Apr 26, 2019 / 12:21

Vietnam rejects projects using obsolete technologies, PM tells Chinese firms

The Hanoitimes - Vietnam aims to mobilize more capital for development, including projects within the framework linking initiatives “Two Corridors, One Belt” and “Belt and Road”, presenting opportunities for Chinese investors.

Vietnam rules out projects using obsolete technologies, while encouraging investors to apply cutting-edge, environmentally-friendly technologies and provide products at affordable prices, according to Prime Minister Nguyen Xuan Phuc. 
 
Phuc met leading Chinese corporations in fields of infrastructure, energy, finance and technology in Beijing on April 25. Source: VGP.
Phuc met leading Chinese corporations in fields of infrastructure, energy, finance and technology in Beijing on April 25. Source: VGP.
Phuc made the statement in a meeting in Beijing on April 25 with leading Chinese corporations in fields of infrastructure, energy, finance and technology, most of which are in the Fortune Global 500 list of the world’s largest companies. 

As of present, China remains Vietnam’s largest trading partners, while Vietnam is China’s largest partner in Southeast Asia, Phuc said. 

Following Vietnam’s intensive efforts in global integration, the country has become an attractive investment destination for global investors. Over US$350 billion from 130 countries and territories has been committed to Vietnam through 28,000 projects. 

Phuc expected to mobilize more capital for development, especially from the private sector and foreign countries under the public-private partnership (PPP) format. This would include projects within the framework linking initiatives “Two Corridors, One Belt” and “Belt and Road”, which present opportunities for Chinese investors. 

The Vietnamese government would create favorable conditions for foreign companies, including Chinese ones, especially those with strong financial and technological capabilities. 
 
Overview of the meeting. Source: VGP.
Overview of the meeting. Source: VGP.
At the meeting with China’s major infrastructure – construction companies including China Railway Rolling Stock Corporation (CRRC), China’s Pacific Construction Group (CPCG), and China Energy Engineering Corporation (CEEC), Phuc highly regarded Chinese-funded projects with good progress, but criticized long-delayed projects in the fields of steel manufacturing and railway construction. 

According to Phuc, infrastructure development is one of Vietnam’s breakthrough strategies, the country, therefore, requires huge capital for developing roads, airports, and railways. 

Vietnam would proceed with international biddings to invite investors in forms of build – operate – transfer (BOT) and build – transfer (BT), Phuc added. 

Meeting with energy corporations such as China Huadian Corporation, China State Construction Engineering (CSCEC) and TBEA, Phuc revealed electricity supply in Vietnam must grow by 10 – 15% per year to accommodate the country’s rapid economic growth. 

Meanwhile, Phuc requested Chinese finance – technology companies such as Ping An Group, Alibaba, and China Development Bank (CDB), among others, to establish production bases in Vietnam, instead of just supplying equipment and parts. 

Phuc considered high-tech agriculture one of Vietnam’s advantages, expecting Ping An to expand cooperation with local companies in this field, while approving deeper partnership between the CDB and Vietnamese airlines in aviation sector. 

In response, Chinese corporations attending the meeting expressed commitments to long-term business and production expansion in Vietnam, and hoped for more support from the Vietnamese government to participate in large-scale projects.