Too much capital - 50 per cent of the US$45.28 billion in foreign direct investment for the first seven months of this year - has been given over to real estate projects across the nation. "This is not a good sign," independent think tank Le Dang Doanh told Viet Nam News, concerning FDI in the property market, adding that this capital flowing into the property market over the past few months had not helped with major economic issues in the country. The capital has not created more jobs for the millions of local labourers, even though there has been a large demand for land to build on. Many private Vietnamese enterprises, which create 1 million new jobs every year, must fight tooth and nail for land, and at dear costs to their firms. The influx of real estate projects has been predicted to hinder the nation's programme for economic and social development. "I agree that becoming a 'tourism paradise' is obviously good if we [Vietnam] can balance the major factors of people, … [Read more...] about Real estate sector’s large share of foreign capital
Aqua real estate
BUSINESS IN BRIEF 8/10
Local bidders want change as foreigners often win Local bidders are calling for the removal of the lowest-cost bidding criteria to prevent foreign contractors, especially the Chinese, from winning bids for most of the projects by offering extremely low prices while failing to ensure the quality of their construction work. At the conference held by the Vietnam Chamber of Commerce and Industry to deliberate possible revision and amendment to the bidding law, Doctor Vu Gia Quynh, general secretary of the Vietnam Association of Construction Contractor (VACC), said there was almost no local contractor who could outbid the Chinese. "And the price we pay for this is so many poor-quality construction projects," he said, adding the law should be carefully revised. Nguyen Quoc Hiep, general director of the Global Petro Invest Corporation, said Vietnamese contractors had little chance of winning bids for projects financed by the World Bank, the Asian Development Bank or ODA … [Read more...] about BUSINESS IN BRIEF 8/10
BUSINESS IN BRIEF 4/1
VN targets $11 bln in FDI disbursement Vietnam will focus less on the amount of foreign direct investment (FDI) registered capital, but more on FDI disbursement next year, expecting to dole out US$10-11 billion, said an official. The country sets a target of attracting $15-16 billion of FDI registered capital in 2012, with a focus placed on improving the projects' quality and efficiency, and enhancing the State's management, said Do Nhat Hoang, Head of the Foreign Investment Agency under the Ministry of Planning and Investment at a press briefing in Hanoi on December 30. Areas for investment will also be carefully selected, with priorities to infrastructure, "green" industries that are friendly to the environment, supporting industries, and high-tech industries of highly global competitiveness. Meanwhile, limit will be in non-production areas that may increase the imports or pollution. In 2011, Vietnam attracted $14.7 billion in FDI, down 26 percent from the previous year, but … [Read more...] about BUSINESS IN BRIEF 4/1
BUSINESS IN BRIEF 28/12
Office gives okay for 3 new trademarks The National Office of Intellectual Property in Viet Nam has acknowledged trademarks of products Rach Goc dried shrimp, boi dried fish and U Minh Ha honey. The Farmer Associations of southern Ca Mau Province districts Ngoc Hien, Tran Van Thoi, U Minh districts, plan to expand their market domestically and abroad, and extensively promote their trademarks. In 2012, the provincial Department of Science and Technology will propose the recognition of product trademarks for Nam Can sea-crab, ca bong tuong (large goby) and the Tan Thanh eel. Bank name change given the go-ahead The State Bank of Viet Nam (SBV) announced yesterday that it had approved a decision to rename Gia Dinh joint-stock commercial bank (Gia Dinh Bank) as Viet Capital Commercial Joint Stock Bank (Viet Capital Bank). Previously, SBV issued Decision No2665/QD-NHNN to approve an amendment to a business licence in the name of Gia Dinh Bank on December 13. The Decision takes … [Read more...] about BUSINESS IN BRIEF 28/12
Capital flow is shifting from Long Thanh vacant land to Bien Hoa center
Capital flow is shifting from Long Thanh vacant land to Bien Hoa center The Dong Nai real estate market is seeing remarkable changes as capital flows are sharply shifting from the area around Long Thanh airport to Bien Hoa downtown. From Long Thanh to Bien Hoa In the first months of 2017, the hub of the Dong Nai real estate market just rotated around the story of the Long Thanh International Airport planning to be approved. As recorded in the first nine months of this year, more than VND8,000 billion from Saigon investors poured in more than 200 projects large and small with a scale of nearly 2,000 hectares in Long Thanh. The most affected areas are Binh Son and Loc An communes (in Long Thanh District) whose land areas are only partially cleared, being considered “lucrative” to investors. Since the beginning of June, however, the trading of Long Thanh land market has slowed down as a result of a rule on limited land allocation, land separation and land transfer within … [Read more...] about Capital flow is shifting from Long Thanh vacant land to Bien Hoa center