Thailand concerns about Vietnam attracting more FDI
(VOV) - Thai businesses have expressed concern that foreign investors will shift their investment from Thailand to Vietnam, Singapore and Malaysia to take full advantages of Trans-Pacific Partership (TPP) to approach the US, said Vallop Vitanakorn, vice chairman of the Federation of Thai Industries (FTI).
FTI urged the Thai Government and businesses to seek new export markets and produce high-tech products to better compete with foreign rivals, Vallop stated.
According to the Vietnam Foreign Investment Agency (FIA), the Republic of Korean Government last year encouraged its businesses to invest in Vietnam and considered it a strategic investment location. Major Korean businesses, such as Samsung, Canon, GS, POSCO, Hyundai, KEPCO, and SK have been operating in Vietnam.
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LG Electronics has decided to move most of its productive activities from Thailand to Vietnam to make use of cheap labour and transport services and seize opportunities brought about by TPP.
Since last year many Thai groups have sought ways to usurp Vietnamese businesses. For instance, Central Group owned by Thai millionaire Chirathivat purchased 49% stake of NKT New Solution and Technology Development Investment JSC.
ThaiBev group wants to buy 40% stake of Sabeco. Berli Jucker Group (BJC) successfully negotiated to buy Metro Cash & Carry Vietnam at a cost of US$875 million a few days ago.
The Petroleum Authority of Thailand (PTT) had expended US$22 billion on Nhon Hoi Oil Refinery Complex.
Besides, Thai millionaires tend to invest in other fields like dairy, electronics, garments and construction in Vietnam.