Vietnam Investment News

Advertisements

Random Post

• Vietnam Sees Scarce Property Trade Despite Low Prices
• Second Vietnam Marine Trademark forum held in Quang Ngai
• Vietnam ranks fourth among top ten footwear exporters
• Hanoi Real Estate Market: Another Game to Play
• Vietnam Lawmakers to Discuss Hanoi Land Fever
• Long Huong JSC sets up industrial zone in Ba Ria Vung Tau

Vietnam Investment News

Vietnam Business » Vietnam Investment News » Small FIEs in HCM City expand investment scale

Small FIEs in HCM City expand investment scale

According to the HCM City Planning and Investment Department, by the end of September 2010, 65 FIE projects in the city had increased their investment capital, with the total registered capital of $168.9 million. Most are operating in the fields of production, industry, service and retail. On average, each has an investment capital increase of $15 million.

While big investors now tend to reduce investment capital at big projects, a lot of foreign invested enterprises (FIEs) which have small capital, now tend to increase their investment capital.

The list of investors planning to increase investment capital includes well-known companies, such as Lotteria Vietnam, which plans to increase capital by seven million dollars for expansion. Adidas Vietnam has decided to raise its investment capital by one million dollars to $3.9 million. Meanwhile, Giant South Asia has decided to raise capital by $15 million to $20 million, which will be used to develop distribution networks and build new depots.

Lu Thanh Phong, Deputy Director of the HCM City Department of Planning and Investment, noted that, over the last two years, the number of FIEs operating in the fields of processing, manufacturing and industrial production and raising investment capital has increased. In 2009, 115 FIE projects in HCM City increased their capital by $317 million, an increase of 1.79 percent over 2008.

Nguyen Tan Phuoc, Deputy Chair of the HCM City Board of Management for Industrial Zones and Export Processing Zones (HEPZA), thinks that at first, most production enterprises only inject small sums of capital in Vietnam to explore the situation. After that, they decide to expand when they believe in development potential and market stability.

"We have noted that projects with moderate investment capital usually have quick disbursement rates and high implementation levels," Phuoc commented.

Yuki Vietnam, a subsidiary of Japans Yuki Group, which now accounts for 30 percent of the market share in producing and supplying components and industrial sewing machines in the world, has decided to pour five million dollars more to build workshops, lease land and purchase more equipment and machines. This is the third time its investment capital in Vietnam (its capital now is $20 million) has climbed since it first set up production in Tan Thuan Export Processing Zone in District 7 in HCM City in 1994.

Tsunoda Shinji, General Director of Yuki Vietnam, explained that the increase will allow the company to make products for local consumption instead of focusing solely on exports.

At present, Yukis revenue in Vietnam is $16 million per annum, a figure expected to rise in the future to $24-26 million. The general director has revealed that products manufactured in Vietnam will be exported to India, Bangladesh, Indonesia and will also be sold domestically. Meanwhile, products made by its three factories in China will only be sold there.

The company is seeking permission from government agencies to allow it to make products and sell products on Vietnams market. It is estimated that 50 percent of Vietnamese garment companies use Yuki sewing machines.

Not only industrial projects, but those in service and education are also planning to increase capital as investors have realized Vietnams market potential. Australian RMIT University has increased its legal capital by $6.5 million and has invested $15.1 million to build dormitories. Merilyn Liddell, RMIT Director, noted that this is also the part of a plan to expand the space of RMIT Nam Saigon by 2013, which aims to provide internationally-standardized education in Vietnam.

Analysts have pointed out that the biggest problem for FIEs that plan to expand investment is that Vietnam lacks skilled workers. Therefore, 3-5 years before making decisions to increase investment capital, firms must train the labour force themselves.

Vietnam Business And Financial News Network. Source [english.vietnamnet.vn]

More Vietnam Investment News:

• Japan invests in five infrastructure projects in Vietnam
• PepsiCo invest 250 million USD in Vietnam
• 8 FDI licences may be withdrawn
• Foreign funds say Vietnamese typically overvalue their companies
• Entice investors by the siren song of the sea port
• Japan NTT Solmare Corporation bring digital comics devices in Vietnam
• Singapore increases investment in Vietnam
• Vietnam boosts investment in Cambodia
• More efforts to raise quality of overseas investments
• Quang Ngai province welcomes more investors

Popular Vietnam Business News

Deposit Interest Rate Rises to 10.2 Per Cent

Although the prime rate set by the State Bank of Vietnam (SBV) was kept unchanged at 7 per cent per annum in July, many banks still revised the borrowing rate.

Prospect for higher FDI

. After a standstill period due to bad impacts of the global economic slow down, more and more foreign companies have come to Vietnam to seek investment and business opportunities.

Leading B2B websites in Vietnam

. More than 100,000 Vietnamese firms have to date joined www.alibaba.com, one of the global leaders in business-to-business (B2B) e-commerce Websites, said China’s Alibaba Group. .About 4,000 Vietnamese small- and medium-sized

Vietnam airline market takes off

Economic recovery is set to spark demand, competition and reasonable fares on Vietnam�s air travel market, industry insiders say. Vo Huy Cuong, head of the Civil Aviation Administration of Vietnam�s

Workers quit factories for more cushy jobs, labor shortage ensues

After the Tet holidays, Tran Thi Phuong from northern Nam Dinh Province did not return to the Hanoi-based garment firm where she had worked for several years. The 28-year-old woman

Vietnam warned of inflation and trade deficit

The trade deficit is likely to prompt a further fall of the Vietnamese dong this year while food, housing and transport costs are leading inflation higher, according to a Standard

Uy Nam Construction Investment Joint Stock Co (Unicons) EPS at 16,644 dong/share in 2009

Uy Nam Construction Investment Joint Stock Co (Unicons) has recently reported audited fiscal report in 2009 with 663.01 billion dong in revenue from sales and service provision, up 24.16 percent

Vietnams export levels bear little impact from European debt crisis

According to trade experts under the Ministry of Industry and Trade, the impact of the debts crisis in Europe is not all that significant because the Vietnamese dong is still

Advertisement