Dec 12th, 2006

ADB offers loan to study subway project

The Asian Development Bank (ADB) has announced a grant of US$1.7 million in technical assistance for HCM City to prepare a project to  build two subways.

The city budget will contribute US$500,000 toward the assistance, which will be used to finance the preparation of a consolidated subway network master plan and land use strategy that maximizes mass rapid transit use and reflects anticipated demand. It will also help draw up preliminary engineering designs and technical and operational standards.

Early this year, ADB top officials met HCM City authorities to discuss a financing plan for the project. The bank may provide US$350 million for the US$800-million project as part of its credit plan for Vietnam in the next few years. The loan will be provided from its ordinary capital resources, with a 30-year period plus a 10-year grace.

The two subways, which have been planned by Germany ’s Siemens since 2003, are the second and third metro routes planned in the city. The first is the Ben Thanh-Cho Nho-Suoi Tien.

Source: Saigon Times

Nov 30th, 2006

High hope on record FDI

Investment officials are upbeat on foreign direct investment (FDI) inflow in Vietnam this year, which they hope could hit the 10-year high of US$8 billion given the large inflow so far this year and the number of big projects waiting for licensing.

Nguyen Anh Tuan, vice director of the Ministry of Planning and Investment’s foreign investment agency, told a workshop on the investment law last week that the FDI inflow this year may be US$1.4 billion higher than the year’s target of US$6.5 billion. In the January-October period, fresh FDI inflow increased more than 41% on a year ago to nearly US$6.5 billion. The figure does not include the capital injection of Intel, which recently got a license to increase its capital to US$1 billion from US$300 million.

Between now and the year’s end, some big projects will get a license from the ministry, Tuan said. These include South Korea ’s Posco’s steel project and Doosan heavy industrial complex with combined capital of more than US$1 billion, and a US$300-million port joint venture between Saigon Port and a Singapore partner, among others. If these projects are licensed, the total FDI attraction this year will surpass the target of US$6.5 billion and break the record high of US$8.6 billion in 1995.

Tuan expects next year’s FDI inflow to be equal to or higher than this year, given Vietnam ’s accession to the WTO and its successful hosting of the APEC 14, which helps enhance its image in the international business community.

Source: Saigon Times

Japanese investors seek license forhuge resort

Japanese investors have submitted to Lam Dong Province authorities an application for license to develop a huge resort in Dalat City .

According to provincial chairman Huynh Duc Hoa, the investors will establish a company in Lam Dong to develop the US$1.1-billion resort, which will be the largest tourism project in Vietnam if licensed. The investors, a consortium of Mitsui, Mitsubishi, Sumitomo and Limtec, will develop the 5,000-hectare area of Dankia-Suoi Vang into a large-scale luxury resort called the Romantic Town Dalat. The project has received support from both the governments of Japan and Vietnam . It will be developed in three phases and will have a special area to cater to elderly Japanese people.

Hoa said Japanese experts will arrive in Dalat next month to prepare a master plan for the project, which will replace the previous plan made by the Dalat Dankia Holding Ltd., the former investor in the project comprising three Singapore companies and Lam Dong Tourism. The Ministry of Planning and Investment has revoked their license for failure to develop the project, which they planned to inject more than US$700 milion.

Source: Saigon Times

Foreign garment makers eye Vietnam

Many foreign garment groups have plans to invest in Vietnam , capitalizing on the country’s accession to the WTO.

According to Vietnam Textile and Apparel Association, Malaysia ’s Pamatex Berhad has been licensed to invest US$100 million in garment production in Chu Lai Economic Zone. South Korea ’s Daewon has decided to invest US$8 million in an export garment factory in Hoa Khanh Industrial Zone, Danang, after setting up a garment factory in Vinh Loc Industrial Park , HCM City , and a textile factory in Nhon Trach 1 Industrial Park, Dong Nai Province .

Taiwan ’s Formosa plans to invest US$400 million expanding textile production in addition to US$500 million in existing facilities in Nhon Trach IP.

In the first 10 months, Vietnam ’s textile and garment export brought in US$4.96 billion, and is expected to reach US$5.9 billion for the whole year.

Source: Saigon Times

Posco, Doosan get investment licenses

South Korea ’s Posco Group has received a license to build a US$1.13-billion cold- and hot-rolled steel project in Ba Ria-Vung Tau Province.

Posco will develop the project, the biggest so far in Vietnam , in Phu My II Industrial Park in the province. Construction is expected to start in October next year and finish in 2009. In the first phase with investment of US$361 million, it will be able to produce 700,000 tons of cold-rolled steel annually.

Later, the investor will increase investment to nearly US$1.13 billion to raise the capacity to three million tons of hot-rolled steel and 1.5 million tons of cold-rolled steel for supply to the local market and export.

The new facility will produce steel for automobile, construction and shipping industries. Posco will use hot-rolled coil from its Indian integrated mill as feedstock to make steel products in Vietnam .

Early this week, another South Korean company Doosan also received a license for its heavy industry project in the Dung Quat Economic Zone of Quang Ngai Province. Doosan will invest US$260 million in building a tool manufacturing complex to produce a wide range of equipment for the energy, mechanical engineering, construction and other sectors.

Doosan expects to export 80% of its output. Its project will be the largest tool manufacturing project in Vietnam and is expected to attract many other satellite investment projects and services into Dung Quat.

Source: Saigon Times

Consultants propose new railway

A consortium of Vietnamese and foreign companies has drafted a plan to build a new railway between HCM City and Nha Trang City in Khanh Hoa Province that will require a huge investment of US$6.5 billion.

The consortium, comprising Korea Railroad Research Institute, Chungsuk Engineering and Vietnam ’s Transport Engineering and Design Inc. in the South, has met the Transport Ministry and local authorities in Khanh Hoa to present the plan. The proposed 369-km railway project will need an entire upgrade of the existing HCM City-Nha Trang line and will have a wider track, 1.435 meters instead of the current 1 meter. The wider track will be able to accommodate trains at a speed of 200km per hour and improve the safety of the existing line that permits a maximum speed of only 60km per hour. It will be shorter than the existing line by 43km and form part of the main north-south express rail network linking HCM City and Hanoi .

The railway has been designated as a priority railway project in the infrastructure development master plan to 2020. When in place in 2015, it will take only two hours to travel between HCM City and Nha Trang instead of the current eight hours, and help boost tourism.

The huge investment will be raised from ODA loans, State funds and other sources.

Source: Saigon Times

Sept 20th, 2006

FDI quadruples

Fresh foreign direct investment (FDI) in HCM City in the first eight months quadrupled the year earlier period, with a total of 168 projects being licensed capitalized at US$1.06 billion.

According to statistics, the figure includes 133 wholly foreign-owned projects worth US$751 million, 32 joint venture projects worth US$300 million and three business cooperation contracts worth US$14 million.

The processing industry attracted the largest FDI capital, with 66 projects worth US$675 million. The logistics industry attracted 10 projects worth US$257 million, real estate and consulting 59 projects worth US$62.4 million, construction 17 projects worth US$21 million, and banking two projects worth US$30 million.

In the period, 70 operational projects increased capital by US$200 million.

Overall, the total FDI inflow in the city in the first eight months was triple the same period last year, with US$1.26 billion.

There are 2,058 valid FDI projects with combined capital of US$13.5 billion in the city.

Source: Saigon Times

City supports big power project

HCM City has asked the central Government to include a power project by Singapore ’s SembCorp Utilities in the national power grid development strategy for 2006-2010 to facilitate its implementation.

If the project gains this recognition, SembCorp Utilities will be able to develop it at the outlying Hiep Phuoc Industrial Zone under the build-operate-transfer form. According to a letter signed by the city vice chairman Nguyen Van Dua, the project will play a crucial role in ensuring sufficient electricity for the city in the near future, especially as a backup source when other power plants encounter problems.

SembCorp power plant, with a designed capacity of 700MW, will supply mainly power for factories in the zone. It requires US$400-500 million for the first phase. After operating the plant in 30 years, the investor will transfer it to the city government.

The project also fits the city’s program to mobilize funds from different sources for public services in the context that its budget cannot cover all projects in water and power supplies.

Source: Saigon Times

Education attracts foreign investors

Four foreign-invested projects in the education sector have been licensed to operate in HCM City , aiming to set up schools and training centers for children of expatriates in Vietnam .

New Zealand International College Limited and Vietnam ’s Vu Anh Company will establish the ACG International Kindergarten and General Education School Vietnam in An Phu Ward, District 2.

The British Virgin Islands ’ Stratcap International Ltd. will establish the International Child Care Center-Smartkids Ltd. with an investment of US$170,000.

Thuy Chau Co. and Australian International School Limited will invest US$1.26 million in the Australian International High Schools Saigon Limited. The school will provide expatriate and local children international-standard secondary education.

Kumon Asia & Oceania Pte.Ltd. from Singapore will invest US$600,000 to establish the Kumon Vietnam Co. Ltd. to provide English and math courses.

Source: Saigon Times

MRT keen onsubway projects

Hong Kong-based MRT Corporation, which is involved in mass rapid transit projects in many countries, has shown keen interest in subway projects in HCM City .

Franco Fabbian, general manager of MRTC’s Operation Engineering Services & International Consultancy, said his company is seeking opportunities to get involved in subway projects here. Talking to HCM City vice chairman Nguyen Van Dua at a seminar last week, Fabbian said the company could apply the most advanced management concept to make the subway projects a success.

Local and international experts will soon complete studies for the first three subway routes in the city, linking the downtown area with the outskirts. They are the Ben Thanh-Tham Luong, Ben Thanh-Mien Tay Coach Station and Ben Thanh-Thu Duc. The city needs consultants for selecting contractors, technology and equipment suppliers and operators of these routes, construction of which is expected to start in 2008.

MRTC has been a consultant for mass transit railway projects in China , India , Thailand , Taiwan , Australia , Britain and the U.S.

Source: Saigon Times

Aug 31th, 2006

2006 Taiwan Business Alliance Conference (2006/8/15 By TAITRA)

Entrusted by the Ministry of Economic Affairs (MOEA), Taiwan, R.O.C, the Department of Investment Services (DOIS) of MOEA and the Taiwan External Trade Development Council (TAITRA) jointly announce their upcoming co-organized “2006 Taiwan Business Alliance Conference—Taiwan: Linking you to Asia—“ that will be held on October 12 at the Taipei International Convention Center (TICC).
Going into its 4th year, the annual Business Alliance Conference focuses on key industries for investment and idea sharing. This year’s sectors of interests are “Medical Devices Industry,” “Broadband Industry,” “Retailing Industry,” and “Financial Services Industry,” expecting to attract the participation of about 400 foreign and local business executives.

Industry professionals, venture capitalists, research specialists, and entrepreneurs will find this conference both an exciting and an ideal place to gather, explore and exchange ideas on Taiwan’s potential for investments, apart from having the chance to visit and see sights on this beautiful island.

The Business Alliance Conference will kick off with the recognition of the Most Valuable Partner Award and remarks by Dr. Hwang Ing-san, Minister of Ministry of Economic Affairs during the opening ceremony. Major activities of the event include: keynote presentations, industry panel discussions, business alliance meetings, and Taipei night city tour.
The two keynote presentations on “Efficient Ways to Expand Your Global Business Map” will be addressed by Mr. Matthew D. Ginsburg, Head of Investment Banking Asia Pacific, Morgan Stanley Dean Witter, and Mr. Andrew Lin, Chief Financial Officer of Lite-On Group. Drawing from their vast experience, both guest speakers shall provide participants with sound advice and guidance on the latest business and investment opportunities in Asian markets, and present some successful case studies of clients that these companies have previously worked with. 
The panel discussions for Medical Devices, Broadband, Retailing, and Financial Services will be held concurrently, each offering 2 topics of interest for their participants.

On the Medical Devices Industry panel, speakers will discuss “International Collaborative Opportunities and Technology Licensing for IVD Medical Electronics” as well as “Applications and Opportunities for Home-diagnostic Medical Device Industry.”
Topics for the Broadband Industry panel will include “Access to the Ubiquitous Network—Smart Strategies for Global Success” and “IT, Media and Telecom Convergence—The New Melting Pot,” while the Retailing Industry panel will examine “The Potential of Taiwan’s Consumer Market and its Business Opportunities” and “Partnering with Taiwan’s Retailing leaders.”

The panel for the Financial Services Industry will explore “A New Era of Financial Reform in Taiwan” and “Developing Taiwan into a Regional Center for Fund Raising and Asset Management.”
All panel presentations will demonstrate how Taiwan, as a major investor in ASEAN markets, can serve as an ideal partner to nations around the world, as well as a gateway to countries such as Vietnam, Cambodia, Thailand, Malaysia, Indonesia, and also China. The conference is on that those intent on keeping abreast of the latest business trends and opportunities in Asia shall not want to miss. 

Other featured activities of the conference include: one-on-one Business Alliance Meetings with representatives from the four industry sectors, and a nighttime City Tour of the Taipei area. Both events are open for conference goers on October 13. In addition to the conference, the Taipei International Electronics Autumn Show will also be held at the World Trade Center from October 9 to 13.

For the most updated information on investment in Taiwan and for online registration for the conference, please go to http://investintaiwan.nat.gov.tw

Media Contact
Angelica Hao
Business Alliance Section
Strategic Marketing Department
TAITRA
Tel: +886-2-2725-5200 ext. 1320
Fax: +886-2-2757-6610
Email: angelica@taitra.org.tw

Agenda

October 12, 2006

Taipei International Convention Center (TICC)

Source: Taipei Economic and Cultural Office in HCM City

Aug 15th, 2006

P&O Ports gets nod for container terminal

The shipping giant P&O Ports has received a license to build an international container terminal in Nha Be District, HCM City .

The UK-based company and its local partner Tan Thuan Industrial Promotion Company (IPC) will join in a US$250-million venture to develop Saigon Premier Container Terminal in Hiep Phuoc Industrial Park , 10km from the city center. According to the HCM City Department of Planning and Investment, the project will include a 950-meter quay and a 40-hectare container yard.

P&O holds an 80% stake in the venture and IPC 20%.

The terminal, which will be developed in phases in accordance with market demand, will have a throughput of 1.5 million TEUs per year. In conjunction with the Cat Lai Port in District 2 and other developments in Nha Be, it will form a cluster of big seaports to serve HCM City . P&O hopes it will be able to absorb cargo from existing ports along the Saigon River , which will be closed over the next 10-15 years.

Source: Saigon Times

Consultants for Saigon Safari Park shortlisted

Five foreign consulting firms have been shortlisted for selection of an international consultant to draft the first safari park in Vietnam .

The Department of Communications and Public Works, the project manager, expects the chosen consultant will help make the large-scale park more feasible and attractive to foreign investors.

Ten companies have joined the contest for zoning the US$300-million project to build the Saigon Safari Park in the outlying district of Cu Chi, but only five have been chosen in the final round, said Le Toan, deputy director of the department.

They are the consortium of TJ Engineering Consultants Inc. and PJA Architects + Landscape Architects, Germany ’s Rasbach Architekten , France ’s Imaginvest , Singapore ’s Bernard Harrison & Friends Ltd., and the consortium of Portico Group (U.S.) and HKS Designers & Consultant International Ltd. ( Thailand ). Each consultant will submit a bid for a contract to prepare the zoning plan for the park.

The park will be the breeding place of rare animals and will also be a major venue for environment education and cultural exchanges in Vietnam . It will include a wildlife area, open zoo, night safari, entertainment area, resort, museum and flora and fauna research center.

The Saigon Botanic Garden , the project owner, will announce the detailed zoning plan to local and foreign investors by the end of this year.

Source: Saigon Times

Saigon Port mulls two big port ventures

Saigon Port will join forces with two foreign partners to develop two large ports in Ba Ria-Vung Tau Province

The port authority has asked the Government for permission to set up the two ventures, one with Denmark ’s Maersk A/S and the other with the Port of Singapore Authority . It has submitted the applications for the ventures to the Ministry of Planning and Investment.

Saigon Port and Maersk will invest US$187 million in developing a port with two wharves in the Cai Mep Port Complex. It will be able to handle 950,000 TEUs a year upon completion in 2010.

The venture with the Port of Singapore Authority will build a port downstream of the Thi Vai International General Port at a cost of US$165 million in the first phase, set to be completed in 2010. In the second phase, the partners will invest US$133 million, to be completed in 2017. Four wharves will be built in the two phases, which will have a total throughput of 1.5 million TEUs a year.

The two ports, to be able to receive ships of 80,000 DWT, are part of the Government’s plan to relocate ports from inner HCM City to neighboring areas where there is space for port expansion.

Saigon Port will relocate its port in the city center to the Hiep Phuoc Port Complex in Nha Be District.

Source: Saigon Times

City lists requirements for underground parking lot

The HCM City government has listed the requirements for selecting the developer of the underground parking lot planned below the downtown business street of Nguyen Hue.

According to an official from the HCM City Department of Communications and Public Works, to select the optimum solution and the best developer for the project, the department has issued a list of design criteria and construction guidelines. Nguyen Viet Son, deputy director of the department, says the developer should build an underground parking lot measuring 600 meters in length and 50 meters in width on a maximum three-hectare site, of which 70% should be for parking and the rest for commercial purposes.

The potential developer must have average revenue of at least US$10 million over the last three years and its capital must be able to cover 30% of the total cost of the project.

Investors can select one of five investment forms for the parking lot, including 100% foreign investment, 100% local investment, joint venture, build-operate-transfer and build-to-order.

The department has estimated that the project will require about US$20 million for development. It has received three investors who show keen interest in the project. They are the Korea-Vietnam joint venture SK-Hai Dang, a Singapore company and Binh Minh Import-Export Trading and Production (Bitexco).

Source: Saigon Times

July 27th, 2006

New city leader pledges to spur growth

The new chairman of HCM City People’s Committee Le Hoang Quan has pledged to focus his efforts on economic development during his office term.

Quan, who was elected chairman of the city’s People Committee at a meting of the HCM City People’s Council last week, said he expected the city to achieve annual economic growth of 12% or higher. He said working out solutions to develop the city’s economy would be a priority task of the city government.

Speeding up administrative reform is seen as one of the key solutions to achieve this target, he said. However, the effort will fail if authorities at lower levels are unwilling to do away with bureaucracy and red tape. “They should be aware of their responsibility to support investors and businesspeople. They need a sense of responsibility,” he said.

Quan, who is also deputy secretary of the HCM City Party Committee, said the city government should streamline the investment licensing and land allocation processes. The city government will make greater efforts to deal with the poor implementation of infrastructure projects and with shortcomings in land zoning and urban management. He also promised to fight wastefulness, corruption and red tape to ensure the city’s economy will be on the growth path.

Quan, born in 1953 in Binh Duong Province , holds a BA degree in law. He served as chairman and Party chief of Dong Nai Province before moving to HCM City .

Source: Saigon Times

U.S. consultant to adviseon new urban center

The U.S. consultant Edaw has signed a deal to provide consulting for a financial and investment plan for the new urban center of Thu Thiem.

The Investment and Construction Authority for Thu Thiem New Urban Area (Thu Thiem ICA) has awarded the US$150,000-contract to the Hong Kong-based consultant after working with many foreign consultancies.

Chris Yoshii, Edaw regional director for Asia , said Edaw would divide the project into phases to make it easy for the HCM City government to call for international investors. The biggest challenges in developing Thu Thiem are infrastructure development and investment attraction, he said.

After getting approval for the contract, which is scheduled for completion in 18 weeks, Thu Thiem ICA will announce plans to investors.

Under the zoning plan for Thu Thiem designed by U.S. consultant Sasaki Associates Inc. and the HCM City Zoning Institute, Thu Thiem will cover 657 hectares in five wards in District 2 on the opposite side of District 1 across the Saigon River . Housing, trading and service facilities will take up 165 hectares and public utilities the rest.

Source: Saigon Times  

July 14th, 2006

Daewon develops new luxury apartments

Daewon-Hoan Cau Housing Development Joint Venture has started work on a US$30-million high-rise apartment building on Dien Bien Phu Street , Binh Thanh District.

The Cantavil Hoan Cau project is an 18-story building with 203 luxury apartments of 115-152 sq.m for sale. It will be completed in two years.

Daewon-Hoan Cau is a 51:49 joint venture between South Korea ’s Daewon and Vietnam ’s Hoan Cau Co.

Daewon is also cooperating with Thu Duc Housing Development to build a US$20.5-million apartment block with 405 luxury apartments in District 2, which will be completed this year. The company and other Korean partners—Daewoo, Kolon, Dong IL Highvill, Konlon Engineering and Kyang Nam—are involved in a US$314-million urban development in West Lake, Hanoi. It also has plans to build apartments for sale and offices for lease in Danang City .

Besides real estate, the company is taking part in building textile mills in Danang, HCM City and Dong Nai Province .

Source: Saigon Times

Renesas to build chip center

Japan ’s Renesas Technology Corp. will increase capital to build a chip design center in HCM City to expand the capacity of its chip design subsidiary in Vietnam .

Tsuneo Sato, president and CEO of Renesas Design Vietnam Co. (RVC), said it was raising investment capital from US$13 million to US$30 million for the project. The HCM City Export Processing Zone and Industrial Park Authority has allowed the company to increase the capital. The project in Tan Thuan Export Processing Zone will be put into operation next September.

RVC was established in 2004 as one of the main R&D centers for developing sophisticated multifunction system-on-chip (SoC). Its engineers are developing and designing SoC hardware and software for mobile, automotive and digital consumer applications. The products will be supplied to Renesas subsidiaries worldwide to produce chips for computers, cell phones, digital cameras and others.

Founded by Hitachi and Mitsubishi Electric in 2003, Renesas Technology Corp. is one of the world’s leading semiconductor system solutions providers.

Source: Saigon Times

June 28th, 2006

City seeks investors for elevated road

The HCM City ’s transport authority is seeking investors for building the first elevated road linking the airport with the new eastern urban area.

According to an official from the Department of Communications and Public Works, the investment capital for developing the 8.2-kilometer-long elevated road from Lang Cha Ca near Tan Son Nhat Airport in Tan Binh District to Thu Thiem New Urban Area in District 2 is VND2.2 trillion (US$138 million), while site clearance and compensation will cost more than VND1.3 trillion (US$81.3 million). The capital-intensive project will be divided into two sections to give more leeway to private investors.

The department, which is the project owner, will start selecting candidates in August to develop the project under build-operate-transfer form. The city budget can only cover the cost of site clearance, and private investors are invited to cover construction. However, the financial structure of the project has not yet been finalized.

Source: Saigon Times

Big syndicated loan for water system

Kenh Dong Water Supply Company will receive a syndicated loan of VND655 billion to develop water supply facilities for the outlying districts.

The company will use the loan to develop the Kenh Dong clean water supply system to supply the northwestern districts of Cu Chi and Hoc Mon, and Duc Hoa District in Long An Province. The project will include a water reservoir of 1.25 million cubic meters, a water treatment plant with capacity of 200,000 cubic meters per day and a pipeline system of more than 24km. The total investment capital is VND955 billion (US$60 million).

The company has also signed a contract to sell clean water to Saigon Water Supply Corporation, which will consume 150,000 cubic meters per day. The remaining output will be supplied to the new urban area northwest of the city and Tan Phu Trung Industrial Park .

The syndicated loan is jointly funded by Vietcombank, with VND347 billion, the Development Assistance Fund with VND260 billion and other banks with VND48 billion.

Source: Saigon Times

June 20th, 2006

City resumestop position

HCM City has regained its top position in foreign direct investment (FDI) attraction, accounting for 30% of the total FDI inflow into the country in the first five months.

Since the beginning of this year, nearly 90 projects with total capital of US$689.7 million have been licensed in the city, 3.9 times higher than the same period last year. Figures from the statistics bureau show that industry has attracted 42 projects worth US$654.9 million, real estate, service and consulting 35 projects worth US$12.5 million, construction 10 projects worth US$12.8 million and health 2 projects worth US$4.6 million. The biggest project is chip assembly and testing by Intel (US$605 million).

In the period, 37 operational FDI projects have increased capital by a total of US$69.6 million.

Overall, the total FDI inflow in the first five months is US$759.3 million, making HCM City the top FDI attraction in the period. The HCM City Department of Planning and Investment expects FDI in the city to rise more in the future, as several big foreign-invested projects are awaiting approval, such as a US$500-million power plant by Singapore ’s Sembcorp Industries.

Source: Saigon Times

May 18th, 2006

Festival Hue 2006 attractive

This year, Festival Hue 2006 will take place on the occasion of the 70^th anniversary of the land of O Ly in Thuan Hoa, Phu Xuan, Thua Thien-Hue Province .

The opening ceremony of Festival Hue on June 3^rd will take place at Ngo Mon Square with a majestic scale dedicated to Vietnamese culture. There will be a combination among professional performing art on stage and folk performances on the grounds of the city’s squares, with the unique fireworks art by Pierre Alain Huber, an international fireworks artist, with special performances by the national symphony orchestra, royal dances, Vietnamese court music, and other high quality performances by various Vietnamese art troupes.

From June 3-11, a lot of professional art programs at high quality will be shown every night inside the Citadel and An Dinh Palace. These programs will be linked to public activities of culture, tourism, and art performance, which will take place in the Citadel and its adjacent areas. All of these programs will make Hue and imposing, impressive and attractive place to both domestic and international tourists.

Letter of Invitation from Hue's authority: Download
Investment Opportunities in Hue: Download

April 18th, 2006

City briefs measures to prevent strikes

HCM City officials have introduced to the diplomatic corps and business associations measures to prevent illegal strikes to ensure stable operations for businesses.

At a briefing last week, Nguyen Thien Nhan, vice chairman of HCM City People’s Committee, presented measures that he said should bring about stability and called for cooperation from businesses. He pointed out the key reason for strikes in recent months, among them are slow changes in the government salary policies, poor benefits and compensations on the part of certain employers, and the lack of legal knowledge among many workers.

Meanwhile, many foreign-invested enterprises have not observed the law, failing to sign collective labor agreements and employment contracts with workers. In addition, they do not announce wage policies to workers.

To improve the situation, he said enterprises should register their wage schemes, pay rise and compensation policies with the city’s Labor Department. They have to provide accommodation to workers, and the city will also step up its own efforts to help in this undertaking.

Nhan also called for employers to provide better quality meals to workers. The city government will cooperate with enterprises to provide legal knowledge to workers. It is considering a plan to compensate businesses that suffered material damages caused by striking workers. A statute on settlement of labor disputes and strikes will be brought out to provide an effective tool to address the problem.

Source: Saigon Times

City ready for APEC meetings

HCM City has made all necessary preparations in order to successfully host the Asia Pacific Economic Cooperation Forum (APEC) meetings in May.

Nguyen Thien Nhan, head of the organizing committee for APEC meetings in HCM City , said at a meeting on Monday that the city would be ready to welcome 800-1,000 ministers, senior officials and other delegates to the meetings in the run up to the APEC Summit in Hanoi in November.

Nhan, also vice chairman of HCM City People’s Committee, said the committee and city authorities would work together to prepare facilities and personnel to welcome the delegates and ensure security for all APEC activities. The city will ask handicraft producers and traders to make souvenirs for APEC delegates.

The National Committee for APEC 2006 will finalize a list of 25 hotels in the city to accommodate APEC officials.

HCM City will host the second APEC Senior Officials’ Meeting (SOM2) from May 22 to June 1 and the APEC Trade Ministers Meeting on June 1-2. In addition, more than 25 sub-meetings on specific topics will take place between May and June.

Source: Saigon Times

Japan supports subway project

The Japanese Ministry of Economy, Trade and Industry (MITI) and Ministry of Transport have pledged to support the construction of a subway in HCM City .

At a meeting with HCM City authorities last week, Japanese officials said the Japanese Government had agreed in principle to provide an official development assistance loan for the subway, the first in HCM City which will link Ben Thanh Market in District 1 with Cho Nho Market in Thu Duc District.

The officials discussed with HCM City authorities the routing for the subway and surveyed locations to build stations and depots along its route. The 13.7-km route is estimated to cost US$626 million, including the funds for building 11 stations and one depot. It is part of the 28.3-km metro route from Ben Thanh Market to Bien Hoa City .

Work is expected to start this year and the subway will be opened to traffic in 2012.

The Ben Thanh-Bien Hoa route is part of the master plan for transport development in HCM City prepared by Japan International Cooperation Agency. Construction of the route was proposed to the Railway Bureau under Japan ’s Ministry of Infrastructure and Land when its mission visited HCM City in August 2004.

Japan Bank for International Cooperation will provide assistance for study the project.

Source: Saigon Times

April 04th, 2006

City plans elevated road to reduce congestion

HCM City plans to build an elevated road linking Tan Son Nhat Airport with the new urban area of Thu Thiem in District 2.

According to the Department of Communications and Public Works, the road running along Nhieu Loc-Thi Nghe Canal will help reduce traffic congestion from major roads leading to the airport. The investment cost is estimated at US$251 million.

The project will have three components to attract private investors. The city authorities will implement two components, including construction of the 9-kilometer road, site clearance and expansion of Bui Thi Xuan Street . The last component, which involves developing high-rise buildings along the road, will be left to private investors.

The city government will recoup investment capital through toll collection and auction of land along the road.

Source: Saigon Times

Singapore retailer given the go-ahead

Singapore ’s Giant South Asia Investment has been given the green light from the Government to enter the domestic retail market.

Deputy PM Vu Khoan has given in-principle approval to the project proposed by the company to set up a retail chain in HCM City .

Last year, Giant South Asia Investment, a unit of leading Singapore retailer Dairy Farm International Holding Limited, applied to the Ministry of Planning and Investment for a license to establish and operate a chain of stores and supermarkets with initial capital of US$5 million. The company plans to locate its head office at Citi Plaza and acquire and upgrade all Citimart supermarkets in the city.

Vietnam ’s retail market, which has annual growth of 30% with a market capitalization of US$20 billion, is still off-limit to 100% foreign investment. However, the retail sector will be gradually opened in line with the country’s commitments to regional and global integration.

Source: Saigon Times

Jan 26th, 2006

Incentives for three spearhead industries

HCM City has identified the electronics-informatics, mechanical engineering and chemical industries as the spearheads for development this year.

Speaking at a seminar on industrial development in 2006 last week, Nguyen Thien Nhan, vice chairman of HCM City People’s Committee, said the city was attaching great importance to the service sector, but did not ignore key industries. It would offer incentives to operators in these industries with preferential policies on capital, labor and land.

Nhan said the city would build five product design centers for the three industries and give priorities to enterprises using high-quality expertise and high technologies. He also called for enterprises to strengthen cooperation to further boost industrial development.

The city’s industrial sector has set a growth target of 14.6% this year.

Source: Saigon Times

Subway project gets government approval

The Prime Minister has approved the project to build a subway linking Ben Thanh Market with the outlying district of Thu Duc.

The government head has also named the Ministry of Communications and Transport owner of the US$626-million project, which has also been added to the list of projects to be financed by Japanese government loans in fiscal year 2006.

According to a source from the ministry, a Japanese task force comprising officials from the ministries of finance and infrastructure and land will visit the city on January 18 to look into preparation for the project. They will meet Vietnamese officials to discuss a financing plan and a detailed report on the 13.7-kilometer subway.

The Ben Thanh-Thu Duc subway is part of the 28.2-kilometer route from Ben Thanh Market to Bien Hoa City in Dong Nai Province . The route is in the master plan for communications development in HCM City prepared by Japan International Cooperation Agency. It will be divided into two components, including a 13.7-kilometer underground track from Ben Thanh Market to Thu Duc District and a 14.5-kilometer bus route from Thu Duc to Bien Hoa.

The subway project is expected to get off the ground this year and to be opened to traffic by 2012.

Source: Saigon Times

Two FDI projects licensed in New Year

HCM City has granted licenses for the first two foreign direct investment (FDI) projects of the new year with total capital of US$1.55 million.

According to the HCM City Department of Planning and Investment, Korea ’s Doolim Corporation will set up Doolim Binh Chanh Factory to make garments. The 20-year venture, capitalized at US$1.5 million, will export all its output.

The U.S.-owned company Pham Anh Tuan, capitalized at US$50,000, will engage in software production and web design.

Last year, HCM City attracted US$950 million in FDI, US$200 million above the year’s target and double the 2004 figure.

Source: Saigon Times  

Dec 22th, 2005

Party Congress approves five-year targets, personnel

The eighth HCM City Party Congress ended last week, with the approval of socio-economic targets for 2006-2010 and personnel for its standing board.  

Major socio-economic targets for 2006-2010

-GDP growth: 12%/year
-Services:   12%/year
-Industrial growth:      12-13%/year
-Agriculture:      5%/year
-Investment: VND434,500 billion (US$27.2 billion)
-Universal secondary education
-No poverty households by 2010
-Employment :      Jobs for 100,000 people/year

Source: Saigon Times