Business in brief 11/09/2008

A credit contract was signed on Nov. 8 between Vietinbank and the Vietnam Coal and Minerals Group (TKV), the project’s owner.

This was part of a credit package worth 1.65 trillion VND that Vietinbank had agreed to extend to TKV.

The bank also committed to provide more than 2 trillion VND for TKV’s affiliates as well as for major coal projects.

Earlier, the Vietnam Bank for Foreign Trade (VCB) and TKV signed a credit contract for the same purpose on Oct. 10, bringing the combined banking loans to 2.4 trillion VND (144 million USD).

The 142ha Lam Dong bauxite-aluminum complex, worth 7.79 trillion VND, is expected to put into operation in 2010, being capable of exploring 4 million tonnes of bauxite and producing 600,000 tonnes of aluminum per year.

TKV said the group will need an additional 2.5 billion USD for developing its projects in the next 10 years.

French region helps Lao Cai in tourism, agriculture

The Aquitaine region of France has signed an agreement with Lao Cai to help the northern mountainous province in urban planning and development of tourism and agriculture from 2009-2012.

Under the agreement, the two sides will cooperate in planning for expansion of the resort town of Sa Pa, developing ecological tourism, protecting biodiversity in the province as well as strengthen agricultural cooperation by growing grape and temperate fruits in Sa Pa and Bac Ha.

Experts from Aquitaine will help expand urban area for Sa Pa to make it modern, beautiful, clean and eco-friendly.

Developing ecological tourism and protecting biodiversity will be carried out through coordination programmes between Aquitaine and projects funded by the Development Agency of France (AFD). The French side will send experts from Aquitaine Natural Park or the national association of French regional parks to engage in programmes between the province and French partners.

In the 2002-2007, Aquitaine region helped Lao Cai make a master plan for the provincial tourism industry and carried out practical experiments to find out strains of fruits suitable with Lao Cai.

Vietnam – new investment destination for Italian businesses

Italian newspapers have run many articles about Vietnam visit by the strong Italian business delegation led by Minister of Economic Development Claudio Scajola from November 4-7, saying Vietnam is a new paradise for investors.

RAI International of Italy broadcasted a 20-minute programme reflecting “special eagerness” by the business delegation ahead of a big market with a population of more than 85 million people, a low price and high-skilled workforce, an annual economic growth between 7 and 8 percent.

About 1,800 meetings between 900 businesses of the two countries took place during the delegation’s four-day stay in Hanoi and Ho Chi Minh city, RAI said.

Il Sole 24 Ore, Italy’s third largest daily newspaper, said that Italian businesses attached importance to the Vietnam market where more efforts have been made to simplify administrative procedures to attract investment and low tariffs have been offered to investors.

Milan-based Milano Finanza economic daily said that as a fast developing country, Vietnam’s demand for construction of infrastructure, communications network, electricity, water and waste treatment facilities is very huge and Italy is able to meet the demand.

La Repubblica daily affirmed that Italian businesses have missed many opportunities to invest in Vietnam and now it is time for them to inject money into the country once they recognize that this is a new paradise for investment.

Thai investors learn opportunities in Vietnam

A workshop on investment opportunities in Vietnam was held in Sakon Nakhon province, Thailand, on Nov. 8, attracting businesses from Thai northeastern region.

According to Vietnamese counselor Tan Anh Vu, the northeast of Thailand and the central region of Vietnam have developed close and effective cooperation.

The tran-Asia roads running through the Mekong region has helped increased trade value between the two countries.

Vietnam ’s international border gates, such as Cau Treo, Lao Bao and Bo Y have facilitated the transportation of Thai goods to other ASEAN members, northeast Asian, African and European countries.

Vietnam and Thailand should tighten business and investment cooperation in the context of the on-going global financial crisis, Vu said, adding that special focus should be made on promotion of trade, investment and tourism cooperation along the East-West corridor.

Thai businesses showed their interest in Vietnam’s policy on customs, import and export and initiatives goods transited via Vietnamese international seaports