Vietnam offers attractive investments
KUALA LUMPUR - Vietnam, one of the 10 new emerging markets in the world,
has invited Malaysian companies to invest in infrastructure projects such as
roads, harbours, communications and transportation.
Its ambassador to Malaysia, Tran Trong Toan, said other equally attractive areas
such as high technology and export industries, agriculture, forestry and
aquaculture, labour intensive industries were available.
Tran also said Vietnam would appreciate investors who could invest in
mountainous and far-flung regions as well as areas that were disadvantaged in
socio-economic conditions.
"We are encouraging these investments by giving incentives such as
concessional taxes like import tax, overseas profit transfer tax and exemption or
discount on the land lease fees,'' Tran said in a talk on Vietnam: Challenges and
Opportunities, organised by the Asian Pacific Development Centre (APDC) in
Kuala Lumpur yesterday.
With 70 projects involving capital investments totalling US$941mil in Vietnam,
Malaysia's investment is ranked third among Asean countries after Singapore and
Thailand and 12th among foreign investors.
With an area of 331,700sq km, the multi-religious Vietnam has 80 million people
with a literacy rate of 92% in 1997. Considered a developing country with an
annual per capita income of below US$1,000, Vietnam has targeted a GDP
growth rate of 5.5% to 6% this year and an inflation rate at 6%.
The agriculture-based Vietnam is rich in natural resources for continuous
production for domestic and export markets.
On the political front, the country is enjoying a high level of peace and stability.
Since 1986, it had implemented the renovation cause of the Doi Moi, culminating
in more economic openness and liberalisation that had been well received by the
international community.
The Doi Moi has resulted in private economic businesses which are now eight
times larger than state-owned businesses and contributed 50% of the country's
annual GDP.
Vietnam is also in the process of deregulation and building various institutions for
a multi-sectoral market economy, integrating itself into the world by joining
Asean, Afta, Apec, Asem and preparing for accession to the World Trade
Organisation (WTO).
According to Tran, the law on foreign investment in Vietnam, which is considered
one of the most favourable in the region and which was amended last month,
guarantees fair treatment towards foreign investors and various forms of
investments are allowed such as joint ventures, business cooperation contracts,
projects with 100% foreign investment and on the build, operate and transfer
basis.
On bilateral trade, Tran said there was a considerable increase in the past few
years. In 1990, the trade volume was just over US$50mil and this had increased
by more than tenfold to US$638mil in 1999.
He said the level of bilateral trade was still modest compared to the two countries'
cooperation potential.
Malaysia's trade with Vietnam accounted for just 0.1% of Malaysia's trade with
the rest of the world. The trade balance favoured Malaysia with an export of
US$390mil in 1999 and imports of US$248mil.
"To increase and balance the bilateral trade, it wishes Malaysia would import
more agricultural products such as rice, groundnuts, cashew nuts, vegetable and
aquatic products and consider new items like beef, poultry, pork and other
livestock,'' Tran said. "With the recovery of Malaysia's economy, it is hoped the
Malaysian investment in Vietnam will increase. Malaysian businessmen are seen
as serious and active in doing business with Vietnam and are thus appreciated
there.
By Bernama - The Star - June 20, 2000.
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