VietNam Business: projects

Showing posts with label projects. Show all posts

Friday, February 18, 2011

Confab examines new housing policies

by Xuan Huong

A new apartment building in Phu My Hung Area in HCM City. New housing policies on residential real-estate transactions were introduced to housing companies at a conference yesterday. — VNA/VNS Photo Van Khanh

HCM CITY — More than 200 representatives from property companies learned about new housing policies during a meeting held yesterday in HCM City with the Viet Nam Real Estate Association and the Ministry of Construction.

The ministry explained that Decree 90, which took effect four years ago, was replaced with Decree 71.

The new decree contains detailed regulations covering different sectors in the local property market, and guides the implementation of the Law on Housing, according to Nguyen Trong Ninh, deputy director of the Housing and Real Estate Market Management Department.

In addition, Circular No 16 issued by the Ministry of Construction provides detailed guidelines for the implementation of Decree 71 regarding residential real estate transactions. The circular came into effect October 16.

Decree 71 contains regulations on the selection of developers, the appraisal and approval process of housing, commercial housing, individual housing, social housing projects and housing projects for public employees.

It also describes ways that project developers can raise capital for their projects.

Unlike the previous decree that contained vague language, the new decree allows developers to raise capital from banks, credit institutions, investment funds, corporate bonds, secondary investors and other organisations or individuals.

Under Decree 71, housing developers will be permitted to sell in advance a maximum of 20 per cent of the total number of apartments in a property project before finishing the foundation of the building.

The remaining sales must be traded via property exchange floors when the projects' foundations are completed.

The decree also outlines regulations and preferential policies for investors who develop social housing projects.

The aim is to encourage them to develop more housing projects and meet the housing demand of low-income earners.

In addition, Decree 71 has detailed guidance concerning housing transactions of Vietnamese residing abroad and of foreigners leasing houses in Viet Nam.

Regulations in previous decrees on housing policies that conflict with the new decree are no longer valid, according to Ninh.

Housing proposals submitted before August 8, the effective date of Decree 71, to provincial governments will be considered in several ways, he explained.

If the project has fewer than 2,500 apartments and is being built with State funds, the provincial People's Committee will make a decision based on Decree 90.

If it is being built with non-State funds, the local authority can issue an investment approval document to developers without asking them to submit a statement again.

If the project proposal has more than 2,500 apartments but does not mention investment sources, the provincial authority must send a statement to the Government for approval before it is turned over to the provincial government for final approval. — VNS

Province lures investors

Zinc-plated corrugated steel is rolled at the Hoa Sen Group factory in the southern province of Ba Ria – Vung Tau. — VNA/VNS Photo The Anh

HCM CITY — Southern coastal Ba Ria – Vung Tau Province has attracted an increasing number of investment projects over the last five years, according to the province's Department of Planning and Investment.

From 2006 through 2010, the province issued 196 new investment licences with total committed capital of US$24.26 billion.

The investment projects now number at 280, with total committed capital of $27 billion.

Most investment projects are in the tourism and industry sectors.

The number of projects has doubled, while committed capital has increased 10 times compared to the target set for the 2006-10 period, according to the department.

Implemented capital reached $3.39 billion, a rise of 1.5 times compared to the 2001 – 05 period, about $650 million higher than the target.

According to the department, foreign investment projects, mostly in the tourism sector, have accounted for 60 per cent of total investment capital and 50 per cent of export turnover.

During the 2006-10 period, foreign-invested projects made up 20 – 30 per cent of the total budget and created more than 20,000 jobs.

Local investors have focused on projects to develop seaports, residential areas and other infrastructure projects.

They include projects to develop Long Son Oil and Gas Industrial Park ($169.7 million), An Phu shipbuilding factory ($144.1 million), Chau Duc residential area ($63.43 million) and Nui Lon – Nui Nho tourist resort ($71.79 million).

Tan Thanh District in the province has attracted 127 projects with total investment capital of VND86,357 billion ($4.4 million).

Vung Tau City ranked second in the number of projects, with 76, and a total investment capital of VND24,099 billion ($1.2 million).

Viet Nam's membership in the World Trade Organisation (WTO) in 2007 has helped spur foreign investment growth, especially in Ba Ria – Vung Tau Province.

In 2007, the province attracted investment capital of only $1.4 billion, but capital rose to $11.6 billion in 2008.

Le Kim Huong, director of the province's Department of Planning and Investment, said the province wanted to create the most favourable conditions for both local and foreign businesses to invest.

The executive director of Ho Tram Beach Resort, Le Ngoc Quynh, noted that when his company invested in tourism in Phuoc Thuan Commune in Xuyen Moc District, local authorities supported them by improving infrastructure, such as power and telephone lines.

Because of the global recession, investors have also faced challenges in luring capital, particularly for large projects.

In addition, frequent changes in Government policies about land-use have postponed site clearance work because of lawsuits on compensation for displaced residents. This, in turn, has delayed progress on large projects.

Located in the major southern economic zone more than 100 kilometres from HCM City to the southeast, Ba Ria – Vung Tau Province is a major tourism site, favoured by nature with a long, beautiful coast.

The coastal province is also the country's only site for the offshore oil and gas industry. — VNS

Wednesday, February 16, 2011

FDI disbursement accelerates in HCM City

The Ho Chi Minh City Planning and Investment Department reported the
city’s nine-month FDI disbursement hit 900 million USD, almost matching
the amount for the whole of 2009, but still only a small amount
compared with total FDI flow.

The yearly target of
1.43 billion USD is clearly within reach, however total FDI disbursed is
only 11.9 billion USD out of the total registered FDI of 28.4 billion
USD.

Projects operating in the HCMC City Export
Processing and Industrial Zone Authority (HEPZA) recorded the highest
FDI disbursement speed. HEPZA’s 479 valid projects have disbursed 82
percent of the total 2.8 billion USD registered, according to Nguyen Tan
Phuoc, Vice Head of the HEPZA authority.

In the new
Thu Thiem Urban Zone, three out of four licensed projects have been
kick-started, including a 120 million USD project to build 2,220
apartments in Binh Khanh ward, District 2.

The
Planning and Investment Department’s Deputy Director Lu Thanh Phong said
that slow disbursement is usually seen in large-scale real estate
projects that face obstacles in ground clearance and administrative
procedures.

The department and relevant authorities
have been adjusting and removing unnecessary procedures in order to
facilitate investment projects.

The city has also been
assessing large-scale real estate projects to find out reasons for
delay and is determined to withdraw licences from projects that cannot
provide sound reasons for long delays.

Recently, the Ministry of Planning and Investment decided to stop 34 projects in HCMC due to their slow progress./.

Friday, January 28, 2011

Ba Ria-Vung Tau says no to steel projects

HCMC – The southern province of Ba Ria-Vung Tau will not license new steel projects from now on as such projects consume much electric power and water, which proves a big burden for the locality, said a leader of the province.

Ho Van Nien, vice chairman of the province, told the Daily late last week that because the province is facing a severe shortage of power and water for industrial production, so it will definitely reject new steel projects in the coming years.

As observed by the Daily, Ba Ria-Vung Tau is having the most licensed steel projects in the country with 18 projects, including 10 projects outside the national master plan for steel industry development approved by the Government. Steel projects in the province have a total capacity of some 3.7 million tons of ingots and 3.3 million tons of other steel products.

Nien said that to cut down the unwanted steel projects in the locality, the province has just required related agencies to consider revoking four steel projects that are moving at a snail’s pace. However, he did not mention the names of the four steel projects that will possibly be cancelled in the coming days.

Nien said that the axe could fall on more steel projects beside the four just mentioned, adding that the provincial government would only retain those steel projects that produce high-grade products.

“In the time to come, the province will call investors for projects that consume less power and water due to the limited supply capacity in the province,” he said.

Thursday, January 27, 2011

UK keen to be key in public-private partnership

An UK diplomat has expressed interest in his country working as
Vietnam ’s key partner in the Public Private Partnership (PPP) sector as
there is now a great emphasis on PPP from both Government and the
public sector in Vietnam.

Kate Harrison, Deputy
Head of Mission , British Embassy, said at a workshop in Hanoi on
October 11 that the UK could share its experience with Vietnam at a
time when the latter is looking at new ways of finding finance for
crucial infrastructure projects.

“PPP has been a
cornerstone of the modernisation of public service delivery in the UK
with more than 900 projects, involving private finance of around 100
billion USD approved in the UK in the last 12 years”, the British
diplomat said as an illustration of UK experience in this field.

Vice Minister of Planning and Investment Dang Huy Dong shared his
view, emphasising that the PPP would certainly bring great benefits for
infrastructure development in Vietnam .

He said the
legal framework of the PPP model had been submitted to the Prime
Minister for approval and a number of pilot projects in infrastructure
development were underway.

British businesses’
executives shared experiences in making the legal framework of the PPP
model, plus how to establish infrastructure PPP projects in an emerging
market, how to avoid disputes and how to enhance transport development
through PPP.

Prince Andrew, The Duke of York and the
UK Special Representative for International Trade and Investment,
appreciated bilateral relations between the UK and Vietnam .

“Two key areas of this relationship cover trade and development: both
are essential elements for a country’s wellbeing; and as part of that
relationship we see the concept of PPP as being a key ingredient to
deliver the necessary infrastructure which will bring increased trade
and investment”, said the Duke of York./.

Sunday, January 23, 2011

Infrastructure projects seek investors

Can Tho asked to turn into hub of Mekong Delta

Vietnam is calling for infrastructure investment under the Public-Private-Partnership (PPP) model as funds from the State budget, Government bonds and ODA (Official Development Assistance) capital are insufficient to meet demand.

Dang Huy Dong, deputy minister of Planning and Investment, said Vietnam hoped to cooperate with Italian businesses to attract capital and exchange work experiences in infrastructure improvement.

Dong spoke at a conference on Vietnam's infrastructure development held in Ha Noi this week by the Ministry of Planning and Investment, in collaboration with the Italian Trade Commission and the Transport Ministry.

The Italian ambassador to Vietnam, Andrea Peregini, said his country had used the PPP model for several projects that were expected to be profitable in the future.

"Italian businesses are interested in highway projects in Vietnam because similar projects under the PPP model in Italy had been successful," he added.

Marco Saladini, Italian trade commissioner in Vietnam, said more than 5,000 kilometres of highway in Italy were built mainly under the PPP model by large European companies.

Apart from highway projects, Italy has used the PPP model for underground parks as well as electricity and transport-management projects.

Saladini said the Vietnamese Government had implemented an online auction for projects that was more transparent than in the past, creating a more favourable climate for investors.

He added that Italian businesses were committed to creating jobs for local workers at their projects in Vietnam.

In the 2006-10 period, investment capital for infrastructure development was about VND140 billion (US$28 billion) per year.

However, the need for transport, energy and environmental projects has not yet been met.

Dong said infrastructure improvement was the top priority for Vietnam because of increased development.

Vietnam needs to have 3,000-5,000km of highway, 300-400km of metro, and dozens of seaports in the next 10 years.

To meet the demand, Vietnam needs to attract billions of US dollars to develop infrastructure in the next five to 10 years.

To meet the demand, Vietnam needs to attract billions of dollars to develop infrastructure in the next five to 10 years.

Vietnam has used the PPP model to attract more private and foreign-direct invested capital for its projects, including the Ninh Binh-Thanh Hoa Highway and Dau Giay-Phan Thiet Highway. The two highways are expected to be completed by 2014.

Other projects using the PPP model include Highway No.1 Upgrade Project, Ha Noi-Lao Cai Railway, and Phnom Penh-HCMC Highway, according to the Ministry of Transport.

In the near future, Vietnam will call for more PPP and FDI capital for transport projects, such as Da Nang-Quang Ngai, My Thuan-Can Tho, Noi Bai-Ha Long, Dau Giay-Da Lat, Ben Luc-Long Thanh, the international port in Hai Phong and HCMC-Can Tho Highway.

Thursday, January 20, 2011

Infrastructure projects seek investors

Construction work on Ngoc Thap Bridge which is being built with State fund in the northern province of Phu Tho. The Government is looking for investment under Public-Private Partnership into infrastructure projects. — VNA/VNS Photo Anh Ton

HA NOI — Viet Nam is calling for infrastructure investment under the Public-Private-Partnership (PPP) model as funds from the State budget, Government bonds and ODA (Official Development Assistance) capital are insufficient to meet demand.

Dang Huy Dong, deputy minister of Planning and Investment, said Viet Nam hoped to cooperate with Italian businesses to attract capital and exchange work experiences in infrastructure improvement.

Dong spoke at a conference on Viet Nam's infrastructure development held on Monday in Ha Noi by the Ministry of Planning and Investment, in collaboration with the Italian Trade Commission and the Transport Ministry.

The Italian ambassador to Viet Nam, Andrea Peregini, said his country had used the PPP model for several projects that were expected to be profitable in the future.

"Italian businesses are interested in highway projects in Viet Nam because similar projects under the PPP model in Italy had been successful," he added.

Marco Saladini, Italian trade commissioner in Viet Nam, said more than 5,000 kilometres of highway in Italy were built mainly under the PPP model by large European companies.

Apart from highway projects, Italy has used the PPP model for underground parks as well as electricity and transport-management projects.

Saladini said the Vietnamese Government had implemented an online auction for projects that was more transparent than in the past, creating a more favourable climate for investors.

He added that Italian businesses were committed to creating jobs for local workers at their projects in Viet Nam.

In the 2006-10 period, investment capital for infrastructure development was about VND140 billion (US$28 billion) per year.

However, the need for transport, energy and environmental projects has not yet been met.

Dong said infrastructure improvement was the top priority for Viet Nam because of increased development.

Viet Nam needs to have 3,000-5,000km of highway, 300-400km of metro, and dozens of seaports in the next 10 years.

To meet the demand, Viet Nam needs to attract billions of US dollars to develop infrastructure in the next five to 10 years.

To meet the demand, Viet Nam needs to attract billions of dollars to develop infrastructure in the next five to 10 years.

Viet Nam has used the PPP model to attract more private and foreign-direct invested capital for its projects, including the Ninh Binh-Thanh Hoa Highway and Dau Giay-Phan Thiet Highway. The two highways are expected to be completed by 2014.

Other projects using the PPP model include Highway No.1 Upgrade Project, Ha Noi-Lao Cai Railway, and Phnom Penh-HCM City Highway, according to the Ministry of Transport.

In the near future, Viet Nam will call for more PPP and FDI capital for transport projects, such as Da Nang-Quang Ngai, My Thuan-Can Tho, Noi Bai-Ha Long, Dau Giay-Da Lat, Ben Luc-Long Thanh, the international port in Hai Phong and HCM City-Can Tho Highway. — VNS

Thursday, January 13, 2011

Ministry mulls curbs on cement production

Photo: Reuters

The Ministry of Construction plans to propose to the Prime Minister a suspension in the licensing of new cement production projects to limit the sector's overheating development, and unnecessary waste of energy.

Vu Quang Diem, Deputy Director of the Ministry's Building Materials Department, said in terms of the building materials production sector, the cement sector was the most energy-inefficient.

For each million tons of cement produced, the power sector had to supply 90-95 million kWh, Diem said.

The rapid growth of the building materials production industry, including the cement sector, had put pressure on infrastructure, especially the power sector, Diem said.

The most worrying problem was the number of new cement projects, many of which were inefficient and used out-of-date technology, would continue to rapidly increase if management was not tightened, he said.

The boom would lead to a waste of energy and harm the environment, he added.

The Department was developing a plan for cement sector development until 2015, with an orientation to 2025 to submit to the Government.

The ministry proposed a suspension of investment in 13 projects which had been approved in Prime Minister's Decision 108/2005/QD-TTg issued in 2005, but had not been carried out or would be harmful to the environment if continued.

As an alternative, the authority petitioned the Prime Minister to agree to the construction of nine projects which had more favorable local conditions and would have a significantly beneficial affect on the development of the region where they were located.

The ministry also asked for stricter punishment on projects that failed to meet schedules.

The head of the ministry's Department of Science, Technology and Environment, Nguyen Trung Hoa, said that it was difficult to compel enterprises to spend hundreds of millions of US dollars to renew technology.

Therefore it was necessary to offer preferential lending policies, so that companies would find it easier to access loans to upgrade energy-saving technology, he said, adding that a raft of complicated administrative procedures was one of obstacles that made companies hesitate when considering upgrading their technology.

The Government should strictly implement the regulation that forced cement factories to re-use exhaust fume heat discharged to generate power, as the temperature of the exhaust fumes could reach up to 370 degrees Celsius, Hoa said.

If factories could take advantage of this energy source, they could save 30 per cent of the electricity they consumed, he added.

Although the policy had been outlined in Decision 108, many enterprises had not been interested in it, Hoa said.

Diem suggested that the Government only license new projects which included the construction of a power generator using exhaust fumes.

According to the ministry, by the end of 2009, total design capacity of all cement factories nationwide was 57.4 million tons per year, which could fully satisfy domestic consumption demand. However, this year, total capacity had added an additional 11.7 million tons to output.

Overseas investment totals $730m in first nine months

Viettel advertises its Metfone service on the outskirts of Sihanuokville in Cambodia. Authorities licensed 90 overseas investment projects worth $637 million in the first nine months of this year. — VNA/VNS Photo Ngoc Ha

HA NOI — In the first nine months of the year, the Foreign Investment Agency (FIA) licensed roughly 90 overseas investment projects totalling more than US$637 million and gave permission for 25 existing projects to raise their capital by $92 million, according to FIA statistics.

The FIA said besides the traditional markets of Laos and Cambodia, Vietnamese businesses this year also poured significant investment into Russia, Malaysia, Algeria, the US and Cuba.

Vietnamese businesses have so far invested more than $8 billion in more than 500 overseas projects.

Mining topped the list of Vietnamese foreign investment to date, totalling $3.58 billion. The service and agro-forestry-fishery industries followed with $1.12 billion and nearly $985 million, respectively.

Apart from big names such as the Hoang Anh Gia Lai Group, the Sai Gon Thuong Tin Joint Stock Commercial Bank (Sacombank), the Bank for Investment and Development of Viet Nam (BIDV) and the Army Telecoms Corporation (Viettel), several more enterprises have begun to invest overseas.

The Truong Thanh Furniture Corporation recently signed a MoU with a South African partner to build a $30 million processing plant in the city of Umshwathi.

It also plans to plant 10,000ha of trees in South Africa's Kwazulu Natal province.

"The important thing is not just quantity but the quality of projects and how effective they are, especially in helping local exporters," said deputy director of the FIA's Overseas Investment Division Vu Van Chung.

To facilitate overseas investment, the FIA is collecting feedback from businesses for the amendment of Decree 78/2006/ND-CP, which provides enterprises with guidelines on how to prepare an application to speed up investment registration procedures, Chung said. — VNS

Wednesday, January 12, 2011

Ministry mulls curbs on cement production

The Dien Bien Cement Plant began operations in the northern province of Dien Bien this month. — VNA/VNS Photo Manh Thanh

HA NOI — The Ministry of Construction plans to propose to the Prime Minister a suspension in the licensing of new cement production projects to limit the sector's overheated development, and unnecessary waste of energy.

Vu Quang Diem, Deputy Director of the Ministry's Building Materials Department, said in terms of the building materials production sector, the cement sector was the most energy-inefficient.

For each million tonnes of cement produced, the power sector had to supply 90-95 million kWh, Diem said.

The rapid growth of the building materials production industry, including the cement sector, had put pressure on infrastructure, especially the power sector, Diem said.

The boom would lead to a waste of energy and harm the environment, he added.

The Department was developing a plan for cement sector development until 2015, with an orientation to 2025 to submit to the Government.

As an alternative, the authority petitioned the Prime Minister to agree to the construction of nine projects which had more favourable local conditions and would have a significantly beneficial affect on the development of the region where they were located.

The ministry also asked for stricter punishment on projects that failed to meet schedules.

If factories could take advantage of this energy source, they could save 30 per cent of the electricity they consumed, he added.

Although the policy had been outlined in Decision 108, many enterprises had not been interested in it, Hoa said.

Diem suggested that the Government only license new projects which included the construction of a power generator using exhaust fumes.

According to the ministry, by the end of 2009, total design capacity of all cement factories nationwide was 57.4 million tonnes per year, which could fully satisfy domestic consumption demand. However, this year, total capacity had added an additional 11.7 million tonnes to output. — VNS

Overseas investment totals $730 mln

In the first nine months of the year, the Foreign Investment Agency (FIA) licensed roughly 90 overseas investment projects totalling more than US$637 million and gave permission for 25 existing projects to raise their capital by $92 million, according to FIA statistics.

The FIA said besides the traditional markets of Laos and Cambodia, Vietnamese businesses this year also poured significant investment into Russia, Malaysia, Algeria, the US and Cuba.

Vietnamese businesses have so far invested more than $8 billion in more than 500 overseas projects.

The Truong Thanh Furniture Corporation recently signed a MoU with a South African partner to build a $30 million processing plant in the city of Umshwathi.

It also plans to plant 10,000ha of trees in South Africa's Kwazulu Natal province.

HCMC: Small projects gain additional capital

HCMC

In contrast to the decreasing trend in large-scale investment projects, many small and medium sized projects in Ho Chi Minh City received supplementary capital in September.

According to HCMC’s Department of Planning and Investment (HCDPI), an additional US$169 million was injected into 65 FDI projects, mainly in industrial production, services and retail, an average extra investment of $15 million per project.

This positive sign confirmed the improved confidence of small and medium investors in the Vietnamese market’s development potential and stability.

The Yuki Vietnam Company, that manufactures parts for industrial sewing machines, invested an additional $5 million to expand its workshops and purchase new machinery and equipment. This is the third increase in the company’s capital since 1994, raising its total investment in Vietnam to $20 million.

According to their Managing Director Tsunoda Shinji, the company’s annual revenue in Vietnam currently stands at around $16 million and is expected to increase to $24-26 million in the near future. Its products are exported to India , Bangladesh and Indonesia .

The company is urgently applying for a permit to sell directly in Vietnam , he said, adding that at present, around 50 percent of Vietnamese garments businesses use Yuki sewing machines.

Besides Yuki, the company Lotteria has also upped its investment by $7 million to expand its network of fast food shops while the retailer Giant South Asia has spent $15 million more on its warehouses and outlets.

However, this increase in production still faces several difficulties, including a shortage of skilled workers. It requires investors to have training plans 3-5 years before they decide to increase their capital.

According to HCDPI’s Deputy Director Lu Thanh Phong, in 2009, around 115 FDI projects in the city, mostly small and medium sized, received extra investments of $317 million, up 1.8 percent against the previous year.

While holding the upper hand in attracting additional investments, small and medium FDI projects have also recorded a rapid rate of disbursement, said Nguyen Tan Phuoc, the Deputy Head of HCMC’s Export, Processing and Industrial Zone Authority.

Tuesday, January 11, 2011

Vietnam set to face serious power shortage in 2013

Vietnam set to face serious power shortage in 2013 Vietnam will face critical power shortages in 2013 and 2014 as demand for electricity in the country is growing at a fast pace, a government official said Saturday.

Drastic measures need to be taken soon to speed up the construction of new power plants, Minister Nguyen Xuan Phuc, head of the government office, said in a meeting of the National Assembly’s Standing Committee.

“Power prices should also be reviewed to attract investment for power plant projects from all sectors,” he said.

The government said power demand will increase by 15 percent next year. If local production and power purchases from China and Laos go ahead as planned, the demand can be met. However, if one new power project is delayed or weather conditions are not favorable, there will be shortages.

According to a report by the NA Economic Committee, most power projects scheduled for completion in 2010-2011 have faced delays. The committee said out of 51 projects it had inspected, only five were on schedule.

Experts have said the lack of rain this year has put huge pressure on power production in Vietnam. However, the main reason for Vietnam’s power woes is delays in the construction of new power projects.

The Vietnam Energy Association also said current power prices of around 5 US cents per kilowatt-hour don't encourage investment into the sector, as manufacturers only earn profits at prices of about 7-8 cents per kWh.

Sunday, January 9, 2011

HCMC: Small projects gain additional capital

In contrast to the decreasing trend in large-scale investment projects,
many small and medium sized projects in Ho Chi Minh City received
supplementary capital in September.

According to HCM City ’s Department of Planning and Investment
(HCDPI), an additional 169 million USD was injected into 65 FDI
projects, mainly in industrial production, services and retail, an
average extra investment of 15 million USD per project.

This positive sign confirmed the improved confidence of small and
medium investors in the Vietnamese market’s development potential and
stability.

The Yuki Vietnam Company, that
manufactures parts for industrial sewing machines, invested an
additional 5 million USD to expand its workshops and purchase new
machinery and equipment. This is the third increase in the company’s
capital since 1994, raising its total investment in Vietnam to 20
million USD.

According to their Managing Director
Tsunoda Shinji, the company’s annual revenue in Vietnam currently stands
at around 16 million USD and is expected to increase to 24-26 million
USD in the near future. Its products are exported to India ,
Bangladesh and Indonesia .

The company is
urgently applying for a permit to sell directly in Vietnam , he said,
adding that at present, around 50 percent of Vietnamese garments
businesses use Yuki sewing machines.

Besides Yuki,
the company Lotteria has also upped its investment by 7 million USD to
expand its network of fast food shops while the retailer Giant South
Asia has spent 15 million USD more on its warehouses and outlets.

However, this increase in production still faces several
difficulties, including a shortage of skilled workers. It requires
investors to have training plans 3-5 years before they decide to
increase their capital.

According to HCDPI’s
Deputy Director Lu Thanh Phong, in 2009, around 115 FDI projects in the
city, mostly small and medium sized, received extra investments of 317
million USD, up 1.8 percent against the previous year.

While holding the upper hand in attracting additional investments,
small and medium FDI projects have also recorded a rapid rate of
disbursement, said Nguyen Tan Phuoc, the Deputy Head of HCM City ’s
Export, Processing and Industrial Zone Authority./.

Thursday, January 6, 2011

Province cuts red tape for investors

Photo: Reuters

Binh Duong province has made every effort to improve its infrastructure and administrative formalities so as to attract more foreign investors, said chairman of the provincial People's Committee, Nguyen Hoang Son.

The province had also taken advantage of its geography and offered incentives to lure foreign invested projects.

The province attracted more than 846 foreign invested projects with registered capital reaching US$7.3 billion between 2005 and 2010, bringing the total number of projects in the province to date to 1,966 capitalised at $13.5 billion, said Son.

Investors include Korean tyre manufacturer Kumho Asian Group, with a total investment capital of $360 million and Thailand 's Siam Cement Group, which specialises in producing packages, with a total investment capital of $140 million. Malaysian property developer SP Setia Berhad Group invested $620 million in the My Phuoc eco-urban project and a $60 million beverage factory was financed by Japan 's Kirin Acecook Vietnam .

The strong attraction for foreign invested projects was a positive sign, as it made a very important contribution to the province's economic development and generated high industrial value, said director of the Department of Planning and Development Huynh Van Trai.

Local authorities have worked with vocational schools to train skilled workers to meet the greater labour demands that come with more foreign invested projects.

Paik In Ki, chairman of the Republic of Korea ’s Financial Investment Association in Binh Duong, said foreign investos were pleased to invest in the province as they could see good infrastructure and good support from local authorities which helped investors to be successful. His company would continue to act as a bridge to provide other Korean businesses with a deep understanding of the province's investment climate and raise their investment in the province.

Binh Duong has developed 28 industrial parks covering 8,751ha.

Prominent projects in the province include the VND3.5 trillion (US$179.5 million) My Phuoc-Tan Van road, which is currently under construction. The road will be a major transportation route to international airports and seaports.

Kang Myong Jun, diretor of DJV Ltd Co, Automotive Manufacturing & Wholesales-Parts, Automotive Repair & Service, said apart from good infrastructure, other facilities such as accommodation and urban areas were also important for luring foreign investors.

Province cuts red tape for investors

Binh Duong province has made every effort to improve its infrastructure
and administrative formalities so as to attract more foreign investors,
said chairman of the provincial People's Committee, Nguyen Hoang Son.

The province had also taken advantage of its geography and offered incentives to lure foreign invested projects.

The province attracted more than 846 foreign invested projects with
registered capital reaching 7.3 billion USD between 2005 and 2010,
bringing the total number of projects in the province to date to 1,966
capitalised at 13.5 billion USD, said Son.

Investors
include Korean tyre manufacturer Kumho Asian Group, with a total
investment capital of 360 million USD and Thailand 's Siam Cement
Group, which specialises in producing packages, with a total investment
capital of 140 million USD. Malaysian property developer SP Setia Berhad
Group invested 620 million USD in the My Phuoc eco-urban project and a
60 million USD beverage factory was financed by Japan 's Kirin Acecook
Vietnam .

The strong attraction for foreign
invested projects was a positive sign, as it made a very important
contribution to the province's economic development and generated high
industrial value, said director of the Department of Planning and
Development Huynh Van Trai.

Local authorities have
worked with vocational schools to train skilled workers to meet the
greater labour demands that come with more foreign invested projects.

Paik In Ki, chairman of the Republic of Korea ’s
Financial Investment Association in Binh Duong, said foreign investos
were pleased to invest in the province as they could see good
infrastructure and good support from local authorities which helped
investors to be successful. His company would continue to act as a
bridge to provide other Korean businesses with a deep understanding of
the province's investment climate and raise their investment in the
province.

Binh Duong has developed 28 industrial parks covering 8,751ha.

Prominent projects in the province include the 3.5 trillion VND (179.5
million USD) My Phuoc-Tan Van road, which is currently under
construction. The road will be a major transportation route to
international airports and seaports.

Kang Myong Jun,
diretor of DJV Ltd Co, Automotive Manufacturing & Wholesales-Parts,
Automotive Repair & Service, said apart from good infrastructure,
other facilities such as accommodation and urban areas were also
important for luring foreign investors./.

Tuesday, November 23, 2010

Market challenges but chances for affordable condos

A motorbike passes by the condo project Thuduc House Apartment in HCMC’s Thu Duc District. The developer has been encouraged by a good run of sales there - Photo: Dinh Dung

The times have changed in the property market from two years ago when buyers would rush to buy up what ever was available at new housing projects.

“The market is changing, and developers have no choice but tailor their products to suit the market demand,” Do Thi Loan, general secretary of the HCMC Real Estate Association (HoREA) said.

Another change over the past few years is that prospective buyers want to see the finished product now before they invest their money, instead of just seeing the plans.

Like the office market where oversupply has forced landlords to offer incentives to woo tenants, the condo market is witnessing a strong increase in supply, making sales hard.

Hugo Slade, associate director of Cushman & Wakefield Vietnam, told a seminar that the significant increase in supply had given homebuyers more options.

The commercial real estate consultancy company’s studies showed total supply for the first eight months of this year was around 11,200 units, of which the affordable apartment segment accounted for 76% of the total supply. Districts 2 and 7 had the most new units with nearly 2,000 and 1,900 units respectively.

Some 46 condo projects totaling some 8,500 units were launched in the last eight months, with prices ranging from US$780 to US$810 per square meter. The company, however, reported that the market demand remained low in all grades. The uptake rate of the grade A segment was 14%, grade B segment was 17% and grade C was around 20%.

Slade attributes low take-up rates to prices that don’t match what homebuyers can afford and fewer chances for speculation. In addition, unrealistic loan criteria for end-users were another discouraging element.

The newly issued Decree 71/2010/NDCP designed to curb speculation; gold price increase and the exchange rate fluctuation between dollar and dong were also depressing factors for individual investors and speculators.

Challenges but chances

With outlooks tinged with difficulties in financial support because of stricter loan procedures, high interest rates and the current wait-to-see sentiment, the property market is expected to flounder through the abundant supply in the years to come. According to research by Savills Vietnam, there are some 28,500 apartments still in planning that will complete before 2012.

Many developers still have a positive outlook, saying that although the market has experienced difficulties for years, it would soon pick up and return to its cycle of development given the country’s positive trend of recovery.

Nguyen Vu Bao Hoang, deputy director of Thu Duc Housing Development Corporation, or Thuduc House, said the young population and fast urban development is creating a huge housing demand. Developers, who choose a segment in the residential market and design their product tailored to suit it, would be most likely to prosper.

Like other developers, Hoang is confident in the market development, saying the improvements to infrastructure and road systems shortening distances and travel time from fringe districts to the center of the city are opening doors for affordable and mid-end condo projects, which are often developed far from the central business districts. Therefore, many project developers, who have condo projects with prices below VND20 million per square meter, are going ahead with projects despite a flat market.

For example, Thuduc House had positive feedback when it launched 120 apartments at Thuduc House project, one of five condo projects targeting middle-income earners. All the apartments sold with prices starting from VND15.5 million per square meter within a short time, so the corporation is pressing ahead to launch the second phase this week.

In another project, Van Phat Hung Corporation plans to test the market with some 110 apartments priced from US$1,000 (VND19.5 million) per square meter. The corporation is developing its La Casa condo project on Hoang Quoc Viet and Dao Tri streets, some eight kilometers from the heart of HCMC. When in place in the next five years, the project will provide some 2,000 apartments.

Some other affordable projects southwest of the city are underway and will be ready soon. They include Terra Rosa, Dai Thanh, Tan Tao 1, Carina and Happy Plaza which offer some 600 apartments.

Slade said a more price sensitive residential development trend is taking shape and will continue for the next two years.

He predicts that in the short term, oversupply would put downward pressure on pricing. Reduced travel time would compensate for outer district projects, and suburban residential development would continue to be the trend as a result of high land values.

Saturday, November 20, 2010

Power shortage blamed on delayed projects

Power shortage blamed on delayed projects Delays in construction of new power projects are the main reason for Vietnam’s power shortage, a senior official says.

“Hydropower plants account for 40 percent of the total power output, and low water levels play a part in the power shortage, but not the whole part,” Tran Dinh Long, deputy chairman of the Vietnam Electricity Power Association, told Thanh Nien.

“There was critical power shortage, even during the flooding season, and that’s because new power projects are behind schedule.”

The government in April had forecast that the lack of water in reservoirs could mean a loss of nearly 1 billion kilowatt-hours of electricity at hydropower plants this year.

Long said power losses at existing power plants could be offset if there were new plants.

“The power shortage has forced many thermal power plants to continuously run at full capacity, making them prone to technical problems that cause even more critical shortages,” he said.

Besides, no measure has been taken to control power consumption in the country, and production has been unable to catch up with rising demand.

Long said the government needs to be stricter in dealing with delayed power projects. Vietnam should also diversify its power sources by developing renewable energy and nuclear power projects, he said.

Vietnam plans to build four nuclear power reactors in the central province of Ninh Thuan, with a total capacity of 4,000 megawatts. One of the four is set to be operational in 2020.

Long said if nuclear power can account for around 15 percent of the total output, the power shortage would be eased considerably.