SGI Leading Enterprise in the Renewal Process

2008 is the year of fruitful achievements of the Saigon Invest Group (SGI) in industrial park construction and foreign investment attraction into high-tech and clean energy sectors.  Mr Dang Thanh Tam -Chief Executive Officer (CEO) of SGI has gained titles and awards including Second Class Labour Medal, Vietnamese Typical Businessman, HCM City Typical Businessman. He was also elected as a Joint Chairman of Vietnam - Japan Business Forum which was approved by Prime Minister and appointed as an alternate member of ABAC (APEC Business Advisory Council- providing advices on business matters for 21 leaders of state), appointed as President of Saigon Construction and Building Material Association and President of Vietnam CEO Club...

Construction of Modern New Residential Area
One of the achievements of SGI in 2008 is the construction of a software park in Thu Thiem New Residential Area, one of the most modern residential areas in Vietnam as well as in the world. The residential area is home to a 16-hectare software park, the biggest of its kind in Vietnam and the ASEAN region. The construction will make great contributions to service sector growth rate, especially high-tech service and make HCM City become the largest software centre in the region. The construction will also make great contributions to the national economic development and raised Vietnam's technology to a new height. The software park project covers the total investment of over US$1.2 billion, of which SaigonTel (member of SGI) contributes 20 per cent of the total. The project covers a total area of 16 hectares and is located in the centre of Thu Thiem New Residential Area. SGI's biggest foreign partner in the project is TECO group, which is operating ten-hectare Nankang Software Center worth US$3.5 billion. Nankang Software Center earns revenues of US$10 billion each year and is highlighted by the US and UK.

Once put into operation, the park will lure US$2.95 billion from international ICT enterprises and groups, contributing US$4.3 billion to the State budget and fetch revenues of US$6.5 billion each year. In addition, the park will help improve quality of IT human resources. It is estimated that 40,000 workers will be involved in the construction of the park and 70,000 software experts, and IT specialists will work at the park after it is put into operation.

The project has proven that SGI's financial capacity and prestige is strong enough to lure involvement from foreign partners in the project; the project has also affirmed power and capacity of Vietnamese enterprises in the WTO. Moreover, the project has proven attractiveness of Vietnam's investment environment for foreign investors.

Attracting large-scaled foreign-invested projects
In 2008, the leadership of SGI has accompanied Vietnamese leaders' visits to countries and territories worldwide. During the visits, SGI has inked many big agreements with foreign partners. Among the visits were visits to Austria, Norway, and Greece of State President Nguyen Minh Triet. SGI inked pacts with Andritz of Austria to build pulp paper plants in northern Ninh Binh Province and central Nghe An Province with modern technology and production assembly to ensure environment protection.

During Prime Minister Nguyen Tan Dung's visit to the UK, SGI also inked a cooperative pact with International Power Group to build sea port-industrial complex-1,200 MW thermo-electric plant and other pacts on financial loans and equipment supply worth nearly US$2 billion with the group. The industrial parks are planned to be built in Long An, Binh Duong, Binh Phuoc; Dung Quat- Binh Dinh; Hanoi, Bac Ninh, Bac Giang, Vinh Phuc, Hai Phong. As planned, the UK partner will send its experts to Vietnam to make designs for the industrial parks to ensure that the parks will meet international standards and call on the local partner to speed up investment in heavy industry, high-tech, profitable economic sectors, and environmentally friendly industries.

SGI has also inked a deal with Maruberi - Japan on construction of a thermo-electric plant in the central region of Vietnam with capacity of 1,00 MW worth US$1.5 billion. In addition, SGI has also partnered with the US-based GE, a multinational American technology and services conglomerate in order to cooperate on a construction of wind-to-power projects. SGI will be a pioneer in Vietnam in pouring investment in clean energy especially Wind Power. The investment has showed commitments of SGI to environment protection and fight against climate change, and prevention of waste discharge into the atmosphere.

SGI has carried out two projects at Chan May-Lang Co Economic Zone in the central Thua Thien-Hue Province. SGI will investment in the construction of industrial parks and a non-tariff area of a total area of 650 hectares and Saigon-Chan May Residential Area, an area of 350 hectares. Total investment for the two projects reaches over VND2 trillion. SGI has also received licence from the Vietnamese and Lao Prime Ministers to build hydro-power plants in Laos.  It also intends to build industrial parks there.

Moreover, SGI has lured involvement of many Japanese investors in to high-tech parks of Kinh Bac City - a member company of SGI including Canon and SANYO (construction of a plant in Quang Chau Industrial Park in northern Bac Giang Province). With initial capital of US$95 million, the 144,000-square-metre plant will produce optical technology for electronic products and other related spare parts. As planned, the first unit of the plant will be put into operation in April, 2009 and the second unit of the plant will be operational in early 2010. After three years of operation, the plant will create jobs for around 12,000 people and earn revenues of over US$300 million from exports annually. SGI has also partnered with Mitsui Fudosan Group to run business in the real estate market and has cooperated with Marubeni to build a power plant with a capacity of 1,200 KW. SGI has also penned cooperative pacts with Itochu.

Actively joining social-charity activities
Not only making big success in business activities, SGI takes care of its staff's living standard as well as participates in social and charitable activities to help poor people. Since the early days of 2008, senior officials of SGI have paid visits to Laos in order to present more than VND15 billion of aid to the country. In February 2008, SGI granted scholarships to 107 Lao students to study in Vietnam with a total capital of US$2 million.  Philanthropic endeavours like these strive  making to boost friendship and cooperative ties between the two nations.

Also in 2008, SGI visited Tra Vinh Province and presented VND10 billion to poor Khome People. The visit was part of the Vietnamese Government's action plan to support poor ethnic minorities through a reduction of poverty and a boost in morale. The poverty-stricken Khome People in the southwestern region were a particular focus of the mission. SGI also acted as the benefactor for various aid endeavours including: the northern mountainous province of Lai Chau through the Cong An Newspaper (VND 1 billion), the Da Nang Cancer Hospital (VND5 billion); and the Global Women Summit (US$300,00).  Furthermore, SGI  joined in many scholarship programmes, built schools, gave presents to poor people in Mekong Delta Kien Giang Province (VND5 billion), and joined many social and charitable activities.  The total capital that the company has poured into social and charity activities in 2008 has reached over VND100 billion, taking the lead among Vietnam's enterprises in contributions to social and charitable activities. SGI will continue joining in the activities in years to come.

There will be more difficulties and challenges in 2009 and in following years in the context of global economic slowdown. Despite difficulties and challenges, SGI will try its best to overcome and stand firm in the market. SGI has pledged to retain its position as the leading enterprise in Vietnam in foreign investment attraction, finance- banking, electricity, Information Technology, Business and Industrial Park infrastructure.  The company will continue to strive to win the confidence from its customers and partners.

Reported by Van Luong