The year’s first quarter has seen an overall figure of US$49.3 million of the nation’s investment capital abroad being pumped into both new and existing projects, equivalent to 41.1% in comparison with the same period during 2019.
These figures indicate that local businesses have begun to reduce the amount that they are investing abroad in comparison to the higher level of outward investment seen over the past few years. Despite this slowdown, it is worth noting that many domestic enterprises have expanded their investment in new markets, as opposed to focusing on traditional markets such as Laos, Cambodia, and Myanmar.
The Foreign Investment Agency also noted that, among the 13 countries and territories which have received investment capital from the nation over the previous three months, the United States tops the list.
Vietnamese investment in the US accounts for 40.8% of total investment capital and is spread throughout seven new projects with an overall figure of US$20.1 million.
Following the US is Singapore with US$12.8 million, 26% of the overall figure, then Cambodia, Cuba, and Hong Kong (China).
It is worth noting that TH Group recently completed a deal in order to purchase three cattle farms in Australia, including two based in Auvergne in North Australia, and an additional one in Argyle Downs in West Australia. These locations have a combined total area of 1,106,300 ha and are home to 60,000 cattle.
The agreement to buy these farms was signed in early 2019 between the Clean Agriculture and the International Tourism Company, a TH Group subsidiary, and Consolidated Pastoral Company, the previous owner of the three farms.
In addition to entering new markets, Vietnamese firms have also begun to invest in other areas abroad, with ten sectors being invested in during the year’s first quarter.
Indeed, accommodation and food services were the most prominent with two projects worth US$14.7 million, holding 29.9%, while scientific and professional activities came second with US$12 million, constituting 24.3%, followed by the manufacturing industry, wholesale, and retail.