Region

From the Middle: Danang’s Profile Rises as Investors Move In

July 30 – Located in the middle of Vietnam, Danang is the country’s fourth largest city and in recent years has become the commercial and industrial hub of central Vietnam.

As one executive, the chairman of software development company Enclave has commented in the San Jose Mercury News, Danang is the Ho Chi Minh City of 10 years ago, a rising economic power. Its current 13 percent economic growth rate is higher than the nation’s whole.

Vietnam Attracts US$44.5 Billion Worth of Investments

July 30 – For the first seven months of the year, Vietnam was able to attract 654 projects foreign direct investment projects worth an estimated US$44.5 billion.

The month of July reported 167 foreign direct investment projects worth US$13.6 billion.

The Department of Foreign Investment said the largest for the year thus far is the US$4.3 billion investment made by Brunei’s New City Group to develop an urban area in Phu Yen province. Two other huge project is the US$3.8 billion oil refinery in Ba Ria-Vung Tau province and a US$3.5 billion university facility in Ho Chi Minh city to be built by Malaysia’s Berjaya Leisure Company.

China Warns Exxon to Drop Exploration Deal with Vietnam

July 22 – China is protesting a preliminary agreement that will allow state oil firm PetroVietnam and Exxon Mobil to explore oil in the South China Sea near Vietnam's south and central coast.

Chinese diplomats in Washington warned Exxon that the move is a breach of Chinese sovereignty and could affect its future business interests in the country.

According to Reuters, unnamed sources said that while Exxon Mobil was sure of Vietnam's sovereign rights to the area in question, it could not dismiss China's warnings as out of hand.

Vietnam Market Portal to Launch In September

July 16- The Vietnamese Commerce and Information Technology are making the final preparations for the launch of a portal for foreign markets on September 1st.

The new portal also aims to attract local business.

In addition, there will be versions of the Vietnam export portal in English and other foreign languages that will showcase Vietnamese enterprises and products.

Ground Broken on Vietnam’s Largest Foreign Direct Investment Project

July 7 – Work has begun on what will be Vietnam's largest steel plant, part of a US$7.9 billion complex that will include a deep-sea port, Thanh Nien reported Monday.

The complex, located in central Ha Tinh province and run by Taiwan-based Formosa Heavy Industries Corp., will be Vietnam’s largest steel production facility when it is completed, with an expected annual capacity of 7.5 million tons.

The plant is expected to take four years to complete and cost an estimated US$7.87 billion. The project is the largest foreign direct investment Vietnam has seen and when completed, will employ around 10,000 locals.

Vietnam to Lift Rice Export Ban by July

May 30 – Vietnam says that its ban on rice exports may be lifted in July adding that the coming crop harvests from the north will turn out better than expected.

The country’s winter-spring crop from its 32 northern provinces has progressed well and should yield the same amount as last year. Last year, the same provinces produced 6.15 million tons of rice.

Businesses will be allowed to sign new rice export contracts after June 30.
Vietnam is the world’s second-largest rice exporter. Last March, it introduced a three-month ban on rice exports to maintain local supplies.

Vietnam Considers Lowering Taxes to Spur Foreign Investment

May 8 – Vietnam is considering lowering corporate income taxes from 28 percent to 25 percent.

A proposed corporate tax cut would help lure more foreign investors to Vietnam without lowering government tax revenues, said several National Assembly representatives Wednesday.

Lawmakers focused on a proposed amendment to 1997’s Corporate Income Tax Law at the National Assembly on Wednesday that would cut corporate income taxes by three percent.

Paris eager to boost Vietnam investment and trade

HCMC, April 14 – Paris Chamber of Commerce and Industry (CCIP) leaders met with Ho Chi Minh City businesses last week to evaluate economic opportunities and express their strong desire to help the French invest in Vietnam, as well as to boost bilateral trade between France and Vietnam.

Acknowledging that France already had a strong business presence in Vietnam, Christian Pepineau, the VP of CCIP, stated that Vietnam had some of the best long-term prospects for medium-sized French companies, offering low-priced but high quality human and natural resources, and a large market of over 80 million people.

As industry output surges, so does inflation

Mar. 28 – Vietnam’s General Statistics Office (GSO) just reported a first quarter total industrial output of US$10.2 billion for the first quarter of 2008.

The figure represents a 16.3 percent increase over the first quarter of 2007. Vietnam’s private sector enjoyed the greatest gains, jumping 22.5 percent to US$3.5 billion –worth of production value.

The foreign-invested segment saw a 17 percent gain, while the State-owned sector managed 6.7 percent of growth. Processing and energy production, related industries, climbed a healthy 18 percent.

Ha Tinh Development Zone cleared for takeoff

Officials from both Ha Tinh’s People’s Committee and the Vung Ang Economic Area Board met with businessmen in Ho Chi Minh City last Saturday to attract investment.

Two breakthroughs are expected to lure heavy investment to the area: an administrative resolution that will grant certificates five days after investors apply for projects there, and the ability to receive 150,000-ton ships in its deepwater seaport.