Japanese firm takes 40% stake in Topaco

Japanese firm Taiyu Kensetsu has officially become a strategic partner with a 40 per cent stake in the Construction Joint Stock Corporation, known as Topaco.

Kawanaka Yoshio CEO and general director of Taiyu Kensetsu said his firm chose Viet Nam as the location of its investments due to the country’s advantageous transport links with nearby countries Cambodia, Thailand, Malaysia and Myanmar.

The co-operation will help Topaco to apply advanced technology from its partner, said Nguyen Ngoc Vinh, general director of Topaco. Under the co-operation agreement, Topaco has set a target of posting a revenue of US$100 million by 2015, $500 million by 2020 and $1 billion by 2025, said Vinh.

WB-funded project approved

Prime Minister Nguyen Tan Dung has approved the outcomes of negotiations on the project "Efficient Distribution.”

The project will be financed by the International Development Association (IDA) under the World Bank (US$448.9 million), Clean Technology Fund (US$30 million), and AusAid (US$7.6 million).

The Government chief assigned Governor of State Bank of Viet Nam Nguyen Van Binh to sign the agreement and related documents of the project.

The project is designed to improve the efficiency of electricity distribution and the capacity of the Electricity Regulatory Authority of Viet Nam (ERAV) and five power corporations.

It is expected to contribute to the realization of targets defined in the National Strategy for energy development until 2020.

Metro Cash & Carry opens wholesale store in Kien Giang

German-invested wholesale chain operator Metro Cash & Carry on Wednesday opened a wholesale center in the Mekong Delta province of Kien Giang, taking to 18 the total number of its wholesale facilities nationwide, including three in HCMC.

The wholesale center Metro Cash & Carry Rach Gia with total investment of US$15.7 million is located in Vinh Bao Ward in Rach Gia City, offering more than 25,000 food and non-food items.

Philippe Bacac, managing director of Metro Cash & Carry Vietnam, said that the wholesaler sources more than 90% of goods within the country.

Metro Cash & Carry opened its first wholesale center in Vietnam in 2002.

Ukraine businesses seek opportunities in HCM City

A business delegation from Ukraine took part in an exchange with Vietnamese enterprises in HCM City on October 2.

The event aimed to provide both sides with commercial and investment opportunities in various fields such as machinery, equipment for the milk industry, railways, metallurgy, shipbuilding, aviation, power plants, oil, fertiliser, chemical, nonferrous metal, wastewater treatment, and the education sector.

The two-way trade turnover between Vietnam and Ukraine reached $300 million in 2011 and $175 million in the first eight months of this year.

The event was co-organised by the HCM City branch of Vietnam Chamber of Commerce and Industry (VCCI), the Ministry of Trade and Industry, and the Ukrainian Embassy in Hanoi.

MacCoffee wants to set footprint in Vietnam

Food Empire Holdings (FES), whose instant coffee brand MacCoffee has been distributed in Vietnam for years, will seek to further penetrate the market by changing the ingredients and designs of products to suit local consumers’ tastes.

Its affiliate, FES Vietnam, held a function in HCMC on Tuesday to introduce the product’s new designs and tastes to adapt with Vietnamese consumers as well as to introduce its goodwill ambassador in Vietnam, super model Binh Minh.

Anil Bhuwania, strategic director of FES, said that the company initially invests US$1 million to make the changes and survey tastes of Vietnamese consumers. From June 2013, the Singapore-based company will mull further plans to develop the Vietnamese market based on the survey results.

Export processing zones attract investors

More than 140 investors from 15 countries with projects worth a total of $700 million have set up business in Linh Trung Export Processing Zone I, II, and III in the last 20 years.

More than 92,000 jobs have been generated, according to speakers at a ceremony held in HCM City on Sunday to celebrate the 20th anniversary of the establishment of the zone.

The Sepzone Linh Trung has developed three sections with a total area of 326 hectares. Export turnover of the tenants in Linh Trung EPZs has been on a steady rise, significantly contributing to economic development in HCM City and Vietnam. Total annual import-export turnover has reached $3.2 billion.

More funds offered for developing rural infrastructure

Programmes focused on solidifying canals, improving rural roads, and developing infrastructure for aquaculture and craft villages will be eligible for loans at preferential interest rates worth a total of VND5 trillion each year.

In late 2011, the PM agreed to increase preferential loans for implementing such programmes in 2012-2015 up to VND3 trillion a year.

In August 2012, Deputy Prime Minister Vu Van Ninh asked the Vietnam Development Bank to mobilise an additional VND2 trillion for these programmes, making the total value of the loans VND5 trillion. The State Bank of Vietnam is required to subsidise the difference in the interest rates.