1. Nearly 93% German firms say will expand Vietnam operations
Nearly 93% of German enterprises operating in Vietnam said they will continue to invest in the country and over 64% of them said their businesses will fare better in the next 12 months, according to a survey by the German Chambers of Commerce Abroad, Delegations and Representative Offices (AHKs).
The survey, released on June 8, showed that German companies were more optimistic about their economic development outlook in the next 12 months than they were in the autumn of last year.
Over 46% of German businesses said they are planning to increase hiring in the coming year. Respondents said the most important factors for their trade and investment decisions in Vietnam were political stability, the availability of skilled workers in technical and non-technical fields, and improved transport and logistics infrastructure.
In addition, Vietnam has favorable conditions to attract foreign direct investment flows thanks to its participation in free trade agreements.
More than 73% of German businesses participating in the survey believed that the European Union-Vietnam Free Trade Agreement had improved their competitiveness in Vietnam.
They have made the most of the ASEAN-China Free Trade Agreement and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership to grow their businesses.
While doing business in Vietnam, German firms consider the availability of skilled labor in technical fields (58.3%), the quality of education in technical fields (58.3%) and tariff trade barriers (56.5%) as the most important factors.
(Source: The Saigon Times)
2. Ho Chi Minh City proposes $6 bln mega port in Can Gio District
HCMC proposes $6 bln mega port in Can Gio district
Ho Chi Minh City is proposing to build a $6 billion international container port in the coastal district of Can Gio, which would have a capacity three times higher than the city’s Cat Lai Port, now the country’s largest.
In a report sent to Prime Minister Pham Minh Chinh on Thursday, city Chairman Phan Van Mai said HCMC and the Ministry of Transport have listened to Swizerland’s Mediterranean Shipping Company’s (MSC) presentation on the proposed project following the two sides signing a framework agreement on cooperation in port infrastructure and logistics services in the city.
The world leader in global container shipping MSC through its subsidiary Terminal Investment Limited (TIL) would implement the gigantic project.
The port project, with 7.2 kilometers of wharf, is set to receive ships with a tonnage of up to 250,000 DWT (equivalent to 24,000 TEUs) and feeder ships of 10,000 to 65,000 tonnage DWT. The proposed site covers about 570 hectares.
The port’s design capacity is 10-15 million TEUs, of which about 80% are international transshipment goods and the remainder, import-export goods of Vietnam.
The project will be implemented in seven stages. Investors estimate that the initial phase will be completed in early 2024 and put into operation four years later. By 2040, the last stage will be finished.
At a meeting at the end of 2021, Vietnam Maritime Corporation (VIMC) asked for Prime Minister Pham Minh Chinh and relevant bodies’ support for its plan to develop an international container port in the Can Gio area on the outskirts of HCMC. The project would be carried out in collaboration with MSC and Saigon Port, a VIMC subsidiary.
According to the Vietnam Maritime Administration, the volume of container goods transshipped via the country’s port system in 2021 was 23.9 million TEUs, mainly via ports in HCMC, Vung Tau and Haiphong. However, the ratio of international transshipments was low, which means the development potential is significant.
VIMC said the Can Gio area is located at the beginning of the Cai Mep-Thi Vai navigational route, with a great depth. It is less affected by bad conditions when it comes to waves and winds. Moreover, Can Gio is located in a region with busy maritime activities, near international maritime routes. “These are important conditions for the formation of an international container transshipment port system and services.”
VIMC has been cooperating with MSC in exploiting and developing seaport infrastructure in Vietnam.
Cat Lai in District 2 is currently the largest port in the country, accounting for approximately 85% of southern port container freight and 50% of the country’s total.
(Source: The Investor Vafie Magazine)