Investing

As the import duty for ASEAN CBU (completely built-up) becomes 0 per cent, and some administrative barriers like Decree 116 preventing CBU imports are no longer effective, VIR talked with Toru Kinoshita, chairman of the Vietnam Automobile Manufacturers' Association (VAMA) about ways to increase the localisation rate and enhance local automobile production. Toru Kinoshita, chairman of the Vietnam Automobile Manufacturers' Association Is the Vietnamese automobile industry competitive and capable to produce and export a CBU car? Or is it only capable of producing and exporting car parts? Currently, the size of the Vietnamese market is quite small compared to other ASEAN members such Thailand, Indonesia, leading to the small scale of production. As a result, production costs are not competitive. In this situation, it is difficult to produce a whole car and export to other countries, mainly because of our cost incompetitiveness. In the future, if the market expands enough and/or … [Read more...] about Strengthening local automobile production and localisation rate

Kobe Steel is one of the immobile billion-dollar projects in Nghe An Immobile billion-dollar projects Kobe Steel Co., Ltd.’s project to build a direct reduced iron factory with the capacity of two million tonnes of products per year and a total of $1 billion of registered investment in Quynh Lap commune (Southeast Nghe An Economic Zone) was kicked off in 2010 but has not completed clearance compensation yet. Ho Ngoc Bao, deputy head of the Southeast Nghe An Economic Zone Management Board, stated that the project has not been deployed and the investor’s representatives were absent and did not cooperate with the inspection team, failing to report on the implementation as stipulated by the documents provided by the inspection team. “The project has been delayed for eight years. Due to the project’s large scale, the Southeast Nghe An Economic Zone Management Board will send a proposal to the People’s Committee to find a solution,” said Bao. In … [Read more...] about The billion dollar nascent projects of Nghe An

Efforts are being accelerated to start the construction of Lien Chieu Port project in 2019-2020. Lien Chieu Port is designed as a major wharf area in the central region's international gateway port On October 18, the Government Office sent a document to the Ministry of Planning and Investment (MPI), the Ministry of Finance, the Ministry of Transport, and the Danang People's Committee on the allocation of capital for the project’s deployment. With respect to Danang city’s proposal on the allocation of capital for the port project, Deputy Prime Minister Vuong Dinh Hue has assigned the MPI to review and summarise reports at the upcoming meeting of the government’s Standing Committee. Before that, the Danang People's Committee has proposed the prime minister, the National Assembly (NA)’s Finance and Budget Committee, and relevant ministries to allocate VND500 billion ($21.7 million) sourced from the mid-term public investment plan for 2016-2020, paving … [Read more...] about NA to scrutinise capital allocation of Lien Chieu Port in Danang

Danang city is stepping up the construction of Lien Chieu Port, however, it is struggling to mobilise capital. Lien Chieu Port is the cornerstone to alleviating cargo overload in Danang According to Le Van Trung, director of the Danang Department of Transport, the quantity of general cargo handled by Danang seaport this year will grow by 16.2 per cent on-year (22.6 per cent for container shipments). The load is estimated to reach 10 million tonnes in 2020 and 30 million tonnes in 2030. Correspondingly, from 2020, the load will exceed not only the handling capacity of Tien Sa Port but also of transport infrastructure in the city centre, causing serious traffic congestions and badly affecting the environment as well as tourism growth. “Tien Sa Port is getting full to bursting and cannot be expanded, thus it is imperative to construct Lien Chieu Port and replace Tien Sa Port as the international gateway to the country. The development of this seaport is of critical … [Read more...] about Lien Chieu seaport urgently seeking investment

Gareth Ward What is your impression of Vietnam and its growth momentum? Do British investors see the country as an attractive business destination and what changes are they looking for in Vietnam? I have been here for only two months, but already feel the dynamism of the economy. The UK is rated as the third-largest EU investor in Vietnam, but I believe that the real figures from UK companies are even higher, because many of them invest via their subsidiaries in Singapore or Hong Kong. More British investors are now looking at the Vietnamese market because of its growth potential, openness to global trade, and focus on improving the business environment. For new investors, the availability and consistency of information are always important. Therefore, British companies want more transparency and access to information about business opportunities, processes, and regulations. Vietnam is working on its strategy to keep pace with the Fourth Industrial Revolution. In what ways can the … [Read more...] about Uniting with Britain to maximise potential