The Foreign Investment Law was issued on December 29, 1987. It was one of the first laws issued during the renovation period. The promulgation of the Foreign Investment Law has institutionalised the Party and State’s policies in effectively attracting foreign investment capital. It is regarded by the international community to be a transparent, attractive code and basically conforms with the international norms. Within the context of fierce competition in attracting foreign investment regionally and globally, the Foreign Investment Law in Vietnam has been a vital lever in attracting foreign investment to Vietnam.
Since the promulgation of the Foreign Investment Law in 1987, the law has been amended four times in 1990, 1992, 1996 and 2000. The issuance of the law as well as of other legal documents relating to foreign investment has created a legal environment for foreign investment activities in Vietnam.
Thus, though the market mechanism in Vietnam has yet to be perfected, foreign investors in Vietnam can still carry out their investment activities in Vietnam without any big differences compared to other countries.
Importance has not only been attached to perfecting legal environment, during the past 20 years, the business and investment environment and the decentralised administration of foreign investment have received due attention. These efforts have contributed to the encouraging foreign investment activities in Vietnam, affirming the significant position of the foreign-invested sector in national industrialisation and modernisation.
By the end of 2007, Vietnam has attracted over 9,500 FDI projects with a total registered capital of US $98 billion, including additional registered capital.
Excluding expired projects and those that have been dissolved ahead of duration, currently 8,590 projects are still valid with a total registered capital of US $83.1 billion. Total registered capital experiences a trend of increasing from 2003 to date.
In 2003, total registered capital increased by six times compared to 2002. In 2004, the figure was up 42.9% compared to 2003; it was 58% in 2005; 75% in 2006 and 69% in 2007.
From 2001 to 2005, Vietnam attracted a total of US $20.8 billion, up 73% against the targeted figure set at the Resolution 09/2001/NQ-CP.
In 2006 and 2007, foreign investment flow to Vietnam increased remarkably with the registry of many large-scale projects in heavy industry and services.
Foreign investment to heavy industry and construction occupies the biggest proportion, accounting for 66.8% of the total number of projects, 60.2% of the total registered capital and 68.5% of the total implemented capital.
From 1988 to the end of 2007, northern localities attracted 2,220 FDI projects with a total registered capital of US $24 billion, accounting for 26% of the project quantity, 19% of registered capital and 24% of the total implemented capital.
Specifically, Hanoi has attracted half of the total registered investment and implemented capital of the whole northern region, followed by Haiphong, Hai Duong and Quang Ninh.
Southern localities from Ninh Thuan southwards have attracted 5,452 projects with total registered capital of US $46.8 billion and total implemented capital of US $15.7 billion, equivalent to 48% of the total number of projects, 56% of registered capital and 51% of implemented capital.
Foreign investment in the Mekong river delta region was the lowest in the country, accounting for only 3.6% of the total number of FDI projects to the country, 4.4% of total registered capital and 3.2% of total implemented capital.
Quang Nam, Da Nang and Phu Yen are currently topping the localities in the central region in terms of foreign investment attraction, though their rate of attraction is still low compared to their potential.
To date, 80 countries and territories have been investing in Vietnam. As many as 68% of these are from Asia; 16.2% from the EU and 11% from America.
The foreign-invested sector is underlining its significance in Vietnam’s economy and is the sector enjoying the most dynamic growth.
Vietnam’s investment and business environment is improving, thus the country is becoming more attractive to both foreign and domestic investors. (Nhan Dan)
Showing posts with label Investment. Show all posts
Showing posts with label Investment. Show all posts
Sunday, February 22, 2009
Nexans to reap 80 million USD this year
Nexans Group in Viet Nam plans to earn US$80 million in revenue this year, up 10 per cent from last year.
The group has set up three joint ventures in the country, including Nexans Vietnam, Nexans Lioa and Nexan Telecom.
Nexans Global, which supplies cables and cable systems, committed to making Viet Nam a key investment destination in the region, said Michel Lemaire, deputy chairman of Nexans in the AsiaPacific region.
The group has set up three joint ventures in the country, including Nexans Vietnam, Nexans Lioa and Nexan Telecom.
Nexans Global, which supplies cables and cable systems, committed to making Viet Nam a key investment destination in the region, said Michel Lemaire, deputy chairman of Nexans in the AsiaPacific region.
GTel to join mobile information market
The Ministry of Information and Communications is finalizing formalities to grant an early license to GTel Telecom Corporation, under the Ministry of Public Security, to offer mobile services.
The mobile information market is awaiting a newcomer, GTel. Existing operators are concerned because behind GTel is Vimpelcom, the second biggest mobile service provider in Russia.
New kid on the block
It is rumored that GTel does not have abundant financial resources, so it will have to rely on its Russian partner, Vimpelcom, said to have invested $1 billion into the GTel Mobile network, the biggest investment ever in a domestic mobile network.
Experts said that to quickly operate its network, GTel will learn from HT Mobile’s experience. GTel will organize tenders to choose equipment providers and installers like HT Mobile hired Nortel. Analysts say GTel will have to choose this method because it needs to quickly implement its network but doesn’t have sufficient human resources.
As a newcomer, GTel will face labor shortage challenges because it is in the public security sector, which has no relation with telecom. Experts say this operator will lure employees of other mobile networks with incentives and titles.
Frequency change
The Ministry of Public Security on November 2, 2007 signed a decision to establish the Global Telecom Corporation or GTel. Previously, the Ministry and Vimpelcom signed a principle agreement during Prime Minister Nguyen Tan Dung’s official visit to Russia in September 2007. Under the agreement, a GSM-based mobile telecom joint venture named GTel Mobile will be established in Vietnam. Vimpelcom also announced it would invest $1 billion into Vietnam in the next few years to develop a GSM system. The Russian partner said also participating in this joint venture is the US’ Millennium Global Solutions Group.
It is said that the Ministry of Information and Communications will allow GTel to provide mobile services at 1,800 MHz. However, experts say that if GTel uses this frequency, it will have to install many more base transceiver stations than those who are licensed to use 800-900 MHz.
An official from the Ministry of Information and Communications on January 17 confirmed that GTel asked permission to supply GSM-based mobile services, and the Ministry is working on the necessary formalities. He also said GTel will be licensed to use the 1,800 MHz frequency.
“According to Vietnam’s WTO commitments, we don’t restrict the number of mobile service providers in Vietnam, but if our frequency resources run out, we can’t license new networks. The effective frequency (800-900 MHz) is out and we only have 1,800 MHz frequency left,” the official said. (Buu Dien VN Newspaper)
The mobile information market is awaiting a newcomer, GTel. Existing operators are concerned because behind GTel is Vimpelcom, the second biggest mobile service provider in Russia.
New kid on the block
It is rumored that GTel does not have abundant financial resources, so it will have to rely on its Russian partner, Vimpelcom, said to have invested $1 billion into the GTel Mobile network, the biggest investment ever in a domestic mobile network.
Experts said that to quickly operate its network, GTel will learn from HT Mobile’s experience. GTel will organize tenders to choose equipment providers and installers like HT Mobile hired Nortel. Analysts say GTel will have to choose this method because it needs to quickly implement its network but doesn’t have sufficient human resources.
As a newcomer, GTel will face labor shortage challenges because it is in the public security sector, which has no relation with telecom. Experts say this operator will lure employees of other mobile networks with incentives and titles.
Frequency change
The Ministry of Public Security on November 2, 2007 signed a decision to establish the Global Telecom Corporation or GTel. Previously, the Ministry and Vimpelcom signed a principle agreement during Prime Minister Nguyen Tan Dung’s official visit to Russia in September 2007. Under the agreement, a GSM-based mobile telecom joint venture named GTel Mobile will be established in Vietnam. Vimpelcom also announced it would invest $1 billion into Vietnam in the next few years to develop a GSM system. The Russian partner said also participating in this joint venture is the US’ Millennium Global Solutions Group.
It is said that the Ministry of Information and Communications will allow GTel to provide mobile services at 1,800 MHz. However, experts say that if GTel uses this frequency, it will have to install many more base transceiver stations than those who are licensed to use 800-900 MHz.
An official from the Ministry of Information and Communications on January 17 confirmed that GTel asked permission to supply GSM-based mobile services, and the Ministry is working on the necessary formalities. He also said GTel will be licensed to use the 1,800 MHz frequency.
“According to Vietnam’s WTO commitments, we don’t restrict the number of mobile service providers in Vietnam, but if our frequency resources run out, we can’t license new networks. The effective frequency (800-900 MHz) is out and we only have 1,800 MHz frequency left,” the official said. (Buu Dien VN Newspaper)
Over US $1billion to be invested in Tuy Hoa airport
A master plan on Tuy Hoa airport in Phu Yen province for 2015 and vision to 2025 were released by the Central Airport Group on January 21.
Under the plan, Tuy Hoa airport will be able to receive planes like A320/32, B737/300 and so on, and 100,000 passengers a year in the first phase and 300,000 passengers a year in the following years.
According to estimates, the investment in the construction will be some VND 1,670 billion. Many projects in the airport will be upgraded and the airport will be extended to nearly 700 ha, sources from the airport management announced.
At present, Flight Service company is exploiting the Ho Chi Minh City-Tuy Hoa route with 8 flights a week from Tuy Hoa airport. (Tuoi Tre)
Under the plan, Tuy Hoa airport will be able to receive planes like A320/32, B737/300 and so on, and 100,000 passengers a year in the first phase and 300,000 passengers a year in the following years.
According to estimates, the investment in the construction will be some VND 1,670 billion. Many projects in the airport will be upgraded and the airport will be extended to nearly 700 ha, sources from the airport management announced.
At present, Flight Service company is exploiting the Ho Chi Minh City-Tuy Hoa route with 8 flights a week from Tuy Hoa airport. (Tuoi Tre)
Singapore investment house and Israeli company to invest in Vietnam
One of Asia's fastest growing investment houses has signed an agreement with Israel's Alony Hetz to set up a fund investing in Vietnamese real estate, the partners said on Tuesday. The Singapore-based Pacific Star Group and Alony Hetz expect to raise 200 million US dollars from institutional investors by July.
Alony Hetz, listed on the Tel Aviv Stock Exchange and one of Israel's largest real estate holdings, recently invested 40 million US dollars in a fund in India.
Under the deal, Pacific Star and Alony Herz will both manage the fund through a joint venture company that has yet to be established.
"Pacific Star has extensive ... experience in Asia and is an excellent partner for our entry into the region," said Nathan Hetz, founder and chief executive officer of Alony Hetz in a statement.
"The overall outlook of the Vietnamese property market remains bright owing to the accelerated economic growth in the country," Hetz said. (DPA)
Alony Hetz, listed on the Tel Aviv Stock Exchange and one of Israel's largest real estate holdings, recently invested 40 million US dollars in a fund in India.
Under the deal, Pacific Star and Alony Herz will both manage the fund through a joint venture company that has yet to be established.
"Pacific Star has extensive ... experience in Asia and is an excellent partner for our entry into the region," said Nathan Hetz, founder and chief executive officer of Alony Hetz in a statement.
"The overall outlook of the Vietnamese property market remains bright owing to the accelerated economic growth in the country," Hetz said. (DPA)
Malaysia's WinSun Eyes Viet Market
Winsun Technologies Bhd, which provides intelligent industrial control management systems with all its operations based in China, plans to expand its market to Vietnam next year.
"We are eyeing the market in Vietnam to set up a representative office there in 2009. However, things are in the preliminary stage now," managing director/chief executive officer, Choong Siew Meng, told a media briefing after the listing of the company's shares on Mesdaq Market here Tuesday.
The shares opened at 34 sen, up 5.7 sen from its theoretical ex-bonus price of 28.3 sen. It closed the morning session at 36.5 sen after hitting a high of 48 sen earlier.
Under its listing exercise, WinSun made a public issue of 30 million shares, of which 25 million were for private placement, two million for directors and employees, and the rest for the public.
It also implemented a 2-for-1 bonus issue of 200 million shares after the public issue. (Bernama)
"We are eyeing the market in Vietnam to set up a representative office there in 2009. However, things are in the preliminary stage now," managing director/chief executive officer, Choong Siew Meng, told a media briefing after the listing of the company's shares on Mesdaq Market here Tuesday.
The shares opened at 34 sen, up 5.7 sen from its theoretical ex-bonus price of 28.3 sen. It closed the morning session at 36.5 sen after hitting a high of 48 sen earlier.
Under its listing exercise, WinSun made a public issue of 30 million shares, of which 25 million were for private placement, two million for directors and employees, and the rest for the public.
It also implemented a 2-for-1 bonus issue of 200 million shares after the public issue. (Bernama)
Vietnam eyes 55 bln-foreign investment in 5 years
Vietnam has targeted Foreign Direct Investment (FDI) of some 55 billion U.S. dollars, and realized FDI of 24-25 billion dollars between 2006 and 2010, according to a local investment agency on Tuesday.
Vietnam plans to lure fresh FDI of 41 billion dollars and 14 billion dollars worth of additional capital of operational foreign-invested projects in the five-year period, said the Foreign Investment Agency under Vietnam's Ministry of Planning and Investment.
Vietnam has targeted 5.5-6 billion dollars in realized FDI this year, up from 4.6 billion dollars last year. The country, though eyeing FDI of only 14-15 billion dollars in 2008, is much likely to attract FDI of more than 20 billion dollars this year like it did last year, said the department.
Foreign-invested enterprises in Vietnam are forecast to make total revenues of 38.8 billion dollars in 2008, up 16.5 percent against 2007. They are also predicted to gain export turnovers of 24.3 billion dollars this year, up 21.5 percent over last year.
Vietnam lured a record FDI of 20.3 billion dollars in 2007, bringing the total registered capital to 83 billion dollars with 8,590 operational FDI projects by the end of the year.
Vietnam plans to lure fresh FDI of 41 billion dollars and 14 billion dollars worth of additional capital of operational foreign-invested projects in the five-year period, said the Foreign Investment Agency under Vietnam's Ministry of Planning and Investment.
Vietnam has targeted 5.5-6 billion dollars in realized FDI this year, up from 4.6 billion dollars last year. The country, though eyeing FDI of only 14-15 billion dollars in 2008, is much likely to attract FDI of more than 20 billion dollars this year like it did last year, said the department.
Foreign-invested enterprises in Vietnam are forecast to make total revenues of 38.8 billion dollars in 2008, up 16.5 percent against 2007. They are also predicted to gain export turnovers of 24.3 billion dollars this year, up 21.5 percent over last year.
Vietnam lured a record FDI of 20.3 billion dollars in 2007, bringing the total registered capital to 83 billion dollars with 8,590 operational FDI projects by the end of the year.
PetroVietnam to buy two oil wells overseas
The National Oil and Gas Corporation (PetroVietnam) has taken bidding procedures to buy an oil well in Azerbaijan and if winning the contract, it will start tapping oil this year, PetroVietnam General Director Tran Ngoc Canh has announced.
At a press briefing on Jan. 21, Canh added that his corporation is negotiating with Kazakh, Venezuelan and Irani partners on purchase of the second oil well overseas with the aim of achieving an output of 16 million tonnes of crude oil this year.
Exploration is one of PetroVietnam’s top priorities in 2008 with its special focus being paid to seeking new investment opportunities in overseas oil and gas projects, he said.
PetroVietnam has so far signed 13 overseas exploration and exploitation projects and is targeting to set up a joint venture company in Iran , he added.
PetroVietnam pumped almost 22.7 million tonnes of oil in 2007, 100,000 tonnes of which were tapped in foreign countries. It also exported more than 15.7 million tonnes of oil for 8.8 billion USD.
At a press briefing on Jan. 21, Canh added that his corporation is negotiating with Kazakh, Venezuelan and Irani partners on purchase of the second oil well overseas with the aim of achieving an output of 16 million tonnes of crude oil this year.
Exploration is one of PetroVietnam’s top priorities in 2008 with its special focus being paid to seeking new investment opportunities in overseas oil and gas projects, he said.
PetroVietnam has so far signed 13 overseas exploration and exploitation projects and is targeting to set up a joint venture company in Iran , he added.
PetroVietnam pumped almost 22.7 million tonnes of oil in 2007, 100,000 tonnes of which were tapped in foreign countries. It also exported more than 15.7 million tonnes of oil for 8.8 billion USD.
50% of RoK investors satisfied with Vietnam’s investment environment
94% of South Korean investors intend to further invest in Vietnam, said Director of Kotra in Hanoi Kim Won Hoo at a recent conference on foreign direct investment in the WTO period.
He said that many South Korean investors see Vietnam as an increasingly important investment market.
However, only some 50% of them have expressed satisfaction with their businesses in Vietnam.
According to Kotra, there are a number of large obstacles to business operations and direct investment in Vietnam.
First, the infrastructure in Vietnam is generally underdeveloped and prices of land and energy have jumped up sharply in a short time.
Second, it is sometimes hard for foreign businesses to recruit skilled labourers with a good command of English, and especially Korean.
Third, as Vietnam’s legal system is incomplete, foreign investors often have to wait for new laws or legal documents.
Kim Won Hoo suggested that Vietnam listen and study foreign investors’ ideas and opinions to keep being a story of success in foreign direct investment. (ANTD)
He said that many South Korean investors see Vietnam as an increasingly important investment market.
However, only some 50% of them have expressed satisfaction with their businesses in Vietnam.
According to Kotra, there are a number of large obstacles to business operations and direct investment in Vietnam.
First, the infrastructure in Vietnam is generally underdeveloped and prices of land and energy have jumped up sharply in a short time.
Second, it is sometimes hard for foreign businesses to recruit skilled labourers with a good command of English, and especially Korean.
Third, as Vietnam’s legal system is incomplete, foreign investors often have to wait for new laws or legal documents.
Kim Won Hoo suggested that Vietnam listen and study foreign investors’ ideas and opinions to keep being a story of success in foreign direct investment. (ANTD)
Several major seaports to be built in 2008
The Viet Nam National Shipping Lines (Vinalines) plans to carry out several major projects on building seaports in 2008.
First, construction of the Van Phong international transit seaport in the central province of Khanh Hoa and the Lach Huyen deep water port in the northern city of Hai Phong will start in the first quarter of this year.
Van Phong port will be a large port in Asia with a capacity of handling 300 million tonnes of goods per year and receiving 400,000-tonne ships.
Also in the first quarter, Vinalines will break ground for the construction of wharfs 2, 3, 4 of Cai Lan port in northern Quang Ninh province to receive 40,000 DWT ships, and five new wharfs for 20,000 DWT ships at Dinh Vu port in Hai Phong city.
Vinalines also plans to cooperate with US and Danish firms to build two more container wharfs at Cai Mep-Thi Vai port and one more container port in Ben Dinh-Sao Mai, both in the southern Ba Ria-Vung Tau province.
In the 2008-11 period, the corporation will extend the Ba Ngoi port in the Cam Ranh Gulf , the central Khanh Hoa province, by building two additional container wharfs, and build a seaport in the Son Tra peninsula in central Da Nang province. (VNA)
First, construction of the Van Phong international transit seaport in the central province of Khanh Hoa and the Lach Huyen deep water port in the northern city of Hai Phong will start in the first quarter of this year.
Van Phong port will be a large port in Asia with a capacity of handling 300 million tonnes of goods per year and receiving 400,000-tonne ships.
Also in the first quarter, Vinalines will break ground for the construction of wharfs 2, 3, 4 of Cai Lan port in northern Quang Ninh province to receive 40,000 DWT ships, and five new wharfs for 20,000 DWT ships at Dinh Vu port in Hai Phong city.
Vinalines also plans to cooperate with US and Danish firms to build two more container wharfs at Cai Mep-Thi Vai port and one more container port in Ben Dinh-Sao Mai, both in the southern Ba Ria-Vung Tau province.
In the 2008-11 period, the corporation will extend the Ba Ngoi port in the Cam Ranh Gulf , the central Khanh Hoa province, by building two additional container wharfs, and build a seaport in the Son Tra peninsula in central Da Nang province. (VNA)
A post WTO deluge in FDI is forecasted
Economists have predicted that at least $20 billion in foreign direct investment will flow into Vietnam this year as the country opens its market after its World Trade Organization accession.
At the Vietnam Trade and Investment Forum in Hanoi last week, one year after Vietnam entered the global trade body, investors and economists said foreign direct investment (FDI) had jumped and would continue to rise.
Gannon Vietnam managing director Walter Blocker, who is also vice chairman of the Asia-Pacific Council of American Chambers of Commerce, predicted that Vietnam would continue to attract more than $20 billion in FDI in 2008 after the country opens more sectors per WTO commitments.
“WTO accession had spurred confidence for investment in Vietnam because the country had committed to adhere to an international system,” he said.
Vietnam has been serious about implementing commitments by improving the regulatory climate to make its laws conform more to international practices and to WTO regulations. The country has revised about 30 laws and ordinances.
“The government has proven its constructive economic course in the past. We are convinced that this course will be continued and build a strong foundation for future investment and success,” said Metro Group vice president Henry O.E. Birr.
Last year, Vietnam recorded $20.3 billion in FDI, a 69.1 per cent increase against 2006.
Ashok Sud, European Chamber of Commerce executive committee member, said it was an astounding figure that had far exceeded domestic and foreign commentators’ expectations.
Deputy Prime Minister Pham Gia Khiem said WTO accession created more of a driving force for Vietnam to reform its internal legislative system to come more in line with international practices, creating a favourable and equal business environment for all economic sectors.
Before WTO accession, there was much anxiety and doubt about the Vietnam economy’s adaptability to the tremendous changes in the business environment as well as about its ability to deal with international integration. Khiem said that outside partners had not really believed in Vietnam’s determination to fully and seriously implement its integration commitments.
“Our great achievements in economic development over the past year have wiped out all those concerns and doubts,” he said.
However, World Bank lead economist in Vietnam Martin Rama said that the country had to improve its investment environment, particularly in tackling piracy, copyright infringement and trademark violations. It also needs to strengthen public investment processes and allow the private sector to take part in infrastructure investment, he said.
“Longer-term planning is needed for social infrastructure, such as in education, vocational training and health systems since Vietnam will continue to attract labour intensive industries. But it will also begin to attract the higher-quality investment requiring a higher quality workforce with higher wages,” said Blocker. (Dau Tu Newspaper)
At the Vietnam Trade and Investment Forum in Hanoi last week, one year after Vietnam entered the global trade body, investors and economists said foreign direct investment (FDI) had jumped and would continue to rise.
Gannon Vietnam managing director Walter Blocker, who is also vice chairman of the Asia-Pacific Council of American Chambers of Commerce, predicted that Vietnam would continue to attract more than $20 billion in FDI in 2008 after the country opens more sectors per WTO commitments.
“WTO accession had spurred confidence for investment in Vietnam because the country had committed to adhere to an international system,” he said.
Vietnam has been serious about implementing commitments by improving the regulatory climate to make its laws conform more to international practices and to WTO regulations. The country has revised about 30 laws and ordinances.
“The government has proven its constructive economic course in the past. We are convinced that this course will be continued and build a strong foundation for future investment and success,” said Metro Group vice president Henry O.E. Birr.
Last year, Vietnam recorded $20.3 billion in FDI, a 69.1 per cent increase against 2006.
Ashok Sud, European Chamber of Commerce executive committee member, said it was an astounding figure that had far exceeded domestic and foreign commentators’ expectations.
Deputy Prime Minister Pham Gia Khiem said WTO accession created more of a driving force for Vietnam to reform its internal legislative system to come more in line with international practices, creating a favourable and equal business environment for all economic sectors.
Before WTO accession, there was much anxiety and doubt about the Vietnam economy’s adaptability to the tremendous changes in the business environment as well as about its ability to deal with international integration. Khiem said that outside partners had not really believed in Vietnam’s determination to fully and seriously implement its integration commitments.
“Our great achievements in economic development over the past year have wiped out all those concerns and doubts,” he said.
However, World Bank lead economist in Vietnam Martin Rama said that the country had to improve its investment environment, particularly in tackling piracy, copyright infringement and trademark violations. It also needs to strengthen public investment processes and allow the private sector to take part in infrastructure investment, he said.
“Longer-term planning is needed for social infrastructure, such as in education, vocational training and health systems since Vietnam will continue to attract labour intensive industries. But it will also begin to attract the higher-quality investment requiring a higher quality workforce with higher wages,” said Blocker. (Dau Tu Newspaper)
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