Business

Finance ministry concerned about costly investment in Long Thanh airport

Published

3 years ago

October 17, 2020

An artist’s impression of Long Thanh International Airport. The Ministry of Finance has expressed concern over the large amount of capital being poured into the Long Thanh International Airport project – PHOTO: LE ANH

HCMC – The Ministry of Finance has expressed concern over the large amount of capital being poured into the Long Thanh International Airport project, stating that the ratio of US$188 million per one million passengers is very high, according to Tuoi Tre Online newspaper.

The first phase of the project will see an investment of some VND109 trillion or around US$4.66 billion, with a capacity of 25 million passengers a year. Therefore, the ratio of US$188 million per one million passengers is high compared with airports on the same scale across the world, it said in a document recently sent to the Ministry of Planning and Investment.

According to the project appraisal unit, materials, equipment and building technologies chosen for the first phase are available in the domestic market, environmentally friendly and mobilizable.

Therefore, the Finance Ministry suggested the Ministry of Planning and Investment and the appraisal unit clarify the cause of the costly investment plan in comparison with similar projects worldwide as well as the advantages and distinctions of the Long Thanh project.

As planned, the mammoth project will be divided into four component projects, including offices of administering agencies such as customs, public security and quarantine that will be invested in by the State budget. Meanwhile, the Vietnam Air Traffic Management Corporation will invest in air management facilities and the Airports Corporation of Vietnam (ACV) will cover the expenses of key infrastructure works.

Last, service works such as cargo terminals, logistics warehouses, a fuel pipe system and an aircraft maintenance zone will be put up for public bidding to attract private investors.

Besides this, the Ministry of Finance also cast doubts on the capability of the investors.

According to the ministry, the assigning of ACV as the investor of important works of the airport project is completely founded, meeting the requirements of the National Assembly and the Government and Vietnam’s laws.

However, the works are seeing a combined investment of around VND93 trillion, including VND36.1 trillion of the ACV’s available fund and VND56.9 trillion worth of credits without a government guarantee. Therefore, it is necessary to review its feasibility and financial safety during the construction process.

Of the ACV’s available fund, its cash, after the deduction of dividend, is around VND29.2 trillion and its accumulative cash in the 2021-2025 period is projected at around VND6.8 trillion. For the remaining over VND56.9 trillion, the firm will take out loans from local and international banks and via export credit contracts.

However, ACV now incurs a payable debt of some VND21.4 trillion, including VND6.5 trillion in short-term debts.

The enterprise has been assigned to build or upgrade 21 of the 22 airports and terminals under its management. ACV is also seeking approval for many projects, such as the Dien Bien Airport worth over VND1.5 trillion, the Na San Airport worth nearly VND2.3 trillion, the expansion of the T2 terminal of Noi Bai International Airport at a cost of over VND4 trillion and the T3 terminal of the Tan Son Nhat International Airport with over VND11.4 trillion.

Source: https://english.thesaigontimes.vn/78969/finance-ministry-concerned-about-costly-investment-in-long-thanh-airport.html

Business

Vietnam-Australia Digital Forum 2023: Making Vietnamese digital enterprises go global

Published

1 week ago

September 20, 2023

TienphongNews

The Vietnam – Australia Digital Forum 2023 was held in Sydney, the Australian state of New South Wales (NSW), on August 4 to promote the cooperation in information and communication technology as well as the digital field between the two countries.

Vietnam-Australia Digital Forum 2023: Making Vietnamese digital enterprises go global hinh anh 1

The signing of a memorandum of understanding (MoU) between Vietnam’s Posts and Telecommunications Institute of Technology and its Australian partners. (Photo: VNA)

Sydney – The Vietnam – Australia Digital Forum 2023 was held in Sydney, the Australian state of New South Wales (NSW), on August 4 to promote the cooperation in information and communication technology as well as the digital field between the two countries.

The event was co-organised by Vietnam’s Ministry of Information and Communications (MIC), the Australian Trade and Investment Commission (Austrade) and the NSW Trade and Investment Department in charge of the Vietnam market.

The forum took place as part of Vietnamese Minister of Information and Communications Nguyen Manh Hung’s visit to Australia, Director of the MIC’s Department of International Cooperation Trieu Minh Long told Vietnam News Agency correspondents in Sydney.

In 2023, one of the key tasks that the ministry focuses on implementing is to support Vietnam’s digital business community go global. In addition to activities in Australia, it also implements programmes in other countries and regions around the world such as the US, Japan, and Europe.

Long highlighted strengths of Vietnam’s digital technology enterprises, saying some of them have been successful in foreign markets, even in choosy markets like the US and Japan.

One of the advantages of Vietnamese businesses when accessing the Australian market is that the two countries have good diplomatic and economic relations, along with the strong Vietnamese community in Australia.

Speaking at the forum, Consul General of Vietnam in New South Wales, Queensland and South Australia Nguyen Dang Thang said that developing a digital platform is a breakthrough solution to promote faster digital transformation, reduce costs and increase economic efficiency.

International cooperation is also an important solution to carry out digital transformation, especially promoting the transformation in society, thereby creating momentum for the digital transformation process in government agencies, he added.
Highlighting the two countries’ new cooperation opportunities, Thang said Vietnam and Australia have a strong cooperative relationship, high political trust which is an important point for cooperation in cybersecurity.

Karla Lampe, Director of NSW International Engagement & Market Development under the NSW’s Department of Enterprises, Investment and Trade (DEIT), emphasised that Vietnam and Australia are maintaining strongest-ever partnership, both from economic perspective and from the ties between the two governments. Both New South Wales and Vietnam have large technology companies and influential individuals in the media.

She expressed her hope that the two countries further promote economic and trade ties in the future, and outline ambitious digital transformation goals.

At the forum, representatives from agencies, organisations, research institutions and businesses of the two countries discussed issues related to information and communication technology, and digital technology to learn about policy incentives, the investment environment in Vietnam and Australia.

At the end of the forum, they witnesses the signing of a memorandum of understanding (MoU) between Vietnam’s Posts and Telecommunications Institute of Technology and its Australian partners including Western Sydney University, the University of Canberra, SET Education, the Association of Vietnamese Australian Scholars and Professionals (VASEA)./.

Source: https://en.vietnamplus.vn/vietnamaustralia-digital-forum-2023-making-vietnamese-digital-enterprises-go-global/265680.vnp

Business

Vietnam lures over 16 billion USD in foreign investment

Published

1 week ago

September 20, 2023

TienphongNews

As of July 20, total newly-registered capital, additional capital, and capital contributions and share purchase by foreign investors stood at nearly 16.24 billion USD, up 4.5% compared to the same period of 2022 and 8.8% compared to the first half of the year.

Vietnam lures over 16 billion USD in foreign investment hinh anh 1

Source: https://en.vietnamplus.vn/vietnam-lures-over-16-billion-usd-in-foreign-investment/265410.vnp

Business

Vietnam’s macro-economy stays stable, inflation controlled: official

Published

1 week ago

September 20, 2023

TienphongNews

Vietnam’s marco-economic continues to stay stable and inflation is controlled Minister-Chairman of the Government Office Tran Van Son told a press conference following monthly cabinet meeting in Hanoi on August 5.

Vietnam’s macro-economy stays stable, inflation controlled: official hinh anh 1

The regular press conference takes places on August 5 in Hanoi. (Photo: VNA)

Hanoi – Vietnam’s
marco-economic continues to stay stable and inflation is controlled Minister-Chairman of the Government Office Tran Van Son told a press conference following monthly cabinet meeting in Hanoi on August 5.

Son said that the cabinet meeting for July focused on assessing and discussing the socio-economic situation in July
and first seven months of 2023; the progress of the programme on
socio-economic recovery and development; public investment capital
allocation and disbursement; and the implementation of three national target
programmes among others.

According to Son, participants to the meeting held that in July,
the socio-economic situation was improved compared to the previous month,
contributing to the country’s performance in the first seven months.

So far, the macro-economic situation has remained
stable, while inflation has been controlled. In the first seven months, the
average consumer price index (CPI) increased 3.12%, while all the major
economic balances were ensured.

State budget collection exceeded 1 quadrillion VND
(42.13 billion USD), equivalent to 62.7% of the estimate. Meanwhile, the
country’s exports fetched 195.4 billion USD, with a trade surplus of 16.5
billion USD.

In July, the Index of Industrial Production (IIP)
rose 3.9% month on month and 3.7% year on year. Total revenue from retail of
goods and services increased 7.1% year on year in July and 10.4% in seven
months.

At the same time, the country welcomed more than 1
million foreign visitors in July and 6.6 million in the January-July period,
6.9 times higher than that in the same period last year.

In seven months, 267.63 trillion VND of public
investment capital was disbursed, completing 37.85% of the yearly target, 3.38%
increase year on year. Meanwhile, the country attracted nearly 16.24 billion
USD in foreign direct investment (FDI), up 4.5%.

In July, 13,700 new businesses were established,
raising the total number of new firms to 131,900 in seven months.

Social welfare, security and defence were also
kept stable.

To date, nearly 93.8 trillion VND of the
socio-economic recovery and development programme has been disbursed. Requests
of localities have also been responded to in a timely manner.

Son said that Prime Minister Pham
Minh Chinh clearly pointed out tasks focusing on removing difficulties for production and business, giving
priority to promoting growth, creating jobs, ensuring livelihoods for people
associated with stabilising the macro-economy, controlling inflation, and ensuring
major balances of the economy.

The PM also asked
ministries, agencies and localities to accelerate the disbursement of public investment capital, and carry out the socio-economic
recovery and development programme, as well as three national target programmes. He urged agencies
to strengthen
forecasts, warnings and provide timely information on
natural disasters and readiness for rescue works, Son said, adding that the PM assigned
specific tasks to particular ministries, sectors and localities in the time to
come./.

Source: https://en.vietnamplus.vn/vietnams-macroeconomy-stays-stable-inflation-controlled-official/265691.vnp