Investors welcomed in central province of Quang Ngai
The central province of Quang Ngai recently issued a master plan to build a tourist, cultural and economic site in Sa Huynh, calling upon both domestic and foreign investors to pour capital in the promising locale.
Sa Huỳnh locates in the southernmost area of the central province of Quang Ngai with a beautiful beach and an important salt field in Central Vietnam.
The place possesses great potentialities for cultural and historical tourism development.
Especially, the locality is widely known as an archaeological site with the famous “Sa Huynh Culture” discovered by French scientists in early 20th century.
So far the Tan Tao group and the Mai Linh Corporation are two business pioneers to implement projects on urban centers, cultural and tourist sites.
As reported, the former is constructing Vina Universial Film Studio-Tourist Zone, worth US $50 million, the largest of its kind in Vietnam.
According to the Quang Ngai Department for Culture, Sports and Tourism, the number of visitors to Sa Huynh has been recently on the rise, reaching over 1,000 in the first quarter.
Finance ministry suggests extending income tax exemption
The Ministry of Finance Thursday suggested that the exemption on personal income tax (PIT) for organizations and individuals should be extended by an additional month to June 30, 2009.
The suggestion was made at the National Assembly’s Financial and Budgetary Committee’s expanded session in Hanoi.
In addition, the ministry proposed that tax should not have to be paid on capital investment activities, including securities investment, through 2009 and into 2010.
In the second half of this year, the ministry recommended that wage earners should be given a tax break of VND200,000 (US$11.50) and should be exempt from the PIT entirely if the amount of tax owed is less than VND200,000.
In the wake of the global economic crisis, the government last year implemented a stimulus policy that included delaying the implementation of the new Law on Personal Income Tax scheduled to take effect from January 1.
Many FDI businesses in Hanoi recruit workers again
Thirteen FDI businesses in Hanoi have resumed recruiting workers after a period of cutting production and laying off workers as a result of the economic fallout.
The number of employees recruited this time is expected to amount to 2,500, many of them had previously been made redundant.
Since March, foreign-directed businesses at Thang Long Industrial Park in Dong Anh district, Hanoi, have won new orders and resumed hiring workers.
This year, some new businesses have been put into operation, attracting a large number of workers who lost their jobs due to the economy.
In addition, the management board of industrial and processing zones in Hanoi has found jobs for laid-off workers in other industrial zones. It has also coordinated with related departments to retrain others for new employment to ensure the demand for labour at local industrial zones in next 5 years will be met.
Major measures adopted to boost investment
The government has outlined six urgent measures to help the country attract and manage foreign investment more effectively during the economic fallout.
Under a resolution released recently, the government asked ministries, provinces and cities to review, adjust and perfect policies on investment and business activities, provide preferential incentives for several industries and apply measures to boost the disbursement of capital.
It also asked them to publicly announce their approved planning, speed up land clearance and compensation for investment projects, consistently implement the Investment Law and send review reports to the government in the fourth quarter of this year.
According to the resolution, the relevant ministries and provinces and cities should pool all resources for infrastructure investment and development until 2020, increase the competitive capacity of seaports and attract more investment capital into major ports such as Hiep Phuoc-Thi Vai and Lach Huyen.
Regarding human resources development, the government called for the completion of legal documents on cooperation and investment in education and training to attract foreign investment in this area and improve the quality of labour, especially displaced farmers.
It requested them to coordinate closely in licensing and managing foreign investment projects, provide training for staff involved in these projects and review the decentralisation model in foreign investment management.
The government encouraged the authorities to propose policies to attract investment from multinational corporations, complete the detailed list of national projects calling for foreign investment from 2006-2010, and study and build the model of the investment promotion agency at all levels.
The government also proposed several solutions, including accelerating administrative reform, combating corruption, maintaining regular dialogue between the leaders of the government, ministries and sectors and investors, and increasing inspection.
Vietnam targets rice exports towards Africa
Experts forecast that the country’s rice exports to Africa will continue to surge in 2009 after shipments to this market rose to 22 percent of the country’s total in 2008 from just 7.8 percent in 2007.
African countries import around US$1 billion worth of rice per year, and still need more as local supplies are insufficient amid rising populations.
In 2008, Vietnam saw a sharp drop in its rice sales to Asia, its primary traditional market, with exports dropping to 59 percent from 78 percent of the total in 2007.
Indonesia, which previously made up around 24 percent of Vietnamese rice exports, slashed the volume of its order from one million tonnes in 2007 to 76,000 tonnes in 2008.
The Philippines remained Vietnam’s top importer last year, with around 1.6 million tonnes, 35.3 percent of export volume, followed by Malaysia and Cuba.
In this year’s first quarter, rice export earnings hit US$785 million, up 76 percent against the same period last year.
Techcombank signed credit facility agreement with Proparco
Representatives from Techcombank, and Laurent Demey, Deputy Chief Executive Officer of Proparco, the private sector arm of the French Development Agency Group, have signed a credit facility agreement of 15 million USD in favor yesterday.
This term loan reinforces the financing of small and medium enterprises (SMEs), an essential part of Vietnam’s economy, and thereby contributes to the country’s effort to boost the economy in an environment where long term financial resources are scarce
The objective of this USD15 million term loan is to reinforce Techcombank’s medium and long term lending capacity, to support SMEs lending activity. Lending to SMEs is part of the core strategy of this leading joint stock bank founded 1993 which has a portfolio of over 30,000 clients in this sector.
Moreover, this dollar financing contributes to the various measures launched by the Vietnamese authorities to boost the economy, in an environment where long term financial resources are scarce, illustrating Proparco’s counter cyclical role. Facilitating access to credit for SMEs – a market segment where Techcombank is one of the most dynamic and innovative players – is indeed one of the critical aspects of the Government’s stimulus plan given the essential role of these enterprises for the country’s economy.
As part of this financing, Proparco also participates to the improvement of Techcombank’s environmental and social practices by assisting the bank to implement a monitoring of the environmental and social impacts of its lending activities.
This transaction is part of the different programs conducted by the French Development Agency Group to participate to the modernization and development of Vietnam’s financial sector. French Development Agency Group has committed in total in excess of 900 million Euro to the public and private sector in Vietnam since it started its operation in this country in the late 1990s.
EPC contracts for two power plants signed
The Vietnam Oil and Gas Group (PetroVietnam) and the Vietnam Machinery Installation Corporation (LILAMA) have teamed up to carry out engineering, procurement and construction (EPC) projects for the two power plants of Vung Ang 1 and Nhon Trach 2. Two contracts to this effect were signed in Hanoi on April 9.
The Vung Ang 1 thermo-electric power plant is located in Ky Loi commune, Ky Anh district, Ha Tinh province. PetroVietnam is the investor of the project while LILAMA is the EPC contractor.
Under the US$1.17 billion EPC contract, construction of Vung Ang 1 thermo-electric power plant will kick off in April and will be completed after 45 months.
The plant has a design capacity of 1,200 MW, generating around 7.2 billion kWh annually when both of its turbines are put into full operation in March 2013.
The Nhon Trach 2 power plant is invested by the Nhon Trach 2 PetroVietnam Electricity Joint Stock Company. A joint venture of LILAMA and PetroVietnam Construction Joint Stock Corporation (PVC) acts as the EPC contractor for the project with a total EPC contract value of US$524 million.
The plant has a design capacity of 750MW with three turbines, two gas-fueled and one steam turbines. Construction, slated to begin in late April, will take 30 months. The plant is expected to turn out 4.5 billion kWh annually.
Nhon Trach 2 is an independent power producer, with PetroVietnam as the largest shareholder of 51.8%.
Vung Ang 1 and Nhon Trach 2 power plants are among urgent power projects to be built during 2006-2010, as part of the 2006-2015 national power development plan.
Techcombank, ICBC inks cross-border payment co-operation agreement
The Viet Nam Technological and Commercial Joint Stock Bank (Techcombank) and the Industrial and Commercial Bank of China (ICBC)’s Guangxi branch signed a cross-border payment co-operation agreement in Hanoi on April 9.
Under the agreement, individuals and enterprises that have had cross-border trade relations between Vietnam and China are allowed to carry out border trade operations in conformity with the legal regulations of each country. The agreement will allow the banks to provide its customers with fast, safe and reliable cross-border payment services.
In addition, it will also help customers avoid risks associated with cash payments during their cross-border trade activities.
Techcombank branches in northern Lang Son and Quang Ninh provinces and ICBC branches in Dongxing and Pengxiang will be permitted to conduct cross-border payment activities including money transfers, L/C, and banking guarantees. These branches will also be allowed to use ICBC’s internet banking services.
First turbine at Plei Krong power plant start idle operation
The first turbine which has a design capacity of 50MW at the Plei Krong Hydro-electric Power Plant was put into idle operation on April 9.
The idle run has been successful, meeting required quality requirements.
Other facilities including an electric station and a 110KW electric transmission line have been completed, allowing the plant, scheduled to begin operation in late April, to generate up to 120,000 kWh daily to the national grid, .
The Plei Krong hydro-electric power plant is designed to have two turbines with a total capacity of 100MW, generating 417 million kWh annually to the national grid. i
Total investment for the project is put at over VND 3 trillion.
PV
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