Thai Investors Eye More Investment Opportunities In Vietnam.
Legal News & Analysis - Asia Pacific - Thailand - Vietnam - FDI
16 February 2021
Addressing a press conference themed “Golden opportunity for Thai investors in Vietnam” jointly held by the Vietnamese Embassy in Thailand, the Thailand-Vietnam Business Council (TVBC) and Amata Vietnam Public Company Limited on Tuesday, Tannee Sangrat, who is also former Thai Ambassador to Viet Nam, affirmed that Viet Nam has been one of Thailand's most important foreign investment markets since its first investment in Viet Nam after the country’s policy of doi moi (renewal).
Thai businesses entering the country are growing stronger and their investment is expanding and gaining success, he said.
He highly valued Viet Nam's efforts to improve competitiveness, investment and the business environment to attract FDI, saying that the success of Thai investors in Viet Nam in the next few years will largely depend on the continuation of the current investment policy and the support of the Vietnamese Government, and the country’s economic growth.
Meanwhile, Chairman of TVBC Sanan Angubolkul mentioned a number of reasons for Thai businesses to invest in Viet Nam, including political stability, successful control of the COVID-19 pandemic, abundant and quality workforce, and attractive investment incentives, potential domestic market with large purchasing power, and open investment environment.
Viet Nam has joined 17 free trade agreements (FTAs) with 55 countries, and new generation FTAs such as the European Union-Vietnam Free Trade Agreement (EVFTA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) agreement, and the Regional Comprehensive Economic Partnership (RCEP), have all helped create new opportunities for Vietnamese exports, he said.
Thai businesses need to take advantage of these to set up manufacturing factories in Viet Nam for export, he added.
Ambassador Phan Chi Thanh briefed participants on Viet Nam's economic achievements in recent times and its socio-economic development goals in the next ten years.
Viet Nam needs to mobilise about US$200-300 billion of foreign investment in the 2021-30 period, he said.
He spoke highly of the success of Thai business operating in Viet Nam, describing it as a vivid manifestation of long-term cooperation between the two countries.
According to Thanh, Thailand currently ranks the 9th biggest investment partner of Viet Nam with 603 FDI projects worth $13 billion, and investment flows from Thailand to Viet Nam are expected to increase in the future.
He said that the country is a successful and safe destination for foreign investors, especially in the context of supply chain disruptions due to trade tensions and the COVID-19 pandemic.
Somhatai Panichewa, General Director and Chief Executive Officer of Amata Vietnam Plc (AMATAV), said from the perspective of an industrial estate developer in Viet Nam, the company believes in the growth of Viet Nam.
The Thai firm has so far operated six projects with a total investment of about $840 million in Viet Nam.
For further information, please contact:
Dang The Duc, Partner, Indochine Counsel