vietnamese tile manufacturer.
Prime Group (Prime) is a multi-sector company focused in the fields of real estate investment and building materials production. It currently has a capacity of 75 million m2 of tiles per year and holds a 20 percent market share of the domestic brick sector.
As SCG’s valuation of Prime is at some $240 million, much higher than the actual value of the company, Prime’s current shareholders did not hesitate to sell their shares to the foreign firm.
SCG considers Vietnam to be a strategic market and has been expanding its operations in Vietnam since 1992. It currently has 17 companies with more than 2,300 employees in Vietnam. With total assets of more than $370 million, its annual revenue from Vietnam stands at $300 million.
2. NawaPlastic raises holding in Binh Minh Plastics and Tien Phong Plastics
In mid-2012, NawaPlastic, an SCG-related business, announced that it had collected a large amount of shares in Binh Minh Plastics and Tien Phong Plastics.
The two local firms are leaders in the field of construction plastics, while Nawaplastic Industries (Saraburi) Co Ltd is a subsidiary of Thai Plastic and Chemicals Public Co Ltd (TPC).
Thai Plastic Co. has purchased 9.82 million shares of Tien Phong Plastics, coded NTP, and 5.85 million shares of Binh Minh Plastics, coded BMP. Thus, the current holding rates of NawaPlastic in Tien Phong Plastics and Binh Minh Plastics are 16.7 percent and 22.7 percent, respectively, making it a major shareholder in both firms.
3. Wilmar and Vietnamese cooking oil/animal feed market
Singaporean firm Wilmar has a 68 percent stake in Cai Lan Oils & Fats Industries Co (Calofic), which accounts for over 55 percent of the local market share of bottled cooking oil, with well-known edible oil products including Neptune, Simply, and Meizan.
In 2011, Calofic earned more than VND10.5 trillion in revenue and VND250 billion in after-tax profit, far ahead of runner-up Tuong An, which achieved revenue and after-tax profit of more than VND4.4 trillion and VND25 billion.
Wilmar has a local subsidiary, Wilmar Agro Vietnam, which is headquartered in the Mekong Delta city of Can Tho, and works in rice bran and protein-rich rice bran. Its main producted is the Vang rice bran brand, which is supplied to local animal feed and aquaculture feed manufacturers.
In 2011, Wilmar Agro Vietnam earned nearly VND1 trillion in revenue and VND42 billion in post-tax profit.
4. Ayala and the HCMC water supply acquisition plan
In 2008, Ayala penetrated the Vietnamese market with a $44 million water loss reduction project in HCMC.
In November 2011, the consortium of Manila Water, Mitsubishi and Refrigeration Electrical Engineering Corp (REE) recommended that the Saigon Water Supply Co (Sawaco) implement a similar project in other areas of the city.
In December 2011, Ayala purchased a 49 percent stake in Thu Duc Water BOO Corp from the Ho Chi Minh City Infrastructure Investment Joint Stock Co (CII) for $42.6 million.
In May 2012, Ayala acquired a 10 percent stake in CII and Manila Water. A subsidiary of Ayala is also a partner of CII and the HCMC State Financial Investment Co (HFIC) in HCMC’s existing water supply and distribution networks.
5. Jollibee holds dominant stakes in Highlands Coffee and Pho 24
Highlands Coffee Co, a Vietnamese coffee shop chain and producer and distributor of coffee products, sold 50 percent of its stake in Pho 24 to Philippines-based Jollibee for $25 million after acquiring 100 percent stake of Pho 24 in early 2012.
The transaction, carried out via Jollibee Worldwide - a Jollibee Group member, is said to be the beginning of the foreign company’s plan to acquire full stakes in Highlands Coffee and Pho 24 for Jollibee’s long-term plan in Vietnam.
Highlands Coffee was established in Hanoi by a Vietnamese-American in 1998. This was the first time an Overseas Vietnamese was able to register a private company within Vietnam.
6. Maybank enters local banking sector
In August 2012, Malaysia’s Maybank bought Kim Eng Holding Singapore, which owns 49% of Kim Eng Vietnam Securities Joint Stock Co (KEVS), later renamed Maybank Kim Eng Securities Corp.
Now, Maybank is wishing to raise the 49% stake (worth US$14.4 million) to 100% to become the first foreign securities firm in Vietnam.
Operational in Vietnam since 2008, Maybank Kim Eng is one of the few companies in Vietnam that enjoyed profits from securities brokerage services in its first year of operation. Currently, Maybank Kim Eng is the 4th largest broker in Vietnam.
In addition to stocks, Maybank currently has a capital contribution rate of up to 20 percent in An Binh Joint Stock Commercial Bank.

Source: Tuoi Tre

Vietnam Telecommunications Report 2012

As of 2011, Information  and  Public  Relations  Centre of Vietnam Posts & Telecommunications Group (VNPT) officially launches the English version of quarterly publication Vietnam Telecommunications Report (VTR)

VTR is a  useful  tool  for  market  evaluation,  financial  estimation  as  well  as  business  promotion by highlighting market development trends and  new  opportunities  for foreign  partners.  This  is  an  effective publication for  international investors now seeking for investment opportunities in Vietnam.  
 

  Publication headlines
                              Chapter 1: Overview of Vietnam telecom market



This   part   provides  general   information  about  the  recent  telecom  business   
Government’s   regulations   and   policies  in  the  telecom   sector…

                             Market analysis



The report gives out reliable forecasts on the future IT - telecom market based on

detailed analyses of various data such as: numbers of fixed and mobile   subscribers, telephone density, Internet user number and density…


                           Chapter 2: Business cooperation


The 2nd chapter provides information on the need for business cooperation of local telecom  enterprises,  together  with  business projects which are underway and their

contact information such as: address, telephone number, email address… 


                           Chapter 3: Information of Vietnam’s telecom companies



Typical  information  of leading  local telecom  companies  including key operators

and manufacturers with their revenues, market  shares,  services/products, partners,
business  contracts,  investment strategies and business expansion will be provided  
in this chapter. They are: VNPT, Vinaphone, MobiFone, Viettel, SPT, EVN

Telecom, HT Mobile, GTel Mobile and so on…  


  Subscription details

                   ·        Form of publication : Online

                   ·        Term of publication:  Quarterly

For  subscription, please kindly fill in the  Form in http://www.vnpt.com.vn/Default.aspx?alias=www.vnpt.com.vn/en  and send to IPC at the

notified address.
You can also get a free trial version when you visit the site.

Source: VNPT

Saturday

Coca-Cola Vietnam protests tax evasion accusation

With Coca-Cola Vietnam recently coming under scrutiny over tax evasion possibilities, its External Relations Director said the company’s continuous losses is a result of a series of objective causes.

Coca-Cola Vietnam, the country’s leading soft drink manufacturer with steadily increasing sales, has never posted profits since its arrival in Vietnam in 1994.
Coca-Cola’s cumulative losses in Vietnam are now some US$180.6 million, even bigger than its equity of $141.6 million, according to Ho Chi Minh City Department of Taxation.

Despite the steep losses, the company, currently running three manufacturing plants in HCMC, Da Nang, and Hanoi, has still continued to expand its Vietnam operation, with its chairman cum CEO Muhtar Kent claiming during his Vietnam trip last October that Coca-Cola will pour an additional $300 million into the country in the next three years.


Coca-Cola Vietnam, meanwhile, attributed the losses to objective causes, and a number of other subjective ones.


Soaring expenses

“A myriad of unwanted reasons have sent Coca-Cola Vietnam to the repeated loss status,” said External Relations Director Nguyen Khoa My in an interview via email with Tuoi Tre.


With the arrival of new competitors, Coca-Cola Vietnam has suffered reductions in its market share, and thus having to earmark a huge amount of capital for PR and marketing to protect its brand, Khoa said.


“The rising input costs, such as raw materials, power, and sugar, have also increased our products’ cost prices,” he added.


Khoa also said that the company had also hiked salaries for its employees by at least 11 percent on an annual basis.


“It’s to help the employees combat inflation,” he explained.


As for the subjective causes, Khoa said it is because of the pressures from bank loan interests and the foreign exchange rate risks for the loans in US dollars.


However, Le Duy Minh, head of the tax inspection of the city’s tax agency, said most of the company’s loans are from its parent company.


“The short-term debt Coca-Cola Vietnam owes to its parent company is as much as VND2.02 trillion, while loans from other sources only account for VND343 billion,” Minh elaborated.


“Hence, the debt status of Coca-Cola Vietnam is in fact not a debt, as the money is provided by its parent company, which is in fact part of the profits the Vietnam firm annually sends back to the parent under the disguise of raw material payment.”

 
Expanding means believing

Asked about the suspicion that Coca-Cola Vietnam is engaged in transfer pricing activities, Khoa asserted that the company has been strictly following Vietnamese tax and financial laws.


“These have been proven in the audit reports over the last years,” he said.


In addressing the question why the company still expanded its operation despite the steep losses, Khoa said it is for the company to realize its future vision.


“Vietnam is an important market in the Asia – Pacific under our development vision to 2020.


“The new financial investment in the country is not merely meant to expand operation, but also to show our faith in the long-term development potential in Vietnam,” he asserted.


Source: Tuoi Tre on December 8, 2012

Tuesday

P&G expands its pampers plant in Binh Duong



Procter & Gamble (P&G) late last week broke ground for its pampers manufacturing plant expansion in the southern province of Binh Duong’s Ben Cat District.

The company said that the expansion was part of the company’s plan to increase its capital by US$80 million in three years.

In 2009, P&G developed the first category of Pampers Baby Care plant at VSIP 2 Industrial Zone in Binh Duong Province with initial capital of US$45 which uses the latest technology to manufacture diapers.

To meet the increasing demands at home and abroad, the company continues to invest an additional US$80 million in the next three years to expand the plant.

Manuel Roman as director of the plant said that the expansion would increase its capacity by 200% compared to the current capacity.

Emre Olocer, general director & CEO Vietnam, said at the ceremony that Vietnam is one of the priority investment markets of P&G as the group’s operation in Vietnam has seen the highest growth rate of the global P&G in three consecutive years.

Up to now, the investment of P&G in Vietnam has tripled to reach more than US$200 million in 2012 and will continue to increase in the coming years.

P&G stared operations in Vietnam in 1995 and now boasts a wide range of international standard consumer products such as shampoo, washing powder, soap, lotion, razor, toothbrush and diapers among others. P&G also export more than 30% of it production to such markets as Australia, New Zealand, Japan, Korea, India and ASEAN.

Source: Saigon Times on December 3,2012

Sunday

Big C’s VND11 bil. on solar power

Supermarket chain Big C and Schneider Electric Vietnam have inked a deal for cooperation in a renewable energy project ‘Solar Photovoltaic Power 212 kWp’ worth more than VND11 billion.

Under the deal, a solar power system of 212 kilowatts-peak will be installed on the roof of the car park of Big C supermarket/shopping center in Di An, Binh Duong, which is currently under construction and will come into business in early 2013.

The system will be directly connected to the grid of the shopping center. Each year, it will produce about 230,000 kWh of electricity, meeting 7% of the total power demand of the center, and reduce emission of carbon dioxide by over 150 tons.

The entire project will be covered by a five-year warranty, while the warranty period will be ten years for the photovoltaic module system and 25 years for all electrical equipment. Maintenance work will be carried out once every two months for five years.

This is the first supermarket/shopping center in Vietnam to deploy a national-scale solar power project with a total investment of over VND11 billion and a payback period of ten years.

It is also the first commercial center in the country to apply the U.S. green building rating system LEED and the environmental assessment standards LOTUS of Vietnam. With other green technologies applied, Big C Di An will cut power consumption by over 30% compared to a conventional shopping mall.

Laurent Zecri, CEO of Big C Vietnam, said the use of solar power would help reduce the load on the national grid and would be an effective measure to protect the environment.

Source: SaigonTimes

Tuesday

Banks officially cease gold deposits



Commercial banks have officially stopped mobilizing gold deposits as of Monday, adhering to the State Bank of Vietnam’s ban that took effect Sunday.

On April 29, 2011 the central bank halted gold mobilization at banks, but lifted the ban a year later, ruling that the credit institutions would still be able to accept savings in gold bullion until November 25, 2012.

Banks have thus removed the interest rates for gold deposits from their display boards, Tuoi Tre reporters observed.


Nguyen Huu Dang, CEO of HDBank, said his bank has strictly followed the directive of the central bank, and now only offers gold-keeping services.


The service allows customers to store their gold bullion at banks with fees depending on custody terms.


“We also encourage customers whose gold deposits are due to sell the gold back to us at higher prices than market rates,” he said.


“But the number of customers who have agreed to switch from gold to the dong is very modest,” he admitted.


In another development, many holders on Monday rushed to sell their gold bullion as domestic prices rose in accordance with their global counterparts.


“Most of the sellers are individuals and small investors who have bought the gold at low prices and now want to rake in profits,” said Nguyen Cong Tuong, deputy chief of sales of Saigon Jewelry Co.


“SJC bought some 1,000 taels on Monday,” he added.


The precious metal in Vietnam edged up by VND210,000 a tael compared to last weekend to VND47,35 million a tael.


The global price closed yesterday at $1,748 an ounce, or VND44 million a tael -- some VND3.35 million lower than the domestic price.


The price gap, however, has narrowed as it was as high as VND4 million a tael last week.



Source: Tuoi Tre

Saturday

Vietnamese "wind power capital" unattractive to investors





Considered the country’s “capital of wind power” with as many as 20 wind power projects planned for development until 2020, yet the south central province of Binh Thuan is not likely to meet capacity targets as investors are discouraged by the long time to recoup their investments.

Wind power turbines are seen at the south central province of Binh Thuan.
Wind power turbines are seen at the south central province of Binh Thuan.
Photo: Tuoi Tre

 Under the development master plan for the 2011 – 2020 period, the wind farms in Binh Thuan are expected to reach the installed capacity of 700MW, with nearly 1,500 kWh of total equivalent wind power output.

“But the target seems unfeasible,” said Duong Tan Phong, head of power and energy management of the provincial Department of Industry and Trade.

“The best we can do is to make it to only 500MW,” he admitted.

The largest obstacle at the moment is the lack of capital from the investors, he analyzed.

“A turbine for wind power costs millions of US dollars, but it takes quite a long time to recoup investments.

“So it’s difficult to attract investors,” he concluded.

In 2010 the PV Power RE Co Ltd broke ground on the Phu Quy wind power project with three turbines.

The VND335-billion project with a total capacity of 6MW officially became operational last August with the first two turbines beginning supplying power for the area. (VND1 billion = US$48,000)

But the company will have to earmark some VND10 billion on an annual basis in order to offset losses from the project, company director Pham Cuong said.

“The power produced by the wind farm is bought by the local power sector at 6.8 cent, plus 1 cent subsidized by the government,” he said.

“But we will only be able to break even at 10.36 cent a kWh, although it will also take as long as 12 years.”

Meanwhile in Tuy Phong District, the wind power produced by the project of the Renewable Energy Vietnam Co (REV) has been connected to the national electricity system.

The VND1-trillion project consists of 20 turbines with total capacity of 30MW, and it will also take it a long time to recoup investment given the current power buying price, a company representative said.

Source: Tuoi Tre

Sunday

Samsung to add $830 mln to Vietnam market



Samsung will pour US$830 million more into Vietnam by building a new production plant in the northern province of Bac Ninh.

The provincial authorities have just granted an investment license to the South Korean tech giant’s local business, Samsung Electronics Vietnam, that allows it to construct a facility for producing mobile phones and other electronic products.

This will be its second such plant in the county, and is expected to merge with Samsung’s current facility in the same province to form the so-called Samsung Complex, worth around $1.5 billion in total.

The company inaugurated its existing facility, which cost $700 million to build, in October 2009 to make mobile phones for the global market.

The plant has attracted 53 sub-investors and provided work for 24,000 people since its opening.
It is expected to churn out an estimated 100 million cellphones and yield over $10 billion in exports this year.

Source: Tuoi Tre

Thursday

Foreign investors show interests in airport development projects in Vietnam



A South Korean company has expressed a desire to develop an airport in Quang Ninh province, while a Japanese investor is eyeing the Long Thanh airport project and US investors have arrived to seek investment opportunities.



Unable to develop airports with just state sourced money, Vietnam is seeking capital from private foreign investors. The information has driven the special attention from the international community to Vietnam, which has been developing the aviation infrastructure system with its own capital so far.

Vietnam plans to build five more airports by 2020 and upgrade the 21 existing airports in order to serve the socio-economic development. It is estimated that the works would cost 220 trillion dong, a huge capital sum which cannot arrange itself. Therefore, it has been trying to call for foreign private investment.

The Quang Ninh airport project announced in April 2012 needs roughly 250 million dollars in investment capital by 2030. The Quang Ninh provincial authorities then informed that two South Korean investors, namely the ROK Airport Corporation and Jionus Company showed the interests in the project.

When asked about the implementation of the project, a senior official of the provincial authorities said the South Korean investors were told to complete the works for the investment preparations and submit their plan to the provincial authorities in 2012. However, no reply has been received from the investors so far.

Meanwhile, Tadashi Okamura, Chair of the Japan Chamber of Commerce and Industry, said at the dialogue between Vietnamese and Japanese businesses held recently that Japanese enterprises are willing to cooperate with Vietnamese partners to develop the Long Thanh airport.

Besides South Korea, Japan and the US have been interested their desire to make investment in the airports in Vietnam for a long time. In 2010, the US ADC & HAS, specializing in developing airports, met the leaders of the Da Nang City to discuss the development of an airport in the city.

In 2011, the US group showed its interest in the Cam Ranh airport project. And in September 2012, it once again put forward the airport development under the mode of PPP (private public partnership) at the meetings with the leaders of the Ministry of Transport.

Le Manh Hung, General Director of the Vietnam Airport Corporation, has confirmed that Vietnam is considering different investment modes for airport development, including the PPP.

In the past, Vietnam tried to develop airports with its own money. However, with the increasing demand for infrastructure, Vietnam tends to diversify the investment capital sources.

Hung went on to say that the Ministry of Transport has set up an agency in charge of pushing up the investment projects under the mode of PPP.

US investors also highly appreciate the idea of developing airports under different investment modes. The US Ambassador to Vietnam David Shear has also affirmed that the US is actively working with the Vietnamese side to implement the plan to develop aviation infrastructure.

However, State’s officials have said that special regulations would be applied for the PPP investment mode in the airport development, which is also a special business field.

An official of the Quang Ninh provincial authorities said that the State would inject money and control key infrastructure items, while private investors would be able to exploit other items such as the terminals, port authorities’ houses and services.

Vietnam’s aviation industry has been witnessing a steady growth rate of 18 percent in 2006-2011.

A lot of projects have been carried out to serve the aviation industry development, including the T2 terminal at Noi Bai Airport, the project on upgrading Tan Son Nhat airport to be capable to serve 25 million passengers a year, the Phu Quoc international airport project in Kien Giang province which is expected to become operational in December.

Compiled by C. V

Source: VIETNAMNET Bridge