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HANOI, Vietnam, March 9, 2011 (GLOBE NEWSWIRE) --
Cavico Corp. (Nasdaq:CAVO) ("Cavico" or the "Company"), a major infrastructure civil engineering design and construction conglomerate based in Vietnam, today announced that it plans to benefit from several key infrastructure developments in Vietnam.
Recent developments that could positively impact Cavico include the following:
The proposed construction of a four-lane tunnel underneath the Red River, the largest river in northern Vietnam, during a meeting held in late February by the People's Committee of Hanoi. The tunnel would link Hoan Kiem District, the commercial center of Hanoi, with Long Bien District, a developing urban area of Hanoi. The committee will consider the details of the project and submit its recommendation to the Prime Minister for approval.
The increase in loans pledged to Vietnam to $2 billion by the Asian Development Bank ("ADB") to support the development of Vietnam's infrastructure, financial planning and education sectors.
Nokia, a multinational communications corporation, announced on March 2 that it plans to construct a $276 million manufacturing facility near Hanoi. Cavico anticipates that the infrastructure in the area surrounding the complex will need to be expanded and upgraded to support the facility's operations.
"These developments represent excellent opportunities for Cavico," commented Mr. Ha Quang Bui, CEO of Cavico. "We are particularly excited about the proposed Red River tunnel, as Cavico is the only domestic construction contractor with expertise in the use of tunnel boring machine technology and has an industry-leading technological capability to build underwater tunnels. We have years of experience working on a wide range of large-scale infrastructure construction projects and will work with project organizers to bid on and secure construction contracts as Vietnam continues to expand and develop its infrastructure."
Mr. Bui continued, "We are also encouraged by the recent $2 billion pledge from the ADB, which reflects Vietnam's growing attractiveness to foreign investors. Vietnam is Asia's second fastest-growing economy behind China, and in recent years, the Vietnamese government has implemented policies to create a more favorable investment environment. As the nation's largest non-government-owned construction company, Cavico is strongly positioned to take action to benefit from increased foreign investment in Vietnam's infrastructure sector. We see numerous growth opportunities ahead and are very optimistic about the long-term growth of our business."