Vietnamese Dong News VNC – the currency that could.

7Jul/14Off

Gold price falls before the pressure from stock

07/07/2014 16: 03

(TBTCO)-in the context of the US stock indices continued to conquer the new peak, the price of gold on the Asian market in session today plunged 7.7 dollars per ounce compared to closing price last week. While the domestic gold price lost only 40 JOINT thousand VND/quantity.

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At the time of 13 hours 35 minutes this afternoon (July 7), the price of gold JSC listed on the system board of the company's online trading gold and silver in Sai GON stood at 36.66 36.78 million energy-(buy-sell out), plummeting 40 thousand, the amount in the sold out on and 60 thousand VND/amount in buy-in. Developments are making gold JSC are increasingly farther than about landmarks close to 37 million, the amount to be established since the beginning of last week.

At the same time, the price of gold JSC listed on the DOJI system nationwide stood at 36.73 million price/volume in sales and 36.68 million amount in odd-dimensional transaction bought on, 36.69 million amount in afternoon trade deals to buy into. Also in the company Phu Nhuan gold and silver, the price of gold also listed JSC about 36.69 million level of 36.75-.

The trend of the domestic gold price this morning have mitigated than many of the gold price trend on Asian markets.

Specifically, at near 8 a.m. 7/7 (now Vietnam), on the electronic trading platform in Singapore, the price of gold for immediate delivery fell 0.2% to,94 1,317 dollars per ounce and came at 12: 35 p.m., the price of gold has plunged to about the level of 1,321, 13 USD per ounce-reduced 7.7 dollars per ounce compared to closing price last week.

According to the exchange rates of the commercial banks, the price of gold for immediate delivery on the Asian market is now equivalent to the level of 33.74 million-lower gold price JSC sold about 3.04 million, the amount. The distance difference is stretch more 610 thousand, compared to the amount of difference in the closing session of last week (5/7).

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Gold price performance JSC in 10 days. Source: jsc.com.vn

The trend of the current gold price is said to be stricken from the pressure up points of us stock market and Asia.

Specifically, on the weekend before the u.s. stock market has recorded a score in the key index's record Dow Jones Industrial Average first conquer mold 17,000 points, as well as the strong rise of the other stock index.

This performance of the US market starting from the receipt of information the American job market rise sharply beyond the expected in June. According to the U.s. Department of labor, the unemployment rate of the world's largest economy in June has dropped from 6.3% rate of 6.1% down may, as 288,000 new jobs were created in June--a number beyond what is expected of an expert.

Only within 40 minutes session on March 7, after the above information was announced, the Dow Jones has turned up 74.56 points, up .26 17,068 points – the highest level in history and marked the first time the index rolling mold 17,000 points.

Both the four trading sessions the week before (u.s. stocks closed holiday independence in last week's session 4/7), the Dow Jones increase was a total 216.42 points (1.28 percent).

Meanwhile, the S & P 500 closed the session 3/7 also increased 7.01 points (0.36 percent) to 1,985 .44 points. Both the S & P 500 last week, also rose 24.48 points (1.25 percent) was up .44 1,985 points. The Nasdaq technology index also rose 2.0 points (88%) of being up the latch and latch week at 4,485 .93 points.

The trend of the gold price with the forecast will bear the pressure off was pretty much the comments analyze which TBTCO given in gold market news late last week.

According to the opinions, analysis showed positive reports on the labor market in June is signal the latest in a series of positive economic indicators recently that the u.s. economy is going up steadily.

This indication is not only makes the stock market lured cash flows source arrays this investment, but also raised speculation that the Federal Reserve (the Fed) will soon increase the basic rate.

As a result, the price of gold continues to get going "bad" than this week, without any surprise from the factors of tension in Iraq and Ukraine./.

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1Jul/14Off

Time bomb laid in foreign currency credit market

Last update 15:12 | 30/06/2014

VietNamNet Bridge – The dollar lending interest rate is lower by at least 3-5 percent annually than the dong interest rate, which is the reason for the sharp increase in the ratio of the dollar outstanding loans on dollar deposits from 84.3 percent in early 2014 to 99.5 percent in early May 2014.

Weaker liquidity – the imminent worry

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credit market, foreign currency

A report of the National Financial Supervisory Council showed that by early May, while deposits in foreign currencies had decreased by 9.1 percent in comparison with the end of 2013, outstanding loans in foreign currencies had increased by 7.2 percent.

The report also noted that, since early April, the interbank dollar interest rate has increased from 0.3 to 0.5 percent annually.

Meanwhile, the dong interest rate curve has moved in the opposite direction: while dong-based outstanding loans increased by 2.6 percent, dong deposits increased by 3.5 percent, lowering the ratio of dong outstanding loans to dong deposits from 82.4 to 79.9 percent.

There exists a big gap between the dong and dollar lending interest rates. According to the State Bank, in the week of June 9-13, the dong short term interest rate hovered around 9-10 percent, with the long term interest rate at 10.5-12 percent per annum. Meanwhile, the dollar interest rates were 3-6 percent and 5.5-7 percent, respectively.

The low dollar interest rate obviously has made dollar loans more attractive.

The director of a major bank in Hanoi said he received a report indicating that the foreign currency loans of the whole banking system in the first half of 2014 surged by 10 percent over the end of 2013, but that the mobilized capital growth rate was negative during the same time.

The banker himself admitted that the high growth rate of foreign currency lending is not good at all.

“If banks’ loans exceed their capital mobilization capability, they will surely face a liquidity risk,” he said, adding that the State Bank is not equipped to offer support to banks which run into problems with foreign currency liquidity.

Banks slash dong interest rates, hesitantly

The State Bank has admitted to high risks for the national economy when businesses continue to prefer foreign currency loans.

At a government meeting in May, governor of the State Bank Nguyen Van Binh said that economists have urged the central bank cut the dong interest rate further, in order to ease the capital cost burden on businesses’ shoulders. However, Binh said, the State Bank still needs to consider the issue thoroughly, because this may affect the dong’s position in the long term.

The central bank, therefore, has had its reasons for maintaining a high dong deposit interest rate vis-à-vis the dollar interest rate. This has made it more profitable for people to keep dong, thus prompting them to sell dollars to banks in exchange for dong.

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1Jul/14Off

6 months made investment reached more than 500 trillion

01/07/2014 16: 47

(TBTCO)-General Statistics Office said, the investment in 6 months the whole society by 2014 under the current price was estimated at 502.5 trillion, an increase of 8.2% compared with the same period a year ago and by 30.1% of GDP.

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Investment of the whole society made up in the first year. Photo: TEL

In it, which the public sector reached 198.2 trillion, accounting for 39.5% of the total capital and increased 9.5% over the same period of the previous year; capital area outside the State reached 178 thousand, accounting for 35.4% and 7.9%; which areas of foreign direct investment reached 126.3 trillion, accounting for 25.1% and 6.5%.

In the capital of public sector, capital from the State budget in 6 months is estimated to hit 90 trillion, with 48.6% of the plan and an increase of 1.6% compared with the same period in 2013.

In particular, the central capital reached 20,787 billion, with 52.6% of the plan and up 1.7% over the same period of the previous year, in which the investment was made by the Ministry of transportation's 2,861 billion; The Ministry of agriculture and rural development of 1,661 billion; The build 939 billion; The Health Ministry 395 billion; Ministry of natural resources and environment, 322 billion; The Ministry of education and training at 268 billion and. ..

Local fund managers reached 69,214 billion, with 47.5% of the plan and increasing 1.6 percent compared to the same period in 2013. In particular, provincial State budget reached 48,126 billion, with 46.2% and 2.2%; capital-level State budget reached 17,058 billion, with 49.9% and 1.4%; capital-funded social reach 4,030 billion, with 54.6% and decreased 3.5%./.

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1Jul/14Off

Stock market raises $6b in first half

Last update 17:00 | 01/07/2014

VietNamNet Bridge – Viet Nam's stock market raised VND127 trillion or US$6 billion in the first six months of this year, up 3 per cent year over year.

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Viet Nam's stock market raised VND127 trillion or US$6 billion in the first six months of this year, up 3 per cent year over year.— Photo fica

According to the statistics of the State Securities Commission (SSC), restructuring the stock market together with developing new products, including derivatives and exchange-traded funds, to improve the market liquidity continue to be the major tasks during the rest of the year.

The Commission said it would cooperate with international consultant organisations on implementing measures to upgrade the level in the Morgan Stanley Capital International (MSCI) indexes, which is the world's leading provider of investment decision support tools.

This, coupled with the expected regulation of rising foreign stakes at listed companies, aimed to improve the foreign capital inflow in the stock market.

SSC would also cooperate with the State Bank of Viet Nam in controlling the capital inflow from banks to the stock market to ensure securities and limit cross-holdings.

SSC also said that the foundation of a fund to protect investors in case of bankruptcy would be put into consideration, together with setting up pension funds and regulations about credit rating.

In the first half of this year, exchanges held share auctions for 48 companies, 31 of which were wholly State-owned enterprises, the Commission reported.

The total equitisation value reached more than VND2 trillion or $946.5 million, a three-fold increase year over year.

Currently, there are about 662 companies listed on the two national stock exchanges, after seven more companies were added and 22 delisted from exchanges in the first six months of this year.

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26Jun/14Off

Dr. Doom tips Vietnam investments

Last update 09:31 | 26/06/2014

VietNamNet Bridge – Legendary global investor Dr. Marc Faber has recommended Vietnam as a solid investment as he believes the country offers attractive opportunities in the long run.

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Despite his reputation for gloomy predictions, Dr. Marc Faber provided a sterling recommendation of Vietnam’s long-term investment potential.

As the keynote speaker at the Vietnam Investment Forum 2014, co-organised by Vietnam Investment Review, HVS Vietnam Securities Co. and Hong Kong-based Asia Frontier Capital (AFC), the investment guru focused on global macro-economic trends and geopolitical as well as financial trends. He also analysed the Vietnamese stock market.

“Vietnamese work hard and they have ambitions. Investors like countries with highly ambitious people,” said Faber, chairman of both Indochina Capital and the Dragon Capital-managed Vietnam Growth Fund. The investment guru has been involved in Vietnam since the early 1990s when Indochina Capital built their first project at the Furama Resort in Danang. After selling this resort, the firm then built the nearby luxury Nam Hai retreat. Indochina Capital are also investors in the Hyatt Hotel in Danang.

Faber also tipped the Vietnamese stocks as a good bet, citing their 8 per cent rise this year despite tensions in the East Sea. He added that they had out-performed the S&P 500 in the US and the Russell 2000. However, Faber remained down-to-earth about prospects claiming he thought a significant growth in value was unlikely, but there was little significant downside risk. Faber added the market was now as strong as it had been in 2012 and 2013 and as of April this year, it was one of the best performing markets in the world.

Faber and leading foreign and Vietnamese experts skirted around the issue of whether the world economy had entered the terminal phase of a gigantic credit and asset bubble. Instead, the Swiss analyst who publishes the widely-read monthly investment newsletter, The Gloom Boom & Doom Report, pointed out that universal problems affected both developed economies and emerging markets. He also stressed some of Vietnam’s strengths.

Vietnam has shown “stunning export performance,” Faber said. Since mid-2008, the export index of Vietnam has exceeded the average for emerging markets, and Vietnam’s export index now stood at about 270, almost double the emerging market average of 140.

Why Asian frontier markets?

Addressing about 500 attendees at the forum, Thomas Hugger, CEO of Asia Frontier Capital (AFC), said the first reason for increased interest in Asian frontier markets was the low correlation and diversification at attractive valuations.

Asian frontier markets offer attractive dividend yields and low price to earnings and price to book ratios, he said. “Asian frontier markets are attractively valued relative to emerging Asian countries.” For example, Vietnam’s VN Index as a frontier market has a dividend yield of 3.5 per cent. While among emerging markets, Thailand’s SET Index has a dividend yield of 3.2 per cent, Malaysia’s FBMKLCI Index scores 3.1 per cent, and India’s BSE SENSEX records a 1.4 per cent yield.

The second reason is the excellent upside potential due to high GDP growth. Hugger said a GDP growth of 6.4 per cent was expected in 2014 for the AFC frontier universe, consisting of Mongolia, Laos, Cambodia, Myanmar, Sri Lanka, Iraq, Papua New Guinea, Bangladesh, Vietnam, the Maldives and Pakistan.

The third reason is favourable demographics. Compared to developed markets, the AFC frontier universe has a much younger population increasing at a faster rate. This supports future economic growth and consumption.

The shift in manufacturing from China is another reason. The combination of young workforces and low wages is attracting manufacturing to Asian frontier countries as wages in China increase and the workforce gets greater employment opportunities, Hugger explained. “Bangladesh and Vietnam are good examples of the shift of manufacturing from China to neighbouring countries.”

Increasing consumption is luring investors to the frontier markets, he added. “Asian frontier consumer stocks are undervalued and have the potential to catch up with comparable emerging market valuations.” For Vietnam, Mongolia and Sri Lanka, the dividend yields from consumer food products are 6.2 per cent, 0.6 per cent and 1.5 per cent, respectively.

Why Vietnam?

VinaCapital Group founder and CEO Don Lam said Vietnam was already a destination for foreign capital flows.

He said foreign direct investment (FDI) commitments to Vietnam remained unchanged. The Ministry of Planning and Investment (MPI) announced disbursed FDI reached $4.6 billion during January-May, up 0.4 per cent year-on-year.

As for portfolio investment, local participants in the Vietnamese equity markets drove the sell-off, said Lam. Foreign investors have been net buyers on the Ho Chi Minh Stock Exchange every day since April 18, the longest stretch of purchases since January, as valuations declined to a four-month low. They added about $108 million to their holdings even as the benchmark VN Index slumped 2.2 per cent.

The index has dropped 9 per cent from this year’s peak of 608 points on March 24. The gauge of Vietnam’s $52 billion stock market has a price-to-earnings ratio of 13.1, the lowest level on a weekly basis since January. That compares with a multiple of 14.8 for the MSCI Southeast Asia Index. But Lam noted that the VN Index was expected to reach 640 points for this year, up 10 per cent from February, and 27 per cent from December.

The VinaCapital CEO remarked that in an encouraging development for FDI inflows, the head of Samsung Global Strategy Group had announced that his company would make multi-billion dollar investments in Vietnam in areas other than cell phones and electronic equipment. It would diversify into the construction of thermal power plants, shipyards, airports, and petrochemical factories. Samsung was committed to making Vietnam its production hub in Asia with the capacity to supply half of global sales in cell phones.

“We project a GDP growth rate at 5.5-6 per cent for 2014,” Lam said.

New opportunities from stock market

State Securities Commission chairman Vu Bang said the number of investors in the Vietnamese stock market had increased from 3,000 accounts in 2000 to over 1.3 million accounts now, including 16,000 foreign investor accounts.

He added that Vietnam would issue a new law on securities in 2017 with a broader scope in line with international practice. All securities activities will be revised to make sure they were effectively linked with the financial market’s service sectors.

Vietnam is developing government, local and corporate bond markets, upgrading the government bond trading system via an online trading system and Bond Index, as well as connecting with Bloomberg. It is developing a corporate bond market via granting an issuance registration certificate prior to allowing the issuance of corporate bonds.

The country is also developing a standardised derivatives stock market. Bang said in the short term, derivative securities would be applied through the securities and bond indexes, but in the long term, all derivatives would be united with securities, goods and money under a single market.

Vietnam is building a shared set of indexes for the whole stock market including both stock exchanges in Hanoi and Ho Chi Minh City, and also building a set of bond indexes.

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26Jun/14Off

Balance of trade surplus more than 1.45 billion

26/06/2014 17: 24

(TBTCO)-according to figures published by the customs administration, as of end August 15/6/2014, the total import-export turnover reached over 127.63 billion dollars, an increase of 12.9% (14.57 billion) compared with the same period a year ago. Balance of trade surplus has more than 1.45 billion dollars.

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Cargo import and export activities in the port of Haiphong. Photo: British Navy

The total export turnover of the country reached over 64.54 billion, an increase of 15.4% (8.61 billion respectively). In particular, FDI volume totaled 39.78 over exports increased 17.7%, GBP (respectively near 5.98 billion u.s. dollars) and accounted for 61.6 percent of the total value close to the export of the country.

However, Vietnam's exports in early June only reaching over 5.78 billion dollars, down 20.4% (proportionally more than 1.48 billion dollars) compared to 15 last day of May.

According to the General Department of customs, the export turnover in 15 days early June slumped by: crude oil fell 325 million, mobile phones and accessories fell 197 million dollars, seafood down 127 million, computers, electronic products and components decreased 116 million, footwear types lose 76 million USD, means of transport and spare parts fell 72 million dollars, rice fell 65 million ...

Only a few groups have increased turnover as: iron ore and other minerals increase the 8 million ...

As of September 15/6, total import turnover reached more than commodity 63.09 billion dollars, an increase of 10.4% (respectively over 5.96 billion US). Even so, the import turnover in the first days of March 15, 2014 has also reached more than 5.97 billion dollars, down 12.5% (respectively falling 850 million dollars) compared with the second half of May.

Import turnover decreased primarily due to the means of transport and reduce 150 million, motorcycle parts and components fell 65 million, automotive parts, components and accessories fell 65 million USD; Automotive resources the kinds falling 59 million; other commodity groups, particularly rising 459 million ...

A number of other groups have increased turnover compared with the last half of may's seafood (79 million dollars), milk and dairy products (up 62 million US dollars).

According to the General Statistics Office, import-export turnover of the country the first in 2014 reach 140.5 billion dollars; of which, exports reached 70.9 billion dollars, imports reached 69.6 billion.

So, 6, the country exported 1.3 billion estimated to reach transcendence. In it, the area of foreign direct investment are super to 8.5 billion dollars and the domestic sector continued deficit to 7.2 billion dollars.

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26Jun/14Off

EU pledges US$736 million in ODA for 2014

Last update 09:56 | 26/06/2014

The European Union (EU) has committed EUR542 million (US$736 million) in official development assistance to Vietnam this year, and the level of aid would also be maintained for the coming years.

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The information was announced by Dr Franz Jessen, Ambassador-Head of the Delegation of the EU to Vietnam, at a ceremony on June 25 to launch the Blue Book 2014, an annual report on the EU development cooperation in Vietnam.

The EU would also sign the Free Trade Agreement (FTA) with Vietnam before the end of this year as a way of supporting the country to develop its trade ambitions and international commitments. The FTA negotiations are expected to be concluded by autumn this year.

The EU has remained the leading provider of development assistance to Vietnam, with a total of US$619.8 million of disbursement in 2013, he said.

The ambassador said the organization had met some barriers accessing relevant authorities and sectors and solving disbursement procedures, so the disbursement figure was low compared to the pledged aid.

Apart from giving non-refundable aid to Vietnam, the EU focuses on commercial cooperation with the country to help it stabilise the economy. He said that the tense standoff between China and Vietnam on the East Sea and the Japanese Government’s decision to halt ODA to Vietnam due to alleged bribery on railway projects would not affect the EU’s aid to Vietnam in the next year.

The EU has been Vietnam’s largest trade partner in recent years, with the country’s export turnover to the EU reaching US$ 25 billion last year.

This year, the EU has focused on eradicating poverty among ethnic minorities, which was featured in the Blue Book 2014.

Although important progress has been achieved in reducing poverty among ethnic minorities, the percentage of poor people is still much higher than rest of the nation.

The book included some of the challenges Vietnamese Government faces, and suggestions to overcome them.

In 2013, the EU and its members disbursed EUR56.5 billion (US$76.8 billion) globally as the world’s largest ODA provider, despite being seriously affected by the economic crisis.

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23Jun/14Off

FDI into Ho Chi Minh City, up 202 percent compared to the same period

 

Vốn FDI vào TP. Hồ Chí Minh tăng 202% so với cùng kỳ
22/06/2014 20: 24

(TBTCO)-Chairman of Ho Chi Minh City Le Hoang Quan said, the sources of FDI continued to rise sharply in the early months of 2014 is not only economic but also demonstrate the investment environment of the HO CHI MINH CITY.Ho Chi Minh City and Vietnam's generally very safe, attractive.

Specifically, in just over 5 months of the year, there were 169 new FDI projects were granted with total registered capital of 967 million, with 423% in 2013. In addition, there are 53 investment projects adjusted capital gains with capital increased by 110 million dollars.

The general situation, investment FDI in receiving from the beginning of the year reached approximately 1.08 billion dollars, with 202% over the same period last year.

To attract investment, Ho Chi Minh City currently has more robust policies to improve investment environment, such as the reform of administrative procedures, reducing the time permitted.

Reportedly, on 21/6, Ho Chi Minh City PEOPLE'S COMMITTEE has also awarded certificates for investment in projects with a total FDI capital in both the new and the capital increase more than 220 million.

In particular, there are three new investment projects: German homes Ltd. (38.9 million dollars); Aeon co., Ltd Vietnam (128.5 million dollars); Nickel co., Ltd Vietnam (US $ 711,000); 2 increased capital projects: Aeon co., Ltd. (43.3 million dollars); Freetrend Industrial Co., Ltd (8 million USD)./.

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23Jun/14Off

Monthly CPI rises in major cities

June, 23 2014 08:03:00


The Ha Noi Statistics Department reported that the capital's CPI in June edged up by 0.08 per cent over May and 1.16 per cent against the same period last year.— Photo TNMT

HA NOI (VNS) — The month-on-month consumer price indices (CPI) in the country's two biggest cities in June increased after being down for several months, according to statistics departments of Ha Noi and HCM City.

The Ha Noi Statistics Department reported that the capital's CPI in June edged up by 0.08 per cent over May and 1.16 per cent against the same period last year.

It said the development of the CPI in June this year was similar to the rate in June last year, and also increased after reduction in previous consecutive months, reported the Thoi bao Kinh te Viet Nam (Vietnam Economic Times) newspaper.

Nine out of the 11 baskets of goods, which contribute to the calculation of the capital's CPI data, saw an increase in prices this month. Among these, the prices of building materials, electricity, tap-water and fuel reported the highest increase of 0.84 per cent against last month.

After an increase last month, the price of gas continued to surge since June 1 by VND50,000-60,000 per 12-kg gas tank due to higher import prices.

This June also saw a surge in the prices of cultural, sports and entertainment products, as it did in June last year with a rate of 0.54 per cent because prices of domestic and foreign tours increased. The prices of tickets for entertainment products also increased on the occasion of International Children's Day on June 1.

The hot weather also resulted in an increase in prices of categories of beverages and tobacco products and of garments, hat and footwear products up to 0.45 per cent and 0.41 per cent, respectively, against last month.

Meanwhile, prices of postal and telecom products dropped 0.17 per cent and categories of rice and food products reduced by 0.27 per cent.

Gold prices in Ha Noi dropped 0.82 per cent while the US dollar surged 0.36 per cent as compared with last month.

HCM City Statistics Department also reported an increase of 0.58 per cent in the city's CPI for June against last month. The index had a year-on-year surge of 1.1 per cent.

The increase was expected due to a decision permitting an increase in the cost of health care services in the city since June 1.

Therefore, the categories of medicine and health care services had the highest price increase of 8.69 per cent among the 11 baskets of goods, which contribute to the calculation of the city's CPI data, against last month. Rice and food items came second with a rise of 0.53 per cent, as the price of food items was up. But the price of rice reduced slightly due to stability in supply as the Cuu Long (Mekong) Delta provinces finished harvesting rice of the winter-spring crop.

The categories of housing, building material, electricity, tap-water and fuel had the third highest increase in prices at 0.44 per cent in June compared with May.

HCM City had three categories of goods that reported reduction in prices this month. Cultural, sport and entertainment products were down 0.13 per cent due to the low demand for tourism by the people, while postal and telecom products were down 0.35 per cent and beverage products down 0.05 per cent.

In June, gold and US dollar prices in the city rose 2.7 per cent and 0.86 per cent, respectively, against last month. — VNS

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23Jun/14Off

Bac Ninh, Thai Nguyen compete for huge Samsung project

Last update 15:00 | 23/06/2014

VietNamNet Bridge – Bac Ninh and Thai Nguyen provinces are competing to win the contract for a new Samsung investment project that involves manufacture of hi-tech screens.

Samsung project, Bac Ninh, Thai Nguyen
Samsung project, Bac Ninh, Thai Nguyen

Sources said the “super project” that Bac Ninh and Thai Nguyen are trying to scramble for is Samsung Display, specializing in making screens of different kinds with advanced technologies.

Sources from Bac Ninh said the project is capitalized at $1 billion, while Thai Nguyen provincial authorities said the total investment capital is about $1.7 billion.

Though many cities and provinces wish to have Samsung’s project in their localities, Bac Ninh and Thai Nguyen are the candidates with the most potential.

They both have been serving as the South Korean group’s production bases in Vietnam for the last several years.

In Bac Ninh, the giant Korean company now runs SEV, a technology complex which has registered investment capital of $2.5 billion.

By the end of 2013, Samsung had disbursed $1.7 billion for SEV, which started its operation in April 2009. It has committed to disburse the remaining $800 million from now to 2017.

In 2013 alone, SEV exported $24 billion worth of products, making up 18.07 percent of Vietnam’s total export turnover of the year. The project created 43,000 jobs.

Samsung also has a hi-tech production complex – SEVT – covering an area of 112 hectares in the Yen Binh Industrial Zone in Thai Nguyen Province.

After local authorities created favorable conditions for Samsung to implement its project, the investor built a mobile phone factory in a rush and put it into operation in March 2014. The other two factories, capitalized at $1.38 billion, will be completed by September.

Investment incentives

In order to attract the project, Thai Nguyen authorities have decided to expand the Yen Binh Industrial Zone by 70 hectares.

“Everything is nearly ready for the 70 hectare land plot, including cleared land, infrastructure items (electricity, water) which can be allocated to the investor soon,” said a senior official of the provincial authorities.

The local authorities have also offered a preferential infrastructure lease to Samsung’s projects.

Meanwhile, Bac Ninh has promised to reserve a land area of 46 hectares in the Yen Phong Industrial Zone for Samsung projects, which are hoped to create 8,000 more jobs by 2020.

If Samsung chooses Bac Ninh, it would be able to enjoy attractive investment incentives designed specifically for hi-tech firms.

As for tax rates, Bac Ninh hopes it would get the nod from the Prime Minister on its proposal to apply the preferential corporate income tax of 10 percent for 30 years for Samsung.

Phap Luat

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