Vietnam promotes overseas investment

(VOV) - In recent years, Vietnam’s overseas direct investment has increased. Vietnamese enterprises have expanded their markets contributing greatly to national growth and raising Vietnam’s prestige in international economic integration.

So far, Vietnam has invested in 63 countries and territories in 891 projects worth nearly US$20 billion.

Laos ranks first among Vietnam’s investment partners with 249 Vietnamese projects worth US$7.4 billion, followed by Cambodia with 161 projects with registered capital of US$3.4 billion.

Vietnam has 55 projects in Singapore, 22 in Myanmar and 19 in Russia. Most of the projects focus on mining, agriculture, forestry, fisheries, telecommunications and technology.

Viettel, Vinamilk, FPT, the Vietnam Rubber Group and state-funded banks are the largest investors, but overseas investment by the private sector and SMEs has been rising.

In recent years, Vietnamese enterprises have increased investment in Laos, Cambodia, and Myanmar through bilateral cooperation mechanisms. Many Vietnamese projects in Laos have been profitable.

These include rubber and sugar cane plantations of the Hoang Anh Gia Lai Group, Vietnam Rubber Group, Dak Lak Rubber Tree Company, and a number of other projects of Vietttel, the Lao Viet Joint Venture Bank and some Vietnamese banks.

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The two countries’ governments have accelerated a number of strategic projects including a pipeline from Hon La port in Vietnam’s Quang Binh province to Laos’ Khammuon province, and an electricity-grid project between Vietnam’s Pleiku city and Laos’ Xekaman province.

In September, Vietnamese Prime Minister Nguyen Tan Dung and his Lao counterpart Thoongxinh Thamavong attended the groundbreaking ceremony of a kali salt mining which the Vietnam Chemical Group is supporting in Khammuon province.

This is Vietnam’s largest investment project overseas, with total capital of US$522 million.

Prime Minister Nguyen Tan Dung said,“Vietnam is fully aware that Vietnamese investment projects in Laos are not just for mutual profit but also a sign of the Vietnamese Party, State and people’s respect for Laos and its people. Vietnam wants to contribute to Laos’s socio-economic development”.

Vietnam’s investment projects in Cambodia are concentrated in agriculture, energy, finance, banking, and insurance. These projects have contributed to the economic growth of both countries, especially their border provinces, and have generated thousands jobs.

A number of Cambodian agricultural products exported to Europe, Japan, and the Republic of Korea are supported by Vietnamese enterprises.

Of the 30 largest investors in Myanmar, Vietnam ranks 8th in invested capital-US$513 million. Vietnamese investment in Myanmar is concentrated in finance, banking, insurance, and telecommunications.

Vietnam Post and Telecommunications and Viettel Military Telecommunication Group participated in the first telecommunication bidding in Myanmar. The FPT group established the FPT Myanmar Company in 2013.

Vietnam has 19 investment projects worth US$2.47 billion in Russia focused on oil, gas, and trade. They include Rusvietpetro, Gazpromviet and the Hanoi Trade Center in Moscow.

Vietnam has 2 investment projects valued at US$1.8 billion in Venezuela and a number energy, oil, gas and telecommunications projects in Peru which are worth US$1.3 billion.

Tran Kim Chung, Chairman of the CT Group, said overseas investment will help Vietnamese enterprises improve their competitive edge in the context of international economic integration.

“In the context of globalization and the establishment of ASEAN Economic Community by the end of this year, ASEAN countries have increased their overseas investment. They have organized a number of seminars and conferences in preparation for integration but Vietnamese enterprises have not prepared for this trend. Their overseas investment is on their own. They need to be more proactive in the integration process,” noted Chung.

Overseas investment has contributed to Vietnam’s economic growth, helped Vietnamese enterprises to expand their markets and brought opportunities to gain new technologies and experience in investment management.