Foreign investors still have good opportunities in Vietnam

Foreign investors still have good opportunities in Vietnam

QĐND – Saturday, October 31, 2009, 20:30 (GMT+7)

“How to attract more foreign investors” was the question raised at the recent annual investor conference of VinaCapital, a leading asset management, investment banking and real estate consulting firm in Vietnam.  

Investment attraction

On addressing the meeting, VinaCapital chairman Horst F.Geicke said that because of the government’s tight monetary policy and the adverse impact of the global economic crisis, liquidity of Vietnamese stock market fell sharply in early 2008.

Horst F.Geicke, however, confirmed that Vietnam has proved its potential by emerging well from the crisis to maintain a growth rate of five percent in 2009.

The company’s chairman also said the rapid recovery of both trading floors (Hanoi and Ho Chi Minh City) this year is a solid foundation for increasing investments in other sectors.

Vietnam’s stock market has experienced a significant rise of 80 percent by far this year. However, not many foreign investors are interested in the market and, as Mr. Geicke put it, this is attributed to the negative impact of the economic crisis. Another reason is that investors tend to draw comparisons markets before deciding to invest their money.

As a result, stocks of funds managed by VinaCapital as well as other funds are being transacted at a price lower than their real value. VinaCapital’s total asset value dropped to US$1.8 billion in October 2009 from US$2.2 billion in late 2007.

In the meanwhile, although the rate of FDI disbursement has been maintained at a high level, the number of new investors in Vietnam is not significant and FDI commitments have fallen by 80 percent compared to last year.

The company’s CEO Don Lam said there are good reasons to believe that Vietnam will be an “attractive investment destination” among the leading newly-emerging markets. Firstly, the Government has effectively weathered the economic crisis. Secondly, the stimulus package has helped the economy to recover. Finally, the temporary fall in the flow of FDI will not have long-term effect.

A new trend for investments in 2010

VinaCapital specialists said that the “hot spots” for investment inflows next year will be health services, consumer products, financial services, the energy industry, the high technology industry, retail malls and up market residential projects.

Don Lam said short-term speculation on the stock market and investment in high-class residential projects and office buildings will decrease in 2010.

VinaCapital is said to be launching an unlisted estate investment fund in 2010. The company believes it is a new trend that could attract organised investors who do not invest in listed funds.

Source: VOV

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Bulgarian firms eye local opportunities

HA NOI — Bulgarian enterprises expressed their hopes to strengthen co-operation with Vietnamese firms in such sectors as trade, investment, construction, footwear, and handicrafts during the Viet Nam-Bulgaria Business Forum held in Ha Noi yesterday.

Deputy Minister of Industry and Trade Le Danh Vinh said Viet Nam attached much importance to traditional relations with Bulgaria, and said the country would do its best to further develop multi-faceted relations, and was ready to be a bridge linking Bulgaria with the nations of ASEAN.

Viet Nam and Bulgaria have signed a framework agreement on economic co-operation, deals on investment protection, and double taxation agreements, he said, adding that the Vietnamese Government seeks to create the most favourable conditions for foreign investors, including those from Bulgaria, to invest in the country.

In recent years, the bilateral co-operation between the two countries, especially in trade and investment has been increasing. Two-way trade reached over $46 million in 2007, a year-on-year growth of 45 per cent, and $68 million during the first nine months of this year. Vietnamese exports represent $56 million of this year’s trade figures, mainly through exports of coal, coffee, rubber, seafood, textiles and handicrafts.

Vinh said he hoped enterprises would make full use of the business forum to exchange experiences and trade information, and seek partnerships with each other.

He also suggested that to boost co-operation, business should further strengthen information exchanges, and consider opening representative office as well as establishing joint-venture companies.

Addressing the meeting, the Bulgarian deputy minister of the Economy and Energy, Iavor Kuyumdziev, said the 21st Intergovernmental Committee on Economics, Trade, and Scientific and Technical Co-operation, scheduled for this month is a clear evidence of Bulgaria’s wish to consolidate comprehensive co-operation with Viet Nam. —

Idaho trade mission eyes opportunities

HCM CITY — A trade delegation from the northwestern US state of Idaho is in HCM City to pursue business opportunities in the country.

Led by Idaho Governor C.L. “Butch” Otter, the delegation includes officials from the state departments of agriculture and commerce, as well as nine companies based in Idaho.

The Idaho trade mission is expected to hold working sessions with the HCM City Investment and Trade Promotion Center, the HCM City branch of the Viet Nam Chamber of Commerce and Industry, the city People’s Committee, and the Binh Dong Flour Factory of the Southern Foodstuff Corporation.

Speaking at a press briefing yesterday, Otter said Idaho saw great trade potential in Viet Nam.

“We are here to introduce many of our products and services and investigate buying opportunities in Viet Nam,” he said.

He said agriculture was the mainstay of Idaho’s economy. “Idaho and Viet Nam both have the opportunity to grow and develop by helping each other.”

Idaho’s main agricultural products are beef, potatos, processed food and fruit.

He said two-way trade between Viet Nam and Idaho in the past two years increased by 67 per cent.

Although Idaho is the seventh largest state in the US, its population is only 1.4 million. —

EC, AusAid help Laos develop trade opportunities

– The European Commission (EC) and the Australian Agency for International Development (AusAid) have granted 6.8 million USD to the Lao government to develop trade opportunities, local media reported.

The grant, signed on August 8, will fund a trade development facility project which will be operated by the Lao Ministry of Industry and Commerce and aimed at supporting trade and investment in the country, according to the Vientiane Times.

This programme will provide technical assistance to government agencies to strengthen the capacity of institutions, improve the capability of human resources and support inter-agency and sector wide-coordination.

According to Lao Finance Deputy Minister Viengthong Siphandone the project’s goals would be based on five priorities listed by the Lao government, namely export competitiveness, trade facilitation, creating a favourable business environment, trade policy, trade agreements and trade opportunities for poor people.–