Two power projects worth US$4.8 billion approved

HANOI– Two large thermo-power projects capitalized at US$4.863 billion have been approved, contributing to boosting foreign direct investment approvals in the first half of 2017.

A report of the Ministry of Planning and Investment says Nghi Son 2 thermo-power plant project involving a Japanese investor will cost over US$2.79 billion and have a capacity of about 1,200 MW.

The investor of this build-operate-transfer (BOT) project is not known but in November last year, Japan’s Marubeni Corporation and Korea Electric Power Corporation (KEPCO) signed an agreement with the Vietnamese Ministry of Industry and Trade to develop Nghi Son 2 thermo-power plant.

The plant will have two generators, with each having a capacity of 600 MV, and be located in Nghi Son Economic Zone in the northern province of Thanh Hoa. The facility will be fueled by coal to be imported from abroad.

With a total investment of nearly US$2.8 billion, this is one of a few BOT thermo-power plant projects approved in Vietnam. Nghi Son 2 thermo-power plant is also the largest foreign-invested project in the first six months, helping Thanh Hoa attract the most foreign investment capital in Vietnam, at US$3.06 billion, accounting for 15.9% of the country’s total.

Another large thermo-power project approved is Nam Dinh 1 thermo-power plant which costs an estimated US$2.07 billion. It will also run on coal and have a capacity of about 1,100 MW.

According to an investment certificate issued by the Ministry of Planning and Investment in mid-June, the project will be developed under the BOT format on 242 hectares in Hai Chau and Hai Ninh wards, Hai Hau District, Nam Dinh Province.

The project made Nam Dinh the third largest recipient of foreign capital in the first half with US$2.19 billion, accounting for 11.4% of the country’s total.

There are some BOT power projects in Vietnam already put into operation, including Phu My 1, 2 and 3 thermo-power plants in Ba Ria-Vung Tau Province.

However, experts have called for the Government to take greater caution when approving thermo-power projects as they are potential environmental polluters.

Source: The Saigon Times

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Benefits of Investors to Set-up Business in Ho Chi Minh City

Ho Chi Minh City offers many benefits for foreign companies to do business and invest.

The population of Ho Chi Minh City is of more than 10 mil, earning a higher average income than other part of the country.  Consumer retail has found Ho Chi Minh City as an attractive market for investment in retail shops, malls, introducing quality consumer goods to the local.

Ho Chi Minh City offers adequate infrastructure such as the Sai Gon port systems, deep seaport access from Vung Tau port systems, Tan Son Nhat international airport, and possible Long Thanh international airport project, Saigon railway station, the expressways, etc, connecting the city to neighbouring countries in the region and other part of the world.  Through setting up factories in industrial zones, processing zones, local and international manufacturing companies could take advantage of high quality labor resources at reasonable cost and move the finished goods to final destinations in US, EU with reasonable lead-time and expenses.  Consequently, the city has become leading industrial city of Vietnam, contributing more than 30% industrial production, 30% GPD and 30% national income to the country’s total.

Ho Chi Minh City is also a financial center, which the biggest stock exchange is located.  Many corporations, and investment companies has chosen Ho Chi Minh City to set-up management and investment offices to search for opportunities,  conduct Merger and Acquisitions and other business transactions, to leverage the annual growth of the country at more than 6%.

At the same time, the city government has been improving policies to support the removal of difficulties for foreign-invested enterprises investing in Vietnam  through fixing administrative procedures to shorten the administrative process, saving time for investors, offering “one-stop” mechanism at the main state agencies.

Our professional consultants and lawyers have assisted a number of foreign companies and individuals to conduct transactions, set-up companies, make investment through M&A, and actively involve in the development of Ho Chi Minh City in particular and the whole country.

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Benefits of Investors in Setting up a Business in Da Nang

Da Nang is one of the five major cities in Vietnam, having a geographical location that is particularly conducive to rapid and sustainable economic development. Da Nang has important transportation routes such as the China-ASEAN international railway crossings, seaports and international airports.

Da Nang is one of the tourist centers of the country, has rich tourism potential including natural tourism resources and humanities. Da Nang has many famous scenic spots such as Hai Van pass, Son Tra mountain, Ba Na hills, Ngu Hanh Son, Cham Museum or My Khe beach have been voted by Forbes magazine as one of the six most beautiful beaches in the world. These conditions are favorable for the development of diversified forms of tourism such as travel, research, cultural.

Da Nang have infrastructure development, four types of roads are popular: high way, rail way, International airport and International sea way. Da Nang have the sea lanes to most major ports in Vietnam and around the world. It helps investor more convenient to travel everywhere in Vietnam and other countries. Moreover, Da Nang’s water supply, electricity supply and communication system has developed rapidly and is increasingly modernized, ranking third in the whole country after Hanoi and Ho Chi Minh City. Da Nang have Da Nang Port, which help investor in import/export activities easily.

The first advantage of the policy mechanism is that Da Nang has also had great support the mechanism and policies for socio-economic development of Da Nang. Since Da Nang was recognized as a national grade I city in 2003, Da Nang has implemented guidelines, regulatory directions and the issuance of specific regulatory mechanisms. With the support from the Central Government, Da Nang authorities have also developed appropriate policies and mechanisms to facilitate the development of the economy, such as the one-stop-shopping mechanism, so Da Nang which is considered as a locality with attracting investment policies in Vietnam. Examples: Procedures related to investment, investment locations, clearance and handover plan, the granting of business registration certificates and investment preference certificates shall be carried out under the one-stop-shopping mechanism at the provincial municipal all of them are resolved at Da Nang Administration Center. Investors shall be exempt from all expenses related to the settlement of investment procedures apart from the payment of business registration fees according to the provisions of law. When investing in Da Nang, investors not only enjoy many preferential policy from city government but also have chance to find clients from many countries or compete with other companies in Vietnam and foreign countries.

Tradition of unity, consensus of people and the dynamism and creativity of the leadership, these advantages has aroused, mobilized the strength, the most important and decisive resource for the development of Da Nang. The determination of leaders, city authorities in building programs, projects with the support of the people, investors, enterprises, ect that help investors who will invest in Da Nang have highest benefits.

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