ARC China Presents at The 12th China Venture Capital & Private Equity Forum

SHENZHEN, CHINA, Jun 09 (MARKET WIRE) —
Barry Freeman, a Managing Director in ARC China’s Shanghai office,
presented as a noted speaker at The 12th China Venture Capital & Private
Equity Forum held in Shenzhen, China from June 4-6. ARC China is focused
on investing in China’s domestic consumption-oriented high-growth
enterprises in developing Tier II and III cities.

The 12th China Venture Capital & Private Equity Forum brought together
global investors, entrepreneurs, officials and policy-makers from central
and local governments, as well as experts and professionals, to discuss
the current investment landscape in China. Mr. Freeman discussed ARC
China’s activist investment strategy focused on the Tier II and Tier III
regions of China.

“ARC China feels that the key risks of investing in Chinese public and
private companies are corporate governance, financial transparency, and
control over the exit of our investment,” Mr. Freeman commented. “We
require an active role in these three areas for all of our portfolio
companies. ARC China has found Chinese entrepreneurs to be very receptive
to our advice as they understand the long-term, mutually beneficial value
that is created by implementing systems and processes supporting these
key areas.”

The Forum was hosted by the Central Committee of China National
Democratic Construction Association, the Ministry of Science and
Technology, People’s Government of Guangdong Province, and People’s
Government of Shenzhen Municipality. For more information please visit
www.cvcri.com.

About ARC China

ARC China is an investment firm focused on investments in
entrepreneur-owned small and medium sized enterprises located in Tier II
and Tier III Chinese cities. We seek to create value for our investors
and companies we invest in by applying our professional experience and
relationships to help companies upgrade their management teams,
technology, systems, and business processes. Our team of experienced
investment professionals and in-house due diligence analysts deploy a
proven and unique on-the-ground activist investment strategy of making
value-oriented highly involved, exit-driven equity investments in a
diversified portfolio of domestic consumption-focused high-growth Chinese
businesses. We also provide various financial advisory services, for both
inbound and outbound China transactions. For more information, please
visit http://www.arcchina.cn.

Contact:

Adam Roseman
ARC China 262 Des Voeux Road Central
23 on the Bund
The Bank of China Building, 14th Floor
23 Zhongshan East No.1 Road
Shanghai 200002, P.R. China
Phone: +86 21 6323 1717
Email: info@arcchina.cn

Copyright 2010, Market Wire, All rights reserved.

Influx of illegal Chinese workers an open secret in Vietnam

Hanoi – Vietnamese officials Monday said rising numbers of Chinese workers in the country may be costing some Vietnamese jobs.

But some officials and economic experts said there were good reasons for Chinese firms carrying out projects in Vietnam to employ Chinese workers, even though many such workers lack proper visas.

The issue has become controversial since reports last week in the newspaper Tuoi Tre and the news website VietnamNet claimed that Chinese companies had illegally imported thousands of unskilled Chinese workers to do jobs that could be performed by Vietnamese.

“Foreign illegal workers certainly have the effect of taking away a number of jobs that Vietnamese can do,” said Nguyen Dinh Thiet, chief of the Secretariat of Vietnam’s Vocational Training Association.

Pham Si Liem, Vice Chairman of Vietnam’s Construction Association, said such workers were brought in by Chinese contractors on several major infrastructure and mining projects.

“Using Chinese workers is more effective than using Vietnamese ones, as they speak the same language (as their supervisors),” Liem said. “But we are worried because this takes job opportunities from Vietnamese.”

Vietnam has no official statistics on the number of illegal workers in the country, Chinese or otherwise, said Nguyen Dai Dong, head of Vietnam’s Labour and Employment Agency.

But VietnamNet estimated that at several Chinese-contracted projects, including coal-fired power plants in Haiphong city and Quang Ninh province and a gas-turbine power plant in the province of Ca Mau, there are between 700 and 2,000 Chinese workers, most of them lacking work visas.

Tuoi Tre reported that Chinese companies working on bauxite mining projects in Vietnam’s Central Highlands were also using thousands of unskilled Chinese laborers.

Chinese contractors think Vietnamese workers are too unskilled and undisciplined, said Lt Col Tran Duc of Vietnam’s Immigration Department. “They are afraid Vietnamese workers will steal material while working.”

But using Chinese workers may be a simple matter of efficiency, said economist Adam McCarty of Mekong Economics in Hanoi. Chinese companies win large infrastructure projects by underbidding Western, Korean or Japanese competitors, and can do the job most effectively with their own workers.

“The Chinese do things dirty but cheap,” McCarty said. “If you do a deal with them, accept that they’ll do it the way they want to do it. You expect them to take on a whole lot of Vietnamese who they can’t control as well?”

If the laborers have no work permits, that is largely because Vietnamese law does not allow unskilled foreigners to receive them. Only foreigners with special skills are eligible for working visas, according to Dong of the Labour and Employment Agency.

Reports on the Chinese working at bauxite projects in Vietnam’s Central Highlands suggested national security might be compromised by allowing large Chinese settlements in the region. (dpa)

But Chinese firms have been told not to bring in workers for the bauxite mines on tourist visas anymore, said Doan Van Kien, chairman of the Vietnam National Coal-Mineral Industries Group, the state-owned company that owns the projects.

And security concerns over the Central Highlands are overblown, according to Carlyle Thayer, a Vietnam expert at the Australian Defence Force Academy.

“There is no real prospect of large-scale Chinese settlement that would displace Vietnamese and ethnic minorities from this area,” Thayer wrote via email.

Phan Dang Tho, deputy chief investigator of the Ministry of Labour, Invalids and Social Affairs, agreed that illegal Chinese workers were costing Vietnamese jobs, but called the problem “sensitive work.” On April 3, the government directed the Ministry to issue a report on how to deal with illegal workers.

“We will fine employees who have tried to use illegal workers,” Tho said. “Besides that, we will recommend that the relevant agencies expel them.”

Under Vietnamese law, immigrant work-permit violations are subject to a maximum fine of 20 million dong (1,130 dollars). (dpa)