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./.

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Land ready for steel, power, port project

The management board of Vung Ang Economic Zone in the central province of Ha Tinh handed over last Friday 3,300 ha of land and sea surface to Taiwan's Formosa Group, investor in a US$16billion industrial complex.

The project includes a 7.5 million ton/year steel mill, a 1,600MW power plant, and the Son Duong Seaport which will have a handling capacity of 30 million tons of cargo per year.

The area comprises more than 1,900ha of land and over 1,300ha of sea surface.

Ha Tinh authorities said nearly 2,500 households with a population of more than 10,000 in the communes of Ky Lien, Ky Long, Ky Loi and Ky Phuong in Ky Anh District had moved to new re-settlement areas during the site clearance process which lasted over two years.

Members of families affected by the project received over VND1.9 trillion ($100 million) in site compensation and had been supported by the province's job-training programs, the authorities said.

In addition to the site clearance, the authorities also built a canal over 10km long to supply water to the refinery and a 5.2-km road for transporting heavy machinery and equipment for construction of the Son Duong Deep water Sea port.

According to Sai Gon Economic Times newsmagazine, the Taiwanese group has also decided to raise investment in the first stage of the project from $7.9 billion to $8.9 billion.

Total investment of the two stages of the project amounts to $16 billion.

The project is expected to employ 10,000 local workers when the first stage is completed and the figure can increase to 30,000 after completion of the second stage.

Chu Xuan Pham, an engineer with Hung Nghiep Formosa Co, said construction of the steel refinery would be completed in 36 months and building of Son Duong Port to be completed in 48 months as required in the company's investment license.

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US reduces dumping duties on shrimp

The US Department of Commerce has decided to cut anti-dumping tariffs it had imposed on 31 Vietnamese shrimp exporters by 0.01-0.69 percentage points.

The move followed feedback to the department's fourth administrative review conducted between February 2008 and January 2009 of shrimp imported into the US by Nha Trang Seafood Joint Stock Co, Minh Phu Seafood Co, and Minh Hai Seafood Co.

Under the revised tariffs, the duty on shrimps imported by Nha Trang will be reduced from a maximum on 5.58 per cent to 4.89 per cent. Minh Phu will see a reduction of 0.01 per cent to 2.95 per cent, while the others will be subject to a duty of 3.92 per cent, reduced from the previous 4.27 per cent.

The Viet Nam Association of Seafood Exporters and Producers (VASEP) continued to complain, however, that Vietnamese companies were subject to higher duties than Indian exporters, which paid duties no higher than 4.44 per cent.

Last April, Viet Nam asked the World Trade Organisation (WTO) Dispute Settlement Body to set up a panel to review US anti-dumping measures imposed on frozen warm-water shrimp from Viet Nam. WTO general director Pascal Lamy recently appointed three members to the panel.

After six months, the panel was expected to make a final report, clearing the way for further legal action between the parties. If it proceeds, this would constitute Viet Nam's first trade lawsuit against a WTO member

 

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Binh Phuoc seeks investors

Southern Binh Phuoc Province is seeking investment for three industrial zones, which needs a least VND448 billion (US$24 million).

The province also wants investment in its water infrastructure in the zones along National Highway 13, Chon Thanh Town and Dong Phu District as well as Hoa Lu Border-gate Economic Zone.

The call for investment was made at an investment promotion conference held in Hanoi on Saturday.

Binh Phuoc People's Committee chairman Truong Tan Thieu told the potential investors that his province, located in the southern key economic zone, was advantageous for industrial development and investment.

The province was attempting to shift its economic structure toward industrialization, Thieu said, adding that it had set aside more than 5,200ha of land at 18 industrial zones for development.

Investors could also invest into the electronics, textile and garment sector.

The chairman assumed that local authorities would create the best conditions for investors by speeding up administrative procedure reforms and improving infrastructure facilities.

During the past five years, the province has achieved significant accomplishments in all fields. Its average GDP growth rate reached 13.2 percent and industrial production increased by 24 percent.

Currently, the province is home to 3,000 projects including 1,000 foreign-invested projects worth $1.57 billion.

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LG Elec says Android 2.2-based tablet plan dropped

Photo: AFP

SEOUL - LG Electronics Inc said on Monday that it had scrapped a plan to launch a tablet computer based on Google Inc's Android 2.2 operation system known as "Froyo", a decision that may delay the rollout of its first tablet PC slated for next quarter.

The decision could mark another setback for the South Korean company, which is seeking to bolster its loss-making handset division with attractive new devices, as its tablet may come too late to a suddenly congested market led by Apple Inc's successful iPad.

"We plan to introduce a tablet that runs on the most reliable Android version ... We are in talks with Google to decide on the most suitable version for our tablet and that is not Froyo 2.2," said an LG official.

The official declined to be named, saying LG had yet to decide on the timing for its tablet launch.

BlackBerry maker Research In Motion Ltd unveiled its PlayBook tablet last week in the fast-growing market that is becoming more crowded with the likes of Samsung Electronics Co Ltd and Dell Inc.

LG, the world's No.3 mobile phone maker but a laggard in the booming smartphone market, introduced the Optimus One smartphone in Korea this week before launching global sales through about 120 carriers with a sales target of 10 million units.

Its smartphones have yet to reach the 1 million unit sales mark and LG is betting on strong demand for Android-based smartphones to help put it firmly back on the recovery path.

The company ousted its chief executive last month, replacing him with a founding family member, and named new heads for its mobile phone and TV division last week in a sweeping reshuffle to shore up core operation.

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Asia stocks hit 2-year high, dollar rises vs yen

Photo: Reuters

HONG KONG - Asian stocks shot to a two-year high on Monday, boosted by interest in emerging markets, while the dollar edged up after last week's selloff though speculation the Federal Reserve will add to money supply was still rife.

European stocks were between half a percent and 1 percent lower in early dealings, with the benchmark FTSEEurofirst 300 down 0.75 percent, extending a five-day retreat.

The dollar remained close to an eight-month low against a basket of major currencies, with expectations increasing the Fed will resort to a second round of bond purchases before the year is over to support the US economy.

By contrast, Chinese manufacturing activity has held up surprisingly well, keeping investors confident about the region's prospects and pushing up the MSCI index of Asian stocks outside Japan to the highest level since June 2008.

"Continued foreign buying, amid the US dollar's recent weakness and an increasing preference for emerging market stocks, has lifted the market to a new high," said Lee Jin-woo, a market analyst at Mirae Asset Securities in Seoul.

Strong foreign portfolio flows into the region have lifted Asian currencies, putting pressure on regional central banks to step up intervention to limit the inflow of speculative "hot money" and to support their export-oriented economies.

Financial leaders gather for the International Monetary Fund meeting this week and the concept of countries keeping their currencies weak for export-gain is likely to be a hot topic.

Japan's Nikkei closed 0.3 percent lower in choppy trade ahead of a Bank of Japan policy decision on Tuesday.

The dollar surged against the yen in a short-covering rally as the Japanese currency retreated against other currencies as investors unwound some long yen positions ahead of the BOJ meeting.

Central banks on tap this week

Former BOJ Deputy Governor Toshiro Muto said on Friday the central bank may ease policy as inaction would run the risk of spurring further yen gains, given the prospects for easing by the US Federal Reserve.

Traders are not expecting the BOJ to make a substantial change to policy but may hold off on big bets on the yen ahead of central bank meetings in Britain and the euro zone on Thursday, as well as the September US payrolls report on Friday.

"Nervous trade will likely continue this week, even after tomorrow's event, as US jobs data is also set to be released later in the week," said Hiroaki Kuramochi, chief equity marketing officer at Tokai Tokyo Securities.

The MSCI index of Asia Pacific shares outside Japan, which has risen for six consecutive weeks, was up 1.1 percent with a 2.3 percent gain in the energy sector leading the pack on the back of firm crude prices.

Hong Kong's Hang Seng index led regional exchanges, rising 1.4 percent, with oil-related stocks such as CNOOC Ltd providing the most support to the market.

Petrochina Co., the world's second-most valuable oil and gas producer, was up 3.7 percent in Hong Kong.

US crude futures were steady near a two-month high at $81 a barrel, having risen $5 in the past week on the dollar's weakness and as a strong revival in Chinese manufacturing by a mid-year lull appeared to soothe fears of a new downturn in the global economy.

The dollar looked vulnerable against a basket of currencies, hovering near Friday's eight-month low, but had edged up 0.2 percent against a basket of currencies in Asian trade.

"It's still a dollar-negative situation but short-term probably the market has priced a lot in," said Masafumi Yamamoto, chief FX strategist Japan at Barclays Capital.

Asian currencies, such as the South Korean won and Taiwanese dollar, climbed against the dollar, despite an estimated $18.8 billion spent by regional central banks last week to keep their currencies weak, according to estimates from traders compiled by IFR Markets.

The potential of significant amount of cheap money being added to the financial system via the Federal Reserve continued to support gold prices.

The precious metal was up 0.2 percent to $1,317.55 an ounce, after hitting a fresh record of $1,320.80 on Friday on sustained dollar weakness.

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Global steel production may plateau in 5 years

Photo: Reuters

TOKYO - Worldwide steel production may plateau over the next five years as a result of environmental pressures and smaller demand increases, one of the world’s top steelmakers said in a report Monday.

JFE Steel of Japan told the Financial Times that annual output would rise as high as 1.6 billion tons by the middle of the decade and then stay roughly constant for 5-10 years.

The flattening of production would result from shortages of key resources as well as the likelihood of only relatively small rises in demand, JFE chief executive Eiji Hayashida told the newspaper.

"In this environment, the pressures will be on steel companies to move to more advanced and valuable forms of steel to suit the needs of new industries, rather than add to production volumes," Hayashida said.

The biggest hindrance to future output rises, according to the JFE chief, would be growing constraints on water and energy supplies amid deepening worries about climate change.

Many steelmakers were also concerned about their ability to pass on to customers the large recent increases in iron ore prices.

This year JFE expects to make 30 million tons of steel, with the figure likely to rise to 33 million tons in 2011 following plant expansions, the Financial Times said.

The World Steel Association trade group opened its annual conference in Tokyo on Monday.

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