Danang to call on investment in hi-tech, real estate after Tet

DANANG – The central coastal city of Danang plans to call for investment in 44 projects mostly in the fields of hi-tech and real estate after the Tet holiday, with each of them needing US$30,000 to US$400 million, according to a representative of the Danang Investment Promotion Agency.

Half of the 44 projects are in the information-technology and hi-tech sectors and will be executed in Danang Hi-Tech Park.

The city is seeking investors for a solar energy project which needs US$150 million to US$400 million, and a US$200-million project to manufacture semiconductor materials for electronic parts and circuits. A 60-hectare urban area project and Truoc Dong Lake ecological zone covering 100 hectares of land are also in need of investment capital.

Apart from that, the city plans to resume work on the delayed projects that have yet to be licensed for investment, including a No.2 software park project covering over 50 hectares. Singapore's firm Sembcorp proposed injecting over US$90 million into the project long ago, but it has been awaiting word from the ministries of Foreign Affairs, Public Security, and National Defense as it is located in a maritime boundary area.

Meanwhile, Matrix Holdings Limited from Hong Kong wants to build a racetrack and horse training and multiplication center in the city, with total capital of US$200 million. An appropriate site is still being sought for it.

Further, Danang will prioritize foreign direct investment in digital, biotechnology, hi-tech agricultural projects, meaning that projects that apply outdated technologies and harm the environment will not be accepted. Investors from Japan, South Korea and Europe are preferred.

-Thesaigontimes-

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Multimodal Transport Business Regulations in Vietnam

On October 16th, 2018, Vietnam Government issued Decree No. 144/2018/ND-CP amending, supplementing the decrees on multimodal transport. Under the law of Vietnam, multimodal transport (“MT”) is the transportation of goods performed with at least two different modes of transport under the multimodal transport contract from an original place to a place designated for delivery, the carrier is liable for the entire carriage. MT business includes: International multimodal transport (“IMT”) and Domestic multimodal transport (“DMT”).

The new decree eliminates and simplifies regulations on IMT business conditions and abolishes DMT business as a conditional business line. In fact, DMT including many transportations such as transport by sea, air,… is governed by specialized laws on each transport, hence it is not necessary to stipulate additional business conditions when conducting the combined transport.

Regarding the conditions of IMT business, the new Decree no longer differentiates between domestic and foreign enterprises as in the past, all enterprises therefore must meet the followings:

(1) Maintaining a minimum amount of assets equivalent to SDR 80,000 or provide an equivalent guarantee or an alternative of financial character as regulated by laws;

(2) Having a liability insurance policy for multimodal transport operator or an equivalent guarantee.

In addition, in order to facilitate member state of the ASEAN Framework Agreement on Multimodal Transport or another international treaty on multimodal transport to which Vietnam is a signatory, new regulations are stipulated as follows:

(1) Having a registration certificate of international multimodal transport or another document of equivalent validity issued by the competent national body of its country;

(2) Having a liability insurance policy for multimodal transport operator or an equivalent guarantee.

The licenses to provide international multimodal transport service issued by competent authorities of Vietnam before the date of entry into force of this Decree are still valid until their expiration dates.

With the role of supporting trading activities, modern transports need to meet the increasingly complex requirements of the domestic and international transport market, which not only deliver goods but also connect the transport process into an uninterrupted transport chain to ensure a faster and safer transport process.

Transport lawyers at ANT Lawyers, the law firm in Vietnam have always following up the legal development on transportation to provide our clients with regular update on the matters.

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Foreign investment in Vietnam surges

HCMC - New foreign investment approvals in Vietnam during the year to January 20 reached US$1.9 billion, rocketing by 51.9% year-on-year, according to the latest report by the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment.

As of January 20, up to 226 new projects obtained investment certificates, with total registered capital of some US$805 million, surging by 81.9% year-on-year. In addition, 72 foreign-invested projects won approval to inject an additional US$340.2 million, equal to 74.5% of the figure in the same period last year.

In addition, foreign investors acquired local company shares worth US$761.8 million in 489 transactions, surging 114% over the year-ago period.

According to the Foreign Investment Agency, foreign investors injected capital into 18 sectors, of which the manufacturing and processing sector was the most attractive, receiving a total of US$1.19 billion, making up 62.4% of the fresh capital.

The science and technology sector came in second, with US$185.8 million, followed by the real estate sector, with US$179.1 million.

Japan remained Vietnam’s largest investor this month, with US$364 million, accounting for 19% of the total. South Korea ranked second, with US$349.1 million, and the third largest investor was China, with US$307.8 million.

-Thesaigontime-

ANT Lawyers is a Vietnamese law firm in Vietnam with English speaking lawyers whom understand the laws of Vietnam within the business and the local culture context.

The firm has been advising and representing foreign companies and individual clients interested in either doing business, or needing legal services or representation in Vietnam who are seeking reasonable and competitive solutions without compromising on service quality.

For advice or service request, please contact us via email ant@antlawyers.vn, or call +84 28 730 86 529.

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Vietnam needs to create an enabling environment for private players to drive the next wave of energy investments, the World Bank said.

In the report titled "Maximizing Finance for Development in Vietnam’s energy sector" issued Monday, the bank called for a new approach to financing electricity and gas investments to fit the country’s changing macroeconomic and sectoral contexts.

"Given the limited fiscal space (official developmental assistance capital) and the reduction of concessional financing available going forward (due to Vietnam’s recent middle-income status), it will be important for Vietnam to step up mobilizing alternative capital resources for the electricity and gas sectors," Ousmane Dione, the bank’s country director for Vietnam, said .

The Government should comprehensively address the constraints currently impeding the flows of domestic and cross-border private capital into two of the most strategic segments of the Vietnamese economy, electricity and gas, he added.

Franz Gerner, the World Bank’s lead energy economist, said: "We observe a large interest from private investors to participate in the vast growing energy market in Vietnam, especially in renewables and LNG development."

"They are willing to invest as long as the projects are well-structured and bankable," he said. "What investors need is a transparent and stable regulatory environment which incorporates a proper risk-sharing mechanism among all parties."

Vietnam’s electricity sector would require on average $10 billion annually frontloaded through 2030, higher than the average of $8 billion in 2011–15, according to the bank.

The envisaged expansion of the gas sector requires total investment of around $20 billion between 2015 and 2035.

- evnexpress-

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