Thai investors move to Vietnam

17:54 | 21/10/2015 Economy

(VEN) - Vietnam Economic News’ Nguyen Huong spoke with Sonklin Ploymee, Director of the Unit for Industrial Linkage Development (BUILD) at the Board of Investment of Thailand (BoI), about the potential cooperation in support industries between Vietnamese and Thai businesses.

Thai investors move to Vietnam

Could you briefly introduce BUILD and its operations in Vietnam?

BUILD is responsible for developing business networks and assisting in the establishment of trade links between businesses, especially between small and medium-sized businesses from Thailand and other countries. It implements more than 10 business connection programs overseas and over 30 programs domestically each year.

We have been operational in Vietnam for 10 years with a range of business connection programs. When the ASEAN Economic Community is established, we will have specific plans aimed at promoting trade between the two countries. Ten years ago when Thai support industries had already developed, Vietnam paid almost no attention to promoting support industries. Today, while Thai support industries are approaching saturation point, Vietnam is boosting support industries, offering attractive investment opportunities. Therefore, Thai businesses are redirecting their attention towards the Vietnamese market.

In the time to come, we will meet Vietnamese state management authorities to discuss business and investment cooperation mechanisms. We will invite Vietnamese companies to visit Thai production facilities to learn about our support industries and seek cooperation opportunities.

Could you say more about the trend of Thai investment in Vietnam?

The Vietnamese market has attracted the attention of all businesses that want to promote exports and long-term investment, especially automobile and motorcycle manufacturers. Thai exports to Vietnam in this field rapidly increased in recent years. Support industries create a driving force of economic growth. Vietnamese support industries are still young and need assistance from foreign businesses while Thai businesses are very strong and experienced in this field, and they are seeking new opportunities in the Southeast Asian market.

What are your views on the links between support industries of Thailand, Vietnam, and Japan?

Two decades ago, Thailand received great assistance in terms of knowledge and technology from Japan. This has helped Thailand develop its now well-established support industries. However, the Thai market is facing a scarcity of human resources and high labor costs, while Thai support industries are approaching saturation point. Therefore, Thai businesses are moving their investments to Vietnam. To accelerate the development of support industries, Vietnam needs to promote links with countries that have great potential in this field, Japan for example.

What do you think of the prospects for trade promotion through Vietnam Manufacturing Expo 2015?

BUILD participated in Vietnam Manufacturing Expo 2015 (December 10-12) to provide foreign partners with an overview of Thai support industries. Through the expo, Thai businesses found many potential customers and we contributed to their efforts to create trade and investment relations with businesses from other countries, especially Vietnam.

Nguyen Huong