central vietnam investment news october 2012

7/30/2019 Central Vietnam Investment News October 2012

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Oct /2012

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



Oct /2012

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.



Oct /2012

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



Oct /2012

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



Oct /2012

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.



Oct /2012

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



Oct /2012

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


capital), the fourth were Dong Nai



Oct /2012


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



Oct /2012

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



Oct /2012

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



Oct /2012

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.



Oct /2012

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

central vietnam investment news october 2012

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