Top eight FDI projects 2008

Viet Nam lured 1,171 foreign development investment (FDI) projects last year worth over $64
billion, nearly double that of 2007. Among them are eight of the biggest projects.

Son Duong Port and Steel Complex

The project was began July 2008 by the Taiwanese group Formosa at the Vung Ang Economic
Zone in Ha Tinh province.

A large-scale FDI project in Viet Nam, the project costs $7.9 billion, 95 percent was invested by
Formosa and the rest by the UK's Cayman Islands based Sunsco.

The complex will be one of the largest of its kind in Southeast Asia, capable of churning out 7.5
million tons of steel per year and accommodate cargo ships with loads of 200,000-300,000 tons.

New City Vietnam Tourism Project

The project is an investment by a Brunei company, New City Properties Development Co., Ltd,
with a total investment of $4.345 billion.

This complex began development July 2008 on 565 hectares in Phu Yen Province, covering four
areas: Hon Chua Island, Xep Yard, Anh phu commune of Tuy Hoa City, and South Tuy Hoa
Urban Center.

It will house hotels, office buildings, restaurants, healthcare centers, a golf course and sport
clubs.

Ho Tram Tourism and Resort Complex

Developed by Asian Coast Development Ltd. based in Canada, the project was begun May 2008
with a capital of $4.2 billion.

The complex is situated in 169 hectares in Xuyen Moc commune, Ba Ria-Vung Tau Province.

This complex will be 5-star standard and will be home to hotels, restaurants, recreation centers,
nursing homes, and conferencing and exhibition centers.

Vietnam International University Township Project

In July 2008, Malaysian based Berjaya Land Berhad was granted a license to develop a project
for a Vietnam International University Township (VIUT) in Tan Thoi Nhi commune, Hoc Mon
district, HCM City.

With an investment of $3.5 billion, the VIUT project covers 925 hectares and will comprise an
education center, residential areas, trade centers, recreation and sports facilities.

Cua Dai Beach Resort

Starbay Viet Nam, an affiliate of Starbay Holding Group based in the U.S., is developing a
project worth $1.64 billion.
The project will sit in 540 hectares in Dai beach, Ganh Dau commune, Phu Quoc Island.

The resort will include nursing centers, a golf course, hotels, restaurants, villas and apartments,
trade centers, and conferencing facilities.

5-Star Complex

The American group Good Choice is building a tourism complex in Ba Ria-Vung Tau Province
with an investment of $1.3 billion.

It will have hotels, relaxation centers, exhibition and conferencing centers, healthcare facilities
and food halls.

TA Associates International Project

TA Associates International Vietnam, part of the Singaporean group TA Associates International

is being developed at a cost of $1.2 billion. The project will consist of office buildings, a human
resource training center and apartments.

The project was implemented in HCM City with initial costs of $180 million.

Urban, Hotel, Trade and Service Complex

With an investment of $750 million, Water Front Ltd., based in Singapore, has been licensed to
develop a project for urban centers, hotels, and trade and service centers in the southern
province of Dong Nai. (Sai Gon GP)

Golden FDI flows amid the gloom

Vietnams authorities are upbeat about the nations growing foreign direct investment capital
attractiveness in a tough 2009 despite the global turmoil.

Phan Huu Thang, general director of the Ministry of Planning and Investments Foreign
Investment Agency (FIA), referred to a list of more than 50 foreign-invested projects with a
combined investment capital of $100 billion, which were under negotiations in terms of
investment conditions.

Our studies show that Vietnams two leading foreign direct investment (FDI) localities Ho Chi
Minh City and Dong Nai province would attract huge numbers of FDI projects in 2009. Ho Chi
Minh City is considering four large-scale property projects worth $20 billion, while the latter is
projected to licence $5 billion worth of FDI capital in 2009, Thang said.

Provinces and cities jobs now are to get relevant investment conditions ready including land,
infrastructure networks and labour forces to welcome potential investors, he added. Thangs
optimistic anticipation of Vietnams FDI attractiveness came as the country enjoys an historic
FDI peak of two decades since the nation opened up the economy to foreign investors.

FIAs preliminary figures indicated that Vietnams newly pledged and expanded FDI capital in
2008 reached $64 billion, tripling 2007s reported figures and six times higher than that of the
2006, which marked Vietnams introduction of the new Investment Law and the nations World
Trade Organization (WTO) membership.
FIA figures also revealed Vietnams remarkable increases of disbursed FDI funds across the
year to $11.5 billion compared to $8 billion in 2007 and $4.6 billion in 2006. Thang said that the
gradual disbursement rate growth in 2008 was backed by immediate implementation of large-
scale FDI projects in property, steel, oil and petrochemical sectors.

I am most impressed by the reported $3.74 billion of expanded FDI capital between January
and December, 2008 an increase of 42.3% over the previous year, reflecting successful
operations of existing foreign businesses in the country, Thang said. The 2008 survey of
Japanese External Trade Organization indicated that as many as 92.6% of Japanese
manufacturers and 88 per cent of Japanese non-manufacturers surveyed in Vietnam planned for
expansion. They are the highest ratios in the Southeast Asian regions.

Japan Bank for International Cooperation also ranked Viet Nam the third most attractive
investment destination of Japanese investors for three consecutive years, after China and India.
Five top reasons of Viet Nam for promising prospect are inexpensive labour costs, market
growth potential, risk diversification, excellent human resources and supply base for
assemblers, the bank reported.

According to Business Monitor International (BMI), which provides economic analysis of

emerging markets worldwide, looking beyond 2009, FDI inflows should remain robust on the
back of Vietnams solid macroeconomic fundamentals and continued attractiveness as an
alternative to China for manufacturing operations.

Additionally, BMI forecast that FDI disbursement in infrastructure in Viet Nam would remain
strong in 2009 as foreign investors are really interested in building ports and power plants in Viet
Nam. (Dau Tu)

Prospects for medium and long-term FDI projects

Since Viet Nam joined the WTO in 2007, the flow of foreign direct investment (FDI) into the
country has increased sharply from US$12 billion in 2006 to more than US$64 billion in 2008, a
five-fold increase compared to the 2006 figure.

To date, Viet Nam has so far had more than 10,500 foreign-invested projects in valid capitalised
at over US$155 billion. More than 4,000 foreign-invested enterprises have been put into
operation, contributing more than 40 percent of the countrys total industrial production.

Notably, total registered FDI capital in 2008 hit more than US$64 billion, a three fold increase
over 2007 while disbursed FDI capital reached a record high of US$11.5 billion. This proves that
Vietnam remains an attractive investment destination in the context of the global financial crisis.

FDI enterprises have helped speed up the process of national modernisation and
industrialisation, apply advanced technology, and generate steady jobs and stable income for
labourers.

However, because of the global economic downturn, it will be very difficult for Vietnam to
maintain this upward trend in 2009. The rate of disbursed FDI capital against registered FDI
capital is expected to decline compared to 2008. Many licensed projects will be either delayed or
put on hold or cancelled.

Phan Huu Thang, head of the Foreign Investment Agency under the Ministry of Planning and
Investment says that despite difficulties in the country and the world, the trend of investing in
Vietnam remains positive in 2009 as the country has the advantage of socio-political stability. He
emphasises that there will be good prospects for medium and long-term FDI projects in Vietnam
through 2010.

However, FDI in 2009 is forecast to decrease remarkably compared to 2008, standing at around
US$20 billion and disbursed capital at US$11-12 billion.

Binh Duong doubles yearly FDI target

Despite difficulties resulting from global economic downturn, the southern province of Binh
Duong absorbed more than 2 billion USD in foreign direct investment (FDI) this year, doubling its
yearly target, local officials said.

The figure helped bring the total amount of FDI pumped into Binh Duong to 11 billion USD.

Binh Duong is placed second on this years Provincial Competitiveness Index in terms of
business climate.

2008 also saw the provinces performance regarding the disbursement of FDI capital which
reached 64 percent one of the countrys highest levels.

In addition to traditional investors, including Taiwan , the Republic of Korea and Japan , the
province has seen a host of newcomers, such as the Netherlands , Finland , Denmark , the US
and the UK , with increasing number of projects.

Provincial authorities said most of the newly registered FDI capital is poured into manufacturing
hi-tech products and services. This is in line with the provinces sustainable industrial
development plan.

The achievements in FDI attraction are attributed to Binh Duongs efforts to promote foreign
investment. A series of business delegations have been sent to Japan , the US and European
countries to seek investors.

Jae Huyn Huyn, President of the Republic of Korea s Tong Yang Group which specialises in
cement and steel production, finance and banking, said that RoK entrepreneurs appreciate Binh
Duongs investment environment and that his business wants to further invest in services in the
province.

Chong Lit Cheong, Chief Executive Officer of International Enterprise Singapore , also spoke
highly of the investment environment of Binh Duong, where more than 100 Singaporean-
invested projects are operating.

He said more Singaporean firms will come to the province in the near future. One firm has plans
to build an industrial zone for food processing of international standards in the locality.
Impressed by its business climate and modern infrastructure at its industrial zones, a growing
number of Malaysian investors have flocked to explore investment opportunities in Binh Duong.
(VNA)

Taiwan leads foreign investors in Vietnam

With 1,940 valid investment projects, worth a total of 19.65 billion USD, Taiwan tops the list of 84
countries and territories investing in Viet Nam , since the promulgation of the Foreign Investment
Law in 1988.

Three quarters of Taiwanese projects are in industry and construction, numbering 1,460 projects
valued at 16.2 billion USD, representing 75. The remaining mainly involve in services,
agriculture, forestry and fisheries.

Taiwanese have invested in 55 provinces and cities across the country, but a majority
concentrate in Dong Nai, HCM City, Binh Duong, Hai Phong, Long An, Ninh Binh, Vinh Phuc,
Hai Duong and Ba Ria-Vung Tau.

According to the Foreign Investment Department, Taiwanese investment projects mainly used
high technologies and state-of-the-art equipment, especially those involving in motorbike
assembly, production of cement, sodium glutamate, synthetic fiber and electronic parts, farming
technology, aquatic products farming and processing.

Hanois industrial parks expect to lure 300 million USD in FDI

Hanoi expects to attract 35 foreign investment projects in industrial parks (IPs) with a total
registered capital of 150 million USD and approve an additional investment of another 150
million USD in 2009.

According to the municipal Management Board of Industrial Parks and Export Processing Zones,
the citys IPs target a year-on-year increase of 15-20% in revenue and an export value of 1.85
billion USD.

In 2008, Hanoi s IPs attracted 22 more projects capitalised at 75.16 million USD. Of these
projects, the 18 million USD Japanese-invested Sumitomo NACCO Materials Handling Vietnam
was the largest.

Last year also saw a year-on-year increase of 6% in total capital invested in the citys IPs, the
management board said.

Investors, chiefly from Japan , Taiwan , China and the Republic of Korea , pour their capital into
mechanical engineering, industrial production and services.

The expanded Hanoi is now home to 12 IPs with total area of 2,500ha, of which Thang Long,
Noi Bai and Sai Dong B IPs are fully occupied. (VNA)

Competitiveness key to attracting FDI

Optimum competitiveness to maximise Viet Nam as a destination for foreign investors and limit
the damage of the global downturn was the key message delivered at a high-powered economic
meeting in Ha Noi yesterday.

Titled the "European Union-Viet Nam Trade Forum: Enhancing Competitiveness," the meeting
was designed to share perspectives about trade and create conditions for dialogue to enhance
Viet Nams regional competitiveness.

Its participants agreed that Viet Nam should fully adhere to its international commitments despite
the daunting difficulties and challenges the country could face in 2009.

Doing so would ensure the confidence of foreign investors and solidify Viet Nams international
relationship, especially with the EU.

Viet Nam needed creative measures to make it more attractive to foreign investors, said
EuroCham Chairman Alain Cany when opening the forum.

More investment would mitigate the influence of the global economic downturn and help Viet
Nam meet this years growth targets.

The EuroCham chairman said the Vietnamese Government had already devised policies and
made daring changes to limit the damage done to the domestic economy from the global
economic turmoil.

But bold policies and decisions to maximise its competitiveness and ensure it remained a
popular destination for foreign investors were still needed.

View reinforced

The chairman was reinforcing the EuroCham view that investor confidence in Viet Nam was
underlined throughout last year through strong portfolio investment and record foreign direct
investment.

But with exports slowing, prices for key commodities falling and the domestic market sentiment
still fragile, Viet Nam needed to act creatively to maximise its attraction as a destination for
foreign investment.

Figures showed that foreign investment had declined, despite 2008s record FDI of US$60
billion, and exports slowed significantly toward the end of the year, he explained.

Deputy Minister of Industry and Trade Le Danh Vinh told the forum that promoting a more
competitive national economy was a key component of Doi Moi (renewal).

The effort had to be made a priority as part of building the national economy and enhancing
global integration objectives Viet Nam had pursued throughout the past 20 years.

"Viet Nam has been consistent and successful in transforming into a market economy and has
implemented step-by-step policies to enhance competitiveness," he said.

The result had been the manifestation of a healthy, competitive environment.

An example of the effort had been the National Assemblys Competitive Law 2005 that was
highly appreciated for its modernity and comprehensive reflection of the basic rules of
competition.

The Deputy Minister conceded that Viet Nams international competitive ranking - as judged by
such organisations as the World Bank and the World Economic Forum- had been low.

But new Viet Nam Chamber of Commerce and Industry surveys and its yearly Provincial
Competitive Index showed that Viet Nam had undergone remarkable development in becoming
competitive. (VNS)