Central Vietnam Investment News October 2012
Transcript of Central Vietnam Investment News October 2012
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Danang port to be modernised
An almost 3 billion VND
scheme has been adopted to upgrade
the management and utilisation
system of Da Nang port into a
modern container port in central
Vietnam.
Thanks to the system, the port
will able to better manage container
goods and facilitate ships in handlinggoods.
Under the strategy from now
until 2015 and with a vision to 2020,
Da Nang port will be upgraded into
one of Vietnam’s leading ports
pursuing container and tourist ship
development. By 2015, the port is
expected to handle 6 million tonnes
of cargo and welcome 250,000 TEUs
for container cargoes.
Da Nang city authorities haveproposed to include the second phase
of the upgrade of Tien Sa port into
the list of projects benefiting from
Japan’s ODA in the 2013 fiscal year.
The volume of container goods
and tourists through Tien Sa port
records an annual increase of 20
percent and the capacity is expected
to reach 170,000 TEUs next year.
The Da Nang City People’s
Committee has affirmed that the
expansion of Tien Sa port in thesecond phase will help promote the
development of Da Nang and the
East-West Economic Corridor, in
which it is a terminal and a main
gateway to the East Sea for transit
goods among countries along the
corridor.
cadn.com.vn
The first geothermal powerplant project licensed in Vietnam
On September 23, The Quang
Tri provincial People’s Committee
has granted an investment license for
a project to build a 25MW
geothermal power plant in Dakrong
district. The project aims to promote
exploration for new sources of
energy in the near future. Ta Huong,
Deputy Chairman of the VietnamThermal Association, says Vietnam
has the potential for developing
geothermal power in almost all
provinces and cities nationwide,
especially in Phu Tho, Quang Binh
and Quang Tri. The geothermal
power plant, which is said to be
environmentally friendly, can
operate 24 hours a day without being
affected by weather conditions.However, it is difficult to develop
this energy source because we need
the modern technology, huge
investment, estimated up to 2,5
million euro/MW. The US top the
list with its geothermal power output
accounting for 32 percent of all
geothermal power produced in the
world.
baodientu.chinhphu.vn
Inauguration of the post-
starch processing plantOn the morning of 26th October,
Vietnam Mingyang Biochemical Co.,
Ltd. held the inauguration of Phase 1
and the start of Phase 2 of the post-
starch processing plant in the
Industrial Park B, Nhon Hoi
Economic Zone. The inauguration
was attended by the Chairman of
Binh Dinh People’s Committee, Mr
Le Huu Loc, representatives of theinvestor, relevant department and
sectors and more than 20 partners of
the company.
After more than two years of
construction, the plant with capacity
of 100,000 tons per year of the
Vietnam Mingyang Biochemical Co.,
Ltd - China has completed its phase
1, with the designed capacity of
30,000 tons of post-starch per yearand a number of other products. At
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the same time, the company has
started the Phase 2 with the items of
building more production lines to
achieve a capacity of 100,000
tons/year; construction of storage of
raw materials and goods. According
to theplan, the second phase will be
completed and put into operation by
the end of 2013.
At the ceremony, the Chairman
Le Huu Loc appreciated the
company's efforts in ensuring the
project progress to bring the firstphase of the plant into operation. The
project will create jobs for local
labor and open up a new page of the
economic cooperation between
Binh Dinh Province and Guangxi in
the future. In the meantime, the
Chairman Le Huu Loc encouraged
the investor to comply with its
commitment to environmental
protection, use of labor ...
The project has a total
investment of USD 50 million. After
construction and at operation, the
plant will produce the post-starch
products, products for manufacturing
paper, food, animal feed, building
materials and pharmaceutical
products.
IPC Binh Dinh
Thai Investor explores
investment opportunities in
Central Vietnam
On October 3rd, 2012, the leader
of Investment Promotion Center for
Central Viet Nam (Foreign
Investment Agency – Ministry of
Planning and Investment) andInvestment Consultancy Division
met the representative of Thai Foods
Group (Thailand).
Thai Foods Group aimed at
making study on investment climate
and opportunities in agro -
aquaculture in Central Vietnam. At
the meeting, Mr. Trinh Minh Van –
Director of IPCC presented potential
and investment opportunities inCentral region, including List of
Projects Calling for Investment into
agro-aquaculture and forestry that
the representative is interested in.
The representative also introduced
the project investing in agro-
aquaculture. Besides, they would like
to study investment incentive when
expanding business as well as their
desire to invest in Central Viet Nam.Up to Sep 20th 2012, Thailand
has ranked in the list of Top Ten
investors in Vietnam with 292
projects, nearly U$ 6 billions of total
registered-capital. This is an
encouraging figure which show that
Vietnam is one of the attractive
destinations for Thai investors. The
more attractive investment climate
and incentive policies, mechanism
are, the more investors come to
Vietnam.
At the end of the meeting, the
representative of Thai Foods Group
had general information about
foreign direct investment (FDI) in
Central Vietnam in particular and
Vietnam in general as well as
incentive conditions in such areas
that they care. They also desire to
have close cooperation with IPCC in
strengthening promoting project.
One again, Mr.Van emphasized that
IPCC will follow and support Thai
investors and enterprises until their
projects come into operation.
N. Phuong – IPCC
Surveying and speeding up in
investment promotion into Nam
Giang District, Quang NamProvince
On October 18th, 2012, the
delegation of Investment Promotion
Center for Central Viet Nam (IPCC),
including leader and investment
consultancy division had a meeting
with the People’s Committee (PC) of
Nam Giang District, Quang Nam
Province for speeding up investment
promotion activities into the area.
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At the office of Nam Giang
District’ PC, Mr. A Lang Mai – the
Chairman and representative of
related divisions such as Natural
Resources & Environment, Finance
& Planning, Economic &
Infrastructure Affairs, etc gave the
IPCC’ delegation a warm welcome.
Mr. A Lang Mai presented some
information about the socio-
economic situation in Nam Giang
District. He also introduced
favorable investment incentives as
stipulated in the Law on Investment
as well as mentioned difficulties in
calling for investment into the
district. He expressed desires to
speed up and improve the efficiency
of investment promotion in order to
raise living standard of local people
in particular and contribute much
more to the state budget in general.According to him, investment
promotion is one of important ways
to boost socio-economic
development.
After the meeting, the IPCC’
delegation carried out a site visit to
some locations chosen by Nam
Giang District’ PC. This site visit
hel ped the IPCC’ delegation get an
overview and define good andsuitable destinations meeting
investors’ requirements for speeding
up investment promotion activities in
such a difficult area with potentials
as well as challenges. Leader of
IPCC affirmed that IPCC will give
necessary supports in investment
promotion and calling investors to do
business in Nam Giang District.
As the site visit ended, theDirector of IPCC and the Chairman
of Nam Giang District’ PC agreed
that two sides will coordinate closely
in investment promotion in order to
strengthen attraction of investors into
Nam Giang District in particular and
Quang Nam Province in general.
N. Phuong – IPCC
Solving Difficulty for Japanese
Investors
The Foreign Investment Agencyrecently held a workshop to review
the survey results and work on
solutions to problems Japanese
enterprises in Vietnam are facing.
The workshop is an important step to
improve the investment environment;
support policies and address the
problems faced by Japanese firms in
Vietnam.
According to Deputy Minister of
Planning and Investment Dao Quang
Thu, the Ministry conducted a survey
and monitored 500 Japanese business
practices as well as the difficult
problems encountered when doing
business in Vietnam. In particular,
aspects such as the implementation
of the provisions of the Enterprise
Law and Investment Law, the
application of accountancy policies,
labour policies, wages, land and
building are researched. Results of the survey will be an important
prerequisite for the Ministry of
Planning and Investment to evaluate
and research to improve the system
of policies and laws to solve
difficulties for Japanese enterprises.
According to the Foreign
Investment Agency, by September
20th 2012, Japan had 758 direct
investment projects effective in
Vietnam with a total registered
capital of US$28.6 billion, ranking
1st among 96 countries and
territories investing in Vietnam.Japanese investment projects
distributed across 63 provinces,
however focusing in the big cities
such as Ho Chi Minh City, Ba Ria -
Vung Tau, Hanoi, Dong Nai and
Binh Duong.
Mr Hirokazu Yamaoka, Chief
Representative of the Japan Trade
Promotion Organization (Jetro)
evaluated that trade and investmentrelations between Vietnam and Japan
have developed based on sustainable
political platform. This is shown in
the recent growing number of
Japanese investors to Vietnam
seeking business opportunities. A
new addition is that not only big
investors, but also small and medium
enterprises (SMEs) of Japan also
view Vietnam as potential and
promising market for long-term
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investment plans. However, Japan
also wants the Vietnamese
Government to have more specific
plans for reform administrative
procedures, laws and regulations on
accounting, auditing, taxation and
regulations on investment and
business to create more favourable
conditions for Japanese investors.
In addition, Japanese firms also
said that the rapid development of
industrial parks in the development
orientation of the Vietnamese
Government has left many Japanese
enterprises facing labour shortage.
This led to difficulty in the
recruitment of local human
resources, and finding trained
workers and skilled engineers.
Japanese businesses hope the
Vietnamese government will build a
practical training program at the
request of the industry to raise the
quality of vocational schools,
training programs and technical
workers to meet actual needs,
focusing on practical skill. In
particular, a feasible measure from
Japanese business is to establish their
training schools in Vietnam. In
addition, Japanese companies also
expect to have stable power supply,and upgraded information and
industrial infrastructure.
vccinews.com
“Danang – South Korea
Businesses 2012” Seminar
On celebrating the
20th anniversary of the establishment
of Vietnam – South Korea diplomaticrelationship (22/12/1992 –
22/12/2012), in the morning of Oct 12,
2012, Danang’s People Committee in
cooperation with Vietnam Chamber of
Commerce and Industry (VCCI) in
Danang and Korea Chamber of
Commerce and Industry (KCCI)
hosted “Danang – South Korea
Businesses 2012” Seminar.
The seminar witnessed the
participation of Mr. Vo Duy Khuong
– Vice Chairman of Danang’s People
Committee, Mr. Kim Ho Kyun –
Director of KCCI, Mr. Kim Dae Ja –
Commercial Counselor of the South
Korean Embassy in Vietnam and
representatives of the related
departments, existing Korean
investors in Danang and local
enterprises dealing with Korean
businesses.
At the seminar, the leader of IPC
Danang introduced to the enterprises
about the current status and the
vision for socio-economic
development towards 2020 of the
city through the presentation named
“Danang – the city of innovation”.
Also, Danang Tax Bureau made a
detailed explanation on tax-related
regulations in force since June 2011.
As of September 2012, there
were 27 foreign direct investment
projects from South Korea to Danang
with a total registered capital of more
than US$700 million and 14
representative offices in Danang.
South Korea is currently the second
largest investor in terms of registered
investment capital among 30
countries and territories having
investments in Danang, mainly in
real estate, manufacturing, textile
and garments, etc. The export
turnover from Danang to South
Korea in the first half of 2012
reached US$4 million with the items
of seafood, textile and garments,
toys, etc. The import turnover from
South Korea into Danang is US$17
million, mainly in pharmaceuticals,
machinery, chemicals, etc.
Mr. Kim Ho Kyun affirmed that
with current advantages, Danang
would certainly attract more
investments from Korean enterprises
in the coming time. He committed
that KCCI will play as a bridge to
call for more Korean enterprises to
invest in Danang, especially in the
fields of ICT, hi-tech industries, etc.
In the discussion section, Korean
enterprises raised many questions
and suggestions on the issues of
promoting the image of Danang City
in South Korea, tax policies, land
rental price, legal procedures in
opening representative offices, etc.
On behalf of Danang’s People
Committee, Vice Chairman Vo Duy
Khuong highly appreciated the
recommendations of Korean
enterprises, gave feedback to their
questions and asked the related
departments of Danang City to
resolve remaining problems in a
timely manner to facilitate the
businesses’ operation in Danang.
IPC Da Nang
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Nhon Hoi EZ: Actively Calling
for Investment into Key Projects
Nhon Hoi Economic Zone (EZ)
was established under the Decision
141/2005/QD-TTg of the Prime
Minister. Recently, it has done a
huge amount of work and achieved
initial success in attracting and
promoting investment. The
development of Nhon Hoi EZ
contributes to the exploitation of new
potential, and exerts leverage for
Binh Dinh province to rise and
integrate into the country’s
development.
Nhon Hoi EZ is currently
considered a driving force for the
economic development of Binh Dinh
Province. A major advantage of this
EZ is the diversity of traffic types
available, from Quy Nhon
international seaport, roads such asHighway 1A and Highway 19, the
Thong Nhat railway to Phu Cat
Airport with many direct flights from
Hanoi to Ho Chi Minh City and vice
versa daily. In comparison with
many other EZs, the infrastructure
construction of Nhon Hoi EZ is
highly appreciated, fully qualified to
support projects in a variety of sizes
and investment sectors.
Mr Man Ngoc Ly, Head of
Management Board of Economic
Zones of Binh Dinh province, said
that so far, Nhon Hoi EZ has
basically finished land use planning,
mapped out the detailed plan of
using land for non-tariff zone,
industrial parks, seaports, tourist
areas and its new urban area. At the
same time, Nhon Hoi EZ Board of
Management implements land
clearance compensation of a project
area of above 2,200 hectares.
Industrial parks in the economic
zones have been basically built and
are able to attract manufacturing
projects.
Lately, Binh Dinh province has
focused on implementing the project
of building a road from Quy Nhon
city to Nhon Hoi EZ (located on
Phuong Mai Peninsula) with the Thi
Nai Bridge, 2,500 metres in length,
being the highlight. Besides, due
attention is paid to other traffic
projects on retracing routes,
widening the province’s road 635
from Phu Cat airport straight to the
north area of the EZ, and building a
new road named DT 639 from the
EZ along the coast to the north area
of the province. Those projects havebasically addressed the outbound
traffic of the EZ. Currently, Nhon
Hoi EZ is served by Quy Nhon
seaport cluster, eight kms away from
the EZ and one of the ten major
seaport clusters of the country, with
facilities for 3,000-tonne ships and
currently approved by the Ministry
of Transport to be invested in flow
dredging to be available for 5,000-tonne ships.
Inner infrastructure of the EZ
has also gradually completed. In the
EZ, there is a 5 kilometre road from
Hoi Thanh to Nhon Ly, linking Nhon
Ly commune with its neighbouring
area, a mountain route connecting
Nhon Hoi and Nhon Hai, and a main
road (in phase one) in the North-
South direction, 80 meters wide and
15 kilometres long, running through
main functional areas of the EZ.
Up to now, Nhon Hoi EZ has
attracted 36 investment projects with
registered capital of VND33,520
billion, 9 of which are foreign
invested, with total registered
investment capital of US$522
million. In 36 projects issued
investment certificate, eight have
come into operation; others are in the
phase of basic construction. In 2012,
it is expected that two more projects
will come into operation. The total
capital of those projects is estimated
to be around VND2,237 billion. In
the EZ, 13 projects have rented 62.08
hectares, and four manufacturing
projects have come into operation.
Additionally, some large-scale
projects have been approved to
invest in the EZ including
a refinery and petrochemical project
with the capacity of 30 million
tonnes per year and invested capital
of US$21.5 billion, a pigment titan
manufacturing project with the
capacity of 50,000 tonnes per year
and invested capital of US$ 200
million and project investing in Tan
Thanh tourism zone which covers an
area of 80 hectares with invested
capital of VND1,600 billion.
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Mr Man Ngoc Ly said that to
accelerate the building of essential
infrastructure and enhance the ability
to attract investment into Nhon Hoi
EZ, in the time to come, it is critical
that Binh Dinh province’s authority
focus on building infrastructure,
especially Nhon Hoi general seaport,
promote investment and create
favourable conditions for big
economic groups to attract
investment so that other enterprises
follow suit.
vccinews.com
Industrial, Economic Zones:
Focusing on Projects Generating
Momentum
Industrial zones in Phu Yen
province, especially Nam Phu Yen
Economic Zone, are playing a moreand more crucial role during the
integration process of the province.
In the recent past, the growth of the
local industrial and economic zones
has greatly contributed to the
industrialisation and modernisation
of the local economy and helped
boost the industrial capacity of the
province.
Phu Yen currently has one
economic zone and three industrial
zones with almost completefacilities, ready for investors. Nam
Phu Yen Economic Zone is among
the 15 economic zones in coastal
areas. Located in Dong Hoa District
of Tuy Hoa City, Nam Phu Yen
Economic Zone is a collective
economic zone, boasting modern
urban infrastructure with an area
spanning 20,730 ha and various
functional zones such as non-
taxation and taxation zones. The
Economic Zone has within it many
different industries producing core
products with high level of quality
and competitiveness, namely
industry, tourism and agriculture,
providing a strong foundation for
sustainable development.
Hoa Hiep Industrial Zone is
among the industrial zones whose
establishment was approved by the
Prime Minister in August 1998. The
first phase of construction attracted
23 projects with total registered land
area of 53.91 ha and invested capital
of VND1,173 billion and US$17.095
million. The second phase of
construction, located in Hoa Hiep
Trung and Hoa Hiep Nam village
(Dong Hoa) so far has attracted one
investment project with total
registered capital of US$13 million.
An Phu Industrial Zone aloneattracted 30 investment projects with
total registered land area of 31.11 ha
and total invested capital of VND288
billion and US$1.86 million. Dong
Bac Song Cau Industrial Zone has 21
projects with total registered land
area of 73.6 ha and total invested
capital of VND579 billion and
US$1.111 million.
In 2011 and during the first sixmonths of 2012, the Management
Board of the Economic Zone has
accepted six investment project
application portfolios and granted
Investment License for projects at
Hoa Hiep and An Phu Industrial
Zone. An Phu Industrial Zone
granted investment licenses for four
projects with a land area of more
than 53,824 sq. m and Hoa Hiep
Industrial Zone granted investment
licenses for two projects with a land
area of more than 113,649 sq. m. As
of now, there are 77 registered
projects in the province with a total
registered land area of more than
2,617.6 ha and invested capital north
of VND12,041 billion and $US1,733
million respectively. In general, the
current infrastructure at these
industrial and economic zones
satisfies investor demand. There are
currently 61 projects operationalwith the 2011 accumulated revenue
of VND3,250 billion; export turn-
over of $US123 million; contribution
to Government’s budget in the
amount of VND47.5 billion. In the
first six months of 2012 alone,
accumulated revenue at these
industrial zones were more than
VND1,411 billion; export turn-over
of US$ 47.13 million; contribution toGovernment’s budget in the amount
of VND15 billion.
Mr Truong Phuoc Cuong,
Director of the Management Board
of Phu Yen Economic Zone
commented, “In the next few years,
given a lacklustre global economic
climate, investment attraction and
business operation at Nam Phu Yen
Economic Zone and local industrialzones will continue to face numerous
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challenges. Nevertheless, based on
the 2011 and the first six months of
2012 statistics, business operation
within the industrial zones is
expected to remain relatively stable
and even slightly improve.
Investment in the infrastructure at the
oil refinery in Hoa Tam Industrial
Zone as well as the establishment of
Hoa Xuan multi-industry industrial
zone will help attract additional new
projects.
Also according to Mr Cuong,the result from recent investment
attracting activities in Nam Phu Yen
Economic Zone and local industrial
zones is encouraging. However, most
of the projects are small-scale; there
is not yet a project which has the
potential to generate momentum for
the socioeconomic development of
the province. Business activities
within the industrial zones are
separated, utilising outdated
technology, leading to a low level of
competitiveness and little
contribution to the socioeconomic
development of the province.
In order to resolve these
limitations to attract more
infrastructure development projects,
projects that can create momentum
on the socio-economic development,
the Management Board will focus on
improving the efficiency of attracting
investments into the Nam Phu Yen
Economic Zone and industrial zones,
both in terms of quantity and quality.
The Board will also encourage and
promote activities to attract more
investment; actively cooperate with
provinces, responsible governmental
agencies, trade commissioners,
foreign investment and commerce
consulting agencies to hold events to
promote commercial activities in the
local economic and industrial zones.
The Management Board will try its
best to maintain and improve the
formalities and reform procedures,
creating the more conducive
environment for investors.
vccinews.com
Foreign investment situation in
the first 10 months of 2012 in
Vietnam
According to the report of the
Foreign Investment Agency,
Ministry of Planning and Investment,
foreign direct investment in the first
10 months of 2012 has continued to
have positive changes, although thesocio-economic situation in the
country has had many difficulties
and challenges but realized
investment capital of 10 months still
reached US$ 9 billion (equaling
98.9% over the same period last
year).In which, although the newly-
registered capital was only 63.3%
over the same period, the additional
registered capital increased by 12.3%over the same period. Another good
sign is the export of foreign
investment enterprises (including
crude oil) increased by 32,2%
compared to the same period last
year .
By sectors: The processing,
manufacturing sector continued to
have the lead with 66,2% of the
registered capital, the real estate
sector ranked second accounting for
17,6% of the registered capital. The
third is wholesale, retail and repair.
Particularly, telecommunications
attracted over US$402,3 million of
registered capital.
By partners: There were 52
countries and territories investing in
the first 10 months of 2012, led by
Japan the total registered
investment capital obtained US$4,92
million, accounting for 46,9%; the
second were South Korea, the total
registered investment capital of US$
936,7 million; the third were Samoa
with the total registererd investment
capital of USD899,8 million,
accounting for 8,6 %,followed by
Singapore, the total capital reached
US$675,4 million; the British
VirginIslands ranked fifth, the total
registered investment capital of US$
623,38 million.
By areas: The areas with
favorable conditions located in the
key economic Southern and Northen
region have the lead in attracting
investment, Binh Duong ranked first
(US$2,17 billion of registered
capital), Ho Chi Minh city ranked
second (US$1,12billion of registered
capital), the third were Hai Phong
(US$1,08 billion of registered
capital), the fourth were Dong Nai
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(US$1,06 billion of registered
capital) and followed by Hanoi
(US$984,6 million of registered
capital)
FDI in Central Vietnam
In the first 5 months of 2012, 13
provinces in Central Vietnam from
Quang Tri to Khanh Hoa (including
5 Highland provinces) have attracted
57 new projects with the registered
capital of over US$ 367 million,equal to 92% of the projects and 61%
of the registered capital compared
with the same period last year.
Khanh Hoa province topped the list
of 3 largest FDI recipients with the
registered capital of US$ 190
million. Da Nang ranked the second
with over US$ 110 million and
followed by Lam Dong province
with more than US$ 24 million.
FDI in Central in the first 10
months of 2012
FDI projects in this region have
focused on industry-construction
sector with the registered capital of
over US$ 311 million (accounting
for 84,83%), followed by trade and
service sector with more than US$
38 million (10,45%) and the
registered capital of USD 17 million
in agriculture-forestry-aquaculturesector.
FDI in Central Vietnam by
sector (in the first 10 months of
2012)
By late October 2012, this region
has attracted 812 FDI projects with
the registered capital of over US$
24,2 billion, accounting for 5.69 %
of the number of projects and
11.61% of the registered capital
compared with the whole country.
Among them, Central Key Economic
Zone has attracted 515 projects withthe registered capital of over US$
15.5 billion, making up 64% of the
whole region.
IPCC
Retaining Vietnam’s attractiveness
to Japanese investorsFrom fourth position, in 2012
Japan has risen to become the first
among 96 countries and territories
investing in Vietnam with over
14,000 projects totaling registered
capital of more than US$200 billion.
In the first nine months of this
year, Japan continued to affirm its
leading position among foreign
investors in Vietnam with newlyregistered and added capital totaling
US$4.68 billion, accounting for
nearly half of Foreign Direct
Investment (FDI) injected into the
country. To find out what things
made FDI flows from Japan into
Vietnam increased so sharply,
Vietnam Economic News
interviewed Counselor Le Huu
Quang Huy, the Head of Investment
Promotion Office of the Vietnamese
Embassy in Japan on the sideline of
seminar "Experience exchange in
Investment Promotion in the
Northern region" held by the
Ministry of Planning and Investment
on October, 16.
As the Head of Investment
Promotion Office of the Vietnamese
Embassy in Japan, can you tell us
what has made FDI flows from
Japan into Vietnam increased so
sharply recently?
First of all I have to say Japan
and Vietnam are strategic partners
and in economic relations, Japan
always regards Vietnam as its
leading partner in terms of ODA,
FDI and trade. The Japanese
Government also showed
consistency in supporting Vietnam
by the increase in ODA commitment
to Vietnam in 2010. Japanese and
Vietnamese cultures also have many
characteristics in common and the
people of both countries are friendly
and helpful. After the earthquake and
tsunami incidents in Japan in March
2011, the Japanese also felt the
affection showed by the Vietnamese
people.
In addition, Vietnam has a
favorable geographical position,
stable political state, high GDP
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growth rate, young population and
the legal framework to attract FDI is
getting more and more complete.
The traffic routes between two
countries is quite favorable with
about 46 flights from Vietnam to
Japan every week.
Particularly, undertaking
investment abroad is also the demand
of the Japanese economy due to high
appreciation of the Yen and high
enterprise income tax. These are
favorable conditions that make
Japanese FDI flows into Vietnam
increased sharply recently.
Many countries in the
Southeastern Asian region are
currently competing with Vietnam to
attract FDI, especially Myanmar.
This has put some challenges to
Vietnam in attracting FDI from
Japan. In such a context, what
should Vietnam do to be alwaysattractive to Japanese investors?
There are some issues seen as
"barriers" for FDI attraction into
Vietnam, including undeveloped
infrastructure and support industries
and the lack of workforce who is
proficient in the use of Japanese. To
resolve these problems, we have to
promote investment in infrastructure,
especially the electricityinfrastructure. As for the support
industries, we should draft overall
development plans to attract
investment in main areas. We also
have to overcome the language
barrier by training Japanese for
Vietnamese workforce, even workers
to help Japanese enterprises during
their operations in Vietnam.
A new wave of Vietnamese
investments in Japan have recently
risen but the efficiency was not high.
So what should Vietnam do to
undertake investments successfully in
Japan?
It is true that many investment
promotion delegations from Vietnam
has recently been to Japan to seek
investment chances. According to the
Vietnamese Embassy in Japan, as
many as 64 Vietnamese investment
promotion delegations came to Japan
in the first half of this year.
To undertake investments
successfully in Japan, localities
should make preparations from three
to five months in advance. They
should not go in large numbers and
choose the right time for investment
promotion activities. For example,
they should not promote business
with Japan in August since this is
one of Japan's major holiday seasons.
On the other hand, we need
diversify cooperation with other
Japanese investment promotion
agencies such as banks, research
institutes, associations and even local
commercial departments but not
necessarily to focus only on the
Japan External Trade Organization
(JETRO)./.
Vietnam Economic News
Danang Accelerating Develop-
ment of Key Economic Sectors
Mr Van Huu Chien, Chairman of the Danang People's Committee, has
granted an exclusive interview to
Vietnam Business Forum on the
city’s development of key economic
sectors in the coming time.
Could you tell us Danang City’s
advantages when it draws investment
capital into industrial zones, and
incentives that businesses will get
when they invest in Danang HighTech Park?
Danang Industrial Park is known
as one of industrial zones situated on
a prime location and planned to
ensure stability and sustainability of
State policies. Its technical
infrastructure system is invested
synchronously and its social
infrastructure is cared properly. The
Management Board of DanangIndustrial Park also makes every
effort to build a friendly, transparent
and effective investment
environment. Besides, Danang also
possesses a lot of other potentials
and strengths. Hence, these factors
make Danang Industrial Park a
centre of investment attraction in
central Vietnam.
Investors in Danang High TechPark will be granted highest
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investment incentives and supports.
Danang City issued clear policies on
investment activities in Danang High
Tech Park for domestic and foreign
investors. Investment projects are
granted exemption and reduction in
land rents if they attract high-tech
human resources to work in the park.
The city is responsible for
building the construction ground and
shared infrastructures in the high-
tech park, including information and
telecom system, traffic system,
public utilities, water supply
network, and wastewater treatment
system , for investors.
If investment attraction is good
but the access to capital source is
difficult, it is eventually not good for
investors. So, how has Danang City
supported investors to access bank
loans, particularly in the current
tough time?
Over the past years, the banking
system has contributed positively to
the socioeconomic development of
Danang City. Banks always strive to
mobilise capital for development
investment and supply premium
service quality. Especially, banks
actively provide credits for and
invaluable supports for the city’s
socioeconomic development.
Bank credits play a driving role
in maintaining high-rate economic
growth for many consecutive years.
Banks also pays high attention to
funding businesses and results are
very good. As of June 30, 2012,
outstanding loans for industrial
companies, commercial companies
and construction companies
accounted for 21.37 per cent, 19.45
per cent, and 12.8 per cent of the
total outstanding loans, respectively.
Especially, in recent years, when we
adopted inflation curbing by
applying aggregate demand
reduction measures, we carried out
tightened monetary policies launched
by the State Bank of Vietnam and
restructured credit funding. To this
effect, channelling capitals into
prioritised sectors was considered a
top task. Credits for the business
sector increased from 73 per cent of
total outstanding at the end of 2010
to 78 per cent loans at the end of
2011.
The industry also plays a very
important role in the city’s socio-
economic development process.
What are the city’s views on
industrial development?
Industrial development is an
important task of the city’s social
and economic development, making
Danang one of the country's biggest
cities and a centre of economy,
culture, science, technology in the
central region, and a strategically
important position in terms of
defence and security of the central
region and the country.
Danang is oriented to develop a
sustainable and efficient industry,
promote its advantages in central key
economic zone, to ensure the
connectivity on the basis of
reasonable distribution of territorial
space and industrial sector structure.
Industry will be selectively
developed and sectors employing
advanced sciences and technologies
and using high-quality human
resources will be attached priority.
In addition to the development of
modern, advanced modern industries,
the city will focus on the
development of traditional industries.
The city places priority to industries
that create products for tourism
development, create jobs for citizens,
increase incomes for workers,
narrow socioeconomic development
gap between rural and urban areas,
and accelerate the process of
agricultural and rural
industrialisation. Industrial
development must be associated with
environmental protection, sustainable
development, social stability and
national security.
Danang City is branded as a
'paradise' of tourism on earth.
Tourism is also considered its key
economic sector. So, how will
Danang focus on developing this
area?
Tourism development is a key
economic sector. The city is
attracting more and more tourists,
especially foreigners. It effectively
enhances tourism quality and
diversifies tourism products,
particularly the combination of
tourism with culture. It also
completes tourist infrastructure and
tourism investment projects; build
modern tourism environment, create
high-quality tourism human
resources; increase the contribution
of tourism to the city's GDP to 7 per
cent in 2015.
Fishery is the comparative
advantage of Danang City over other
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provinces and cities in the country.
Could you talk about how will the
city plans to do to create
development breakthroughs for this
sector?
Danang has a more than 70-km
coastline, with deep-water bays and
ports like Lien Chieu and Tien
Sa. According to a survey by the
Ministry of Agriculture and Rural
Development of Vietnam, the central
fishing grounds currently hold a
reserve of 1.14 million tonnes of
marine creatures belonging to more
than 670 species, including 110
species with high economic value.
According to the agricultural and
countryside development plan till
2020, the city will modernise and
industrialise its fishery sector by
restructuring ship fleet and fishing
activities, building offshore fishing
logistics services, and organising
processing activities to enhance
quality and economic efficiency.
To make breakthroughs in
quality and output in the fisheries
sector, Danang City will continue
investing in fishing logistics
infrastructures. The city will have
support policies for fishermen to
boost up fishing capacity, offshore
fishing. It will advise new
shipbuilding, offshore fishing,
seaman training, crew insurance, etc.
It also will also apply scientific
advancements to fishing activities
like horizontal sensing, net winches,
and satellite communication devices.
Vietnam Business Forum
Expansion of high-tech
industrial park approved
The expansion of Da Nang’s
high-tech industrial park project has
just been approved by the central
government.
The industrial park will now have
a total area of over 1,120ha, an
increase of 110ha compared to thecity’s previous plan. The additional
area will be designated for tree
planting, water features, and technical
infrastructure which will help to
connect it with other similar parks.
More than 206ha of the park will
be reserved for high-tech
manufacturing companies. The
remainder will be for centres of
research, development and training,
and centres of management, servicesand business development. In
addition there will be
accommodation, green spaces, water
features, parks, sporting facilities,
parking areas, technical infrastructure
and logistics and service areas.
The project will be developed in
3 stages - the first from 2012 to
2015, the second from 2016 to 2018,
and the third from 2019 to 2020. Danang Today
Khanh Hoa increasingly
popular with Russian tourists
Cam Ranh International Airport
in central Khanh Hoa province will
see the daily arrival of three direct
flights carrying tourists from
Russia’s Far Eastern region to central
Khanh Hoa province from now until
April 2013.
The first three direct flights from
Russia ’s Far Eastern Region,
conducted jointly by the travel agentAnh Duong and its Turkish partner
Pegas Turistik, touched down the
airport on October 25 with a total of
550 passengers aboard.
The passengers, of whom the
majority is tourists, will holiday on
the coast near Nha Trang in Khanh
Hoa and around Phan Thiet in
southern Binh Thuan province.
According to Hoang Thi Phong
Thu, President of the Board of
Directors of travel agent Anh Duong,
Anh Duong and Pegas Turistik
started to fly in tourists from nine
cities in Eastern Russia to Khanh
Hoa and Binh Thuan in late October
last year with one flight a day.
So far, they have brought 60,000
Russian tourists to Vietnam , most of
them from the Eastern region.
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The companies expect to transport
between 70,000-100,000 Russian
holiday-makers to Khanh Hoa from
now to April 30.
Khanh Hoa still leads the central
region in attracting Russian tourists,
welcoming more than 53,000 visitors
annually.
Vietnam Investment Review