12:31 | 04/12/2016 Investment
(VEN) - Thailand has invested in Vietnam through 442 foreign direct investment projects with total registered capital of more than US$8 billion, ranking 10th among 115 countries and territories investing in Vietnam.
According to the Ministry of Planning and Investment, Thailand began investing in Vietnam as soon as the country opened its door to attract foreign investment in 1992. Since then, Thai investment in Vietnam has grown continuously. From 2006-2008, Thai businesses invested about US$5 billion in Vietnam.
Thai investment in Vietnam covers various fields such as agriculture, consumer goods, infrastructure, food, and focuses on processing and manufacturing industries. So far, Thailand has invested in 205 processing and manufacturing projects in Vietnam with combined registered capital of more than US$7 billion, accounting for 87.2 percent of the total. Large-scale projects include an oil refinery and petrochemical complex in southern Vietnam with investment of US$3.77 billion, a US$410 million automobile and motorcycle manufacturing project in Vinh Phuc Province, and a US$120 million investment project of Honda Vietnam in Ha Nam Province.
Thailand and Vietnam enjoy geographical proximity and share many cultural similarities. The two governments have paid special attention to facilitating bilateral investment cooperation and signed an agreement on the encouragement and protection of investment on February 7, 1992. Therefore, Thai businesses have not faced big difficulties when investing in Vietnam. Thailand has become an important investment partner for Vietnam.
Along with processing and manufacturing, Thai businesses have invested also in industrial infrastructure, retail and distribution in Vietnam. Examples include Amata Vietnam Co., Ltd, a joint venture project between the Amata Corporation Public Company Limited (Thailand) and Sonedezi Bien Hoa (Vietnam), and the acquisition of the Big C supermarket chain by the Central Group (Thailand).
According to the Ministry of Planning and Investment, the Thai government has business support policies aimed at promoting overseas investments and considers Vietnam an important destination for Thai investors. Therefore, Thai investment in Vietnam has grown strongly in the recent period. To attract more Thai investment, however, Vietnam needs to intensify investment promotion activities and the exchange of business delegations between the two countries.
In addition, Vietnamese ministries and sectors should accelerate administrative reform to facilitate the implementation of projects after they are granted investment certificates. Investment can be promoted on-site through dealing thoroughly with problems facing Thai investors in Vietnam to encourage them to increase investment in the country. Vietnam should attract Thai investment in fields where Thailand has advantages and Vietnam has demand, for example agriculture, infrastructure, and support industries.