According to the Ministry of Planning and Investment’s Foreign Investment Agency (FIA), Thailand has invested US$7.7 billion in 440 projects in Viet Nam to become the country’s tenth largest investor.
|Amata industrial zone in Dong Nai Province, where Thailand has invested in infrastructure. Foreign investment in Viet Nam grew in January. - Photo vneconomy.vn
So far, Viet Nam has attracted foreign direct investment from 112 countries and territories, the agency says.
Thai businesses began investing right after Viet Nam introduced policies to attract foreign investment, it says. From 2006 to 2008, Viet Nam wooed the largest investment capital from Thailand amounting to $5 billion, accounting for 21.4 per cent of the total investment from ASEAN to Viet Nam worth $23.3 billion. Investments from Thailand have focussed on processing and manufacturing industries.
At present, Thai investors have assured investments of $7.04 billion in 205 projects in the processing and manufacturing industries, accounting for 87.2 per cent of total registered invested capital. The largest project in those industries is the Southern petrochemical complex with a total investment of $3.77 billion.
The agency says Thai investors are now turning their attention to industrial infrastructure and retail sectors. These include a joint venture project between Amata VNPCL of Thailand and Sonadezi Bien Hoa in the infrastructure sector and a project of MM Mega Market Co, Ltd in HCM City, with a capital of $36 million, reports vneconomy.vn.
Viet Nam is considered an important investment destination in the region in line with Thailand’s policies on promoting investment in foreign countries. This is big opportunity for Viet Nam to attract investment capital from this country, FIA says.
Thailand is near Viet Nam on the map and the two countries have cultural similarities. They signed an agreement on encouraging and protecting investments in 1992 and to create favourable conditions for investment co-operation. Therefore, Thai investors have not faced many difficulties while investing in Viet Nam. Meanwhile, the Thailand government has also encouraged and supported Thai investors already in Viet Nam.