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

.
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

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.

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.

Funds enjoy growth in August
Funds enjoy growth in August
BUSINESSicon  05/09/2020 

Investment funds involved in Vietnam’s equity market reported positive growth in net asset value (NAV) in August due to a stock market upturn.

Vietnam aims to diversify local retail market
Vietnam aims to diversify local retail market
BUSINESSicon  05/09/2020 

The Ministry of Industry and Trade (MoIT) plans to consolidate traditional markets in rural areas while developing a large number of convenience stores and diversifying types and methods of modern business.

8-month trade surplus at record high, experts warn of risks
8-month trade surplus at record high, experts warn of risks
BUSINESSicon  05/09/2020 

Vietnam's trade surplus in the first eight months of the year was a record high. However, experts still see risks.

90 percent of Vietnamese millionaires invest in real estate
90 percent of Vietnamese millionaires invest in real estate
BUSINESSicon  04/09/2020 

While COVID-19 continues to impact the whole economy, most millionaires in Vietnam have been investing in the real estate market.

Vietnam retaining fast-growing status
Vietnam retaining fast-growing status
BUSINESSicon  04/09/2020 

Over past decades, Vietnam has weathered all difficulties to orchestrate economic miracles, with its deepened international integration bringing about massive opportunities to expand trade and investment.

Tough spot for steel ventures as pandemic cuts off progress
Tough spot for steel ventures as pandemic cuts off progress
BUSINESSicon  04/09/2020 

The global coronavirus developments coupled with the falling demand are adding more pressure for some steelmakers to lay idle their projects, cut products, or ponder mergers and acquisitions strategies to ensure their cash.

Corporate bond issuance expected to drop after new policies take effect
Corporate bond issuance expected to drop after new policies take effect
BUSINESSicon  04/09/2020 

Warnings from management agencies plus new policies that take effect soon will make it more difficult to issue corporate bonds, a capital mobilization channel that was worth $8.5 billion in the first seven months of the year.

Selling assets to pay debts, 'Boss Duc' still cannot escape difficulties
Selling assets to pay debts, 'Boss Duc' still cannot escape difficulties
BUSINESSicon  04/09/2020 

The enterprise of Doan Nguyen Duc, or Boss Duc as he is known, is still in doubt, though the businessman, once the richest man in Vietnam, has sold many assets to restructure his company.

Foreign tech firms eye big investments in VN
Foreign tech firms eye big investments in VN
BUSINESSicon  05/09/2020 

More tech could be coming to Vietnam soon as foreign enterprises demonstrate an appreciation for the country's attractive investment environment.

Anti-dumping lawsuits looming over exporters
Anti-dumping lawsuits looming over exporters
BUSINESSicon  03/09/2020 

Trade protectionism is on the rise around the world, as governments attempt to limit the economic damage from the coronavirus pandemic.

VIETNAM'S BUSINESS NEWS HEADLINES SEPTEMBER 5
VIETNAM'S BUSINESS NEWS HEADLINES SEPTEMBER 5
BUSINESSicon  05/09/2020 

Steelmakers urge import protection

Hanoi tightens management over condotels, officetels and resort villas
Hanoi tightens management over condotels, officetels and resort villas
BUSINESSicon  03/09/2020 

The Hanoi People's Committee recently issued a written request to tighten the management of the investment, construction and business of condotels, tourist villas and officetels.

JICA proud to be part of Vietnam’s development progress: Chief Representative
JICA proud to be part of Vietnam’s development progress: Chief Representative
BUSINESSicon  03/09/2020 

The Japan International Cooperation Agency (JICA) is proud to be part of Vietnam’s socio-economic development progress, said Chief Representative of JICA in Vietnam Shimizu Akira in an interview with VNA.

HCM City office market begins to feel COVID-19 impact
HCM City office market begins to feel COVID-19 impact
BUSINESSicon  03/09/2020 

Ho Chi Minh City’s office market has started to feel the effects of the COVID-19 pandemic, with grade A buildings impacted more than grade B, experts have said.

 
 
 
Leave your comment on an article

OR QUICK LOGIN