09:31 | 06/08/2016 Economy
(VEN) - Thai investors have seen Vietnam as the first selection, marking successful cooperation between the two countries.
Thai investment capital into Vietnam increased from US$5.9 billion in 2012 to around US$8 billion for more than 430 projects by May 2016, ranking 11th among the countries and territories investing in Vietnam. “Thailand could be among top 10 investors in Vietnam in the next two years from the 11th ranking at present,” Thailand-Vietnam Business Council President Sanan Angubolkul said.
Thai firms are seeking expansion offshore, pouring more capital into trade and production activities, and many of them have been successful. The recent growth in Thai investment in Vietnam has largely been on the back of investments in retail sector. The Central Group purchased a 49 percent stake in Nguyen Kim and continued to shock the market by acquiring Big C Vietnam for US$1 billion. Thai Charoen Corp bought Metro Cash & Carry for US$876 million, while Berli Jucker purchased the Family Mart convenience store chain and changed its name to B’s mart.
With an influx by more than 20 mergers and acquisitions (M&A) deals, Thailand’s Siam Cement Group has owned the total asset value of around VND14.845 trillion in Vietnam.
Among Thai projects operating profitably in Vietnam is the C.P Vietnam with revenues from the animal feed and meat product market of US$6 billion and US$18 billion a year, respectively. C.P Vietnam Breeding and Genetics Director, Dr. Kieu Minh Luc said that the corporation has worked together with farmers to develop more than 3,000 farms, creating jobs for around 150,000 Vietnamese workers, while strengthening the development of clean food distribution systems.
Vietnam, an attractive destination
Thousands of Thai companies have expressed their desire to invest in Vietnam, and have actively found out investment information provided by Thai Embassy in Vietnam. In particular, many Thai small and mediums-sized enterprises are promoting their operations in Vietnam.
In the context of international integration, business and investment environment in Vietnam is more and more improved, in addition to the removal of tariff and non-tariff barriers in the framework of the ASEAN Economic Community and free trade agreements, the trajectory of growth in Thai investment into Vietnam is expected to continue.
In fact, with population of nearly 100 million people, political stability, improved investment environment and abundant human resources, Vietnam is seen as a gateway to expand exports to Laos, Cambodia and Southern China. Thailand and Vietnam signed many action programs to develop the strategic partnership, with the goal of driving towards trade turnover of US$20 billion by 2020.
In the coming time, more measures should be taken to attract more investment projects with higher quality and larger capital, including promoting administrative reforms, improving infrastructure and human resources quality.
In a meeting with Thai Ambassador to Vietnam Manopchai Vongphakdi Vietnamese Prime Minister Nguyen Xuan Phuc affirmed good relationship between the two sides. To further promote cooperation in the coming time, the prime minister emphasized effective coordination between agencies and businesses for the target of trade turnover between the two countries to US$20 billion by 2020.
Thanh Mai & Mai Ca