Vung Ang to become nation’s largest thermal power center

Minister of Industry and Trade Vu Huy Hoang and delegates had a working with Formosa Ha Tinh Steel Corporation (FHS), Vung Ang 1 thermal power plant at Vung Ang Economic Industrial Zone in the central province of Ha Tinh on January 24. Construction of Formosa Ha Tinh Steel Plant. (Photo: SGGP) Up to now, Vung Ang 1 thermal power plant has completed around 98, 7 percent of the construction. It is expected to put into operation in November, 2015, reported management board of Vung Ang – Quang Trach Petroleum Power Project. At the meeting, Minister of Industry and Trade Vu Huy Hoang stressed that the Son Duong Formosa steel & seaport complex is considered as one of major economic site which received the best conditions for priority investment by Government, relevant ministries and departments. Vung Ang is well-known as one of five key coastal economic zones in energy, steel and oil refining. In the near future, Vung Ang will become the largest thermal power center in … [Read more...]

Taiwan-invested Formosa builds illegal temple in Vietnam EZ

Authorities of the central province of Ha Tinh have suspended the illegal construction of an 18-square-meter temple by the Taiwan-invested Formosa Ha Tinh Steel Corporation in the Vung Ang economic zone. The firm requested a license to build the temple in July but was rejected. Nonetheless, it began work on the building, which will be 3.6 x 5.1m and 4.5m height. Authorities in the dark Relevant agencies of Ha Tinh Province said yesterday they were surprised to learn that work on the temple had begun. Le Van Thong, vice director of the construction department of Ha Tinh, admitted that he had not been informed of the work by local authorities. "I learned about the case through the media," he added. "The management board of the Vung Ang economic zone must take responsibility for this." Nguyen Minh Hoan, vice chairman of the People's Committee of Ky Anh District, said he did not know about the construction of a temple by Formosa in the zone. Nguyen Canh Thuy, vice director … [Read more...]

Breakfast @ Tuoi Tre News – October 25

Tuoi Tre News briefs you on some of the leading stories published today, October 25, in Vietnamese media. Politics -- Vietnamese Prime Minister Nguyen Tan Dung and his spouse will pay an official visit to India from October 27 to 29 to discuss measures to boost the two-way trade and expanding cooperation between the two countries in such fields as science-technology, culture-education, tourism and aviation. In 2013, two-way trade amounted to US$5.23 billion, up 30 percent from 2012. It is expected to reach $15 billion by 2020. Society -- Police from the Ministry of Public Security on Friday evening arrested Ha Van Tham, 42, former chairman of the Dai Duong Commercial Joint Stock Bank (OceanBank),on charges of "breaching regulations on loan provision in the operations of credit institutions." Tham was removed from his post earlier the same day. -- A heavy rain together with strong winds that occurred in Ho Chi Minh City on Friday afternoon uprooted at least 19 trees, which fell … [Read more...]

Vietnam rejects yet another demand by Taiwanese steel giant

A huge steel mill owned by Taiwan's Formosa Plastics Group being built in the north-central province of Ha Tinh. Photo: Nguyen Dung The government has turned down a request from Taiwanese-owned Formosa Plastics Group for using its own fleet of ships to transport its steel products in Vietnam's inland waterways, citing the country's laws. Earlier this month Formosa Ha Tinh Steel Corporation, which is building a massive plant in the north-central province of Ha Tinh, sought permission to have its own fleet of ships instead of hiring vessels from local shipping lines. Once installation of two blast furnaces is complete, the plant would churn out 7.1 million tons of steel products annually, with around 3 million tons sold in Vietnam after being transported to Ho Chi Minh City and Hanoi, it said. Its own fleet would help boost efficiency, it said. Deputy Minister of Transport Nguyen Van Cong told Thanh Nien Sunday that his ministry did not approve the proposal since the laws do not … [Read more...]

Taiwanese firm keeps demanding more despite huge incentives from Vietnam

Formosa Ha Tinh Steel Corporation had been unknown to most people outside of the business sector before it first grabbed media attention in early May, when protests, followed by riots, erupted in some Vietnamese localities after China stationed its illegal oil rig in Vietnamese waters. Sixteen individuals were arrested and placed under investigation on May 18 for igniting riots and lootings targeting the construction site of Formosa Ha Tinh at the Vung Ang Economic Zone in central-northern Ha Tinh Province on May 14. The protests against China, involving around 5,000 Vietnamese nationals, turned violent and many assets of the company were stolen, according to Ha Tinh police. The company, backed by Taiwanese-based Formosa Plastics Corporation, however, continued to make national headlines with requests to be allowed to set up a special zone inside Vung Ang, and to establish a shrine at the same location. While Formosa Ha Tinh was granted permission to build the shrine on July 3, … [Read more...]

Excessive FDI incentives will nullify benefits to society, say experts

VietNamNet Bridge - Tax incentives offered by Vietnam to foreign direct investors help attract business and improve the competitiveness of the country in the global economy. However, when things go beyond the framework, there will be a "competitive race to the bottom". Local authorities' incentives overlapping state's incentives UNIDO, the United Nations Industrial Development Organization, has released a report on Vietnam's industrial development, following its 2011 survey, which it conducted jointly with the Vietnamese Ministry of Planning and Investment. Vietnam offers many different investment incentives, including tax incentives (corporate income tax, import-export preferential tariffs, and income taxes of different kinds), privileges in land access, bank loan access and financial support. In addition to incentives offered by the government, foreign-invested enterprises (FIEs) can also enjoy perks from local officials, which may provide subsidies for anything from site … [Read more...]

BUSINESS IN BRIEF 21/10

Food security and farmer interestsAlthough Vietnam has ensured food security and exported large amounts of rice, its farmers feel hunger here and there.Food security is a big challenge to any countries when their populations keep rising and farmland shrinks dramatically for urbanisation and industrial production.Statistics show the world has approximately 870 million hungry people, with 852 million living in developing countries, and tens of thousands of people die of hunger every year. The figures will increase considerably when the world's population is forecast to reach 9 billion by 2050.In Vietnam, one of the world's top three rice exporters, many people living in the Northern, Central and Central Highland regions feel hunger during the lean months.In the North-Western region, villagers can only afford rice for daily meals in three months at maximum and rely on other subsidiary crops such as cassava and corn in the remaining months of the year.No doubt farmers play a vital role in … [Read more...]

BUSINESS IN BRIEF 18/10

Trade surplus recorded in nine monthsThe nation enjoyed a trade surplus in the past nine months of this year, with export reaping over US$96.27 billion and import earning US$96.26 billion, according to the Viet Nam Customs.The figures are against the General Statistics Office's forecast on a trade deficit of US$124 million.In the last fifteen days of September, Viet Nam's export reached US$6.25 billion and import, US$5.98 billion.Phones and spare part ranked first, earning US$1.35 billion, followed by garment (US$870.58 million), computers and electronics (US$496.15 million).During the period, Foreign Direct Investment (FDI) businesses earned US$4.12 billion from exports and spent US$3.61 billion on imports.In the nine-month time, FDI businesses made an export value of US$58.69 billion and an import of US$54.84 billion. Consumer product forum gathers firmsThe second "Connecting producers and distributors" conference for southern provinces scheduled to be held in HCM City early next … [Read more...]

CSVC commissions 1.2-million-ton steel plant

Van Nam The company said in a statement that the facility with total investment capital of around VND18.4 trillion produces cold rolled coils, pickled and oiled steel coils, and hot deep galvanized steel and electrical steel sheets. The plant employs 800 workers. Speaking to the Daily, a representative of CSVC said that in the first phase of operation, all products of the plant would be exported. CSVC was established in 2009 with total chartered capital of nearly VND9.2 trillion, with China Steel Corporation (Taiwan) holding a 51% stake, Nippon Steel & Sumitomo Metal Corporation (Japan) 30%, Formosa Ha Tinh Steel Corporation (Taiwan) 5%, Sumitomo Corporation (Japan) 5%, Nippon Steel & Sumikin Bussan Corporation (Japan) 5% and among others. The total production capacity of cold steel coils is now over three million tons per year while the demand is only around 1.6 million tons. Therefore, in addition to supplying steel products for the local market, steel mills have to … [Read more...]

Southern steel mill now active

The factory in the My Xuan A2 Industrial Zone was built at a cost of VND18.368 trillion (US$1.15 billion in 2009 when the company was established).— File Photo BA RIA - VUNG TAU (Biz Hub)— Production began yesterday at the China Steel Sumikin Viet Nam Joint Stock Company in southern Ba Ria - Vung Tau Province, providing 800 jobs. The factory in the My Xuan A2 Industrial Zone was built at a cost of VND18.368 trillion (US$1.15 billion in 2009 when the company was established). It has an annual capacity of 1.2 million tonnes of pickled and oiled steel coil, cold rolled coil, steel sheets, and hot dip galvanized steel. They are meant for use in construction and manufacture of automobiles, motorbikes, home appliances, and pipes. CSVC has a charter capital of $574 million and is owned mostly by China Steel Corporation (Taiwan, 51 per cent) and Nippon Steel&Sumitomo Metal Corporation (Japan, 30 per cent). Formosa Ha Tinh Steel Corporation (Taiwan), Sumitomo Corporation (Japan), and Nippon … [Read more...]

BUSINESS IN BRIEF 31/5

Social fund seeks investment methodsUsing the social insurance fund to buy bonds is the safest investment, said Deputy Prime Minister Vu Van Ninh at an NA discussion about social fund lending activities on May 25.As of late 2012, the social insurance fund had a surplus of VND200 trillion (USD9.6 million), with most of its loans going to the government and 24% to banks.NA deputy, Bui Sy Loi, said the fund would face grave consequences if they lend money to banks or invest in the stock market."In 2010 and 2011, we gave loans to four banks and the debt of one Agribank member company has turned bad, creating possible losses of nearly VND1 trillion. Of course banks always give collateral for loans, but in reality it is difficult to recover from the banks," he said.According to Loi, the government should revise the social insurance law to deal with stagnant debts. The number of insured people is about 15 million but only 10.5 million are actually contributing to the fund.Answering the … [Read more...]

Fecon gets the nod to step into giant project

Taiwan-backed Formosa Ha Tinh Steel Corporation has chosen Fecon as one of the major contractors for the $22 billion project. Accordingly, by the end of 2012, Fecon will supply and place over 100,000 metres of D400-D600 PHC poles used in foundation construction, out of a total committed 1.2 million metres of poles which would generate for Fecon more than VND1 trillion ($48 million) in estimated revenue. Formosa Ha Tinh iron steel complex covers more than 3,000 hectares in five communes in north-central Ha Tinh's Ky Anh district and will be built in two phases. The first phase, capitalised at an estimated $10 billion, includes the construction of the Son Duong port with handling capacity exceeding 30 million tonnes per year parallel to 11 wharves, a steel factory capable of producing more than seven million tonnes per year, and a power plant with an annual capacity of 650 megawatts. Once commissioned, the complex will become one of South East Asia's largest iron steel complexes, … [Read more...]

Formosa ready to prove doubters wrong

Formosa Plastics Group last week started building the first blast furnace for its $10 billion steel and seaport complex in central Vietnam, dispelling doubts about its commitment. This is also a new step into steel manufacturing business of Formosa Plastics Group (FPG), Taiwan's largest conglomerate of biotechnology, petrochemical processing and electronic production. This blast furnace is one of the three planned to be built at the project in Vung Ang Economic Zone, Ha Tinh province. FPG plans to complete construction of the first within three years and put it into commercial operation at the end of 2015, one year later than the initial schedule because of the delay in master designing work. "Many people doubt over our ability to develop such a huge project. But we are proving that we are serious with our commitment," said a Hanoi-based representative of Formosa Ha Tinh Steel Corporation, which FPG established to develop this project. In 2008, FPG registered to build a 7.5 … [Read more...]

HBC starts work on two large projects

(VEN) - The Hoa Binh Construction and Real Estate Trading Joint Stock Company (HBC) recently started work on construction of two projects in the central region on August 16 including the Bach Dang Hotel Complex and accommodation for staff and experts of the Formosa Ha Tinh Cast Iron and Steel Complex.The Bach Dang Hotel invested by the Bach Dang Trading, Service and Hotel Co., Ltd will stand on almost 7,000sq.m at 50 Bach Dang Road in Hai Chau District, Da Nang including two basements, a 28-storey hotel tower and a 20-storey office and apartment-for-lease tower. HBC was chosen to build the foundation, basements and platforms at a cost of over VND160 billion. Construction is expected for completion by March 2013. Accommodation of the Formosa Ha Tinh Steel Corporation will be located in the Vung Ang Economic Zone in Ky Anh District, Ha Tinh Province, and include four blocks for staff members and four blocks for experts becoming HBC's fifth industrial construction project in Vietnam so … [Read more...]

Scoring for more efficient investment

(VEN) - To get investment during the 2013-2015 period, these EZs must have cargo hub seaports, convenient airports, projects on motivation, investment attractive capability, and strategic position for regional development.These conditions were scored and based on the scored points, the Ministry of Planning and Investment has selected five groups of coastal EZs to prioritize investment in the period 2013-2015. The first group includes Chu Lai and Dung Quat EZs in the provinces of Quang Nam and Quang Ngai. These two EZs are located next to each other and can support each other. Dung Quat EZ has Oil Refinery 1 while Chu Lai EZ has the Truong Hai Automobile Factory. Both EZs are located in the central key economic zone. The second group includes Dinh Vu-Cat Hai EZ in Hai Phong which is regarded as a multi-sectoral EZ, utilizing the Lach Huyen Port, and located in the northern key economic zone.  The third group includes Phu Quoc Island and An Thoi Archipelago EZ in Kien Giang Province, … [Read more...]

Formosa pushes on with its mega project

"We are pushing the construction process to ensure we put the factory into operation in 2014" Formosa Plastics Group's new steel plant and port will be key drivers for Ha Tinh province's growth After a three-year delay caused by site clearance issues, Taiwanese-backed Formosa Plastics Group is now pushing head with construction of its mammoth steel and seaport complex in central province of Ha Tinh. It's a move that has encouraged other investors to kick start their own projects in the zone. Ngoc Linh reports. On a 2,000-hectare site at coastal Vung Ang economic zone in the central province of Ha Tinh, Formosa Plastics Group (FPG), through its subsidiary Formosa Ha Tinh Steel Corporation, is hastily carrying out the first stage of works on its mammoth steel and seaport complex. The site will be home to what Hsu Chih Hao, a manager at Formosa Ha Tinh Steel Corporation, said would be among the top five largest steel manufacturing factories in the world. "We are pushing the … [Read more...]

Tata Steel gets boxed into a corner

Tata Steel will enter last chance saloon when Ha Tinh People's Committee asks whether it will pursue its $5 billion integrated steel project. illustration photo A Ministry of Planning and Investment (MPI) source said documents had been sent to the provincial authority and Tata Steel asking the two sides to definitively resolve existing issues holding back the Vung Ang Economic Zone-based project. Ho Anh Tuan, head of Vung Ang Economic Zone Management Authority, confirmed that local officials had received the MPI documents. "We will have a meeting with Tata soon to resolve all existing issues," said Tuan. The issues include site clearance payments, water supplies and the provision of raw materials. According to Ha Tinh People's Committee requirements, Tata has to cover site clearance costs for 725 hectares, water supply system construction and prove its raw material sources. Under the Investment Law, investors do not have to pay costs for site clearance and water supply … [Read more...]

Good news for FDI fortunes

VietNamNet Bridge - Foreign direct investment disbursement is expected to rise sharply this year as many foreign investors push big projects in Vietnam. Formosa Ha Tinh Steel Corporation, a subsidiary of Taiwanese Formosa Plastic Corporation, early this month imported its first equipment for the construction of its $8.9 billion steel manufacturing and seaport complex in central Ha Tinh province, licenced in 2008. Chu Chun Fan, a representative of Formosa Ha Tinh Steel Corporation, said the firm in March would start dredging an access channel to the port site and leveling the ground surface. Fan said Formosa would spend about $338 million finishing the above works within 10 months. Those works are Formosa's first steps to push the construction of its first steel manufacturing project after 30 months of delays due to site clearance issues. Like Formosa, many foreign investors began constructing of their registered projects. Asian Coast Development Limited, for instance, is … [Read more...]

Thai garment, footwear producers eye bigger shares in Vietnam

About 40 Thai companies operating in the garment-textile, shoe-leather and accessories sectors on Thursday met with potential Vietnamese partners in Ho Chi Minh City during a trade promotion activity aiming to increase the market share of Thai goods in Vietnam. The Thai enterprises which joined the event, the Vietnam-Thailand Business Meeting and Matching, include manufacturers of fabrics, men’s and women’s clothes, textile materials, suitcases, bags andhandbags which want to find suitable local distributers or trade partners. The event, co-organized by the Ho Chi Minh City branch of the Vietnam Chamber of Commerce and Industry in collaboration with the Ministry of Trade of Thailand and the Thai Consulate General in the city, will also help Thai businesses to find suitable investment opportunities in Vietnam. Malinee Harnboonsong, Commercial Councilor and Director of the Trade Center under the Thai Consulate General in the city, said the program is part of … [Read more...]

Falling oil prices reveal reliance on crude exports

Vietnam, an energy exporting country, is struggling to deal with the negative impacts of lower oil prices as revenue shortfalls make lingering fiscal weaknesses even more visible, economists said. Oil prices have fallen to a 6.5-year low on Monday, amid continued worries of high global oil supply while investors expect the demand from China to remain weak due to its growth slowdown. Already trading at six-year lows on a prolonged slump, US crude fell $2.21 to $38.24 per barrel, according to the Associated Press. Oil hadn't closed below $40 since February 2009. Falling oil prices have cut Vietnam’s export revenues, dealing a strong blow to the state budget, economist Le Dang Doanh said. The country exported over 5.3 million tons of crude oil worth $2.45 billion between January and July, down 0.3 percent in volume and 47.1 percent in value over the same period last year, according to the General Statistics Office. With lower export earnings, crude oil’s contribution to … [Read more...]