As of a finish of Jan 2016, there were 20,056 foreign
direct investment projects in Vietnam with a sum collateral sum of $280
trillion. Many multinational companies are benefaction and continue to
expand their investment in a country.
Samsung
Electronics CE Complex JSC has due for taxation favoured treatment
for a devise in Saigon Hi-tech Park. – Photo vtv.vn
The projects are mostly industrial in nature, with a lion’s share
being steel, power, and manufacturing, as good as genuine estate. The
presence of large multinational companies, such as Intel, Samsung, Posco,
and LG, indicates that Vietnam is an appealing finish due to
competitive work costs and a ever-improving business environment.
On a other hand, Vietnamese companies have been gradually
increasing their ability and product peculiarity in sequence to join the
global supply chain. However a tie between Vietnamese and
foreign companies stays weak.
Below is a list of mega unfamiliar approach investment (FDI) projects
licensed during a 10-year duration from 2006 to 2015 and their current
status:
1) $1.1 billion Posco devise in Ba Ria-Vung Tau
Licensed in 2006, a devise directed to build a steel plant on an area
of 130 hectares. While a plant is going to work for 48 years,
producing cold and prohibited rolled, as good as galvanized steel items. The
first proviso of a plant was finished in 2009 during a cost of $340 million
and now has a sum ability of 700,000 tonnes per year.
2) $1 billion Intel devise in Ho Chi Minh City
Intel Corp initial announced a $300 million investment for an
assembly and exam plant in Vietnam in 2006. The firm’s sum registered
investment was lifted to $1 billion during a following year.
The $1 billion plant in Ho Chi Minh City went into operation in 2010.
In Nov 2014, a association stretched a plant with an additional CPU
production line.
3) $80 million Foxconn devise in Vinh Phuc
The devise has a purebred collateral of $200 million. It was licensed
in 2008 with an approaching start of operation in 2009. However, in July
2015 a permit was revoked following a investor’s disaster to
complete a plant’s construction.
4) $100 million Jabil Circuit devise in Ho Chi Minh City
Licensed in 2007, a devise named Jabil Vietnam Ltd, invested by
Jabil Circuit Singapore PTE. Ltd, is located in Saigon Hi-Tech Park on
an area of 5 hectares and produces computers, as good as office,
telecom, and medical equipment, consumer electronic devices, and
precision cosmetic moulds. In Jul 2015, Jabil was certified to invest
another $500 million to enhance a project.
5) $500 million Keangnam building in Hanoi
Licensed in 2007 and finished in 2010, Keangnam Hanoi Landmark
Tower, was grown by a Vietnamese auxiliary of South Korean
Keangnam Enterprises Keangnam Vina. Located on 4.6 hectares on Pham Hung
Street in west Hanoi, a building is now Vietnam’s highest
building.
With a sum investment collateral of some-more than $1 billion, the
72-storey building comforts a 5-star hotel, offices and apartments for
lease, and dual 48-storey unit towers with a sum of 922
apartments. The apartments were sole during an normal cost of $3,000 per
square metre.
Since 2011, 7 particular buyers of 10 apartments in a Tower
have sued Keangnam Vina, claiming that a association disregarded several
contract terms.
The building was recently acquired by South Korea’s AON Holdings during the
price of $800 million. The sale was conducted to solve Keangnam’s
liquidity problems.
6) $9.8 billion Ca Na steel devise by Vinashin-Lion in Ninh Thuan
At a time of a chartering in 2008, Malaysian association Lion Group
and Vinashin’s corner try was a biggest unfamiliar approach investment
project ever protected in Vietnam. Construction started in Nov 2008,
however, due to financial difficulties, swell was delayed and
consequently Lion Group withdrew. In 2011 Ninh Thuan range revoked
the project’s investment certificate.
7) $7.9 billion Hung Nghiep Formosa steel prolongation plant in Ha Tinh
The devise was protected in 2008 and has seen a lift to a collateral to $9.9 billion in 2012.
The formidable includes a steel plant with a ability of 22 million
tonne a year, a low H2O pier complement that can accommodate 300,000 DWT
ships, and a 2,100 MW thermal energy plant. Upon reaching completion,
Hung Nghiep Formosa is going to be a biggest steel prolongation complex
in Southeast Asia.
The initial proviso of a complex, that cost $10.5 billion, is expected
to be finished by a finish of 2016. As of Oct 2015, according to
the Ha Tinh Department of Planning and Investment, a financier was
planning to boost a collateral to $28.5 billion.
8) $6.2 billion Nghi Son refinery in Thanh Hoa
Invested by 4 companies, namely PetroVietnam, Kuwait Petroleum
International, and Japanese companies Idemitsu Kosan and Mitsui
Chemicals, a refinery was protected in 2008. With an area of 400
hectares, a refinery produces LPG, Ron 92 and 95 fuels, diesel, fuel
oil, jet fuel, polypropylene, para-xylene, benzene, and sulfur.
The investors lifted a collateral by $2.8 billion in 2013 to make the
refinery a biggest oil refinery and petrochemical devise ever
licensed in a country. It is scheduled to turn operational in 2017
and strech a limit annual ability of 9.62 million cubic metres of
petroleum products by 2018.
9) $4.3 billion New City devise in Phu Yen
The project, protected in 2008, is an investment of Brunei-based New
City Properties Development. Occupying an area of 560 hectares, the
project was ostensible to embody a resort, hotel, villas, bungalows, a
cruise port, and several sea party facilities. However, the
project was entrance along rather slowly.
In Sep 2014, a People’s Committee of Phu Yen authorised the
investor to revoke a devise area to 357 hectares and a investment
capital to $1 billion.
Sun Rise Vietnam, a corner try between South Korean companies
Hyundai Telecom and Hwa Pyung Holding, now binds 70 per cent of the
project. The remaining stakes are hold by companies from China, a US,
and Australia.
In Jun 2015, New City Vietnam Ltd hold a project’s belligerent breaking
ceremony. Local authorities pattern a devise to turn a prominence of
the range and a vital traveller attraction.
10) $4.2 billion Ho Tram devise in Ba Ria-Vung Tau
The Grand Ho Tram Strip Hotel was protected in 2008, and grown by
Ho Tram Project Company Ltd, infancy owned by US comment Harbinger Capital
Partners. The initial proviso of a five-star entirely integrated resort
opened in Jul 2013. This is a initial review in Vietnam with permission
to work a casino on a premises.
In Dec 2015, Ho Tram Project Company Ltd sealed an agreement
with Vietnamese association CotecCons to make condo towers on a 164 hectare
area of a devise site.
11) $4.15 billion Dragon Beach tourism zoneproject in Quang Nam
Licensed in 2009, a 400-hectare Dragon Beach tourism section was
planned to be a breakwater of a beachfront hotel, an general conference
centre, and a casino. At a time of chartering a section was hoped to
attract tourists to Dien Duong beach and boost Quang Nam province’s
general tourism revenue, as good as to assistance rise a tourism scene.
In 2010, a project’s investment certificate was revoked after a long
pause.
12) $2 billion Nhon Trach Berjaya Dong Nai New City in Dong Nai
Licensed in 2009, a devise is located on a 600 hectare site in
Dongnai province, about 25 kilometres from downtown Ho Chi Minh City. It
will residence a theater, informative house, square, muster centre,
museum, executive quarter, and blurb and amicable facilities
such as offices, hotels, serviced apartments, food and libation outlets,
and party spaces, sports centre, hospital, open immature spaces
and infrastructure.
Developer Berjaya Land Bhd, a auxiliary of Berjaya Corporation
Berhad, settled in Oct 2015 that a construction of a devise will
begin in 2016.
13) $500 million South Tuy Hoa Creative Town devise in Phu Yen
Licensed in 2009, a $11.4 billion devise invested by US company
Galileo Investment Group Inc. was set to build a 7,656-hectare modern
township with high-tech information record facilities, trade
centers, and tourism parks. It was dictated to be a lodestone to attract
companies and investors to a area. Since a licensing, however, the
investor have not acted to lift out a project, heading to the
People’s Committee of Phu Yen revoking a investment certificate in
March 2011.
14) $4 billion South Hoi An devise in Quang Nam
South Hoi An project, a formidable including a residential and a
commercial area, a resort, and several gaming facilities, was licensed
in Dec 2010. VinaCapital and VinaLand Limited, a closed-end fund
managed by a former, designed to rise a devise with Malaysian
company Genting Berhad. However, in Sep 2012, Genting withdrew
from a project, withdrawal VinaCapital to adjust a devise plan in
mid-2013, rescheduling a initial proviso to start operation by a finish of
2015.
In Sep 2015, VinaCapital announced a newfound partnership
with Hong Kong association Chow Tai Fook in a project. VinaCapital
continued to be a vital shareholder. Now a initial proviso is set to
start construction in 2016.
15) $2.1 billion Mong Duong 2 thermal energy plant in Quang Ninh
Licensed in 2010, Mong Duong 2 thermal energy plant by AES-VCM Mong
Duong Power Company Ltd.—a corner try of The AES Corporation (USA)
affiliates, Posco Energy (Korea), and China Investment Corporation
(China)—, Mong Duong 2 thermal energy plant is Vietnam’s initial and
largest thermal energy plant built in a BOT (build-operate-transfer)
format, with a 1,240 MW capacity.
In Oct 2015, a plant strictly started operation. The plant
produces 7.6 billion kWh of electricity per year. It is going to be
transferred to a Vietnamese supervision after 25 years of operation, in
2040.
16) $1 billion Kobelco steel plant in Nghe An
Licensed in 2010, Japanese Kobe Steel’s plant was to work during a
capacity of 2 million tonnes per year. The tender materials for steel
production would be sourced from Thach Khe iron cave in Ha Tinh and the
coal used in a prolongation routine from Quang Ninh.
As of Oct 2015 construction of Kobelco steel plant was nonetheless to
start due to delays in a exploitation of Thach Khe mine. According to a
member of a People’s Committee of Nghe An province, Kobe is working
with Thach Khe Iron JSC, a owners of a mine, on a intensity purchase
of shares in a company. A VIR source commented that negotiations had
been going on for dual years now and a dual parties had nonetheless to strech an
agreement.
17) $902.5 million Skybridge Dragon Sea review devise in Vung Tau
Skybridge Dragon Sea MICE project, invested by US-based Skybridge
Intercontinental Development Corporation, was Ba Ria-Vung Tau province’s
largest devise in terms of purebred collateral during a time of its
licensing in 2010.
As of now, a devise has nonetheless to be carried out. The delay,
according to Skybridge authority cum CEO Michael Nguyen, a land rental
fees rose too high over a past few years. According to Nguyen, the
rent specified by a province’s Department of Finance rose from VND325
billion ($14.6 million) in 2010 to VND1.7 billion ($76.2 million) in
2012 when a association was to start construction.
Bui Ngoc Diep, authorised deputy of Skybridge in Vietnam, told VIR
that a association would like to start a construction in 2016 and
proposed that a range request a favoured land let assign for
the roject.
18) $2.26 billion Jaks Hai Duong thermal energy plant
The 25-year BOT 2×600 MW devise by Malaysian association Jaks Resources
Bhd was protected in 2011. Preliminary construction work on a project
has already started, with a land clearing and range walls
completed.
In Jul 2015 Jaks Resources Bhd inked agreements with China Power
Engineering Consulting Group Co Ltd (CPECC) to jointly rise a plant
through a 50:50 corner venture.
19) $1 billion First Solar photovoltaic row prolongation trickery in Ho Chi Minh City
Licensed in 2011, US-based First Solar’s plant was to be grown in
two phases. The initial phase, with an investment value of $300 million,
would have a ability of 250MW per year and would go into operation in
2012.
However, 8 months after a start of construction, a investor
called a halt, due to a tellurian direct and supply imbalance for solar
power panels. In 2014, a association was reported to have finished all
legal procedures to sell a resources in Vietnam.
20) $452.38 million S-Telecom mobile use project
Licensed in 2001 by a consortium including South Korean wireless
telecommunications user SK Telecom, a devise directed to provide
CDMA services in Vietnam.
At a peak, S-Telecom had 3.1 million users. The association was also
the initial in Vietnam to yield 3G services. In 2012, as business took a
plunge due to complicated competition, S-Telecom withdrew from a country,
leaving behind a antennae on a roofs of many residential houses. The
company formerly paid homeowners to implement these antennae.
21) $1.2 billion Tokyu Binh Duong New City
Licensed in 2012, Tokyu Binh Duong New City is a 1,000-hectare
industry-service-urban formidable in Binh Duong, invested by Becamex Tokyu
Ltd—a corner try between Vietnamese association Becamex IDC Corporation
and Japanese association Tokyu Corporation.
Binh Duong authorities estimated that sum investment into the
complex is going to surpass VND150 trillion ($6.7 billion) by 2020. Many
domestic and unfamiliar investors have built high-rise buildings and
carried out low-price blurb housing projects in a province, but
sales tumble next expectations.
22) $574.8 million Bridgestone radial tyre prolongation plant in Haiphong
Licensed in 2012, a plant invested by Japanese tyre manufacturer
Bridgestone started operation in Oct 2014. Currently, a plant
boasts a ability of 6,000 tyres a day. As of Jan 2016, in a meeting
with Haiphong authorities, leaders of a association talked about the
prospect of enlargement and about offered a products in Vietnam instead
of producing quite for export.
23) $2.018 billion Vinh Tan 1 thermal energy plant in Binh Thuan
Licensed in 2013, a BOT plant is an investment of a consortium of
two Chinese companies and Vietnam National Coal – Mineral Industries
Holding Corporation Ltd (Vinacomin). The plant is partial of Vinh Tan
Thermal Power Complex, that consists of 4 projects with a total
capacity of 5,600 MW. This is a country’s largest coal-fired thermal
power plant.
While Vinh Tan 1, 3, and 4 sojourn underneath construction, Vinh Tan thermal plant 2 has started operation in Jan 2014.
The operation of a plant sparked clever antithesis from residents
in a surrounding area on comment of possible/potential pollution
hazards. Due to clever coastal winds, Vinh Tan thermal plant 2 is
obscured by smoke and dust, notwithstanding efforts to frequently irrigate/water
the area, as compulsory by internal authorities.
In Apr final year, thousands of people blockaded National Highway No
1A, interlude trade for hours to protest about spark dirt and cinder
from a energy complex, generally a newly built Vinh Tan No 2.
The Binh Thuan People’s Committee urged a energy formidable management
board to stop all executive work in box breeze speed surges to turn 8
and 9 (60 to 88 km per hour).
24) $2 billion Samsung Electronics Vietnam Thai Nguyen
Licensed in 2013, Samsung Electronics’ Vietnam Thai Nguyen plant
started operation in 2014, contracting 5,000 workers and producing two
million products per year. The devise has helped Thai Nguyen attract
investment from Samsung’s crowd of suppliers, too.
25) $1.5 billion LG Electronics Haiphong Campus
The devise was protected in 2013 and as shortly as Mar 2015, LG
Electronics non-stop a categorical trickery of a project. The
800,000-square-metre trickery will residence prolongation lines to manufacture
TVs, mobile phones, soaking machines, atmosphere conditioners, and car
infotainment systems for both a domestic and abroad markets.
26) $1 billion Bus Industrial Center in Binh Dinh
Russian financier Bus Industrial Center Ltd’s devise was protected in
2013, with a perspective to build a bureau to furnish gangling tools for buses
and yield associated services.
As of now, a devise is stranded during a standstill.
27) $3 billion Samsung Thai Nguyen proviso II
In 2014, Samsung perceived a permit to deposit $3 billion into the
second proviso of Samsung Electronics Vietnam Thai Nguyen plant (SEVT 2),
raising a facility’s sum investment collateral to $6.5 billion. SEVT 2
was designed with a ability of 10 million products per month and to
employ 30,000 workers.
28) $1.4 billion Samsung CE Complex Ho Chi Minh City
Licensed in Oct 2014, construction of Samsung’s Ho Chi Minh City
complex started in May 2015 on a 70 hectare area of Saigon Hi-tech Park
(SHTP). The formidable is approaching to come into operation in Feb 2016.
SHTP has recently postulated investment licences to several projects worth
more than $120 million that will furnish components for a complex.
In Dec 2015, Samsung was included with an investment certificate
to enhance a devise by $600 million, bringing a complex’s total
investment value to $2 billion.
Samsung will set adult a investigate and growth centre for audiovisual inclination and yield pledge services during SHTP.
29) $1.25 billion Phoenix Beach devise by Dewan International in Khanh Hoa
The devise was protected in 2014 by Dewan International, a
Hongkong-based auxiliary of Indian genuine estate developer Dewan Group.
The devise pattern includes a 42-floor 5 star hotel to be built on
74.16 hectares of land and H2O surface.
In Sep 2015, a devise investment certificate was revoked by
the People’s Committee of Khanh Hoa range on a basement of the
investor’s disaster to supply a purebred collateral according to
schedule.
30) $1 billion Samsung Display Bac Ninh project
Licensed in 2014, Samsung Display project, that produces screens for
mobile phones, started operation in Mar 2015. The devise aims to
supply a dual Samsung plants in Bac Ninh and Thai Nguyen with screens
and has ability of 48 million products per year. In Aug 2015 Samsung
increased a project’s sum investment volume by an additional $3
billion.
31) $2.018 billion Duyen Hai 2 thermal energy plant in Tra Vinh
Licensed in 2015 by Malaysian Janakuasa (Malaysia), Duyen Hai 2 thermal energy devise is going to be built in a BOT format.
The devise has dual turbines with a sum ability of 1,200 MW. Construction is going to start in a second entertain of 2016.
The plant, that is approaching to go on tide before 2020, will be one
of a 4 thermal energy plants in Duyen Hai Power Centre. The
remaining plants, representing a $6 billion investment by the
Electricity of Vietnam Group (EVN), are Duyen Hai 1, Duyen Hai 3, and
Duyen Hai 3 extension.
Once completed, a energy centre will minister to a inhabitant energy grid an additional ability of 30 billion kWh annually.
32) $1.2 billion Empire City in Ho Chi Minh City
The developer is a corner try of Tien Phuoc Real Estate JSC, Tran
Thai Real Estate JSC, and UK-based Denver Power Ltd—a auxiliary of
multinational financial association Gaw Capital Partners—with a two
Vietnamese companies contributing 50 per cent of a capital.
Licensed in 2015, a devise is approaching to be finished in 2022.
Occupying a 14.5-hectare area on a bank of a Saigon River, the
project is going to embody a trade centre, a five-star hotel, office
space and apartments, and a multifunctional building of 86 floors.
Construction started in Oct 2015.
33) $1 billion Cheng Loong Binh Duong wrapping plant
In Dec 2015, Taiwanese industrial paper writer Cheng Loong
received a investment certificate to build a $1 billion packaging
factory in a southern range of Binh Duong.
The plant is going to be built on an 80-hectare land tract in Ascendas
Protrade Singapore Tech Park and will have a ability to pull out one
million tonnes of industrial paper and consumer paper products per
year.
Cheng Loong now has 29 plants all around a world, providing
supply wrapping to large companies, such as Apple and Nike. The
Vietnamese plant is Cheng Loong’s biggest ever, according to the
company’s boss Tsai Tong Ho.
VIR
Article source: http://english.vietnamnet.vn/fms/business/151424/update-on-mega-foreign-invested-projects-in-vietnam.html