A plane parks at Tan Son Nhat International Airport in Ho Chi Minh City (Photo: VNA) Hanoi (VNS/VNA) - The Ministry of Transport (MoT) has proposed the Government allow the Airport Corporation of Vietnam (ACV) to invest in building a third passenger terminal at Tan Son Nhat International Airport in Ho Chi Minh City. In the proposal submitted to the Government recently, the MoT said the construction would be funded by the ACV. The investment funded by the ACV is one of four investment methods mentioned in the MoT proposal, which include investment funded by the State budget, establishing an economic organisation for investment and investment in the form of public-private partnership (PPP). Of the four methods, the ministry said it favoured the first one, which would assign the investment to the ACV in its entirety. “The ACV is a State-owned enterprise which the State currently accounts 95.4 percent of the equity. It is also granted licence to exploit airports so that the … [Read more...] about Ministry proposes ACV invest in Tan Son Nhat’s third terminal
Private investment in public equity
Slow equitisation and divestment cause difficulties for attracting private investment
Over the past few years, US-backed investment consultant BowerGroupAsia Inc’s Vietnam Office in Hanoi has been actively looking for reliable information about the upcoming equitisation of Vietnam’s state-owned enterprises (SOEs) to serve its foreign clients, which are US businesses and investors wanting to buy stake from big SOEs in the country. “But the process has been quite difficult as all SOEs that the government wants to divest capital from or equitise don’t reveal any reliable information,” said Nguyen Viet Ha, managing director of the office. According to a representative from the Korea Chamber of Business in Vietnam, the Vietnamese government is trying to accelerate the SOE equitisation, meaning that the government is showing its strong will and efforts in speeding up the domestic economic restructuring. “Many Republic of Korea (RoK) firms currently want to buy stake from Vietnamese big SOEs, but the process proves very difficult as all SOEs … [Read more...] about Slow equitisation and divestment cause difficulties for attracting private investment
Foreign investors pursue more indirect investments in Vietnam
The Hanoitimes - Foreign investors are stepping up their indirect investments in Vietnam through capital contribution and stake acquisition of local firms instead of making direct investments as in recent years. Reports from the Ministry of Planning and Investment’s Foreign Investment Agency (FIA) showed that foreign investors conducted 4,551 transactions to contribute funds and acquire shares in local firms with a combined value of some US$5.3 billion in the first eight months of the year, up a staggering 50.9 percent from a year earlier. Foreign investors contributed capital or bought stakes in 1,200 local firms in August August has seen a boom in the foreign indirect investment inflow with 1,200 projects worth US$490 million being made through the capital contributions and stake purchase. Meanwhile, new foreign direct investment (FDI) approvals in Vietnam in August have not been significant. During the month, there have been only 262 FDI projects licensed, with total … [Read more...] about Foreign investors pursue more indirect investments in Vietnam
Legal complications remain for foreign investment in Vietnam infrastructure
Vietnam’s infrastructure has struggled to keep up with its robust economic and population growth. Rapid economic growth and urbanization are driving demand for roads, power, airports, ports, waste and water treatment, hospitals, and other public infrastructure for goods and services. Meanwhile, public funding is unable to meet these needs. The gap would have to be made up from other sources including private investment in the form of public-private partnerships (PPPs). To put it simply, the public sector has the ‘users’ (or customers) and land and can provide other incentives such as tax breaks. The private sector can bring in technology, capital and efficiency through experience. Other countries have successfully implemented PPPs. In Vietnam, a number of tools have been created to assist the government in its support for PPPs, aiming to create a much improved legal framework for PPP to revitalize investment in infrastructure projects. Legal issues update The … [Read more...] about Legal complications remain for foreign investment in Vietnam infrastructure
PPP investment in Vietnam’s infrastructure and impact of EVFTA and CPTPP
Vietnam’s infrastructure has struggled to keep up with its robust economic and population growth. Rapid economic growth and urbanization are driving demand for roads, power, airports, ports, waste and water treatment, hospitals, and other public infrastructure for goods and services. Meanwhile, public funding is unable to meet these needs. The gap would have to be made up from other sources including private investment in the form of public-private partnerships (PPPs). To put it simply, the public sector has the ‘users’ (or customers) and land and can provide other incentives such as tax breaks. The private sector can bring in technology, capital and efficiency through experience. Other countries have successfully implemented PPPs. In Vietnam, a number of tools have been created to assist the government in its support for PPPs, aiming to create a much improved legal framework for PPP to revitalize investment in infrastructure projects. Legal issues update The … [Read more...] about PPP investment in Vietnam’s infrastructure and impact of EVFTA and CPTPP