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Strong Vietnamese Economy Signals Robust Growth for Cavico
Monday February 9, 9:00 am ET
LOS ANGELES & HANOI, Vietnam--(BUSINESS WIRE)--Cavico Corp. (“Cavico” or “the Company”) (OTC BB: CVIC - News), a leading infrastructure development company in Vietnam, today announced that the Company doesn’t foresee any negative impact on the Vietnamese government’s planned infrastructure spending for 2009 due to the current global financial crisis. Cavico management believes that infrastructure growth continues to remain top priority for Vietnam.
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Martin Rama, the World Bank’s Acting Country in Vietnam, was quoted as saying “Vietnam’s forecast GDP growth will take the lead in the South East Asia next year,” explaining that Vietnam is better at dealing with crisis than other countries in the region thanks to its economic restructuring before. The high GDP forecast of 6.5% is based on Vietnam’s FDI (Foreign Direct Investment) attraction and exports. Despite the global downturn, Vietnam’s exports posted 34% growth from Jan-Nov, and attracted $59.3 billion in first ten months, which is equivalent to two thirds of the country’s GDP value. The World Bank also predicted that the government will boost spending in the coming months.
Vietnam has topped a list of 2008’s biggest investors in Laos, implementing 146 projects with a total investment capital of $758 million. Vietnam’s projects in Laos are predominantly in the fields of mining, agriculture and forestry product processing, and hydro-power plant construction in Southern Laos. Lao Deputy Prime Minister and Minister of Foreign Affairs, Thongloun Sisoulith said in an interview that “Laos and Vietnam have enjoyed a close, long-lasting and historic relationship of friendship and cooperation in all aspects.”
“We continue to remain positive and confident of Vietnam’s strong growth potential. Cavico’s business growth is highly correlated to Vietnam’s economic and infrastructural development. Cavico is one of the largest and highly efficient hydropower and mining construction companies in the country. We believe Vietnam’s attractive growth outlook in 2009 combined with close ties with Laos will be favorable for Cavico’s future growth potential. In a span of two weeks in the month of January 2009 we have secured two hydropower tunnel construction projects, one in central Vietnam and one in Laos, totaled at $16 million,” commented Mr. Hung Manh Tran, executive vice president of Cavico Corp. “Our senior management has strong relationship with government officials which provide us a leading competitive edge and we expect to sign many more contracts in 2009.”
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