Illustrative Image (Source: VNA) Hanoi (VNA) – Eleven investors, including those from the Republic of Korea and China, wish to invest in the My Thuan-Can Tho expressway in the Mekong Delta region. The Thang Long project Management Board under the Ministry of Transport invited investors to join the 23.6km My Thuan-Can Tho expressway from April 15 to May 15. The selection process lasts from May 15 to June 16. The project, to be implemented in the public-private partnership (PPP) form and BOT (build-operate-transfer) contract, needs total investment of about 5.4 trillion VND (237.6 million USD). The investor must provide at least 20 percent of the total investment. My Thuan-Can Tho expressway starts from the connection point with National Highway 80 in Vinh Long city of Vinh Long province, and ends at the Cha Va connection point with National Highway 1 in Vinh Long. On March 29, the Government Office issued a dispatch on the speeding up of investment projects, requesting the … [Read more...] about Eleven investors interested in My Thuan-Can Tho expressway project
Governance project management
Japan’s JICA lamented the slow payment of the Vietnamese Government to its official development assistance (ODA) projects’ contractors, saying they were becoming ‘exacerbated’.— Photo zing.vn HÀ NỘI — Japan’s JICA lamented the slow payment of the Vietnamese Government to its official development assistance (ODA) projects’ contractors, saying they were becoming ‘exacerbated’. The Japan International Co-operation Agency Việt Nam Office Chief Representative Konaka Tetsuo said so during an annual press conference of the organisation held in Hà Nội yesterday. One of JICA’s biggest ODA projects in Việt Nam is the HCM City Metro line 1 which, although still under construction, has been delayed several times due to prolonged difficulty to pay the contractors. The project was awaiting the National Assembly’s approval for an adjustment in the total investment, which would hike … [Read more...] about Japan claims overdue payment in projects
Nguyễn Danh Huy,general director of the transport ministry’s Public-Private Partnership Investment Project Management Department, speaks toTuổi trẻ (Youth) newspaper about measures to attract investors to participate in BOT projects. Resolution 20 lays out plans for building certain sections of the North-South expressway in the east during the 2017-20 period. Why has it increased the rate of owner’s equity for investors participating in the project from 15 per cent to at least 20 per cent of the total investment capital? In principle, as the owner’s equity rate is higher, it is easier for credit institutions to provide capital for the project. But it would also lead to an increase in investment costs for the project as the benefit ratio of the owners’ equity will be higher than the interest rate of banks. In financial terms, this rate of owners’ equity of investors is called the financial leverage ratio. The 20 per cent increase … [Read more...] about Clarity needed to lure investors in BOT projects
The money Vinhomes used to buy Berjaya’s two long-delayed projects may be part of the $1.3-billion investment that it received from GIC Private Limited. Vinhomes Imperia project in Haiphong According to newswire Cafef, Vinhomes, Vietnam's leading real estate management company and the property management arm of Vingroup, signed an agreement with GIC. Accordingly, GIC will pour $1.3 billion into Vinhomes by buying part of Vinhomes’ stakes and by supplying a loan to help Vinhomes develop its projects. The agreement came into effect on April 12. The information comes after Vingroup released that through Vinhomes it has recently acquired two long-delayed projects from Malaysian Berjaya Corporation. Notably, Vinhomes has completed the purchase of a 97.7 per cent stake in Berjaya Vietnam International University Township One Member LLC and Vietnam Berjaya Financial Centre. The first deal was VND11.75 trillion ($515.6 million) in value, while the capital contribution to … [Read more...] about Vinhomes uses $1.3 billion of GIC investment to buy Berjaya projects?
(VEN) - According to the National Institute for Finance, state budget revenues in 2018 will face many challenges and efforts should be made to tighten expenditures. Gross domestic product (GDP) growth in 2017 reached 6.81 percent, and state budget revenues surpassed projections. However, some revenues and taxes still recorded low rates. For example, revenues from state-owned and foreign-invested sectors accounted for 87.9 percent and 85.1 percent of the projections, respectively. In addition, revenue from the non-state sector only reached 93.1 percent of the estimation. Revenues from crude oil and export-import activities still accounted for a relatively high proportion of the state budget. According to the National Assembly resolution on the state budget estimate for 2018, total collection will reach VND1,319 trillion, an increase of 2.8 percent compared to 2017. This is a big challenge for the financial sector, as Vietnam’s economic growth in 2018 is expected to reach 6.5-6.7 … [Read more...] about Strict management of state budget expenditures advised