Thread: Latest news on the Dong!

New wave of FDI to central region in post-WTO period?
09:19' 25/10/2006 (GMT+7)


Dung Quat Economic Zone.

VietNamNet Bridge - Many experts predict that there will be a new wave of foreign investment into the central region, particularly after Vietnam becomes a member of the World Trade Organisation (WTO).

Coastal provinces in the region, which runs from Thua Thien - Hue to Khanh Hoa province, have compiled a list of 400 projects calling for foreign direct investment (FDI) in the 2006-2010 period totaling more than US$6 billion. At the same time, another list of 35 national projects in the central region with the total capital of $9 billion has been submitted to the Prime Minister for approval before being introduced to foreign investors. Thus, around $15 billion of FDI will be attracted in central provinces.

Many economic zones have been established in this region, including Chan May in Thua Thien - Hue province, Chu Lai Open Economic Zone in Quang Nam province, Dung Quat Economic Zone in Quang Ngai province and Nhon Hoi Economic Zone in Binh Dinh province. In addition, many other industrial zones have also been set up there, with good infrastructure and open operation mechanisms. As a result, many foreign investors have selected the central region as the site for their large projects.

The central region: promised land

According to experts, the situation in this region has changed and it has become more attractive in the eyes of foreign investors.

Technical infrastructure, especially transport, water and power supply, communications in this region has developed very strongly. The system of seaports like Chan May, Tien Sa, Dung Quat and Quy Nhon has been built, which is capable of welcoming ships up to 30,000 - 40,000 DWT.

The system of airports, apart from Da Nang International Airport, one of the three biggest airports in Vietnam, now includes others such as Phu Bai in Hue City, Chu Lai in Quang Nam province, Phu Cat in Binh Dinh, Tuy Hoa in Phu Yen, Cam Ranh in Khanh Hoa, Pleiku in Gia Lai and Buon Ma Thuot in Dak Lak province, creating a favourable aviation network, connecting central provinces to Hanoi, HCM City and other countries in the world.

The system of universities, colleges and vocational training schools in the region has also progressed massively in recent years, ensuring provisions of qualified human resources for investors. It is also not too difficult to prevent and restrict losses caused by natural calamities in the region.

“Investors no longer see difficulties in this region, but attractive investment opportunities,” said Le Van Dung, Director of the Investment and Trade Promotion Centre in the Dung Quat Economic Zone.

It is proved that there is nowhere in Vietnam that has diverse natural resources like the central region (and the Central Highlands as well). This region has huge sources of fisheries, salt fields, white sand that is material for industries, many beautiful beaches and bays for the tourism industry. The central region also accounts for up to 46% of the country’s total forested area, with many rare varieties of trees, animals. Its soil contains many kinds of minerals like bauxite, titan, kaolin, gold.

This is really a promised land for investors in all fields, from industry to tourism and service,” commented Laurence S. Aylesworth, Chairman and General Director of the US’ Scott group, who initiated the building of the international container transit port in Chan May in 1999.

Promoting investment in the central region

According to the Director of the Central Region Investment Promotion Centre, a unit under the Ministry of Planning and Investment, Le Huu Quang Huy, there were 320 operational FDI projects in the central region between 1988 to June 2006, with the total registered capital of $2.235 billion, accounting for 4.1% of the total number of Vietnam.

The figure is very low but strong changes in FDI attraction happened in this region during this period.

By 2004, this region had attracted 241 projects worth $1.45 billion in registered capital. Last year it had 298 projects, totaling $1.84 billion in registered capital, an increase of 57 projects and around $400 million of capital. By the end of June 2006, the number of FDI projects was 320, with $2.23 billion of registered capital, 22 projects and $390 million more than 2005

Also through June 2006, in provinces in the key economic area of the central region (Thua Thien - Hue, Da Nang, Quang Nam, Quang Ngai and Binh Dinh), there were 215 projects and $1.513 billion of capital, accounting for more than 67% of the whole central region.

Many big projects have just been licenced for investment in this region or are waiting for licences, such as the steel project of Taiwan’s Tycoons group in Dung Quat (worth over $1 billion, including $539 million in the first phase, licenced in September 2006), a $500 million project to build an aircraft repair centre in Chu Lai, the $550 million Da Nang - Quang Ngai highway project.

Mr Le Huu Quang Huy said that to further attract FDI into this region, one of the urgent jobs is to intensify investment promotion, especially investment in transport projects and infrastructure development under the social and economic development plan to 2010 of the central region.

Mr Huy also said that this region should also diversify forms of investment, use the forms of built - transfer (BT), built - operate - transfer (BOT) to encourage private companies to invest in transport, irrigation, clean water and waste treatment projects.

Furthermore, the region should complete planning, lift investment restrictions, and allow foreign investors to play a greater part in cement, steel, brewery, telecom and power production, under bilateral and multilateral commitments.

(Source: TBKTVN)

Originally Posted by postcon

Was wondering if someone would be kind enough to throw some light on the following. Is the value of the dong at its lowest since it was introduced? If so, what was the reason for its devalue? I cannot seem to find a site where I can chart the history of the dong. At the moment, roughly $65 would get a million dongs. However, the only way they can sourced seems to be via ebay at triple their face value. Do you guys think there is an upward potential for this currency? If yes, what would you base your assumptions, facts, etc on? As someone remarked a few days ago, the value needs to go up three times to value to recoup the initial investment.

Agreed this may not be in the same league as the dinar in terms of potential but it's probably still a good bet. What do you folks reckon?

I too, would like more information on the potential of the Dong. I agree with what you say postcon. I have found it easier to get involved with the IQD particularly as Warka made it easy for us to open accounts and buy on the ISX. What do Dong investors see in the future of this currency, can you see it being revalued similarly to the IQD or will it be a long haul.

FDI inflow in Vietnam increases sharply
14:56' 25/10/2006 (GMT+7)


VietNamNet Bridge - Vietnam attracted a total of $6.48 billion in foreign direct investment (FDI) in the first 10 months of the year, a year-on-year increase of 41.4 percent, the highest growth rate so far this year, the Ministry of Planning and Investment (MPI) has reported.

The total capital achieved 99.7 percent of the country's yearly target, the report said.

In 10 months as many as 705 foreign-invested projects with a combined capital of $4.7 billion were licensed. The figures saw a year-on-year increase of 7 percent in terms of numbers and 60.1 percent in capital.

The period also saw an additional investment of $1.7 billion in operating FDI projects nationwide.

In October, 125 projects valued at $929 million were granted licences. An additional investment of $405 million in 88 operating FDI projects were also made.

The MPI said Vietnam has been highly appreciated by foreign investors and attracts a lot of attention from them. Major partners including the European Union, the Republic of Korea, Taiwan and the US, have been playing major roles in investing into Vietnam and continued to increase their investment.

The MPI added that the recent visit to Japan by the Vietnamese Prime Minister has had a great effect and is believed to have kick-started Japanese investment into Vietnam.

According to the MPI, more opportunities to attract FDI into the country will be accelerated, focusing on Japan, Taiwan and the US. Holding workshops before the APEC Economic Leaders' Meeting will be one of the methods to promote investment.



(Source: VNA)

Foreign investment focuses on tourism
09:08' 25/10/2006 (GMT+7)

Da Lat.
VietNamNet Bridge – Experts said that the tourism-service sector is now ‘very hot’, and is attracting both foreign direct investment and foreign portfolio investment.

Foreign investors are taking advantage of great business opportunities in this field as Vietnam is standing at the door of the World Trade Organisation (WTO).

According to the Ministry of Planning and Investment (MPI), of US$5.15 billion of committed foreign capital in Vietnam in the past nine months, nearly $2.2 billion or 43% was registered to go into the tourism-service sector.

Taking the lead for investment scale is the Dan Kia – Suoi Vang resort project in Da Lat city, Lam Dong province, which is being invested in by four Japanese groups, Mitsui, Mitsubishi, Sumitomo and Limtec, worth $1.2 billion.

The construction of a complex of five-star hotel-apartments-shopping mall worth $200 million in HCM City by the Kumho Asiana group from the Republic of Korea is scheduled to begin later this month after a long suspension because of financial crisis.

The US’ Winvest LLC has recently received an investment licence to build the five-star Saigon Atlantic tourist site in southern Vung Tau City worth $300 million.

Also in Vung Tau, the Plantium Dragon Empire group is considering investing up to $550 million in a tourism-entertainment project.

Besides foreign direct investment, the wave of foreign portfolio investment in this field is also very bustling. Two months ago, VinaCapital bought 52.5% of the shares of the five-star Hilton Hanoi Opera Hotel, raising its total stocks in this hotel to 70%.

Previously, VinaLand bought 70% of shares of the Sofitel Metropole, the oldest, most luxurious hotel in Hanoi.

Some big groups have revealed their investment plans in Vietnam. Firstly, the world’s largest hotel management group, InterContinental Hotels Groups, has announced it will build its first hotel in Vietnam in early 2009.

A casino management company of Macau wants to open a ‘little Las Vegas’ in HCM City in combination with Saigontourist.

The UK’s Rockingham Company has submitted to the MPI a project to build a sea tourist site worth $1 billion on Phu Quoc Island in southern Kien Giang Province.



(Source: TTXVN)

Vietnam to have its WTO bid documents passed on Oct. 26
10:16' 26/10/2006 (GMT+7)
Soạn: HA 935893 gửi đến 996 để nhận ảnh này

VietNamNet Bridge - The working party on Vietnam's accession to join WTO is pretty sure to approve three key documents on the country's WTO membership at a meeting in Geneva, Switzerland, on Oct. 26 after a day of examining them on Oct. 25.

The official meeting on Oct. 26 will also approve Vietnam's commitments together with these documents, according to sources close to the WTO.

The meeting will also hear the Working Party Chairman, Eirik Glenne, declare that the negotiation process on Vietnam's WTO bid has been completed, paving a way for the country's becoming the 150th member of the world's largest economic body.

All the current 149 members of the WTO General Assembly will meet in the first week of November to officially admit Vietnam as a full member.

The specific date for the admission is not yet fixed but possibly on Nov. 7.

(Source: VNA)

The US may approve PNTR for Vietnam on Nov. 7
16:52' 26/10/2006 (GMT+7)
Soạn: HA 936745 gửi đến 996 để nhận ảnh này
American businessmen at Amcham's October meeting.

VietNamNet
Bridge – This information was revealed at the October meeting of the American Chamber of Commerce (Amcham) in HCM City on October 25.

According to schedule, the US Congress will resume activities on November 13 after the election and consider permanent normal trade relations (PNTR) status with Vietnam one week before President Bush goes to Vietnam for the APEC summit.

Leaders of Amcham Vietnam and its members in HCM City have gone to Washington to work with the Asia – Pacific Amcham and 38 other Amchams in Asian countries.

Amcham has also been promoting meetings with over 110 US congressmen to lobby for the PNTR approval for Vietnam. “If everything is smooth, PNTR would be approved on November 7,” said a representative of Amcham.

Thus, the day that the US grants PNTR status to Vietnam could be the day Vietnam becomes the 150th member of the World Trade Organisation (WTO).

After the multilateral negotiation round on September 13, the WTO set October 26 as the day to complete the last multilateral session and consider all documents related to Vietnam’s WTO accession. On November 7, the last special session will be held to admit Vietnam to this organization.

For American businesses, both events mark an extremely significant turning point for Vietnam and for themselves. US groups have conducted a series of visits and surveys on the Vietnamese market in September and October.

“Investment of American businesses in Vietnam may increase by three folds from now, after Vietnam has PNTR and enters the WTO,” predicted a representative of Amcham.


(Source: VNE)

Vietnam reaches WTO doorstep post approval
10:29' 27/10/2006 (GMT+7)
VietNamNet Bridge – The working committee of the World Trade Organsiation (WTO) has approved the reports on bilateral and multilateral agreements of Vietnam, putting the country on the final stretch towards accession to the international trade body.

Vietnam now needs only the approval from the WTO council for full membership, expected in the first week of November.

Earlier, Vietnamese representatives in Geneva said they were hopeful of getting the approval from the working committee after it completed examining the three key documents including one on the service sector, such as banking, insurance and communication.

The working committee had started inspecting the documents on Wednesday and continued its task yesterday.

After the conclusion of the meeting, the Working Party Chairman, Eirik Glenne, is expected to declare the negotiation process on Vietnam's WTO bid as over, paving the way for the country becoming the 150th member of the trade body.

(Source: Viet Nam News)

Vietnam and WTO


Vietnam formally submitted its application in January 1995. A WTO working mission, charged with Vietnam’s accession, was formed in February 1996 with 20 members, and now has nearly 40.

In August 1996 Vietnam sent a diplomatic memorandum on trade policies to the WTO secretariat, and then to all WTO members.

In July 1998, the first meeting of the working mission took place in Geneva, focusing on the transparency of investment and goods trade policies.

The second meeting of the working session was held in December 1998, focusing on the transparency of intellectual property and trade services policies. These topics were then followed up during the third session held in July 1999.

By 2001, negotiations mainly focused on trade policies of Vietnam. The country had to answer over 2,000 questions related to its policies on trade, economics and investment. In August 2001, Vietnam presented the Initial Offer on goods and services to enter the new phase of negotiations on market opening with member countries of the working mission.

From May 12 to 22, 2003, the sixth round of negotiations for Vietnam’s accession to the WTO took place in Geneva. The WTO members acknowledged the achievements in Vietnam’s reform process, despite its being a low-income developing country.

With the signing of a bilateral agreement on the conclusion of negotiations for Vietnam’s WTO accession with the US in HCM City on May 31, 2006, Vietnam had completed bilateral negotiations with 28 partners.

A decade after it submitted its applications, Vietnam experiences 13 official and two preparatory sessions with the working mission. The 14th multilateral negotiation session that finished on October 26 closed 11 years of negotiation.

The door to WTO opens widely for Vietnam
16:21' 27/10/2006 (GMT+7)

Vietnamese WTO mission at Geneva.
VietNamNet Bridge – The final multilateral negotiation round for Vietnam’s WTO membership successfully wrapped up Thursday, October 26 in Geneva.

The AP quoted a trade official as saying that partners were satisfied with commitments of reforms that Hanoi brought out during this 14th round of negotiations.

Also according to AP, an extraordinary session of the WTO General Assembly will be held on November 17 to officially approve the membership regulation for Vietnam. Thirty days after the Vietnamese National Assembly ratifies WTO documents, Vietnam will become the 150th member of the WTO.

A reception was held at the headquarters of the WTO in Geneva, Switzerland after the 14th multilateral negotiation round closed. This is a sign that Vietnam is about to pass the WTO gate to enter the global trade playground.

According to a Vietnamese consul in Geneva, the last multilateral session began at 4pm in Geneva (9pm in Hanoi). Trade Minister Truong Dinh Tuyen was present in Geneva to directly steer Vietnamese negotiators.

At the session, the Working Group on Vietnam’s WTO Accession considered some legal formalities and approved all bilateral, multilateral commitments of Vietnam and the protocol to submit to the WTO General Assembly.

Before entering the official session, Vietnam and the Working Group met in a preparatory session on October 25.

Spokesman on Vietnam's completion of WTO negotiation
23:03' 27/10/2006 (GMT+7)

Mr Le Dung.
VietNamNet Bridge - Vietnam was happy as all documents on its accession to the World Trade Organisation (WTO) were approved at the round of multilateral talks in Geneva on Oct. 26, officially marking the country's completion of its negotiation process for becoming a member of the global trade body, the Spokesman for the Ministry of Foreign Affairs, Le Dung, said on Oct. 27.

"It can be said that this is the result of tireless efforts made by the Government and relevant ministries and agencies, as well as the Vietnamese negotiation delegation, which demonstrates Vietnam's determination to fully integrate into the regional and international economies," the spokesman said.

Vietnam thanked members of the Working Party on Vietnam's Accession to the WTO, leaders and experts of the WTO Secretariat, Chairman of the Working Party-Ambassador Eirik Glenne- for their active support for Vietnam during the process of negotiation, he said.

A special meeting of the WTO General Council is scheduled for early November 2006 to consider and approve the admission of Vietnam to the organisation. A protocol on Vietnam's WTO accession, after being approved, will be sent to Vietnam for its National Assembly to ratify, slated for the end of November.

"Therefore, Vietnam will gain official WTO membership by the end of this year if nothing changes," he said.

To prepare for accession to the WTO, Vietnam has carried out wide and deep reforms in line with international standards. In the future, the country will continue to actively integrate into the world economy, make full use of benefits brought about by WTO membership rules and efficiently resolve challenges of the process of global economic integration, he added.

(Source: VNA)