E-newsletter 1-2019

EVENTS

The Groundbreaking ceremony of the New Ready-Built Factory took place in the morning of 5 June, 2019 at Protrade International Tech Park (PITP) in Binh Duong Province. The Project was developed by our Protrade International One Member Co., Ltd, which was honors with attending the event by representatives from Mr. Nguyen Dong Danh - Binh Duong Industrial Zone Authorities, Tran Quang Canh (ROY) – ATAD Steel Structure Corporation and APAVE Project Management Team, together with partners and customers.

With demand increasing of foreign SMEs entering into Vietnam recently, PITP-a new generation Industrial Park - continues providing a High-Quality Ready-Built Factories. The Project has total investment capital of VND 120 billion with having total area of 25,800sqm providing flexible range of size from 1,300sqm onwards. and shall be successfully completed on January 2020.

Specification details as below:

PITP Head emphasized that PITP’s focus is to attract and support the sustainable development and keep our reputation as a strategic green industrial zone developer. PITP is keeping on expanding products, attracting more green investors and creating jobs to contribute a social-development in locality.

With our experiences on industrial development, we believe that our customers will satisfy with what we are providing as high quality, well-designed facilities as well as providing great services to help you to minimize risks during investing in Vietnam.

For inquiries, please contact us by:
Email: marketing@pitp.com.vn
Hotline: 090 663 8000

On Monday, 23 May, 2019, Kitech Industrial (VN) Company Limited organized Groundbreaking Ceremony for their new factory at Lot No. 19-1, Road No.11, Protrade International Tech Park, An Tay Commune, Ben Cat District, Binh Duong Province. This Taiwanese Company is manufacturing on the land of 49,702.3 sqm with the expected production industry including exporting kitchen accessories, stainless steel products for kitchen, closet and canteen.

On Tuesday, 14 May, 2019, Carbotec Industrial (VN) Co.,Ltd organized Groundbreaking Ceremony for their new factory at Lot No. 19-2, Road No.11, Protrade International Tech Park, An Tay Commune, Ben Cat District, Binh Duong Province. This Taiwanese Company is manufacturing on the land of 50,967 sqm with the expected production industry including carbon forks, frames, rims, wheels, sport & medical equipment for the cars, bicycles and motorcycles.

NEWS

VIETNAM STAYS ATTRACTIVE TO FOREIGN INVESTORS AMID TRADE WAR: ECONOMIST

Source: VOV

The expert told Vietnam Economic Times that most multi-national companies will continue restructuring their supply chains to reduce dependence on China, and ASEAN countries will benefit from this diversification.

In this context, Vietnam has emerged as a big beneficiary, he said, noting that the trade tension’s impact on the country’s growth rate will be eased thanks to the shift and diversification in global trade and investment.

Chua said recent data has illustrated this forecast. Foreign direct investment (FDI) in Vietnam set a new record in the first four months of 2019 when foreign investors registered 7.45 billion USD in new and additional capital – up 29 percent year on year.

They also registered 7.1 billion USD to buy shares of Vietnamese firms, rising more than three-fold from a year earlier.

The country’s exports of apparel, wood products, computer and electronic components, and Hot lines to the US are also growing sharply while similar commodities from China are now subject to higher tariffs due to the trade war.

The economist expressed his belief that FDI to Vietnam will continue increasing and support GDP growth this year.

Even when a US-China trade deal is signed in the next several months, multi-national companies planning to make new investments are still likely to apply a “China Plus One” strategy to reduce their vulnerability to any trade tensions in the future, and Vietnam is emerging as a “Plus One” destination, Chua added.

For further reading

PM WELCOMES THAI GROUPS TO INVEST BIG IN VIETNAM

Source: VOV

At a reception for leaders of Thai groups having invested in Vietnam in Bangkok on June 23 on the sidelines of the 34th ASEAN Summit, PM Phuc suggested them expand investment in high-tech and environmentally friendly fields.

He affirmed that the Vietnamese Government will create all possible favourable conditions for Thai investors to successfully do business in Vietnam, especially in the realms of the Government’s top priorities.

Vietnam will not receive foreign direct investment at all costs, but only welcomes high-tech, environmentally friendly and energy-saving projects, he stressed.

A leader of the beverage company ThaiBev asked the Vietnamese Government to support it to invest in other fields apart from beverages as well as increase its ownership ratio in the Saigon Beer-Alcohol-Beverage Corporation (Sabeco).

ThaiBev said it will respond to the Vietnamese Government’s suggestion of investing in waste and plastic treatment, and environmental protection.

The Amata group’s leaer wants to invest in building smart cities, while the Siam Cement Group said it will consider investment in high technology fields.

For further reading

EUROCHAM ENHANCES COOPERATION WITH THE VIETNAMESE GOVERNMENT ON THE EVFTA AND FOREIGN DIRECT INVESTMENT

Source: Eurocham Vietnam

On the 3^rd and 4^th of June 2019 in Hanoi, EuroCham Chairman Nicolas Audier, Vice Chairmen Jean-Jacques Bouflet and Ywert Visser, together with representatives from other affiliated Business Associations including Mr. Alexis Delevaux, BeluxCham Vice Chairman, Mr. Thue Quist Thomasen, NordCham Vice Chairman, and Mr. Csaba Bundik, CEEC Vice Chairman, held a series of ministerial meetings with Government authorities, including the Ministry of Planning and Investment (MPI), the Ministry of Finance (MOF) and the Ministry of Justice (MOJ). At the provincial level, EuroCham also held a meeting with the Hanoi People’s Committee (HNPC).

In the meeting with the Minister of Planning and Investment, Nguyen Chi Dung, EuroCham had an open discussion on the policy of FDI attraction towards advanced technology, environmental friendliness and high added value. In addition to this, EuroCham and MPI both agreed on collaboration in advocacy, providing training sessions for capability enhancement in making the most of the EU-Vietnam Free Trade Agreement (EVFTA). MPI also suggested EuroCham share its expertise on Industry 4.0 and contribute initiatives to the Government’s five-year socio-economic plan and ten-year National FDI attraction strategy to assist MPI in preparation for the Party Central Committee’s Plenum in 2021. MPI also expects EuroCham to take a leading role and uplift its advisory function to a more macro-level in order to better support the Government.

For further reading

INVESTMENT FROM CHINA, HONGKONG IN H1 SURPASSES 2018

Source: vietnamnet.vn

Vietnam attrached a total of US$7.5 billion in fresh investments from China, including Hong Kong, in the first half of this year, which is more than 30% higher than in all of 2018.

Of the total, US$5.3 billion was pledged by investors from Hong Kong and US$2.2 billion from mainland China. The two numbers surged and doubled those recorded seen in 2017, respectively, Nguyen Viet Phong, head of the GSO’s Construction and Investment Capital Statistics Department, said at a press briefing last week.

The number of newly approved projects of Chinese and Hong Kong firms and their registered capital in the six-month period doubled those in the same period last year.

The investment has also put pressure on domestic firms. Moreover, Vietnam has signed multiple free trade agreements with other countries. If local enterprises do not make preparations, they will lose opportunities to foreign rivals.

The China-U.S. trade war is also getting more complicated. So Vietnam should keep a close watch on local and global markets and issue appropriate policies, according to GSO. SGT.

For further reading

PROPERTY MARKET HEATS UP IN BINH PHUOC PROVINCE

Source: VIR

The Property market in the southern province of Binh Phuoc is expected to heat up because of industrial zone planning from now to 2030, according to experts. The Province plans to establish 35 industrial clusters in its 11 districts and towns by 2030, whose combined capital requirement will be 5.9 trillion VND (260 million USD). Of the 35 clusters, 21 will be built on 583 hectares of land in the 2020-2025 period as well as Hoa Lu Border Economic Zone with a total area of 28,000ha. From 2025 to 2030, another 14 industrial clusters include agro-forestry product processing, and manufacture of rubber and plastic products, metal products, electronic products, engine vehicles, textiles and apparel. These clusters are expected to create around 30,000 jobs.

For further reading

SLICK ACTION REQUIRED BY DEVELOPERS

Source: VIR

As conflicts between high-rise apartment developers and their residents increase, some developers are struggling to improve their professionalism in building management. Ngo Quang Phuc, general director of Phu Dong Real Estate JSC, said that conflicts at high-rise apartment buildings mostly come from very small disputes. However, these small spats can escalate immensely and bring about negative consequences for both developers and buyers. One of the most efficient solutions was to set up a special team of technicians to support residents 24/7. “All problems must be resolved as soon as possible in order to avoid escalating conflicts between developers and buyers,” he said.

Main factors involved:

According to the Ministry of Construction (MoC), conflicts also come up between the building’s developers and their management boards, or developers and apartment residents, as well as disagreements related to land recovery and compensation for land clearance, and building quality.

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