Their term sounds… I don’t know if anybody could help them…
China's SCS Strategy Thread
- Thread starter lilzz
- Start date
antiterror13
Brigadier
It would cost US$67B ... woooow, 16% of total Vietnam GDP! extremely huge project for Vietnam. Just to put this into a perspective if it were in China it would be equivalent to $18T * 16% = $2.9T!
I am not convinced that Vietnam could afford it
Vietnam is fishing for support from foreign countries on this huge and ambitious project apparently after being given the cold shoulder by China. The other possible contenders are Japan and the EU.
In reality only China has the financial means, engineers / skilled workers, and the expertise to complete the project in excellent quality, on time and within budget.
but I heard Vietnam was asking for a pie in the sky, in the sense that China has to finance the whole project, hire inexperienced local workers/managers, shoulder all major costs and responsibilities, and ToT. AND Vietnam has unstable internal political factions, in-fighting and strife. A China friendly regime today, a China hostile regime tomorrow!
So why bother! Hence the cold shoulder from China. Chinese social media comments are mostly negative as well, as there is no trust lost between the two countries.
In reality only China has the financial means, engineers / skilled workers, and the expertise to complete the project in excellent quality, on time and within budget.
but I heard Vietnam was asking for a pie in the sky, in the sense that China has to finance the whole project, hire inexperienced local workers/managers, shoulder all major costs and responsibilities, and ToT. AND Vietnam has unstable internal political factions, in-fighting and strife. A China friendly regime today, a China hostile regime tomorrow!
So why bother! Hence the cold shoulder from China. Chinese social media comments are mostly negative as well, as there is no trust lost between the two countries.
"The BRP Artemio Ricarte (PS-37), an Emilio Jacinto class Vessel of the Philippine Navy (PN), recently participated in the Coordinated Patrol (CORPAT) Philippine Indonesia (PHILINDO) XXXVIII-24 with the Indonesian Navy (IN) in the Maritime Borders of both Countries.
During the Exercise, 21 Filipinos who were detained in Indonesia due to one Reason or another were also handed over to the Ship which brought them home back to the Philippines. The Ship and the Filipino Repatriates were welcomed in a Ceremony in Davao upon their arrival.
The BRP Ricarte was commissioned into Service by the PN in 1997, and from that time until the start of the arrival of the Del Pilar class Vessels in 2010, the Jacinto-class Vessels were the most modern and most capable Ships of the PN then with their remote controlled 76/62 Compact 76 mm caliber and DS25 25 mm caliber Guns."
Link:
During the Exercise, 21 Filipinos who were detained in Indonesia due to one Reason or another were also handed over to the Ship which brought them home back to the Philippines. The Ship and the Filipino Repatriates were welcomed in a Ceremony in Davao upon their arrival.
The BRP Ricarte was commissioned into Service by the PN in 1997, and from that time until the start of the arrival of the Del Pilar class Vessels in 2010, the Jacinto-class Vessels were the most modern and most capable Ships of the PN then with their remote controlled 76/62 Compact 76 mm caliber and DS25 25 mm caliber Guns."
Link:
Will it also include equity ownership? And right to manage for decades?
"China Coast Guard (CCG) on Wednesday warned the Philippine side to immediately halt its rights infringement, provocation and inflammatory action after a Philippine vessel deliberately rammed into a CCG ship in waters around China's Huangyan Island in the South China Sea earlier in the day."
I have not seen such information on line so far , sorry.
but I suspect the terms would be one sided to Vietnam's favour. May be Vietnam thought they could leverage the American factor as a negotiation tactic to pressure China to accept their terms.
16% of GDP is a lot, but it is doable with the right financing deal if the project is expected to generate consistent profits.
Cost for the Laos Boten–Vientiane railway was $6B or about 37% of Laos' GDP of $16B. Out of the $6B total cost, $2.4B came from equity in the joint venture owner of the railway with China and Laos contributing/owning 70% and 30% of the equity in the joint venture respectively. The remaining $3.6B came from debt taken on by the joint venture with financing provided by the Export-Import Bank of China. This debt will be paid back from the profits generated by the joint venture.
Of the $730M in equity contributed to the joint venture by Laos, $250M was disbursed from the national treasury and $480M was borrowed from the Export-Import Bank of China. So even though the total cost for this economically transformative project was $6B or 37% of Laos' GDP, the government of Laos only needed to come up with $250M or 1.6% of GDP upfront and take on debt of $480M or 3% of GDP.
While China bore almost all of the risk for Boten–Vientiane, the risk was actually limited as the railway is already very profitable since it is the only efficient way for moving freight in landlocked Laos.
Vietnam is probably looking for something similar to the financing structure for Boten–Vientiane, but the problem is dedicated high speed passenger rail simply don't generate large profits like freight rail does.