Vietnam and Czech Republic Strengthen Economic Ties through Investment and Development Projects

Strategic Insights -

Vietnam and the Czech Republic have recently strengthened their economic ties through significant investment and development projects in various sectors, including energy, construction materials, and foodstuff industries. The partnership was formalized through a sponsorship deal for the Phu Son cement plant in Ninh Binh Province and a series of memoranda of understanding (MoUs) for investments in seven energy projects. The signings were performed by the Bank for Investment and Development of Vietnam's director, general Tran Bac Ha, and the Czech Export Bank's (CEB) director general and chairman of the management board, Josef Tauber.

Key Takeaways:

  • The Phu Son cement plant in Ninh Binh Province was approved by the Vietnamese Government in March 2006, with a total expected investment capital of US$126.7 million.
  • The project is a joint venture between Phu Son Joint-stock company and the Bank for Investment and Development of Vietnam (BIDV), with each contributing 20% of the total investment capital.
  • The Czech Export Bank (CEB) will finance 60% of the total capital investment, including equipment expenses from the Czech Republic.
  • The seven energy projects selected for investment include:

+ Ha Nam Cement Plant with a capacity of 1.4 million tonnes per year.

+ 200-megawatt Nam Chien hydro power plant.

+ 2,400 MW Vung Ang thermal power plant.

+ 225 MW Dak Mi hydro power plant No 1.

+ 80 MW Dong Nai hydro power plant No 2.

+ A beer manufacturing project with a production capacity of 100-150 million tonnes per year.

+ An expansion project with Turbine Manufacturing Company for hydro power plants.

  • The total investment capital for these projects is predicted to amount to US$1.7 billion.

Statistics:

  • US$126.7 million: Total expected investment capital for Phu Son cement plant.
  • 20%: Percentage of total investment capital contributed by Phu Son Joint-stock company and BIDV each.
  • 60%: Percentage of total capital investment to be financed by the Czech Export Bank (CEB).
  • US$1.7 billion: Total predicted investment capital for the seven energy projects.

Sources:

  • "A sponsorship deal on Phu Son cement plant, and memorandum of understandings (MoUs) of investments in 7 energy projects, construction materials and foodstuff industries were signed yesterday." - Asia Pulse
  • "The signings were performed by the Bank for Investment and Development of Vietnam's director, general Tran Bac Ha, and Czech Export Bank (CEB)'s director general and chairman of the management board, Josef Tauber." - Asia Pulse
  • "The cement plant, located at northern Ninh Binh Province, was approved by the Vietnamese Government in March of 2006..." - VNA
  • "Phu Son and BIDV each contributed 20 per cent of the total investment capital." - VNA
  • "CEB will be financing 60 per cent of the total capital investment, including equipment expense from the Czech Republic." - VNA
  • "The seven selected projects, included Ha Nam Cement Plant with capacity of 1.4 million tonnes per year..." - VNA
  • "It is predicted that the total investment capital will amount to US$1.7 billion." - VNA