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BUSINESS IN BRIEF 10/4
The authorities of HCMC are awaiting the Government’s nod for
building a road worth more than VND2.37 trillion (over US$109 million) to
connect
The city also wants to award a no-bid contract for the build-operate-transfer
(BOT) road project so that the project can get off the ground on September 2
this year, according to a document sent by the city to the Government last
week.
The city said in the document that the road project has not
been added to the list of projects already approved for BOT,
build-transfer-operate (BTO) and build-transfer (BT) implementation.
At a recent meeting with leaders of HCMC, Minister of
Transport Dinh La Thang agreed on carrying out the project under the BOT form
with four to six lanes in the first phase.
According to the city government, only Yen Khanh Service,
Trading and Production Co. Ltd. has proposed getting involved in the project.
The company has pledged to arrange sufficient funding for the project, and
recover investment capital within 20 years and two months.
Given limited funding sources such as the State budget and
official development assistance loans for infrastructure development, the city
has asked the Government to allow it to offer a no-bid contract rather than
invite competitive tenders, so that the groundbreaking of the project will
coincide with
The city said the investor would bear all preparation costs
for the project if the two sides fail to reach a consensus on implementing
the project under the BOT format.
The planned road is 2.7 kilometers long. Of the VND2.37
trillion, construction would cost more than VND1.36 trillion and site clearance
over VND482 billion.
The city expects the road to help ease traffic congestion on
National Highway 1, ensure the efficient use of
Many major transport projects in the offing
The Ministry of Transport has prepared a portfolio of 50
transport projects worth a combined VND160 trillion (over US$7.4 billion) for
implementation in the coming years.
Most of the projects will be executed under the
build-operate-transfer (BOT) format. The ministry plans to start work on
eight projects with a total investment of VND22 trillion in the second
quarter this year.
According to the public-private partnership (PPP) project
management agency under the ministry, the list consists of 37 road, six
airport, three inland waterway, one maritime and three railway projects.
The 37 road projects include My Thuan-Can Tho, Dau Giay-Phan
Thiet, Ninh Binh-Nghi Son and Bien Hoa-Vung Tau expressways.
Relevant agencies are completing final preparations for 15
road projects in the south and ten of them can be implemented this year.
Besides, Minister of Transport Dinh La Thang wanted other
important projects on the list such as the expressways connecting Phan Thiet
and Nha Trang, Noi Bai-Lao Cai Expressway and Sa Pa Town in the mountainous
The minister also requested relevant agencies to continue
implementing the projects which were previously funded by the State budget
and proceeds from Government bonds and put on hold due to public investment
reductions under the BOT format.
The number of PPP projects in
Over 350 firms to join Food & Hotel Vietnam 2015
More than 350 enterprises from 31 countries and territories
will participate in the international exhibition Food & Hotel Vietnam
2015 at the Saigon Exhibition and Convention Center (SECC) in HCMC from April
21 to 23.
The biggest biennial exhibition for equipment and services
supplies for the food and beverage sectors, hotels and restaurants is
organized by VCCI Exhibition Organization Services Company and Singapore
Exhibition Services Pte Ltd.
BT Tee, deputy chief of Singapore Exhibition Services’
The organizers said 71% of the exhibitors are foreign
companies coming from
José A. Bretones, economic and commercial counselor at the
Spanish embassy in
Bretones said Spanish companies will showcase canned fruit and
vegetable, cheese, fruit juice, wine, olive oil, sausage and meat products at
the exhibition in HCMC’s District 7.
The exhibition will also feature Polish beef and pork
presented by the Union of Producers and Employers of Meat Industry (UPEMI) as
well as food processing machines and services in the food and hotel
industries.
The Food & Hotel Vietnam 2015 will consist of seminars on
food safety and franchising, and coffee making competitions.
The Food & Hotel Vietnam 2013 attracted more than 12,000
visitors, according to the organizers.
Low-cost car sharing UberX launched in
Uber Technologies Inc. has launched budget car sharing service
UberX in
The UberX service is cheaper than UberBLACK, the first
ride-sharing service introduced in
The common taxi fares in
According to Uber, with UberX, customers are carried on
four-seat compact cars such as Hyundai i10, Kia Morning, Honda City and
Toyota Vios driven by licensed drivers.
Many banks fail to pay 2014 dividends
Dividend issue is poised to heat up the annual general meeting
(AGM) season in the banking sector this year as many lenders have failed to
pay 2014 dividends for shareholders or have offered just modest payments.
According to a report by the central bank’s HCMC branch, seven
of 12 banks in the city have not paid 2014 dividends to shareholders, the
highest figure in years.
Eximbank, HDBank, ABBank, SCB and Southern Bank may not pay
dividends due to their lower-than-expected earnings and credit risk
provisions last year.
Meanwhile, LienVietPostBank has reduced its dividend to 6%
from 10% as earlier projected while that at VIB has dropped from 11% to 9%.
This year, most banks have had to consult with the central
bank over dividend payments. According to the report, the agency will look
into debt classification and risk provisions to evaluate banks’ profit
distribution.
Regarding the 9% dividend payment limit, a leader of the
central bank has rejected rumors about this cap, saying dividends are decided
by banks’ performance.
This is also the first year the central bank has closely
supervised dividend payments by banks. The central bank might not have
intervened deeply in bank operations, but high dividends at a time of
hardship may affect the banking sector restructuring process.
Therefore, the central bank currently has to regulate dividend
payment at each bank, the official said.
A banker forecast that lenders could not get out of the woods
this year. After the validity of Circular 09/2014/NHNN ended early this
month, many debts in group 3 (substandard) have been transferred into group
5, potentially irrecoverable.
In addition, share and bond investments have been tightened,
so banks have to struggle as credit becomes their only lifeline.
Experts predicted mergers and acquisitions (M&A) and
falling profits would take center stage at AGMs this year.
Agriculture ministry seeks to curb coffee price drops
The Ministry of Agriculture and Rural Development has plans to
join forces with associations and agencies in other leading coffee producing
countries of the world to help put the brakes on falling coffee prices.
Coffee prices on the local market have dropped to VND38
million a ton from VND42 million late last year, said Nguyen
“The price movement is in stark contrast to forecasts earlier
that the price of coffee would pick up in the first months of this year,” Hai
said.
Hai attributed the coffee price fall to the oil price plunge
and strong appreciation of the U.S. dollar on global markets. “These have led
to lower prices of many agricultural products, including coffee,” Hai
commented.
The shrinking price has forced farmers to have more beans
stockpiled at the warehouses of exporters with total inventories estimated at
400,000 tons currently. This is one of the main reasons why
Statistics of the General Department of Customs showed
The price decline has made life tougher for farmers as they
have had to spend more on coffee production this year due to drought that has
wreaked havoc on the agricultural sector in many parts of the central and
Farmer Nguyen Van Kien in the Central Highlands province of
Daklak, the biggest coffee producing area of Vietnam, said he has had to
water his two hectares of coffee for three times in this dry season, or one
more time than the same period last year.
“Scorching weather and falling coffee prices have made it more
difficult for farmers to cope with the impact of drought on their farms,”
Kien said and added that the price of coffee once slid to VND35 million a
ton.
The drought, which is reportedly the worst in a decade, could
cause
Minister of Agriculture and Rural Development Cao Duc Phat
said solutions deployed by
The ministry plans to work with
Phat said
Therefore, Phat requested Vicofa to contact its counterparts
in the countries to discuss cooperation before leaders of the ministry and
Vicofa make trips to these countries to sign commitment agreements.
Meanwhile, coffee growers are looking for financial support to
replant coffee and improve yields of their farms.
Kien said that he took out bank loans with an average annual
interest rate of 12%, or five percentage points higher than that endorsed by
the Government for prioritized sectors, including agriculture.
Vicofa proposed that farmers should be provided with
low-interest loans for their coffee replanting projects and technology
application in order to improve their yields.
Vo Minh Tuan of the credit department at the central bank said
the Prime Minister has approved a national coffee replanting program and the
central bank is expected to send to the Vietnam Bank for Agriculture and
Rural Development (Agribank) a document by the end of this month ordering the
lender to provide farmers with loans with low interest.
Some 120,000 hectares of coffee will be replanted in the
Central Highlands region between 2014 and 2020 in line with the program,
which costs at least VND12 trillion (US$555.4 million).
As of end-2014,
Start-ups invited to participate in national competition
Vietnamese information and communications technology sector
start-ups are being invited to participate in a start-up competition to
represent
Vietnamese start-up businesses are invited to take part in a
national competition to represent
The competition is being jointly organised by the Embassy of
Israel in
One founder-member of the winning team will go to
This is the first time
The competitors are required to email their applications, including
general information on start-ups and business plans, in both Vietnamese and
English, to political@hanoi.mfa.gov.il, before April 30.
The winner is expected to be announced in May.
DBS
and Manulife form 15-year life bancassurance partnership
On April 8, DBS Bank Ltd and Manulife Financial Asia Limited
entered into a 15-year regional distribution agreement covering four mutually
significant markets, namely
The agreement will take effect on 1 January 2016. This new
exclusive life bancassurance partnership will combine DBS’ superior Asian
banking franchise with the insurance and wealth management expertise of
Manulife, a global leader with a long-term commitment to
In the four markets, DBS’ large and growing six million
retail, wealth and small and medium sized enterprise (SME) customer base will
gain access to Manulife’s best-in-class suite of life and health insurance
solutions, through the bank’s extensive network of over 200 branches and its
sales force of over 2,000 professionals, as well as via its internet and
mobile banking platforms.
Leading to the agreement with Manulife, DBS conducted a
thorough insurance partner selection process, which attracted strong interest
from a number of leading regional and multinational insurers. The process
considered a number of factors, including customer focus, expertise,
execution track record and potential for long term value creation.
The partnership is expected to bring significant benefits to
both parties. Specifically, DBS will further strengthen its regional life
insurance distribution capabilities, including its position as a leading
bancassurer in
Piyush Gupta, chief executive officer (CEO) of DBS said:
“Bancassurance is a key focus for DBS and an important part of our overall
customer value proposition. Manulife’s strong customer focus and deep
commitment to
Donald A. Guloien, president and CEO of Manulife said that
Manulife was delighted to be chosen as the bancassurance partner of DBS in
four important markets in
Under the agreement, there will be an initial payment by
Manulife to DBS of $1.2 billion, which Manulife intends to fund with internal
resources. This payment will be amortised by both parties over 15 years.
There will also be ongoing, variable payments, which are based on the success
of the partnership, and Manulife expects the agreement to be accretive to
Core EPS in 2017. The initial payment for this regional agreement is
expected to reduce Manulife’s regulatory capital ratio by 10 points on or
before January 1, 2016.
DBS is a leading financial services group in
Manulife is a leading provider of insurance and wealth
management solutions. It is the sixth largest life insurer in the world, with
a 118-year track record in
ACE Life opens new sales office in Quang Ngai province
ACE Life, the global life insurance division of ACE Group- one
of the world’s largest multiline property and casualty insurers- recently
announced the opening of a new sales office in Quang Ngai province’s Quang
Ngai city to better serve its growing base of customers in
With the vast territorial sea including six seaports, Quang
Ngai is well positioned in the central key economic zone which has been
targeted for development by the Vietnamese government.
The new Quang Ngai sales office is ACE Life’s 25th office in
The new sales office will be the base for more than 300 agency
leaders, account representatives and staff.
“Since commencing operations in 2005, ACE Life has
successfully executed two five-year plans which have laid a strong foundation
for our continued growth,” said Lam Hai Tuan, chairman and country president
of ACE Life in
“This year marks the beginning of our third five-year plan and
the start of our journey ‘From Good to Great’. With the goal of opening a
chain of new sales offices this year, kicking off with Quang Ngai sales
office, we are committed to deepening our roots to serve the needs of the
growing market,” Tuan added.
After nearly ten years in
Recent expansions to the network are part of ACE Life’s
development and growth strategy, which aims to build a strong distribution
network not only to develop ACE Life’s business, but also to affirm its
long-term commitment to the Vietnamese market.
AGMs reveal ambitious real estate investments
The warming up of the real estate market together with the
supportive policies from the government have encouraged a range of developers
to map out ambitious investment plans this year.
At its recent AGM, Hoang Quan Consulting, Trading and Real
Estate Services JSC (HQC) announced ambitious plans to double the company’s
charter capital to VND4 trillion ($190 million) this year.
This year’s revenue and post-tax profits are expected to see a
10-fold increase compared to 2014.
Truong Anh Tuan, chairman and general director of HQC, said
his company’s profits in 2015 would mainly come from large projects, and the
targets were viable.
This year, the company will implement 15 projects in 12
provinces and cities and put large key projects into use, such as
Among those, the HQC Plaza Nguyen Van Linh was expected to bring
turnover of VND1.2 trillion ($57 million) alone.
The company will also strengthen investment in social housing
projects this year. Fifty per cent of this year’s revenue and profits will
come from social housing projects.
Hoang Quan plans to complete infrastructure and build more
workshops for lease to attract more investors at its Binh Minh-Vinh Long and
Ham Kiem-Binh Thuan industrial parks. They aim for an occupancy rate of 50
per cent at the two parks.
The company also intends to pick up good value deals in
property, finance and education sectors.
Phat Dat Real Estate Development Corp (PDR) also announced
plans to offer 65.1 million shares to increase its registered capital from
VND1.3 trillion to VND2 trillion ($61.9 to $95 million). These funds will support
the corporation’s operations in the second quarter of 2015.
PDR chairman and CEO Nguyen Van Dat said after the capital
increase is completed, the corporation will invest and develop a serviced
commercial and residential complex covering 10,000 square metres in central
PDR acquired a project from Duc Khai Joint Stock Company at
District 5 in
PDR will invest some VND1.4 trillion ($66 million) to invest
in the EverRich Residence, which is expected to open up sales in the second
quarter of 2015.
Joining the trend are FLC, CEO and Thao Dien. FLC Group Joint
Stock Company at its AGM held earlier this year, also released its plan to
issue 465 million shares to increase its registered capital from VND3.7
trillion to VND8.3 trillion ($176 to $395 million).
FLC chairman Trinh Van Quyet said that the capital increase
would enable FLC to carry out many investment projects, including FLC Sam Son
and Khanh Hoa Administrative Centre.
Japanese SMEs eye Vietnamese potential
Many Japanese small- and medium-sized enterprises (SMEs)
consider
The survey, which was conduced in January, found that 40.7 per
cent of 3,750 respondents had plans to invest in
Nearly 12 per cent of firms surveyed said they had invested in
overseas markets, mainly in precision mechanical manufacturing,
transportation machinery, information technology and non-manufacturing
industries.
In recent years,
Showa Denko Corporation has decided to build a factory to
produce safe vegetables in the
The factory, to be built in Duy Tien District's Dong Van II Industrial
Zone, will apply a cultivation system that uses LED lighting instead of
sunlight. It is expected to produce its first products by the end of this
year.
During a meeting with the provincial People's Committee
yesterday, the corporation's director General Daiken Murakami, said Ha
If the experiment was successful, the corporation would expand
its production scale, he said.
According to the Foreign Investment Agency under the Ministry
of Planning and Investment, Japanese investment capital in
As of March, 2015, Japanese businesses had pumped more than
$37.49 billion into 2,584 projects in the country, ranking second among the
101 countries and territories investing here.
Exporters seek credit incentives
Experts and representatives of businesses in the Mekong Delta
General Director of Ben Tre Export and Import Joint Stock
Company (Betrimex), Tran Van Duc, highlighted the need for specific credit
packages targeting agricultural production, processing and export.
Representatives from the Luong Quoi coconut processing company
suggested the Government make amendments to financial policies on developing
agricultural and rural areas.
They said the State Bank of Viet Nam (SBV) could do this by
lowering the ceiling on the annual US dollar lending interest rate.
Resort opens time-share option for holiday-goers
Paradise Bay Resort Company Limited yesterday opened an office
in
Brian Martin, the company's general director, said buyers
could stay for one to three weeks every year for 40 years in an apartment at
the resort by paying US$10,000-25,000.
In addition, buyers can exchange their holiday ownership with
counterparts around the world and enjoy holidays in destinations such as
Globally, this model has been in vogue for decades, and
holiday-home owners participate in a global community and exchange holiday
homes. There are more than 5,300 fractional ownership resorts around the
world with a total of 497,000 units and 20 million owners.
One-stop-shop family mall to open in
SC VivoCity Shopping Mall, which will open on April 19 in
Jointly owned by leading local retailer Saigon Co.op and
Saigon Co.op is partnering NTUC FairPrice of Singapore to set
up a Co.opXtra hypermarket there.
State capital investment company posts Q1 earnings
The State Capital Investment Company (SCIC) said it
successfully sold capital in 22 firms in the first quarter this year, earning
844 billion VND (39.25 million USD).
The sale was achieved at 3.3 times the book value.
Hoang Nguyen Hoc, SCIC Deputy General Director, attributed the
achievement to more flexible regulations related to divestment of State-owned
enterprises (SOEs), which came into effect following a government Decision in
2013.
After the decision to boost the process of divestment of
non-core businesses at several SOEs was taken, the company had sold capital
at 159 firms, earning 1.475 trillion VND (68.6 million USD), 2.5 times more
than the book value.
According to Hoc, 12 State-owned groups and corporations, such
as the Vietnam Posts and Communications Group, Vietnam Maritime Corp, Sai Gon
Trading Corp, and the Vietnam National Coal Mineral Industries Group also
provided information to the SCIC and suggested it buy their non-core
investments in the banking and insurance sectors.
Under the current regulations, the SCIC will buy stakes
divested from banks by other SOEs, but will limit its purchases to 5 percent
or below of banks' chartered capital.
The SCIC will make the purchase when SOEs fail to sell their
stakes below par value or book value, or fail to sell shares to banks
designated by the central bank. In case of a disagreement with SCIC,
State-run groups and corporations can report to the Government and the
Ministry of Finance to find a solution.
The SCIC, which was formed under a Government Decision in 2005
and is a Government shareholder in SOEs, is responsible for managing and
investing State capital in various sectors, including financial services,
banking, insurance, energy, manufacturing, and telecommunications.
Transportation, consumer products and healthcare sectors also fall under its
purview.
During the last nine years, SCIC has successfully sold capital
in 746 enterprises, earning 7.202 trillion VND (334.97 million USD), 2.3
times more than the book value.
Its total assets reached 69 trillion VND (3.2 billion USD),
increasing 13 times, compared with the time of its establishment in 2005. Its
equity was estimated to be over 31 trillion VND (1.44 billion USD), nine
times over that in 2005.-
Government aims to further reduce interest rates
Further reducing mid- and long-term lending interest rates is
a priority task, the Government says in the resolution of its regular monthly
meeting for March.
The State Bank is required to try and reduce the interest rate
by 1-1.5 percent using market tools, while continuing with a proactive and
flexible monetary policy. The Government also emphasizes that foreign
exchange management should be based on the ultimate goal of macroeconomic
stability, fully taking into account the impacts of foreign exchange rate on
import-export, inflation and public debt. At the same time, strong measures
should continue to be taken to restructure the system of credit organisations
and settle bad debts.
The Ministry of Planning and Investment is tasked with
speeding up the disbursement of investment capital from the State budget,
Government bonds, Official Development Assistance (ODA), foreign direct
investment (FDI) and Public-Private Partnership (PPP) sources.
Meanwhile, the Ministry of Finance is to follow the
developments of world oil price and have plans in place to respond
accordingly in a proactive manner. The ministry should intensify inspections
to discover and strictly punish such illegal activities as tax evasion and
pricing transfer with a view to curbing tax losses. Management of State
budget will be tightened to ensure effective and economically spending, while
debt payment will be carried out in line with budget estimates. Attention
will be paid to restructuring the securities and insurance market in order to
enhance their roles in mobilizing mid- and long-term capital for development
investment.
The Ministry of Finance is tasked to work with the Ministry of
Industry and Trade to seek tax solutions to ensure the country fulfils
commitments on import-export tariff reduction while still protecting and
promoting domestic production.
The Ministry of Industry and Trade is told to work on
expanding markets for local exports, especially farm and fishery products.
All ministries, agencies and local administrations are
instructed to work harder in implementing the government resolution 19/NQ-CP
dated March 12, 2015 on main tasks and solutions to improve business
environment and lifting national competitive capacity in 2015-2016.
The resolution also urges relevant ministries and agencies to
continue with efforts in dealing with outstanding issues such as the
prolonged drought in the central and Central Highlands regions and hospital
overload, besides implementing the yearly working plans in their respective
fields.
Dong Nai FDI attraction hits 21.87 billion USD
The southern
Of the total, over 1,000 projects worth around 17.70 billion
USD are being implemented in industrial parks (IPs), according to the
provincial Department of Planning and Investment.
Dong Nai boasts 31 IPs covering 9,559 hectares, almost all of
which have high-quality infrastructure facilities, enabling them to meet the
demand of investors.
The majority of IP projects are in the services, support and
mechanical spare parts industries and use environmentally-friendly and
advanced technologies.
In recent years, local authorities have attached importance to
improving the investment climate and reforming administrative procedures to
facilitate the operations of investment projects in the province and draw
more foreign investors.
The local IP management board plans to intensify investment
promotion activities, attracting investment projects using high technology
and manufacturing highly competitive products.
Dong Nai looks to attract 900 million USD in FDI capital in
2015, 400 million of which for new projects.
Vietnam needs to reduce its use of official development
assistance (ODA), restricting it to urgent and major projects, and take steps
to minimise use of such foreign loans as a whole, a senior official has said.
Nguyen Minh Thuyet, former vice chairman of the National
Assembly for Culture, Education, Teenagers and Children, said several
reported corruption cases related to ODA-funded projects -- including the
elevated railway project, Noi Bai-Lao Cai expressway and the
“Most of the corruption cases are related to the transport
industry and this means we have yet to draw lessons to tighten control over
ODA-funded projects,” Thuyet said. "It’s obvious that misconduct
happened as a result of lax management in
Thuyet said relevant agencies should collaborated with the
Ministry of Transport and ODA management agencies to work out the best
solution to prevent future problems.
“In order to efficiently use ODA, it’s necessary to create
strict regulations on borrowing ODA and ODA use supervision,” he said.
ODA providers often set up policies that allow them to appoint
companies in their home countries to bid for construction projects. This
indirectly helps generate jobs and increase incomes for people in their
countries. ODA borrowing countries risk becoming targets for profit takers.
Thuyet said relevant ministries and agencies should note the
case where authorities in central
“Many countries have stopped borrowing ODA when they reach
above average incomes,” he said.
Thuyet said
Sumida Electronic's new factory in Quang Ngai
Sumida Electronic Vietnam Ltd began the construction of a
US$10-million factory in the central
Representatives of
The factory will cover 30,000sqm in the province's Tinh Phong
Industrial Zone in Son Tinh District, the IZ management board said.
The factory, which is scheduled to become operational in
January 2016, is expected to produce about 12 million transformers and 120
million other electronic components each year for export.
It will also create jobs for more than 1,200 local workers.
Sumida Electronic Vietnam Ltd is a branch of the Japanese Sumida Company. It
set up its first factory in the northern city of
Land delay for Long Son complex near resolution
The Ba Ria-Vung Tau Provincial People’s Committee last week
made a commitment to transfer cleared land to the developer of the $4.5
billion Long Son petrochemical complex within this month.
In a meeting with PetroVietnam, a shareholder of the Long Son
joint venture, related to the land hand-over and compensation for local
residents who have to yet to move out, the province’s Chairman Nguyen Van
Trinh said that more than 318 out of 464 hectares of land for the Long Son
petrochemical complex had been transferred to the developer, with the
remaining 145ha proving the last stumbling block with local residents.
“We set a target to solve all the problems and want to
transfer the land in April at the latest,” Trinh said.
He added that the local authorities and the project developer
would offer fair policies to support the remaining, largely-poor local
residents who would face difficulties in making a living following
resettlement.
The $4.5 billion Long Son petrochemical complex is jointly
developed by
The Long Son petrochemical complex will be the biggest of its
kind in
The complex will consist of a factory capable of turning out
1.65 million tonnes of olefins, 1.45 million tonnes of polyolefins, 280,000
tonnes of chlor-alkali and other materials each year. The site will also
include supporting facilities including a port, warehouses, and a power
plant.
PPP wave to follow decree
The Ministry of Planning and Investment is expecting a new
wave of private investments into developing the country’s infrastructure
network after the specific guidance on public-private partnership model and
investor selection procedures are released.
The new decree on PPP will stimulate investments in
infrastructure
“We expect a boom of private investments in infrastructure
after legal documents clarifying regulations are issued which satisfy state
management and investor interests,” said Le Van Tang, director of the
Procurement Department under the Ministry of Planning and Investment (MPI).
Tang added that he saw positive signs of private investors
paying more attention to infrastructure projects in the country.
In February and March, the government issued a decree guiding
investment under the public-private partnership (PPP) model, and a decree on
the selection of investors for PPP projects or ideally-located property
projects. The PPP decree will take effect from April 10, while the decree on
investor selection will be effective from May 5.
The PPP investment model in
Tang said during the draft process of these legal documents,
the government authorities had sought advice from foreign investors and
international financial institutes, through seminars held in
“This is a very comprehensive legal document that balances
both state management agencies’ and investors’ interests. Therefore, we
believe the door has been opened for private investors to enter the
infrastructure sector,” said Tang.
He added it would become very transparent as private investors
had to be selected through a tendering process. Investors with the most
effective investment plans would be selected.
The MPI estimated that from now until 2020,
Vietnam has actually implemented PPP model for years through
BOT or BT projects and the government managed them via the governmental
Decision No71/2010/QD-TTg guiding the implementation of pilot PPP projects,
and the Decree No108/2006/ND-CP guiding the implementation of infrastructure
projects under BOT, BTO and BT contracts.
“The existence of these documents caused misunderstanding
among local authorities and investors thus hindering private investments into
infrastructure,” said Hoang Manh Phuong, deputy director at the MPI’s Legal
Department.
Ba Ria-Vung Tau remains popular investor target
Ba Ria-Vung Tau is not only attractive to foreign investors
due to its economic development potential and favourable natural conditions,
but also because it meets the rising demand of foreign investors in terms of
social security and recreation.
In recent years, the development of transport, healthcare,
education, entertainment and human resources in the southern province has
made it one of the most attractive investment destinations in
The Ho Chi Minh CityLong Thanh-Dau Giay expressway, which was
launched in February, has cut travel times from
In recent years, Ba Ria-Vung Tau has welcomed several
five-star resorts like the world-class Six Senses Con Dao, the Grand Ho Tram
Strip, the Imperial Hotel in Vung Tau, and An Hoa Resident in Long Hai. In
the near future, the province expects to have many more luxury resort
complexes to meet the increasing demand of tourists and investors.
After more than five years of construction, the
Previously, foreign investors living in the province sent
their children to schools in
According to the Ba Ria-Vung Tau Provincial Department of
Construction, province has developed and approved 417 construction planning
projects including one provincial project, 12 in general urban planning, 49
city district planning projects, as well as miscellaneous projects in the
tourism and industry sectors.
In a recent meeting with leaders of the province, Minister of
Construction Trinh Dinh Dung stressed that construction planning was a
critical factor for attracting investors. According to the province’s draft
urban development plan, during 2014-2025, Ba Ria-Vung Tau will reach an
urbanisation rate of 65-70 per cent, and will have 14 urban areas. According
to the draft, the urban network development programme of Ba Ria-Vung Tau up
until 2025 will be divided into two phases.
From 2014 to 2020, the province will focus on infrastructure
development in urban areas, mainly in Vung Tau, Ba Ria, and Phu My. During
2021-2025, the province will focus on Phu My’s urban infrastructure
development, which will be on par with the industrial hub port in the southeast
region. Vung Tau will be developed as the province’s trade and tourism
centre, while Ba Ria will be urbanised to become its administrative capital.
With regard to the development plan for Con Dao, the
government has approved the development of economic zones, and high-quality
tourism services, coupled with the conservation and restoration of historical
revolutionary sites, and enhancing the value of the
Source : VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Sáu, 10 tháng 4, 2015
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