Strong Vietnamese Economy Signals Robust Growth for Cavico
LOS ANGELES & HANOI, Vietnam-(Business Wire)-February 9, 2009 - Cavico Corp. (“Cavico” or “the Company”) (OTC BB: CVIC), 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.
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.”
About Cavico Corp. (OTCBB: CVIC)
Cavico Corp. is focused on large infrastructure projects, which include the construction of hydropower facilities, dams, bridges, tunnels, roads, mines and urban buildings. Cavico is also making investments in hydropower facilities, cement production plants and urban developments in Vietnam. The company employs more than 3000 employees on projects worldwide, with offices throughout Vietnam and a satellite office in Australia.
Founded in 2000, Cavico is a major infrastructure construction, infrastructure investment and natural resources conglomerate headquartered in Hanoi, Vietnam. Cavico is highly respected for its core competency in the construction of mission-critical infrastructure including hydroelectric plants, highways, bridges, tunnels, ports and urban community developments. One of the Company’s primary competitive advantages is its ability to nurture a project “from concept through completion” with a vertical portfolio of interrelated investment, permitting, design, construction management and facility maintenance services. Cavico’s project partners include top multi-national corporations and government organizations. The Company employs more than 3,000 full-time, part-time, and seasonal workers. For more information, visit http://www.cavicocorp.com. Information on the Company’s Web site or any other Web site does not constitute a portion of this release.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the Company's ability to obtain the necessary financing to continue and expand operations, to market its construction services in new markets and to offer construction services at competitive pricing, to attract and retain management, and to integrate and maintain technical information and management information systems; the effects of currency policies and fluctuations, general economic conditions and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities. These statements include, without limitation, statements regarding our ability to prepare the Company for growth, the Company's planned expansions, and predictions and guidance relating to the Company's future financial performance. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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