Foreign companies boost investment in Vietnam

Illustrative photo (Source: VNA)

Hanoi - Foreign enterprises poured a considerable amount of capital into manufacturing and processing projects in the first half of January, according to the head of the investment office at the Ho Chi Minh City Export Processing and Industrial Zones Authority (Hepza), Tran Viet Ha.

Notable among them was a 34 million USD project sprawling over 7ha at the Le Minh Xuan Industrial Park, operating in services and logistics.

During the first days of 2021, authorities in southern Dong Nai province presented investment licences to three foreign-invested enterprises working in support industries, two of which are long-time South Korean suppliers to Samsung.

Canadian Consul General in HCM City Behzad Babakhani told the Dau Tu (Investment) newspaper that when the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) was signed in 2019, two-way trade between Canada and Vietnam hit a record 6.15 billion USD that year.

Babakhani said Canadian exporters benefit from farm produce, fish, aquatic, and forestry product exports, while Vietnamese exporters see opportunities in manufacturing and processing, such as electronics, leather and footwear, apparel, wooden furniture, farm produce, and aquatic products.

Vietnamese manufacturers have the chance, he said, to access Canada’s expertise in the fields of genetics, biotechnology, the environment, green technology, and sustainability, which could propel its agriculture sector restructuring.

He said that many Canadian companies are pursuing trade opportunities in Vietnam in the fields of clean technology, information and communications technology, aerospace, infrastructure, healthcare products, wooden furniture, and financial services.

Vietnam is an important partner of Canada, which is pursuing diversified trade to the Asia-Pacific region, he said.

Vice Chairwoman of the Australian Chamber of Commerce in Vietnam, Chau Ta, said Australian capital flows to Vietnam will increase strongly now the Regional Comprehensive Economic Partnership (RCEP) has been signed, given that the agreement will create an attractive investment environment in Vietnam and focus on job creation, local renovation, and integration into the global supply chain.

Australian companies are likely to increase investment in fields where Vietnam holds a competitive edge, and tap its trade ecosystem, such as the export of raw materials, manufacturing, and services.

She suggested they invest in fields that saw strong development in Vietnam after the pandemic, such as information technology, healthcare, and e-commerce.