EurOrient to Invest US$1Bln in Vietnam Annually

California-based EurOrient Financial Group of the U.S. plans to invest about US$1 billion annually into Vietnam in the coming time with focus on banking, finance, infrastructure fields; EuroOrient President Ron Nechemia told press circles in Ho Chi Minh City on September 7.

 

“We expect to invest around US$1 billion in three or four projects each year,” Ron Nechemia told reporters on last Friday.

 

EurOrient, which is now seeking investment opportunities in Vietnam, is expected to conclude its negotiations on financial projects with local partners in the upcoming one or two weeks, he said.

 

“Vietnam’s 30 per cent cap for foreign investments in the banking sector is dissuasive and less attractive,” the official was cited by local newspaper Securities Investment as saying.

 

The group reached an agreement on a US$120 million joint venture with a local partner and a license could be issued later this month, he said, EurOrient will hold a 70 per cent stake of the JV that will develop a 120MW wind-to-power plant in northern Vietnam.

 

“Vietnam should improve its infrastructure to lure foreign investors because the country is now facing challenges in meeting the country’s power demand and continued traffic bottlenecks are burning problems,” he said.

 

EurOrient expect to sign two deals to acquire equities in local financial services companies, he elaborated after his meeting with Planning and Investment Minister Vo Hong Phuc to show interest in the Dong Nai province-based Long Thanh Airport project which will require US$8 billion.

 

According to estimation of VinaCapital Fund, Vietnam will need about US$140 billion from now till 2020 to develop its infrastructure systems. (Securities Investment, VNS)