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Vietnam News

HEADLINES

TOP NEWS

FINANCE

ECONOMY

INVESTMENT

REAL ESTATE

OIL&GAS&ENERGY&MINING

LEGAL

Source:

Dr. Oliver Massmann

International Attorney at Law
Certified Financial Accountant and Auditor
General Director of Duane Morris LLC
Partner of Duane Morris LLP
Member to the Supervisory Board of PetroVietnam Insurance Holdings Joint Stock Company

TOP NEWS

Renewable Energy Vietnam - Duane Morris - We get deals done:

By Dr. Oliver Massmann – Duane Morris Vietnam LLC

1. Describe the role of yourself/company/department within renewable energy in Vietnam.

Duane Morris, as both advisor and advocate, guides clients through the complex legal, financial and political issues that pervade the energy industry. For both producers and policy-makers, as well as industry participants and consumers, Duane Morris attorneys help manage the dynamic challenges of the energy market. Our attorneys counsel our clients on regulations, transactions, litigation, project development, facility construction, financing, government relations and policy matters concerning energy. Our attorneys draw upon legal and industry experience with fossil fuels, nuclear power and renewable sources to find creative solutions to meet our clients’ needs. We have been involved in several renewable energy deals in Vietnam until successful close of the respective deal. We can get bankable deals done.

2. Describe those individuals/companies/government departments with whom you operate mostly with?

Electricity Regulatory Authority of Vietnam, Institute of Energy, General Department of Energy, EVN, Ministry of Planning and Investment.

3. Explain the purpose of each of these connections whether they be formal, contracted relationships or informal relationships

They are formal relationships, where I either acted as the Chairman of the Legal Sector Committee of EuroCham, or work on behalf of our clients to connect with the authorities to get better understanding of the regulations in the sector and propose necessary changes.

4. Describe any customs or habits that are features of doing business in the renewable energy industry? Likewise describe any customs or habits that are features of doing business in Vietnam. Explain how these customs or habits are used?

Build and maintain relationship with Government officials at all levels (central, provincial) is a must. Meetings can be formal or sometimes invite them out for lunch/ dinner. Do not go into too much details of your project or investment plan in the initial meeting. Save it for the next meetings. The first one should only be for “getting to know each other” purpose.

Vietnam has a consensus-driven system, meaning everyone has to say something. Any person has veto right. Thus, to make sure that a decision in favor of your investment is made, you have to gain support of every person who has the decision-making right.

In addition, decision making process in Vietnam has to go through many levels and thus takes quite long. Be patient then.

You should always set up a meeting some weeks in advance. Although some officials are able to communicate in English, it is advised to have a translator/ interpreter.

5. In your opinion, who are the ‘big players’ within the renewable energy industry within Vietnam? This applies to private companies, national companies, government departments etc.

EVN as the sole off-taker and its generation companies are the main players in the sector. Besides, the General Department of Energy, the Electricity Regulatory of Vietnam (both under the Ministry of Industry and Trade) play an important role in setting regulatory framework.

6. Explain any rules or laws that dictate how you must operate within the renewable energy industry and within Vietnam.

Wind: Decision No. 37/2011/QD-TTg, Circular No. 32/2012/TT-BCT

Biomass: Decision 24/2014/QD-TTg, Circular 44/2015/TT-BCT

Solid-waste power: Decision 31/2014/QD-TTg, Circular 32/2015/TT-BCT

Solar: Decision 11/2017/QD-TTg, Circular guiding the Decision and promulgating the PPA is being drafted

There are a number of laws and documents regulating an investment in Vietnam. I just name some major laws: Investment Law, Enterprise Law, Labor Law, Commercial Law, Civil Code, etc.

7. In your opinion, to what extent does a hierarchy exist within the renewable energy industry in Vietnam?

The development of renewable energy industry does not catch up with economic development speed. Although the Government has set out the increasing role of this sector in the energy development plan, I am afraid that the Government may fail to meet its target due to lack of support policies and bankable PPAs.

8. Describe the main changes that have occurred to the renewable energy industry in Vietnam in the last 10 years.

The renewable industry in Vietnam is very young. Indeed, it only started developing since the adoption of the Wind Decision in 2011. Following that Decision, the Prime Minister continued completing the legal framework for the sector by introducing Biomass Decision and Solid-Waste Decision in 2014, and the latest Decision being the Solar Decision issued in April 2017. The adoption of these policies was the joint effort of many relevant ministries, including the General Director of Energy under the Ministry of Industry and Trade, which was established at the end of 2011 to improve state management in the sector.

In 2009, the first factory producing solar panels with total investment of USD10 million came into operation in Vietnam. Later in 2010, GE Energy invested USD61 million to establish the first factory producing wind turbines in Hai Duong. This was considered as a boost for the renewable energy market. However, by 2015, renewable energy only accounted for 5% in the total energy output, in which there is no wind and solar power but only small hydro power.

FYI, the first wind power plant came into operation in 2012 in Binh Thuan with a capacity of 30 MW. Recently, the first solar plant in Dong Thap also commenced its operation.

***

Please do not hesitate to contact Dr. Oliver Massmann under  This e-mail address is being protected from spambots. You need JavaScript enabled to view it  if you have any questions or want to know more details on the above. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.

Thank you!

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FINANCE

Higher credit growth could increase listed banks’ profits

VNS

The profits of the seven listed banks could rise 32.16 per cent against the beginning of 2017, if this year’s credit growth target is raised to 20 per cent.

These estimates have been made by HCM City Securities Company’s (HSC). The seven listed banks, which include Vietcombank, Vietinbank, BIDV, ACB, Military Bank, Sacombank and SHB, have earned VND18 trillion in pre-tax profit in the first six months of the year, up 22.7 per cent year-on-year, HSC stated.

At a government meeting last week, prime minister Nguyen Xuan Phuc asked the State Bank of Vietnam to consider raising the credit growth limit for this year to at least 20 per cent instead of the 18 per cent as per the previous plan, so as to support the country’s economic growth target of 6.7 per cent.

If the credit growth limit stays at 17.2 per cent as planned at the start of 2017, HSC forecasts that the seven banks will collectively earn VND36.2 trillion in pre-tax profit for the whole year, recording 18 per cent growth.

If credit growth is loosened to 20 per cent and other factors remain constant, the pre-tax profit of these banks could be 12 per cent higher, or around VND40.54 trillion, up 32.16 per cent from the beginning of the year. This assumption is based on the maintenance of current variables, HSC said.

In the first half of 2017, credit growth reached 9.06 per cent, the highest level in the past six years.

According to HSC, because of low inflation pressure, it is safe to boost credit growth a little more. At present, there are not many macro risks associated with increasing credit growth as in the first six months, the CPI rose only by 2.52 per cent year-on-year, while the exchange rate has stabilised after rising 1.2 per cent in the beginning of 2017, it said.

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Removing bad debts, banks’ M&A boom

Bao Dau Tu

After failing to negotiate the sale with the UOB bank (Singapore), GPBank is starting to kick off the negotiation with another investor. Talking to reporter of Bao Dau Tu, a source of information said that the deal to sell GPBank to UOB in the past failed partly due to the low price offered by the investor, and partly due to the requirement of investor to completely acquire the bank, including the assets secured for bad debts while GPBank could not guarantee.

Similar to GPBank, in the recent time, many investors also expressed their interest in Ocean Bank. However, no deal has been made so far, mainly due to concerns about the problem of bad debts after the acquisition.

Bui Huy Tho, deputy director of the Department for Management of Credit Institution and Banking Operation Licensing under the State Bank of Vietnam (SBV) admitted that acquiring a weak bank is not simple for foreign investors because banks’ assets and debts are diversified while their network extends across the country. “When it comes to restructuring weak banks, foreign investors must see the prospects of dealing with bad debts”, said Tho.

The good news is that the National Assembly recently issued Resolution 42/2017/QH14 about piloting the bad debt settlement of credit institutions. Accordingly, the handling of secured assets will be easier. In fact, the negotiation to sell Ocean Bank to foreign investor is having a very positive progress (entering the second phase of the negotiation). With the current fairly firm legal basis of dealing with bad debts, this deal is most likely to soon be realised.

It is known that in addition to the three banks that are subject to compulsory settlement, according to the National Financial Supervisory Commission, there are still many weak banks which need to be restructured. The Resolution 42/2017/QH14 will open the door to accelerate the restructuring of these banks, with the participation of domestic and foreign investors.

For foreign investors alone, according to economic expert Dr Le Xuan Nghia, the mergers and acquisitions (M&A) deals will be more exciting if the government allows significant expansion of foreign ownership room at weak banks. “Foreign investors, especially those from Asean and East Asia are still paying great attention to Vietnam’s market”, said Dr Nghia.

In fact, Vietnamese banks are still very attractive in the eyes of foreign investors. In the recent time, many foreign banks have set food in Vietnam. Most recently, in mid-July 2017, UOB from Singapore has been licensed by SBV to establish a wholly-owned bank in Vietnam, bringing the total number of foreign banks in Vietnam to nine. There currently are at least two regional banks having intention to establish a 100 percent foreign-owned bank in Vietnam.

The interest of investors in Vietnamese banks is understandable, because the retail banking market of Vietnam is having the most attractive growth in the region. To win the pie in this market, the fastest way is conducting M&A. With the potential of the consumer finance market in Vietnam, economist Dinh The Hien said that the wave of buying finance companies of foreign financial groups will continue to be hot in 2017 and some deals will soon be carried out.

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ECONOMY

Ministry prepares plan for restructuring service sector

VNA

The Ministry of Planning and Investment is drawing up a plan for restructuring the service sector from 2016-2020, making it compatible with the economic restructuring plan for the same period.

According to the ministry, the service industry posted relatively higher growths than other sectors between 2011 and 2016 and continued to be the economy’s driving force.

Though the service economy accounted for the largest share of the country’s GDP, the proportion still lagged behind that of other countries in the region. Moreover, the service sector has seen development in a limited range of areas like retailing, financing and banking, real estate, and tourism.

The plan aims to introduce a comprehensive set of measures to restructure the sector toward modern and sustainable development, contributing to the national economic restructuring.

It will evaluate the status of the service industry and changes in its structure from 2011-2016, and outline advantages and disadvantages of each of its areas. Hereby, a set of goals and solutions will be proposed for the restructuring by 2020.

The plan will focus on a number of service areas, including IT and telecommunications, education and training, finance-banking-insurance, logistics and transportation, tourism, science and technology, distribution, healthcare and construction.

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Vietnam needs a revolution in export: experts

SGGP News

If there is no revolution in export, Vietnam might become a “lowland” for commodities from other countries to flow in, said experts at an export forum hosted by HCM City Trade and Investment Promotion centre on Tuesday.

Many countries in the world have strongly changed to optimise production and improve their commodities’ competitiveness. Domestic production protectionism has been showed through increasing technical barriers.

Meanwhile, Vietnam’s cargo export structure has yet to change, businesses have mainly done outwork and exported raw products.

According to statistics by the Ministry of Industry and Trade, export turnover was estimated to reach $115.2 billion in the first seven months this year, a year-on-year increase of 18.7 percent. The turnover might reach $200 billion this year, up 13 percent over last year.

Import turnover for the entire year is estimated to hit $205 billion, raising 17 percent over the same period last year. With great efforts by the government and ministries, the country’s export industry is expected to maintain growth momentum this year and next year.

However, export in particular and the economy in general has showed many congestions which should be cleared to develop.

Nguyen Phu Hoa, deputy head of the Export Import Department under the ministry, estimated that the global economy is witnessing unpredictable changes. Vietnam’s export and growth quality need be reconsidered. The country has sold any raw material it has and speeded up quantity. The first export wave has reached its peak according to this model.

Sharing the same view, other experts said that Vietnam needs a revolution to create the second wave to change products’ competitive ability, improve brand name value and national images. Vietnamese businesses’ supply ability is still very small in global value chains.

Businesses should carefully learn about international rules and focus on production and trading standards to persuade partners.

The government should concentrate on well reforming business environment for enterprises to set their minds at rest and invest in Vietnam. Documents and decrees should be rebuilt toward trusting, supporting businesses and giving them specific instructions. vice versa, the law and sanctions must be deterrent enough, clear and strict. That will boost economic development and exports in new phases.

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INVESTMENT

Thua Thien-Hue pursues casino project

VIR

The Thua Thien-Hue Provincial People’s Committee has proposed the prime minister to permit the development of a casino in Laguna Lang Co integrated complex.

It is not the first time the province has asked for governmental approval to build a casino. Earlier in June 2015, Thua Thien-Hue proposed that the prime minister add the province’s Chan May-Lang Co Economic Zone to the list of areas allowed to have casinos in the country, but failed.

Numerous foreign investors visited Thua Thien-Hue looking to develop casino projects. In late July, US-based casino operator and hospitality business Hard Rock International Inc. confirmed its interest in developing a casino at Laguna Lang Co integrated resort complex.

Daniel Cheng, Hard Rock’s senior vice president for casino business development in Asia, told GGRAsia that Hard Rock finished all site studies and completed all project financing. All the company is waiting for is the Vietnamese government to issue the casino license after which Hard Rock can put the spade to the ground immediately.

Earlier in July 2014, Singaporean resort developer Banyan Tree Holdings sought the provincial leaders’ approval to build a casino in the complex, claiming the step would play an important role in the development of Laguna Lang Co Resort, the company’s first project in Vietnam.

The casino project is a part of a proposal to increase the investment capital to $2 billion from the initial $875 million to expand the existing project. The added capital will be used to build 998 more hotel rooms and 1,073 villas, and $249.8 million of the added capital would go to the casino project alone.

If approved, Laguna Lang Co will contribute $245 million the province’s budget each year from 2021.

Starting operations in March 2013, the $875-million Laguna Lang Co Resort is located near Lang Co Bay, framed by a three-kilometre beach in Chan May region. This development includes Banyan Tree and Angsana hotels and spas, an 18-hole championship golf course designed by Nick Faldo, private villas and residences available for sale, convention facilities, and a plethora of recreational activities for guests of all ages.

In January, the government issued Decree No.03/2017/ND-CP on casino business, which took effect in March this year. Accordingly, eligible investors wishing to invest and operate in services, tourism, and entertainment businesses with casinos must invest a minimum capital sum of $2 billion and submit plans to manage the negative impacts of casino operations.

Such enterprises can provide a casino in only one location and this must be separate from other business areas of entertainment.

The decree also opens casino business opportunities for Vietnamese citizens. Notably, Vietnamese citizens shall be allowed to place bets in casinos for a trial period of three years, from the date the first casino operator successfully obtains their licences for Vietnamese.

In the trial period, eligible Vietnamese customers must be at least 21 years old, have a monthly regular income of minimum VND10 million ($454.5), and are legally competent.

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Abundant attractive deals make huge contribution to M&A market

VIR

About $15-20 billion of state divestment, the strongly rising private sector, and at the same time, a number of investment funds planning to divest, all of these promise to significantly contribute to the development of the sizable mergers and acquisitions (M&A) market in Vietnam.

The M&A market in Vietnam reported a record value of $5.8 billion in 2016. In the first half of 2017, there have been concerns that the market may not exceed $5 billion. However, KPMG Vietnam forecasted that the second half of 2017 will witness more sizable M&A deals.

Le Viet Anh Phong, head of Financial Advisory Services of Deloitte Vietnam, said that although the first half of 2017 did not see any breakthrough M&A deals, there were numerous small- and medium-sized ones. If huge transactions involving Hanoi Beer Alcohol and Beverage Joint Stock Corporation (Habeco), Saigon Beer, Alcohol and Beverage Corporation (Sabeco), and a number of other firms are implemented as scheduled, the value of the M&A market in 2017 could easily exceed the 2016 record.

Vietnam M&A Forum 2017's research team was optimistic, saying if there were a breakthrough in state divestment, the M&A market could reach the value of $6.2-6.5 billion or even higher.

$15 billion - $20 billion from state divestment and equitisation

It is estimated that speeding up state divestment can generate an income of $15-20 billion in the 2016-2020 period. During this period, investors expect that state divestment and equitisation would be implemented as stipulated in Decision No.28/2016/QD-TTg issued on December 28, 2016, which lists out 106 enterprises with more than 50 per cent of state holdings and 31 enterprises with less than 50 per cent of state holdings.

The government is speeding up equitisation of Vietnam Rubber Group (VRG), Vietnam Southern Food Corporation (Vinafood 2), Power Generation Corporation 1, 2, 3 (under Vietnam Electricity Corporation), PetroVietnam Power Corporation, PetroVietnam Oil Corporation, Vietnam Urban and Industrial Development Investment Corporation, and Song Da Corporation, among others. All of these promise to be noticeable M&A deals in the near future.

Recently, Decision No.1001/QD-TTg approved by the prime minister in July released divestment plans for 137 state-owned enterprises in 2017. The list reveals some noticeable enterprises, specifying the amount of stake they aim to sell, such as Vietnam Dairy Products Joint Stock Company (Vinamilk) (39 per cent), Traphaco JSC (Traphaco) (36 per cent), DHG Pharmaceutical JSC (43 per cent), Sa Giang Import Export Corporation (50 per cent), and Tien Phong Plastic JSC (37 per cent).

Pham Duc Trung, head of the Enterprises’ Reform and Development Department at Central Institute for Economic Management, was of the view that if the state sells 35 per cent stake in four enterprises in which it holds more than 65 per cent of the chartered capital, 49.1 per cent in 27 enterprises in which it holds more than 50 per cent of the chartered capital, and completely divests 106 enterprises in which it hold less than 50 per cent, the total book value would be over VND296 trillion ($13 billion).

A boom in private sector M&A

The private sector in Vietnam is considering M&A an important strategy to ensure sustainable development and expansion. This was illustrated through the M&A deals of Masan Group, Kido Corporation, Hung Vuong Seafood Corporation, and Vingroup JSC.

A wide range of famous real estate enterprises, such as Vingroup, Sun Group, FLC, Bitexco, Novaland, and Phu duc House, has implemented numerous M&A deals. In the past five years, the real estate sector has seen hundreds of private sector M&A deals, acquiring and developing plenty of real estate projects worth billions of dollars.

For example, during the period of 2014-2015, Vingroup spent $1 billion purchasing stakes in existing enterprises and projects in the market. Vingroup and other big enterprises also expended their businesses to the retail sector, agriculture, education, and construction materials via M&A deals.

In the field of consumer goods, numerous private firms, such as Masan Group, Kido Corporation, and Hung Vuong Seafood Corporation, have included M&A deals in their development strategy. For instance, Masan has created its owned empire with various subsidiaries like Vinacaffe, Proconco, Anco, and Vinh Hao. Its goods chain now covered almost all segments in the consumer goods market.

In the air industry, Vietjet is a prime example of the success of the Vietnamese private sector. The private sector is becoming a strong force in the economy, and it is also flourishing day by day.

Similarly, the milk industry has an outstanding firm, Vinamilk. The information and technology industry has FPT Corporation, VNG Corporation, Mobile World Investment Corporation, VCCorp Corporation, and CMC Corporation. The manufacturing industry has HPG Group, the automobile industry has Thaco Group, finance and banking has Saigon Commercial Joint Stock Bank (Sacombank), and so on.

All these enterprises play both in the role of buyers and sellers. In the past and at present, they have competed with foreign firms to purchase stakes in state-owned enterprises whenever the state decided to divest.

Investment funds to divest

According to Tran Vinh Du, deputy director in charge of M&A counselling at EY Vietnam, 2017-2018 will be the time for foreign enterprises and funds to divest. These units have been present in Vietnam before 2010, when they purchased huge stakes at a low price due to the 2010 crisis in Vietnam.

Normally, 5-7 years after investing in Vietnam, foreign investment funds will divest to earn profit and other private funds may take this chance to become their replacements.

Recently, in early August, Mekong Capital announced that its Vietnam Azalea Fund (VAF) had sold 75 per cent of its stakes in Loc Troi Group JSC. The reason behind the sale was that the fund was established in 2007 and its operating period of 10 years is coming to its end.

Than Trong Phuc, general director of DFJ VinaCapital, one of the first venture capital funds in Vietnam, said that the fund is withdrawing its investments.

“Many investors are showing interest in some companies like Yeah1 Group, Chicilon Media Co., Ltd., GAPIT Communication JSC, so we may benefit from divesting these firms,” Phuc said.

It is likely that more M&A deals will come in the second half of 2017 and the early 2018. This promises a vibrant M&A market with huge M&A deals.

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REAL ESTATE

OneHub Saigon to open at entrance to Saigon High-Tech Park by 2020.

VET

The Ascendas Saigon Bund Company will open OneHub Saigon, the first integrated business park in Vietnam, in Ho Chi Minh City by 2020.

OneHub Saigon has a total area of 12 ha with a variety of amenities, including a mixed-use commercial building, seven office towers, two work-office-home-office buildings, and a training center with a total gross floor area of 360,000 sq m.

The business park is the first to be developed with the intention of providing a well-rounded environment for “working, living, entertaining, and learning”. It is also an integrated community development incorporating technologies, talent, and capital that caters to Vietnam’s aspiring advancement in research and development, science, and information technology.

Located at the entrance to Saigon High-Tech Park in Ho Chi Minh City, within the growing economic zone and national construction projects, OneHub Saigon is just 25 minutes from the city center. The park will also be directly connected to Metro Line No.1, specifically Station 12, when open, and will satisfy demand for office, mixed-use commercial, and serviced apartment leasing.

OneHub Saigon is a joint venture between Ascendas-Singbridge and Saigon Bund Capital Partners. The partnership leverages Ascendas-Singbridge’s vast experience and track record in the development of successful business parks in Singapore, China, and India, and Saigon Bund Capital Partners’ investment capabilities and network in Vietnam.

Ascendas-Singbridge, Asia’s leading sustainable urban development and business space solutions provider, has focused on investing in landscaping and developing a sustainable environment for the project.

The Ascendas Saigon Bund Company has officially appointed JLL as the Lead Marketing Agent for OneHub Saigon.

“The decision to partner with JLL at OneHub Saigon was based on their in-depth knowledge and experience in Vietnam’s commercial real estate sector,” said Mr. Koh Mui Kwang, General Director of the Ascendas Saigon Bund Company. “Their commercial leasing team is also well-connected in Ho Chi Minh City. We look forward to working with JLL to attract a strong mix of tenants interested in this premier location in the east of the city.”

“OneHub Saigon offers tenants a high standard of office space within a business park environment that is not found elsewhere in Ho Chi Minh City,” said JLL’s Country Head Mr. Stephen Wyatt. “The thoughtful and intelligent design of OneHub Saigon is sure to provide tenants with an unparalleled office experience. We are excited to partner with the Ascendas Saigon Bund Company to share this exceptional property with the market.”

JLL is a leading professional services firm specializing in real estate and investment management. A Fortune 500 company, it helps real estate owners, occupiers, and investors achieve their business ambitions.

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Social housing projects fail to attract tenants

VNA

When it comes to social housing or affordable housing for low-income earners, funding is usually a key factor in such projects. However, once the projects are completed, problems in planning, investment management and efficiency tend to crop up.

In Hà Nội, poor planning has been blamed for the high demand for low-cost housing and disused housing projects.

Late last month, the Ministry of Construction agreed to re-designate three apartment buildings meant for students in Pháp Vân – Tứ Hiệp New Urban Area to social housing for other low-income earners.

The State-funded dorm project consists of six apartment buildings in Pháp Vân- Tứ Hiệp New Urban Area in Hoàng Mai District. The project began construction in September, 2009 and was expected to provide accommodation for 22,000 students.

Since January, 2015, three apartment buildings have been completed with more than 1,200 furnished apartments, each apartment nearly 57 sq.m for eight students priced at VND 205,000 per person per month.

The rental price is a third or a quarter of prices offered by private landlords.

When the project was announced, as many as 15,000 students of universities and colleges in the project’s neighbourhood applied for accommodation. However, so far, just 30 per cent of completed apartments are in use.

The low uptake of the apartments has been blamed on a lack of public infrastructure around the buildings putting off students.

As soon as Construction Ministry decided to change the dorms’ use, it called on Hà Nội to speed up developing social and technical infrastructure to meet demand.

A shortage of public infrastructure has also caused other social housing in the heart of industrial zones to be unused, despite the workers being in dire need of lodgings.

For example, twenty four apartment blocks with 1,084 rooms have been completed in Kim Chung Commune, Đông Anh District to serve about 10,000 workers who work in Bắc Thăng Long Industrial Zone. However, just 7,000 workers have decided to live there.

Other low-cost housing projects including Hoàng Cầu Resettlement Project in Đống Đa District, a 20-story apartment building on Tạ Quang Bửu Street in Hai Bà Trưng District and a resettlement area in Bắc Từ Liêm District also failed to attract home seekers.

Poor quality and lack of public infrastructure like road, water supply or schools are said to be too great inconveniences, despite the low rental prices.

Experts said the problem was a result of policymakers caring more about the number of home seekers when developing social housing projects rather than considering their needs.

Vice President of the Việt Nam General Federation of Labour Mai Đức Chính said that in many industrial zones in Việt Nam, just five to ten per cent of workers had housing arranged by an IZ.

However, housing for workers seemed merely a means to provide them a place to sleep after work, he said, adding that schools or entertainment areas were needed for workers’ social and spiritual lives.

Former head of the Housing and Real Estate Market Management Department Nguyễn Mạnh Hà said that in some cases, people did not want to move to resettlement areas as the quality of houses and public infrastructure was lower than near their former homes.

Modest compensation fund was part of the reason for the low-quality resettlement works, Hà said.

“Hà Nội will have to arrange to resettle thousands of families to make room for about 2,700 upcoming projects, meaning there is a high demand for resettlement housing projects,” he said.

To attract people to such projects to avoid completed housing projects being disused, the benefits of all involved parties must be ensured, he said.

Hà said that instead of poor quality resettlement houses, people in project areas should be given compensation in cash so they can select suitable houses depending on their needs and budget.

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OIL&GAS&ENERGY&MINING

Tra Vinh gives licence for wind power project

VNA

Tra Vinh Province’s Management Board of Economic Zones on Tuesday granted an investment registration certificate to two investors to develop the first phase of the Duyen Hai Wind Power Project.

The investors are HCM City-based Asia Energy Petroleum Corporation, and Unison eTech Co Ltd from South Korea.

To be located in Duyen Hai District’s Dong Hai Commune, the plant will see an investment of VND2.8 trillion (US$125 million) in its first phase, whose design capacity is 48.3MW from 21 turbines, at 2.3MW each.

Once operational in December 2019, the project is expected to generate over 135,200MWh per year.

Nguyen Quynh Thien, deputy director of the Management Board of Economic

 


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