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