PLN, Kadin sign accord on business in Vietnam

JAKARTA (JP): The State Electricity Company (PLN) has agreed to provide technical assistance for Kadin (Indonesian Chamber of Commerce and Industry) members which intend to expand operation in electricity-related businesses in Vietnam.

Under an agreement signed here Monday by PLN's president, Zuhal, and Kadin Chairman Aburizal Bakrie, the state firm will provide assistance in engineering consultancy and supervision for power projects to be established by Kadin members in Vietnam

Indonesian Ambassador to Vietnam Djafar H. Assegaff, who witnessed the signing of the agreement, said that opportunities are widely open for Indonesian companies to do business in Vietnam, which is inviting foreign investors to support its economic development.

"Based on the agreement, PLN will help Kadin members prepare plans to expand business in Vietnam in the power sector," Zuhal said, adding that PLN can provide consultancy on power generation, cable networks, plant engineering and construction.

Aburizal said Kadin, in its program to promote the expansion of its members' business to Vietnam, will appoint a special committee to organize companies interested in investing in the establishment of manufacturing, consultancy and construction activities in that country.

Opportunities

Assegaff said Indonesian firms will have opportunities to get involved in the development of electricity in Vietnam because that country will double its power generation capacity from 4,000 megawatts (MW) this year to 8,000 MW by the year 2000.

The expansion of generation capacity will surely need expansion in distribution facilities, he said.

A Kadin executive, Abdul Kadir, said Vietnam, for example, will expand its high-voltage cable transmission networks from 46,900 kilometers to 73,800 kilometers and low-voltage networks from 594,300 to 1.18 million kilometers.

Assegaff said Indonesian firms should also take the opportunity to get involved in the development of other businesses in Vietnam, including the construction of sea ports, highways, hotels, apartments, agriculture and manufacturing.

He acknowledged that PT Kalbe Farma has operated in the pharmaceutical industry in Vietnam.

"Kalbe Farma's products now dominates the pharmaceutical market in Vietnam," he pointed out.

According to the Central Bureau of Statistics, Indonesia's exports to Vietnam increased to US$171.6 million last year from $165.3 million in 1992, while its imports from that country rose to $38 million from $32.4 million. (fhp)