Last updated: 15:0 - June 27, 2006
Global firms eye Vietnam market http://www.nhandan.com.vn/english/business/270606/business_g.htm
More and more multinational companies are coming to Vietnam with plans to seek business opportunities or invest in areas that are in need of capital and technology, according to local investment promoters.
The trend points to an increased interest in Vietnam by foreign firms, as evidenced by more visits and inquiries from many big foreign companies from the US, Japan, Singapore, Germany, Denmark, Spain, Taiwan, and South Korea. Hundreds of foreign business groups and corporations reportedly attended symposiums on Vietnam's investment opportunities in the first two quarters of the year.
In the beginning of May, NTT Docomo, a Japanese telecom firm, came to Vietnam in the hopes of investing here by purchasing shares in a Vietnamese telecom company. There is a big chance for the firm because in accordance with the roadmap to open up Vietnam's industry's, the country must allow foreign investment in the telecom sector.
US electricity firm AES is also studying to invest in a $1.2 billion plant in Mong Duong town of Quang Ninh province. According to an official from the Ministry of Planning and Investment, this, if approved, would be the largest-ever foreign-invested project in the field of electricity.
US-based Gannon also investigated building a $700 million electricity plant in Dong Nai, and Singapore's SembCorp Industries plans to build a 700MW power plant in Ho Chi Minh City's Nha Be district, which will be worth up to $500m.
Also, the rush has already begun in the information technology sector as US giants like Intel, IBM and HP have announced long-term investment plans here.
According to figures from the Ministry of Planning and Investment in the first five months of the year, 21 projects were licensed, with total registered capital of more than $2bn, up by 9.8 per cent in the number of projects and about 20 per cent in terms of capital over the same period last year. The increase was attributed to some big projects like Intel's $605m chip production factory at Saigon Hi-tech Park, a $300m resort in Baria-Vung Tau involving Winvest Investment of the US, West Lake New City at $314 million involving Korean investors.
Vietnam's robust economic growth rate coupled with its status as a prospective WTO member by the end of this year are among several factors making the country's investment environment more attractive to multinationals, agreed both investment promoters and investors.
Kiyoshi Adachi, a legal and foreign investment specialist of the United Nations Conference on Trade and Development, said that the investment climate in Vietnam is more appealing to the world's multinational groups, particularly in information technology, finance, banking and transport.
"The chance for foreign investors is growing as Vietnam prepares the final formalities for WTO entry. Once Vietnam joins the trade body, it will have to eliminate barriers and open the door to foreign investors in the fields that were closed to them before," he said.
P&G Vietnam's financing and external relations manager Vu Van Thang agreed that his company has chosen Vietnam as an investment venue due to its large population, the region's fastest-paced economy and big potential for consumption.
"P&G especially appreciates the quality of the Vietnamese workforce, citing that Vietnamese employees occupy most of the positions in the company, save for six foreigners," he added.
Sony Vietnam director Kimihiro Itoki said foreign companies consider Vietnam an emerging market in ASEAN, a fast-growing economy with good human resources and a real need for a transparent investment environment and open policy.
The director expressed pride in the fact that his firm has secured the highest market segment among Vietnamese electronics makers after 10 years of operations, particularly its export potential as Vietnam integrates into the global economy.
Statistics from the MPI's Foreign Investment Agency showed that some 106 out of 500 world leading multinationals as ranked by Fortune magazine in 2006 are present in Vietnam. (VIR)
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