Vietnamese private enterprises increase investments abroad

While private enterprises have made more outward investments, state-owned enterprises (SOEs) have been gradually reducing their investments, reported Bizlive.

The Foreign Investment Agency (FIA) reported that Vietnam’s enterprises registered $222.67 million worth of investment abroad in H1, an increase of 11.4 percent compared with the same period last year.

Vietnamese private enterprises increase investments abroad

Of this, 70 newly licensed projects had total investment capital of $185.3 million, up 78.4 percent.

Prior to that, in a report to the government about outward investment in 2019, Minister of Planning and Investment Nguyen Chi Dung said the total registered capital reached $528.78million, an increase of 10 percent over 2018, while the profit and capital transferred to home country was $313.5 million.

As of the end of 2019, the cumulative registered capital had reached $20.6 billion and the profit and capital transferred to home country $3 billion.

Five enterprises had investment capital abroad exceeding $1 billion, namely, PetroVietnam (oil and gas), Viettel (telecom), Vietnam Rubber Group (VRG), Hoang Anh Gia Lai Group and Thaco (automobile).

PetroVietnam’s oil and gas exploitation project in Russia brought profit of $170.07 million, Viettel’s telecom network project in Cambodia $22.1 million, while the projects in East Timor $6.3 million and in Laos $5.8 million.

FIA noted the significant increase in number of small and medium projects registered by private enterprises in recent years, which is a contrast to the decrease in number of oil and gas and telecommunication projects by SOEs.

FIA noted the significant increase in number of small and medium projects registered by private enterprises in recent years, which is a contrast to the decrease in number of oil and gas and telecommunication projects by SOEs.

 


All newly registered outward investment projects in 2019 were developed by private enterprises, including Vingroup, Vietjet, Thaco, FPT, T&T, Vinamilk and TH True Milk, while there was no SOE in the list of investors.

According to Nguyen Tri Hieu, a respected finance expert, Vietnam’s outward investment remains modest, lower than 10 percent of GDP.

This is understandable. Over the last 40 years, Vietnam has been focusing on investments in the domestic market to develop various business fields of the economy. The strategy is appropriate to the country’s conditions and development level.

Hieu said it is necessary to give more support to encourage enterprises, especially private ones, to make outward investments, and expand the fields enterprises can invest in, such as trade, service, real estate, information technology, finance and banking.

He commented that the investments in the banking sector remain very low. The investments in the field cannot bring fat profits because of low competitiveness and limited services, but they will bring certain benefits, such as can better serving overseas Vietnamese businesspeople.

FIA also noted the diversification in target investment markets with many projects registered in the US, Australia, Spain, Canada, Japan, South Korea and Singapore, while investment in neighboring Laos and Cambodia is slowing down.

Translated by Kim Chi 

How are SOEs’ outward investment projects performing?

How are SOEs’ outward investment projects performing?

State-owned economic groups had registered 114 outward investment projects as of the end of 2019 with registered capital of $13.8 billion, according to the MInistry of Public Investment.

Vietnam’s outward investment rebounds

Vietnam’s outward investment rebounds

Outward investments, which fell for a short time because of Covid-19, resumed again after the social distancing policy ended.

 
 

Other News

.
Nam Dinh-based Rang Dong Textile Industrial Park sign land lease contracts with foreign firms
Nam Dinh-based Rang Dong Textile Industrial Park sign land lease contracts with foreign firms
BUSINESSicon  08/09/2020 

The signing ceremony of a land lease contract and land delivery for factory construction between Cat Tuong Real Estate Group, Top Textile Co., Ltd and Jehong Textile Viet Nam Co, Ltd took place on September 4.

Multi-trillion VND helps VN-Index regain peak
Multi-trillion VND helps VN-Index regain peak
BUSINESSicon  07/09/2020 

The strong cash flow to the stock market in recent days has helped stock prices bounce back.

Vietnamese rice takes bite out of global market
Vietnamese rice takes bite out of global market
BUSINESSicon  07/09/2020 

Vietnam’s rice exports have expanded during the pandemic to surpass rival Thailand in price for the first time in three decades, leading experts to suggest the sector should consolidate its position.

Plastics industry shrugs off pandemic, interests stock investors
Plastics industry shrugs off pandemic, interests stock investors
BUSINESSicon  07/09/2020 

The new wave of Covid-19 infections has caused heavy pressure on the country’s economy. 

EU competition in redrawn public procurement landscape
EU competition in redrawn public procurement landscape
BUSINESSicon  07/09/2020 

Competition in Vietnam’s government procurement market is expected to heat up with the involvement of EU contractors, driven by the country’s highest-ever market-opening commitment in this field. 

Alibaba.com rolls out export-focused program for Vietnamese SMEs
Alibaba.com rolls out export-focused program for Vietnamese SMEs
BUSINESSicon  07/09/2020 

Alibaba.com, the global business-to-business (B2B) e-commerce platform of Alibaba Group, has launched a landmark initiative to help businesses in Vietnam go online and reach an enormous pool of qualified global buyers.

Profit taking to weigh on local market, but September may be bright
Profit taking to weigh on local market, but September may be bright
BUSINESSicon  07/09/2020 

Vietnam’s stock market rally may slow this week as investors eye profits but the one-month projection is still optimistic.

E-commerce gives impetus to woodworking sector
E-commerce gives impetus to woodworking sector
BUSINESSicon  06/09/2020 

In the rapid development of e-commerce, online stores and factories are one of the solutions with which enterprises can cope with the prolonged Covid-19 pandemic while laying a foundation for digitalized business

Key public investment projects gather speed
Key public investment projects gather speed
BUSINESSicon  07/09/2020 

Amid the government’s rush to push up public investment as one of the key pillars for economic growth, numerous projects have been accelerating their progress to match the plan set forth, 

ASEAN aiming for tech-led innovation to foster growth
ASEAN aiming for tech-led innovation to foster growth
BUSINESSicon  07/09/2020 

ASEAN countries are becoming a rising hub destination for global manufacturers thanks to well-established trade networks, a growing middle class, a thirst for tech expansion, and a young and educated workforce.

Logistics groups strive to exploit EVFTA potential
Logistics groups strive to exploit EVFTA potential
BUSINESSicon  07/09/2020 

The EU-Vietnam Free Trade Agreement has created a new driving force for Vietnam’s logistics, but the industry needs to take further action to unlock its full potential.

The path to economic recovery and further growth
The path to economic recovery and further growth
BUSINESSicon  06/09/2020 

While Vietnam has experienced an unprecedented boom in recent decades, the current pandemic is now having a clear negative impact on the economic outlook. 

Vietnam’s plywood suppliers under scrutiny over practices
Vietnam’s plywood suppliers under scrutiny over practices
BUSINESSicon  06/09/2020 

As the trade tensions between the United States and China refuse to slow down, Vietnam-based plywood exporters are under pressure of investigation for alleged issues with the sources of their input materials.

Local wood industry overshadowed by sourcing issues
Local wood industry overshadowed by sourcing issues
BUSINESSicon  05/09/2020 

Vietnam’s wood industry has shown signs of recovery in the third quarter of 2020. However, legal complications may arise through illegally-sourced raw materials from foreign suppliers and a lack of uniformity.

Consumers beware of e-swindlers preying on fledgling cashback apps
Consumers beware of e-swindlers preying on fledgling cashback apps
BUSINESSicon  06/09/2020 

While cashback is considered a strong method to encourage cashless payments, numerous websites and apps are taking advantage of uninformed consumers with untransparent and illegal multi-level marketing models.

One fewer thing to worry for enterprises
One fewer thing to worry for enterprises
BUSINESSicon  06/09/2020 

Businesses will have one fewer thing to worry about in 2021 as the minimum wage is not expected to be increased for privately-owned enterprises.

New strategies required to set deeper roots for wood industry
New strategies required to set deeper roots for wood industry
BUSINESSicon  06/09/2020 

To expand Vietnam’s wood industry sustainably, its development strategy must not only focus on the policies of importing countries but also domestic priorities.

VIETNAM'S BUSINESS NEWS HEADLINES SEPTEMBER 7
VIETNAM'S BUSINESS NEWS HEADLINES SEPTEMBER 7
BUSINESSicon  07/09/2020 

Breakthrough solutions needed to attract foreign investment

Four Vietnamese-born billionaires in the US
Four Vietnamese-born billionaires in the US
BUSINESSicon  06/09/2020 

These are the most famous businessmen of Vietnamese origin in the US.

Airline service fees reduced by half for next six months
Airline service fees reduced by half for next six months
BUSINESSicon  05/09/2020 

Fees for takeoff and landing and aircraft operating services for domestic flights will continue to be cut by 50 per cent for the next six months to support airlines affected by the COVID-19 pandemic, according to a Transport Ministry circular.

 
 
 
Leave your comment on an article

OR QUICK LOGIN