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...]

Taiwan’s top steel maker mulls stake in FPG Vietnam investment

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China Steel Corp., the largest steel maker in Taiwan, said Monday that it is studying the feasibility of taking a stake in a Formosa Plastics Group's (FPG's) investment in Vietnam. "We are considering the possibility of investing in FPG's steel plant (to be built) in Vietnam's Ha Tinh Province, " China Steel Executive Vice President L.M. Chung said. "We are looking into whether and how the investment will boost shareholders' value and make China Steel more profitable, " Chung added. Local media reported earlier that day that China Steel might take a stake of up to 10 percent in the plant and that the investment proposal will be submitted to the China Steel board of directors for approval later this month, adding that the investment is likely to be finalized by the end of this year at the earliest. The media said the investment is expected to help both sides in terms of product development and technology exchanges. However, Chung declined to disclose the actual size of the … [Read more...]

Vietnam Gives Preferential Tax to US$7.9-Bln Steel-Seaport Project

The Vietnamese prime minister has agreed to give preferential tax to the US$7.9-billion Son Duong Formosa steel-port complex project in central Ha Tinh province's Vung Ang Economic Zone. Accordingly, US$7.9-billion Son Duong Formosa steel-port complex project by Hung Nghiep Formosa-Ha Tinh Steel Co. Ltd will enjoy the preferential 10 per cent corporate income tax under conditions as follows: the investor has to pledge to strictly follow regulations written in the investment certificate. The Son Duong Formosa steel-port complex project, invested by Taiwan's Formosa Heavy Industries Corp., was kicked off in July this year. In the first phase, costing roughly US$8 billion, the Taiwanese investor will build an iron and steel plant with an annual capital of 7.5 million tons and a deep-water seaport of 30 million tons per year. In the second phase, Formosa will double the iron and steel plant's capacity to 15 million tons per year and increase the port's annual capacity to 60 million … [Read more...]

US$9.8-billion steel project off ground

The company is a 74:26 joint venture between Maju Stabil Sdn. Bhd, a unit of Malaysia's Lion Group, and Vietnam Shipbuilding Industry Group (Vinashin). The Cana Steel Complex will be built on a 1,650-hectare area in Phuoc Diem Hamlet, Ninh Phuoc District over a period from 2008 to 2025 classified into four phases, according to the company. The steel mill's capacity will be 14.42 million tons of steel per year. But in the first phase, which will be put into operation after 2011, the capacity will be 4.5 million tons per year. Key products are hot and cold rolled coils, steel plates, galvanized and coated coils, H- and I-beams, and pipes. When it is operational, it will be an important driving force not only to the steel and shipbuilding industries but also to the development of the country's economy, according to the join venture. The project's supporting works are two 1,450MW power plants and a seaport with an annual handling capacity of 50 million tons. The feedstock for the … [Read more...]

FDI inflow likely to hit US$60 billion this year

The licensing of a huge steel complex worth US$9.8 billion in Ninh Thuan Province on Friday gave a strong spur to the FDI inflow, which stood at US$47.15 billion in the first eight months. The National Center for Socio-economic Information and Forecast (NCSIF) in the middle of this month forecasted that the FDI inflow in Vietnam would likely exceed US$50 billion in 2008, more than doubling last year's amount of US$ 20.3 billion, which was then also a record. There are concerns among experts, however, regarding the influx of FDI projects into the property sector and the steel industry among others, with arguments that such projects would pose problems for macro-economic management. Experts are specially worried about the high FDI amount committed to the tourism and real estate sectors, estimated at US$22.2 billion as of end-August. Of this amount, some US$4.8 billion went to high-class urban towns, US$8.5 billion to office buildings, and around US$8.8 billion to tourism and … [Read more...]

US$9.8-billion steel mill project gets license today

The provincial government awards the investment certificate to Vinashin-Lion Steel JV Limited, which is a joint venture between Maju Stabil Sdn. Bhd, a unit of Malaysia's Lion Group, and Vietnam Shipbuilding Industry Group (Vinashin). The foreign partner holds a 74% stake and Vinashin the remaining 26%. The two partners will spend around US$9.8 billion for the project covering 1,650 hectares in Minh Phuoc District in the central coast province. The steel complex, to be developed in four phases, will have a total production capacity of 14.4 million tons of steel products per year. In the first stage, which requires US$2.7 billion of invested capital and takes three years for completion, the annual output is 4.5 million tons. The project will also include supporting works, including two 1,450MW power plants and a seaport with an annual capacity of 50 million tons. The feedstock for the operation of the complex will be iron ores to be imported and coke to be bought domestically. Part … [Read more...]

Formosa Mulls US$12 Bln Steel Complex in Central Vietnam

Taiwan's Formosa Heavy Industry group said it is seeking Vietnamese government's permission to build a two-phase steel complex costing US$12 billion in the central Ha Tinh province, Investment newspaper reported Friday. Formosa will develop the facility on an area of 2,000 hectares with 100 per cent foreign investment, said the source, adding that Formosa will contribute 95 per cent and Sunsteel Corp will provide the remaining. They will submit their pre-feasibility study for the complex this March. In the first phase to 2011, the joint venture plans to invest US$6 billion in the complex and expects to produce 7.5 million tons of ingot steel, hot-rolled steel and sheet hot-rolled steel, said an official of Formosa. The Taiwan-invested group will buy iron ores from CVRD, Rio Tinto, BHP mines and from Thach Khe mine once the local mine operational. The remaining US$6 billion will be injected in the second phase to raise production capacity to 15 million tons a year, said the … [Read more...]

Taiwanese enterprise must comply with Vietnam Law

Saigon Giai Phong Newspaper yesterday recorded opinions from some National Assembly (NA) delegates on construction of a temple in Vung Ang Economic Zone by the Taiwan-invested Hung Nghiep Formosa Ha Tinh Steel Company, which have raised public disagreement. The company on June 4 sent a document to authorized agencies in the north central province of Ha Tinh asking for building a temple to worship souls of the dead in Formosa steel mill project area, whose graves have been lost. The province Party Committee on July 11 instructed relevant sides and Ky Anh District to stop the temple's construction because of the public disagreement. … [Read more...]

Formosa Ha Tinh supported to recover business production

Formosa representatives receive insurance compensation advance. (Credit: vnexpress.net)

Nhan Dan - Insurance enterprises on July 19 began advance compensation payments worth US$1 million to the Taiwan-invested Hung Nghiep Formosa Ha Tinh Steel Company, one of the businesses hit by recent disturbances in central Ha Tinh province. >> Advance compensation paid for affected firms in Dong Nai>> Damaged businesses in Binh Duong receive insurance money An initial VND 6 billion (US$282,000) was handed over to Formosa representatives on Saturday, while the remainder would be paid in a few days' time. … [Read more...]