Taiwan’s Formosa permitted to recruit nearly 3,000 foreign workers

The People's Committee in the central province of Ha Tinh September 5 permitted nine contractors of Formosa steel mill project to recruit 2,976 foreign workers. The permission was made at a document signed by the committee's deputy chairman Nguyen Thien. According to the document, the foreign workers will be recruited for construction Formosa steel complex and Son Duong deep-seaport. The project is being carried out by Hung Nghiep Formosa Ha Tinh Steel Company, a subsidiary of the Taiwanese Formosa Group. … [Read more...]

Formosa still committed to US$10bln steel plant

Formosa Plastics Group, the largest industrial conglomerate in Taiwan, still remains committed to the construction of the mammoth integrated steel mill in Vietnam, despite the Vietnamese government's rejection of a special economic zone designation for the project. Dong Nai courts Thai investment IBM helps Dong Nai enhance IT skills US firm expands Dong Nai factory The Taiwanese firm is now the largest foreign investor in Vietnam in terms of the investment capital, based on its US$10 billion steel integrated mill and deep-seaport in the Vung Ang Economic Zone in the central province of Ha Tinh. In additional, the firm has also invested US$900 million in the southern province of Dong Nai for manufacturing yarn and polyester fibers. … [Read more...]

Posco E&C wins contract to construct steel factory

HA NOI (VNS)— Posco Engineering&Construction Co, the construction arm of South Korea's largest steelmaker, Posco, has beat 10 other contractors to secure the US$302 million deal to build the Formosa Raw Material Handling Yard in Viet Nam. Under the contract with Formosa Ha Tinh Steel Corp, an affiliate of Viet Nam's Formosa Group, Posco E&C will build the facility in a steel complex in central Ha Tinh Province. Construction on the project, which will have an annual production capacity of 7 million tonnes per year of crude steel, will begin in February and finish by January 2015.-VNS … [Read more...]

BUSINESS IN BRIEF 20/12

Ministry urges companies to quicken disbursement The Ministry of Construction (MoC) has given warning to companies that have been slow in disbursing funds for public investment projects. In 2012, the MoC received VND1.821 trillion (USD86 million) from state budget for development projects. The money was provided for 23 projects in which the MoC are investors in five projects with investment of VND1.650 trillion. The MoC reported as of November 30, only VND735.172 billion has been disbursed, with several key projects still lagging on their disbursement. For example, VND150 billion was supposed to be invested in the construction of National University campus in Hoa Lac urban area, Hanoi in 2012 but the companies had only spent VND18 billion. The National Museum of History had planned investment for 2012 of VND30 billion but only VND3.4 billion was spent. The National Assembly House project also showed signs of slow disbursement. It was supposed to receive VND1.376 trillion of … [Read more...]

FPG begins constructing steel mill in Vietnam

Construction began Sunday on a blast furnace that will be part of a steel mill complex built with investment by Formosa Ha Tinh Steel Corp., a Formosa Plastics Group (FPG) steel venture in Vietnam. FPG president William Wong said that in the primary stage of construction, the company expects to hire around 10,000 Vietnamese workers. The complex is aimed at turning Ha Tinhi, a province on the country's north central coast, into a key industrial city. Vietnamese Prime Minister Nguyen Tan Dung attended the ground-breaking ceremony for the blast furnace, which is expected to go into operation in 2015. … [Read more...]

BUSINESS IN BRIEF 4/4

VCB to make $1b bond issue Vietcombank (VCB) will issue up to US$1 billion in bonds on overseas markets this year in order to facilitate the bank's foreign currency operations, Vietcombank general director Nguyen Phuoc Thanh accounced at the bank's shareholders' meeting yesterday in Ha Noi. Thanh said foreign exchange operations played an important role in Vietcombank's business, with foreign currency deposits currently accounting for about 30 per cent of the lender's total deposits. Foreign currency lending also made up over 32 per cent of total credit activity. "Raising medium- and long-term capital through issuing international bonds will help balance the budget for foreign currency credit operations," Thanh said. Vietcombank posted a net profit of over VND4.2 trillion ($200.8 million) in 2011. As of December 31 of last year, the lender's total assets were worth VND367 trillion ($17.48 billion), an increase of 19.2 per cent over the previous year. Total deposits rose 16 per … [Read more...]

Untapped region to show best side

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Six northern central provinces will join hands to hold an investment promotion conference on October 17 to woo foreign investors to this untapped region. The provinces include Nghe An, Thanh Hoa, Ha Tinh, Quang Binh, Quang Tri and Thua Thien-Hue. The conference, supported by the Ministry of Planning and Investment (MPI), will offer investors an insight into potential as well as opportunities in the north-central region. "We expect investors will have a comprehensive view about the region and make investment here," said Ho Duc Phoc, chairman of Nghe An Provincial People's Committee. Six provinces are now home to five coastal economic zones including Nghi Son in Thanh Hoa, East-South in Nghe An, Vung Ang in Ha Tinh, Hon La in Quang Binh and Chan May-Lang Co in Thua Thien-Hue. The zones, where investors can enjoy the highest tax incentives regulated by the governments, have big advantages for attracting investors. Furthermore, transport infrastructure in the region has been … [Read more...]

Steel giant heads abroad for forex

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Formosa Ha Tinh Steel Corp has set its sights on increasing exports as a way of maintaining its much-needed foreign exchange balance. illustration photo The move follows the Vietnamese government's thumbs down on the company's requests for a mechanism that would see its dong earnings converted into forex. Last year, the Taiwanese investor made a concerted push to obtain foreign exchange balance support from Vietnamese authorities. The company needs to guarantee it has enough capital to import raw materials required to run its mammoth steel complex in central Ha Tinh province's Vung Ang Economic Zone (VAEZ). According to the firm (FHS), the company needed $2.8 billion a year to import iron ore, coke coal and other materials for its $16 billion steel project, which had the capacity to produce up to 7.5 million tonnes of steel in the first phase of operation. The first phase, developed to the tune of $8.9 billion, is scheduled to start commissioning from around 2013. FHS will be … [Read more...]

Formosa’s FX fears

Taiwan's Formosa is seeking Vietnamese authorities' support to mobilise foreign currency to run its giant steel complex in central Vietnam. According to Chu Xuan Pham, representative of the Formosa Ha Tinh Steel Corp. (FHS), the Taiwanese firm would need $2.8 billion a year to import iron ore, coke coal and other materials for its Vung Ang Industrial Park-based steel plant in Ha Tinh province, to produce 7.5 million tonnes of steel in the first phase of operation. The first phase, which has a total investment capital of $8.9 billion for building a port, a steel plant and a power plant, is projected to be commissioned from 2013. Pham said that after putting the plant into operation, the company would be able to get around $1.4 billion a year, or a half of the required working capital, from selling steel products abroad. "We will also sell our steel products, including steel shape, plate and billets, in the Vietnamese market, through which we will earn a lot in Vietnamese dong," … [Read more...]

Steel glut fears more acute

A $16 billion steel project in Ha Tinh province plans to raise its capacity despite the country's looming glut of steel projects. Chu Chun Fan, representative of Formosa Plastics Group (FPG) in Hanoi, told VIR that the company was studying to raise its project's annual output capacity project to 22 million tonnes of steel from 15 million tonnes. "We will not require more land. The capacity adjustment is implemented with appropriately layout of manufacturing facilities inside the current project's site," said Fan. He said the group was not worried about the oversupply of steel, adding that FPG would soon submit its proposal to the Vietnamese government for approval. FPG gained an investment certificate for the giant seaport and steel manufacturing complex in central Ha Tinh province two years ago. Though FPG broke ground in 2008, the project is still on the paper as site clearance has not finished. The plan for capacity adjustment was revealed after the group recently sent a … [Read more...]