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BUSINESS IN BRIEF 28/7
Promising
prospects for Vietnam’s agro and seafood exports to Ukraine
Judging
from
In
recent years,
Following
the signing of more than 20 agreements on economic and trade cooperation
between the two sides the volume of seafood, garment and textiles, footwear,
hats and handicrafts products exported to
Since
early this year,
The
The
exchange of goods and services between the two nations rise from US$324.5
million in 2011 to US$456 million in 2012, but its turnover almost doubled in
both sectors.
In the
context of global economic downturn,
Duong
Hoang Minh, Deputy Head of the European Market Department under the Ministry
of Industry and Trade, admits that Vietnamese businesses are not fully aware
Minh
insists that domestic businesses get advice from the
Drop
in purchasing power in last three months
A
survey by market reseacher Kantar World Panel on all fast-moving consumer
goods in
In the
first quarter of the year, only 28 percent of urban consumers believed that
the economic situation will improve in the next six months. Besides,
consumers saw supermarkets as less attractive, reflected by near zero growth.
On the
other hand, convenient stores and mini-supermarkets posted the most
impressive growth at 91 percent with customers showing more frequent shopping
in these retail outlets.
Bigger
retail supermarkets saw a drop of 10 percent in the past six months, compared
to the same period last year.
The
City has studied the feasibility of building the first Bus Rapid Transit
(BRT) route and plans to make it operational by 2017, said Duong Hong Thanh,
Deputy Director of the City Department of Transport.
In a
recent interview with Saigon Giai Phong Newspaper on the City’s transport
development plan until 2020, Mr. Thanh said that the first BRT route will
start from Mien Tay Bus Station and run along
The
City is trying to complete all related surveys and procedures to seek for
World Bank loan and start construction of the project by 2015.
If all
goes as per schedule, the first BRT route in HCMC will come into full
operation by 2017.
The
South Korean Government has assisted HCMC to study eight BRT routes, which
Korean experts believe viable for their economic feasibility.
They
propose the City launch a pilot program to first build the 16.3km seventh
route, which will start from Ben Thanh Market in District 1 and end at An
Suong Bus Station.
The
City appreciates the advice of South Korean experts and will consider their
proposal in the development of the BRT network.
Related
organs will step up investment in BRT after assessing all possible routes and
arranging investment capital.
Mr.
Thanh said that because the road area in the City is limited, the Department
of Transport is expected to let BRT buses travel on the same lane as other
vehicles.
They
will organize a different lane for BRT buses on broader roads. There will be
a priority lane for BRT buses on smaller roads where the volume of vehicles
is not high. When a BRT bus shows up, other vehicles will have to give way.
BRT
buses will have to ply together with other vehicles on smaller streets with
higher volume of vehicles.
HCMC
will use BRT buses with only one to two coaches to suit the traffic in the
City.
New
foreign technologies to be displayed in HCM City
An
international exhibition on plastics, rubber, packaging, printing, food
technologies and automation will be held in
VietnamPlas,
VnPackPrint, VnFoodtech, VnPrintLabel & Linkage
The
exhibition is co-organised by VINEXAD, Chan Chao International Co. of Taiwan,
Yorkers Trade & Marketing Service Co. of Hong Kong, Paper Communication
Exhibition Services Co. of
Advanced
technology products and services will go on display at the exhibition,
offering chances for trade, market approach, partner search, and technology
exchange.
Handicraft
exports to hit new record
Export
value of Vietnamese fine arts and handicrafts is expected to surpass US$2.5
billion in 2013, according to the General Statistics Office (GSO).
In the
first half, shipment of arts and handicrafts jumped 18.3% against the same
period last year, compared to the country’s average export growth rate of
16.1%.
Especially,
the revenue of suitcases, wallets, hats and umbrellas totaled US$925 million,
pottery US$218 million, and bamboo products, US$110 million.
So
far, arts and handicrafts have entered the club of 11 biggest export earners.
Promoting
Vietnam-India trade ties
Economic
and trade cooperation between
In a
recent interview granted to Vietnam News Agency, Nguyen Son Ha, Vietnamese
Trade Counsellor to
Two-way
trade turnover between the two countries increased from US$2 billion in 2009
to US$3.94 billion in 2012.
Bilateral
trade value hit US$2.592 billion in the first half of 2013, a year-on-year
rise 40.3%, of which Vietnam’s exports were US$1.160 billion (up 53.7%) and
imports US$1.432 billion (up 31.1%). The figure is expected to surpass US$5
billion this year.
At the
15th meeting of the Vietnam-India Joint Committee in New Delhi on July 11,
the two sides agreed to set up a sub-committee on trade between Vietnam’s
Ministry of Industry and Trade and India’s Ministry of Commerce and Industry,
aiming to raise bilateral trade value to US$7 billion in 2015.
Ha
stressed that the strong development of Vietnam-India economic and trade
cooperation in recent times has yet to match the fine political ties and the
two countries’ potential.
A
complete legal framework between the two countries and
Ha
said
In
addition, the two business communities should work out measures to improve
cooperation efficiency, especially in building strategies and trademarks,
developing markets, cooperating in goods production, and taking part in
fairs, seminars and business forums.
Relevant
Indian and Vietnamese agencies should further provide businesses with market
information, trade and investment opportunities, facilitate their travel,
consider granting long-term visas to businesspeople, and open direct flights
between the two countries.
The
national flag carrier, Vietnam Airlines has been asked not to carry wildlife,
especially sturgeon, without legal certificates of origin.
The
Ministry of Agriculture and Rural Development (MARD) recently issued an
official document requiring intensified control over the international trade
of animals named in the Convention on International Trade in Endangered
Species of Wild Fauna and Flora (CITES), including sturgeon.
The
move followed a recent rumour that an increasing number of sturgeons have
been smuggled into
In
early July, the Vietnam Cold Water Fish Association said around two or three
tonnes of sturgeon were illegally imported into
Nguyen
Van Hong, Deputy Director of
“Air
transportation fees are rather high, making the price of sturgeon double what
it might be with the added transport and preservation costs," Hong said.
He
said that all fresh aquatic and seafood products that are transported by air
are strictly controlled and that there have not been any cases found of
sturgeon transported through
“There
is a very strict system for detecting and controlling smuggling at
Recently
Deputy Prime Minister Nguyen Thien Nhan requested that the Ministry of Public
Security inspect and report on sturgeon imports.
A
report by the ministry’s Environmental Crime Prevention and Fighting Police
Department showed that between five and seven tonnes of Chinese sturgeon is
imported into
They
added that currently major traders often illegally import Chinese aquatic
products across the borders at Quang Ninh, Lang Son and
Canon
opens third Image Square in Vietnam
Canon,
the world’s leading imaging solution provider, today officially announced its
plan to open
The
expansion is expected to bring more benefits for photography lovers in the
capital city. This opening is a part of an overall strategy to open
Following
the success of the existing
The
Image Square stores is created as a chain of retail outlets featuring the
complete range of high quality, genuine imaging products and solutions,
including the award-winning EOS-series of DSLR cameras, the full range of EOS
lenses and accessories, the IXUS and PowerShot compact cameras, the LEGRIA
camcorders, and printing devices such as the Selphy compact photo printers
and PIXMA inkjet printers.
“Although
it has only been open for a short time, the Canon Image Square store in
Vincom Ba Trieu has attracted a great deal of attention from customers in
Hanoi,” said Nick Yoshida, president and CEO of Canon Marketing Vietnam.
“This demonstrates the effectiveness of the high level of consultancy and
technical information available to customers as well as the supply of high
quality products and attentive sales service.”
“The
passion for photography among the citizens of
Also
on this occasion, Canon will open a “
The
academy, the first of its kind in
“Canon’s
Kyosei philosophy “living and working together for the common good” means we
are devoted not only to the interests of our customers but also to the needs
of future generations,” said Yoshida. “We are creating an environment for
children to approach the art of photography and technology so that it will
stimulate their thinking and support their development so they can have
increased confidence as they face the challenges of the world.”
Mercedes-Benz
Fascination Motorshow 2013
July
2013 will be the first time ever that Mercedes-Benz Vietnam launches four new
models simultaneously, ranging from premium compact to super luxury cars.
The
“A-volution continues” at Mercedes-Benz, this time emphasises the
ground-breaking diversification of the brand in many different ways: the
revolutionary and modern design of the A-Class, the amazing smoothness and
efficiency of the newly launched diesel SUVs like the GLK 220 CDI, as well as
the overwhelming power and luxury of the all new GL 500.
With
four brand new models from Mercedes-Benz, customers in the luxury segment
will have four more top choices. The Mercedes-Benz Fascination 2013 is the
best place for customers to find out all about the latest developments in the
premium segment in terms of design, innovations, safety and efficiency.
Launching
four cars at the Mercedes-Benz Fascination 2013, Mercedes-Benz Vietnam will
get closer to achieve all six goals in 2013, which seemed quite challenging
at the beginning of the year: doubling the parts warranty period,
prejudice-breaking with the A-Class and GLK diesel, outperforming the market
(increase of sales of 58 per cent in the first six months of 2013), investing
$10 million in the state of the art electro-dipping coating facility,
launching eight new models, and obviously satisfying customers at highest
level.
Furthermore,
Mercedes-Benz owners have the possibility to get a free car inspection by
certified technicians from
Dry
area farmers told to switch corps
The
southern central and Central Highlands regions should revamp their cropping
structures, since drought has severely affected their rice cultivation in
recent years, experts said.
The
regions together account for 613,100ha of rice, or 7.9 percent of the
country’s total, according to the Plant Cultivation Department.
Five
provinces in the Central Highlands and five out of seven in the southern
central region besides
Corn,
peanuts, vegetables, and other cash crops are now grown on 6,200 ha out of
this, with the switch helping farmers in drought-prone areas earn reasonable
incomes, according to local officials.
In Phu
Cat district in the south- central
Peanut
yields two times more profits than rice. In Chu Prong district in the Central
Highlands
Speaking
at a recent seminar held in Binh Dinh by the Ministry of Agriculture and
Rural Development (MARD), many participants said hybrid corn is the most
suitable crop for the regions since it is drought resistant, followed by
peanut and soybean.
Compared
to rice, corn could yield 6-10 million VND more profit per hectare per crop,
they said, adding that the switch from rice to cash crops also has certain
limitations.
Nguyen
Van Hoa, deputy head of the department said these include farmers’ tardiness
in using advanced farming techniques and the small areas on which crops with
high demand like corn, soybean and peanuts are grown.
Participants
also raised concern about stable outlets for the crops.
Luong
Van Vang, deputy head of the Corn Research Institute said 150,000-170,000ha
of rice paddies could be converted into corn-growing areas, but event this
would not be enough to meet the demand for corn for producing animal feed in
the next 5-10 years.
Deputy
Minister of Agriculture and Rural Development Le Dang Doanh said close
cooperation among famers, companies’ scientists, and the Government should be
established to secure outlets for farmer’s produce.
Research
institutes and universities should provide high-quality crop strains to meet
farmers’ needs in the regions, he said.
Exports
to
Telephones
and components accounted for the lion’s share with a total value of 611
million USD, up 79.5 percent year-on-year. This was followed by footwear with
260.1 million USD (up 4.5 percent) and garments, 205.1 million USD (up 4
percent).
Despite
lagging behind the standout performers in terms of turnover, computers,
electronics and components experienced the highest export growth rate,
spiking 315.5 percent to reach nearly 173 million USD.
Other
commodities which enjoyed high revenue growth included wood products, coffee,
seafood and ceramics.
The
first six months, meanwhile, saw a turnover slump for exports such as cashew
nuts, fruit and vegetables, iron, steel and electrical wire/cable.
Last
year, two ways trade reached 4.37 billion USD, rising 35.5 percent from 2011,
according to statistics from the Trade Office of the Vietnamese Embassy in
the
The
Embassy’s Trade Counsellor Nguyen Thi Hong Thuy outlined poor language skills
and a lack of knowledge in trade laws, culture and international business
customs as major obstacles which had hindered Vietnamese goods being shipped
overseas.
In
order to expand trade relations sustainably, she urged Vietnamese businesses
to focus on improving awareness in these areas, while intensifying trade
promotion activities.
Expert
have branded the
They
added that Vietnamese businesses would make higher profits if they could meet
the
One
million people get jobs in one year
One
million Vietnamese people enter working age each year, according to the
More
than 50.3 million people aged from 15-60 work in different economic sectors
and 15 million are regular salary earners, including over 1.7 million working
in the foreign direct investment (FDI) sector. Thousands of people are also
working abroad under time-limit labor contracts.
The
numbers of people working in education, health care, services, industry,
construction and the non-State owned economic sectors are on the rise while
those working in agriculture, forestry and the State-owned economic sectors
are showing a downtrend.
In
general, Vietnamese workers are young and able to access advanced science and
technology thanks to their improved academic standard and professional. The
number of skilled workers reached 42% and around 32% of workers had
vocational training.
The
quality of labor forces in oil and gas, aviation, electricity, electronics,
information technology, post and communications, bridge building,
hydroelectricity and machinery assembly is higher than those in other fields.
In
recent years, State incentive policies and the national target program on job
and vocation training have facilitated job creation with more than 1 million
people getting jobs.
However,
the impact of financial crisis and global economic downturn as well as
national economic difficulties have forced many businesses to declare
bankrupt, dissolve and scale down their operations leading to a large
unemployment rate.
SBV
‘unlikely' to cut rate further
The
lowering of the open market operations (OMO) interest rate by the Sate Bank
of Viet Nam (SBV) could trigger outflows, further exacerbating the liquidity
crunch and possibly pushing term rates higher, according to a report by HSBC
Bank.
The
central bank cut the OMO rate to 5.5 per cent from 6 per cent last Friday.
The entire OMO offer of VND7 trillion (US$330 million) at 5.5 per cent was
absorbed by banks.
HSBC
has determined that the move is likely to ease the recent liquidity crunch,
which caused overnight interest rates to rise to their highest level this
year.
"With
inflationary pressure elevated due to a recent gasoline price hike, potential
increases in public service costs and the cost pressures caused by the recent
VND devaluation, the SBV is unlikely to cut rates further," the report
said.
The
bank report also showed that lowering the OMO is unlikely to solve the
fundamental issues surrounding
The
opening of the Viet Nam Asset Management Company (VAMC) was delayed on July 9
but HSBC believed that while VAMC was not expected to be a panacea to
HSBC
said that the recent VND weakness coupled with accelerated inflation and
higher oil costs suggests that headline inflation will likely rise to 7.1 per
cent year-over-year in July from 6.7 per cent in June.
Dampened
domestic demand and a favorable base effect will likely push inflation lower
near the end of the third quarter of 2013, the report also said.
However,
HSBC supposed that upside risks to inflation remain and that commodity prices
might rise due to an expected acceleration of global growth in the fourth
quarter of this year.
"With
core inflation in the double-digits and headline inflation expected to
accelerate in July, the SBV has limited room to cut rates further. We expect
rates to stay steady, if not move higher, from now on," the report said.
Agribusiness
link with farmers key to restructuring
The
Government is asking the agriculture ministry to quickly draw up policies to
promote partnership between farmers and agribusiness companies, since the
lack of such a partnership has been identified as the main reason why the
sector has been lagging behind.
The
move has been prioritised because the Mekong Delta, the country's biggest
agricultural hub which has huge potential in rice and catfish production, has
been struggling with slower sales of farm products despite lower price.
This
is also in line with a larger plan to revamp the whole agriculture sector
which requires changes in production practices, interaction between farmers
and agribusiness companies and the way in which agricultural supply chains
are managed.
One
particular policy will touch on how rice companies will be deemed eligible
for exporting rice. Those companies signing long-term purchase contracts with
farmers will receive higher priority on the list. Eventually, contract
farming will be mandatory for the major rice exporters, who will also be
encouraged to participate in the production process.
The
Government has also directed the food association, the catfish association
and the association of seafood exporters and processors to come up with a
co-operative method designed to prevent unhealthy price competition. Seafood
companies are also urged to strengthen their partnership with farmers.
Opting
for a bigger role in the private sector is an important game-changing policy
for the Government in the future. Government intervention alone is no longer
valid in the agricultural sector, instead the Government will now play a
supporting role in terms of creating an attractive environment for other
businesses in the economy, says Nguyen Do Anh Tuan, director of the Institute
of Policy and Strategy for Agriculture and Rural Development ‘s Centre of
Agriculture Policy.
Agriculture
minister Cao Duc Phat has emphasised the importance of empowering farmers
through the use of farming clusters and groups, otherwise it would be
impossible to work effectively with 10 million farmers scattered across the
country.
Agriculture
is
Government
stockpiling causes rice prices to rise
Rice
prices have risen sharply in recent days thanks to the Government's programme
to buy one million tonne of the grain for its temporary reserve, according to
the Viet Nam Food Association.
VFA
deputy chairman Pham Van Bay said the average price for long-grain paddy is
VND5,900-6,000 per kilo, and for normal paddy, VND5,400-5,500.
This
represents an increase of VND800-1,000 from before June 15 when food
companies began to buy rice under the Government plan, he said.
By
July 21 they had bought more than 65 per cent of the planned stockpile of one
million tonnes.
An
improvement in exports has also contributed to the hike in prices, he said.
Some
rice exporters have been selling 5 per cent broken rice for US$395-405 a
tonne, up more than $20 from a month ago.
With
new developments in the global market, VFA announced new floor prices for
rice exports that took effect on July 18.
The
new minimum price for 25 per cent broken rice has increased from $365 per
tonne to $375.
The
programme to stockpile one million tonnes kicked off on June 15 and is
scheduled to end on July 31.
The
HCM City Stock Exchange was launched on July 20, 2000.
Over
the past 13 years, the number of listed companies is 60 times higher with 303
companies, five fund certificates and 39 listed corporate bonds whose market
capitalisation totalled VND813 trillion ($38.7 billion).
The
trading value of the southern market saw a growth rate of 135 per cent per
year.
The Ha
Noi Stock Exchange started its first trading session on July 14, 2005, and
now has 387 listed companies with a total market capitalisation of nearly
VND100 billion ($4.8 million).
About
1.2 million trading accounts have been activated on both stock exchanges
during this period, of which 20,000 accounts belong to foreign investors.
In
addition to the success in channeling capital for companies, the stock market
has helped raise awareness among public companies of transparency and
obligations regarding information disclosure.
The
commission said authorities would continue to complete the legal framework,
especially for the derivatives market, and further develop policies related
to listing, capital mobilisation, taxes on securities trading, accounting and
auditing and corporate risk management.
In
order to ensure fairness and transparency in the market, the commission would
strengthen its supervision of securities companies and investor trading to
root out violations.
Mobile
enterprises, a growing trend
ACE
Life Insurance has become the first company in
The
The
trend, called "mobile enterprise", which describes enterprises
bringing part or all of their working processes and services offered
externally to mobile devices, is expected to soon become very popular in
For
customers, it offers the obvious advantages of convenience and ease of use,
saving them time and money.
ACE's
product also allows clients to pay online using additional equipment to swipe
cards.
For
companies, it is a new way to reach customers and one that enables them to
improve both efficiency and productivity by allowing staff to work remotely.
"Going
mobile is a logical step forward for
"There
are around 5 billion smart phones and tablets in the world and only 2 billion
laptops and desktops.
"This
means users tend to use private mobile devices instead of office computers.
"
Elsewhere,
the Viet Nam Mobile Telecom Services Centre II (VMS II) and IBM Viet Nam have
developed an advanced, end-to-end mobile computing platform that allows the
former to expand into new markets while enhancing its enterprise application
development capabilities and improving workforce productivity.
"This
strategic investment will help us sustain our leading position in
telecommunication services in
"We
will use the new mobile cloud infrastructure to streamline management of
employees' personal devices, quickly deliver value-added services and
promotions to our customers, and improve customer satisfaction."
The
chairman of ACE Life, Lam Hai Tuan, told Viet Nam News, "It helps save
time and money while avoiding fraud."
Lenders
like HD Bank, ANZ and Vietcombank also offer their customers mobile services,
but to successfully go mobile, companies need to ensure complete security.
"While
local enterprises can enjoy the advantages of an already mobile-savvy labour
force, they are still challenges in terms of company culture and employee
awareness for security and compliance," Hien said.
"The
end-to-end solution will not only offer enterprises a comprehensive mobile
portfolio that combines security, analytics, and application development
software, but also features several services to help establish mobile
strategies and design and implement mobile projects."
Handicraft
exports value forecast to hit record high
The
export value of Vietnamese fine arts and handicrafts is expected to outstrip
US$2.5 billion this year, according to the General Statistics Office (GSO).
In the
first six months, shipments of arts and handicrafts jumped 18.3 per cent
against the same period last year, slightly higher than the country's average
export growth rate of 16.1 per cent.
Notably,
revenue from suitcases, wallets, hats and umbrellas totalled $925 million, up
23.6 per cent year-on-year; pottery reached $218 million, up 6.6 per cent;
and bamboo products hit $110 million, up 5.3 per cent.
As of
the end of June, the arts and handicrafts sector had become one of the
country's 11 biggest export earners.
BIM
Group to make splash with 23ha
The Ha
Long Investment and Development (BIM Group) has earmarked nearly US$2 billion
into the 230 hectare Ha Long Marina, one of its key projects.
The
The
group has disbursed over VND500 billion ($23.4 million) towards the Ha Long
Marine Plaza leisure centre and a number of the project's secondary works
will be put into service.
Nestle
brews a local caffeine boost
Nestlé
have marked the 75th anniversary of their famed instant coffee with a greater
investment commitment to
The
international nutrition and wellness giant has underscored its dedication to
the domestic coffee industry through investment in a new $238 million Nescafé
plant, combined with the continued implementation of a wider development plan
which has contributed to rejuvenating the country’s aging coffee plantations,
improved farming skills and added value to
Nescafé
started as an idea to solve the problem of what to do with unsold coffee in
the 1930s, and now celebrates its position as one of the world’s favourite
drinks. Today an incredible 5,500 cups of Nescafé instant coffee are consumed
every second, catering for a wide variety of different tastes and preferences
around the globe.
Nestlé’s
commitment to increased investment in
Chairman
and CEO of Nestlé Indochina Wayne England and Nestlé
The
new facility, worth 230 million Swiss francs or $238 million, produces
Nescafé both for local consumption and for export, creating more than 200 new
jobs and many more indirect jobs. This underlines Nestlé’s commitment to
The
Nestlé Tri An factory uses Nestlé’s state-of-the-art soluble coffee
technology and is dedicated to meeting growing consumer demand for Nescafé
products in the region, said
“Nestlé
has built a state-of-art coffee manufacturing facility, allowing us to
contribute to Vietnamese society by bringing added value to the domestic
coffee industry,”
The
factory underlines Nestlé’s green credentials by dispensing of oil or gas to
power its roasting section and production lines. Instead, it re-uses ground
coffee for heating, helping minimise waste.
Nestlé
currently operates five factories in
In
1998, the first Nescafé products made in
In
addition, the Nescafé Plan – a $518 million investment in coffee projects by
2020 – has a set of global objectives which aim to help the company further
optimise its coffee supply chain, including an increase in direct purchasing
from farmers with additional technical support and training for producers. In
Nestlé
has also inked a deal with the Western Highlands Agriculture and Forestry
Science Institute to implement a coffee farming renovation scheme to address
“
“The
establishment of this new factory reflects more than just investment to
expand our business; it also illustrates our commitment to a country in which
we have had very successful operations for many years and where we will keep
promoting agricultural growth and continue to ensure the sustainable use of
natural resources. We are committed to growing here, while creating shared
values with the local community, and we are very grateful to the local
authorities, partners and staff who have helped us to achieve this goal.”
The
inauguration of the new factory marks a new step for Vietnam’s coffee
industry as it signifies a significant shift from exporting raw materials to
shipping high-valued soluble coffee, said Phan Thi My Thanh, deputy vice
chairwoman of Dong Nai province’s people’s committee.
Nestlé
Bitexco
seeks partner for landmark PPP project
The
Bitexco Group is expecting to find a foreign partner to jointly invest in the
Dau Giay-Phan Thiet motorway as the firm prepares to embark on a whistle-stop
road show of
Bitexco
will launch a series of investor road shows for
“I’m
delighted that the public-private partnership model has already attracted
keen interest among investors from around the world. We want like-minded
partners who are looking at longer-term strategic opportunities in transport
and infrastructure development that will contribute to
The
Ministry of Transport began to sell dossiers to potential domestic and
foreign investors who are interested in the project from July 2.
The
Dau Giay-Phan Thiet motorway is a critical link in the national north-south
transport route. Spanning approximately 100 kilometres, the four-lane road
will link the key southern cities of
Victoria
Kwakwa, World Bank country director for
“The
project will boost the economic performance of the southern region. Last but
not least, this is the first public-private partnership project in which we
are co-operating with the Vietnamese government and it’s very important for
both parties,” she said.
Bitexco
officially gained approval from the government as the prime investor in Dau
Giay-Phan Thiet motorway project in 2010.
According
to the investor, the project would cost in the region of $757 million, with
Bitexco holding 60 per cent equity in the project. The rest will be
contributed by the state and other private investors. The shareholders have a
30-year concession to operate the motorway via tolls, after which it will be
handed to the Ministry of Transport.
The
Bitexco Group expected to borrow capital from the World Bank’s International
Bank for Reconstruction and Development to invest in the project, but the
World Bank is not allowed to offer loans to private companies.
However,
Hoi believed this would not prove a set back.
“Every
aspect of the project will meet international standards and the strictest
criteria pertaining to technical design, environmental and social safeguards.
As the lead investor, we will seek to balance the key performance indicators
with a commercially viable development in order to achieve a win-win
relationship with our stakeholders including the Vietnamese government, our
shareholders, investors and the public,” said Hoi.
The
Vietnamese government is expecting the success of Dau Giay-Phan Thiet motorway
will lead to a wave of foreign investments in infrastructure sector through
public-private partnerships
The
Ministry of Planning and Investment recently proposed that the government
arrange VND20 trillion, or approximately $1 billion at current exchange
rates, to finance public-private partnership projects in the country. The
fund will be used matched funding for private sector
investment.
One
more year to have road to Hiep Phuoc Port
Although
200 meters of pier has been constructed, the 2.3-km road leading to
“We
have recently asked for capital to develop this road. As soon as the HCMC
Department of Transport gives the nod, work on the road will start this
September.
“It is
expected that the road will be completed within 12-18 months, around the time
when the construction of the port and the dredging of the
Speaking
about a plan for using the current location of
Work
started on
Pier
No. 3 with a length of 200 meters has been put into service, while Pier No.
2, which is 400 meters long, is 60% complete.
Goods
are now transported to
Another
port in a similar situation is Phu Huu Port. The 2.6-km road linking
The
HCMC Department of Transport has recently suggested the city expand the
street to allow trucks to use this road to reach the port.
The
port is capable of receiving 36,000-DWT vessels with its 320m pier. Equipped
with three large cranes, the port got ready for service in July 2010 but ever
since it has not been operational as the lack of an approach road has
prevented trucks moving into and out of the port.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
|
Thứ Bảy, 27 tháng 7, 2013
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