Investors urged to revisit Vietnam
Public and private investment experts say Vietnam is a high-potential investment destination that Thai investors have been overlooking.
Thai investors currently are focusing on China, Burma, and some countries in Africa, especially Nigeria, while Vietnam has better potential, according to Wittaya Supatanakul, the senior vice-president in charge of Bangkok Bank's Ho Chi Minh City branch.
Vietnam has a population of nearly 90 million and considerable natural resources. Its economy has grown more than 7% per year for for 10 consecutive years, with 8% expected this year.
Speaking at a seminar on investment opportunities in Vietnam held by the Export and Import Bank of Thailand yesterday, Mr Wittaya said that China was appropriate for large investors with huge financial resources and connections with local or national politicians.
''Even some Taiwanese investors have failed at investing in China. As a result, a potential alternative for Thai small and medium-sized investors is definitely Vietnam,'' he said.
Currently, Thai investors rank 12th among foreign investors in Vietnam, down from ninth in last year. The top foreign investor in Vietnam is Taiwan, followed by Japan, South Korea and Singapore. Those investors have seen potential, particularly in the oil-related business since Vietnam has its own crude fields. Malaysia, for example, has made a huge investment in Vietnam's petroleum and energy firms.
Songsak Limbanyen, director of the Board of Investment's Investment Facilitation Division, said animal feed was another promising industry, since Vietnam's main revenue earner is agriculture.
The Charoen Pokphand Group, the country's largest agribusiness conglomerate, and Betagro Group, a giant producer and distributor of feed, as well as more than 20 feed-related companies have already introduced their products to Vietnam.
Frozen seafood also has potential because Vietnam is one of Asia's largest seafood sources, the construction material industry has growth potential since demand for the products has increased along with the economic growth. The service business including hotels and spas also has shown promising growth.
Mr Songsak said Thai investors needed to study rules and regulations carefully before making decisions because they are subject to amendment in line with the Hanoi government's policies to protect local people's interests.
For instance, investors who want to build plants in Vietnam, should opt to locate them in industrial estates because they would be given more incentives and protection than those who set up plants outside estates.
In addition, he said, investors must monitor rules governing labour in Vietnam because the country's labour laws are very strict.
By Busrin Treerapongpichit - The bangkok Post - March 15, 2006.
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