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...]

Formosa pours huge money for its

Taiwan's Hung Nghiep Formosa Ha Tinh Steel Limited Company has poured $1.166 billion for its site clearing According to the company's latest report, it has poured that amount of money for its sucking sand as well as smooth the surface of its steel project, a 2.6 times higher than initial estimate. Formosa Plastics Group, the largest private conglomerate in Taiwan, gained an investment certificate for developing this mammoth integrated steelwork in the central Ha Tinh province six years ago. The construction was delayed till 2010 because of site clearance issue. Formosa started construction on the project in 2011. The project has the total registered investment capital of approximately $10 billion, and annual production capacity of 7.5 million tones of steel. Formosa is the dominant shareholder of the project with 95 per cent and China Steel - Taiwan's largest steel maker - holds 5 per cent. According to Formosa, the project will comprise six blast … [Read more...]

BUSINESS IN BRIEF 24/1

DHL extends pickup cutoff time for customers in southGlobal express service provider DHL Express has applied an extension of 45 minutes to the pickup cutoff time for customers located in southern Vietnam looking to send packages and documents internationally.DHL Express said in a statement that the change would see counters extending their cutoff times to as late as 17:45 p.m. from Mondays to Fridays for customers to ensure a full business day.Christopher Ong, general director of DHL-VNPT Express, clarified in the statement the later departure of DHL's flight would benefit its customers in HCMC, Long An, Binh Duong, Dong Nai and Vung Tau as these localities are home to some of Vietnam's main manufacturing and industrial zones."Our access to the company's Asia air network will see DHL offering the latest pickup cutoff times for same day uplift in comparison to other international express companies operating in Vietnam's southern provinces," Ong said.Yasmin Aladad Khan, senior vice … [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 27/8

Farmers must benefit from agricultural production, says ministerIt's time for the agricultural sector to accelerate its restructuring process to improve product quality and boost farmers' income, says agricultural minister Cao Duc Phat.Raising the added value of farm products is the key to increasing the competitive capacity of the agricultural sector, Phat said in a weekly online Q&A session held by the Government Portal on August 24.He said the Ministry of Agriculture and Rural Development (MARD) is implementing an agriculture restructuring programme towards higher added value of products and sustainable development.Agricultural production will be restructured towards sustainable developmentAll localities are required to re-examine their agricultural structure so as to invest more in areas of highly competitive advantage, especially crop production and livestock breeding, to make a higher economic value.  They are encouraged to mobilise agricultural investments from other … [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...]

JFE takes step for steel project

Japan's JFE Steel Corporation has completed a pre-feasibility study for a $4.5 billion integrated steel mill in central Quang Ngai province to be submitted for governmental approval, moving a step closer to gaining an investment certificate for the project. A source familiar with the case said the pre-feasibility study had been sent to Quang Ngai Provincial People's Committee. "JFE will submit the study to the Ministry of Planning and Investment after Tet holidays [late February] and then other relevant authorities for further discussion," said the source. The move indicates that JFE continues to pursue this huge project through acquiring stakes of Taiwan-based E-United Group, which secured a site in Quang Ngai's Dung Quat Economic Zone (EZ) for the project development, despite the risks that Eiji Hayashida, president and chief executive officer of JFE, said to come from the competition of steel mills in southern China and also in Vietnam. "JFE is still interested in this project, … [Read more...]

BUSINESS IN BRIEF 13/1

Pilot program to train nurses for work in Germany At a press briefing in Hanoi on January 9, organized by the Ministry of Labor, Invalids and Social Affairs and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), a pilot program was introduced to send Vietnamese nurses to work in Germany. Andreas Schneider, Deputy Country Director of GIZ in Vietnam said at the press briefing that there was a huge demand for nurses in Germany at the moment. Accordingly, GIZ and the Department of Overseas Labor Management under the Ministry of Labor, Invalids and Social Affairs, will cooperate to send Vietnamese nurses to Germany. Vietnam is the first Asian nation to send nurses to a European country. Nguyen Ngoc Quynh, head of the Department of Overseas Labor Management, said under an agreement with GIZ, his department will select 120 applicants to learn the German language within six months. 100 nurses will also be recruited for a course in taking care of the elderly in … [Read more...]

BUSINESS IN BRIEF 24/12

Logistics key to competitiveness With its export-driven economy, Viet Nam should prioritise investment in trade logistics to improve competitiveness, economists have suggested. Speaking at a consultative workshop on trade promotion, value creation and competitiveness on Wednesday, the World Bank economist Pham Minh Duc said it predicted the country's export volume would triple by 2020. However, poor commercial infrastructure and logistics services cost Viet Nam in terms of of time, money and reliability, making it less competitive than rival nations, he said. Meanwhile, according to the World Bank's latest report, solid infrastructure and logistics can help boost GDP by up to one per cent. It also claims that every 10 per cent reduction in logistics costs can help save resources worth two per cent of GDP. However, in Viet Nam, according to the General Statistics Office, transported goods volume increased over 12 per cent annually for the last 15 years and trade volume saw a … [Read more...]

Steelmaker Posco wins supply deal

HA NOI (VNS)— Korean steelmaker Posco has won a US$400 million contract to supply raw materials for the Fomosa Ha Tinh steel mill, a joint venture of Ha Tinh Steel Corporation and Taiwan's Formosa Group. Ha Tinh Steel signed the agreement with Posco in Incheon, South Korea, on Monday, under which Posco will ship and provide iron ore for the new facility. Construction of the US$20 billlion plant, capable of processing up to 7 million tonnes of steel per year, will begin in February, 2013 on 3,300ha site encompassing five communes in Ky Anh District, including 2,025ha of land and about 1,290ha of water surface to accomodate the Son Duong Deepwater Port. The project is scheduled for completion in January 2015, when the provincial government expects it to create jobs for about 10,000 local workers in its first phase, with the figure to increase to 20,000 in the second phase. The province, which approved the project in 2010, expects the project to help shift the provincial economic … [Read more...]

Billion-dollar steel projects get moving

Le Hoang As such, steel projects with registered capital of billions of U.S. dollars are moving again. However, some express concerns that Vietnam would become a steel factory of the world and these projects would affect steel supply and the environment. Leaders of JFE and E-United at the recent meeting with the government of Quang Ngai Province informed local leaders on the feasibility of the Guang Lian steel project in Dung Quat. The steel plant will have an annual capacity of 3.5 million tons and hire 3,500 laborers during the first phase. In the second phase, the capacity will be raised to seven million tons per year, creating jobs for 7,000 laborers. The plant will mainly produce steel strips, construction steel, automotive steel and steel pipes from iron ores imported from Australia. Leaders of the province hoped JFE, as a capable and experienced investor, would kick off the project on schedule. With the participation of the Japanese leading steelmaker, analysts … [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...]