Update news foreign investors
Vietnam’s machinery and equipment market has achieved solid growth in recent years and the momentum is expected to continue, making the country increasingly attractive to foreign investors, experts have said.
Many foreign investors have expressed interest in the Vietnamese market but poor infrastructure and logistics have made them hesitant to do business here in the country.
Some small banks in Vietnam are seeking investors from Asia such as South Korea, China and Japan.
Positive business performance and the divestment of State capital from enterprises has helped firms in the water supply and drainage sector draw attention from investors.
VND9.103 trillion worth of listed corporate bonds were issued in the first quarter of 2019. Vietnamese enterprises are issuing bonds instead of borrowing money from banks when seeking long-term capital.
The logistics market has become more vibrant in recent times with large merger and acquisition (M&A) deals between Vietnamese businesses and foreign investors, especially those from Japan and the Republic of Korea.
The Vietnam Securities Depository (VSD) granted licences to 464 foreign investors in July, including 58 institutional investors.
Vietnam’s industrial zones have been attracting attention from foreign investors thanks to its robust economic growth, abundant workforce, and the signing of various free trade deals which are expected to form a more favourable business climate.
Vietnam’s telecommunication market is becoming more attractive to foreign investors as it has returned to the growth path in the first half of 2019 after a long period of saturation.
Foreign companies account for 80% of Vietnam`s logistics market, which is likely to be valued at US$87 billion by 2022.
Foreign investors have been encouraged to take advantage of the double benefits Viet Nam is offering through its commitments in the many trade pacts signed with other countries.
The State Securities Commission (SSC) is working with relevant ministries and agencies to issue specific guidance to facilitate foreign direct investment (FDI) firms in listing on the Vietnamese stock market.
According to the Vietnam Logistics Business Association, Vietnam’s logistics market has grown by about 12-14 percent annually in recent years.
Hong Kong topped the list of 95 countries and territories investing in Vietnam in the January-June period, with a total investment of $5.3 billion, making up 28.7 percent of the new FDI inflow into the country.
Foreign investors registered to pour US$1.73 billion into Viet Nam in June, bringing the total amount of foreign direct investment (FDI) committed to the country in the first six months of the year to $18.47 billion, down 9.2 per cent year on year.
The ongoing revision of Vietnam’s securities law is expected to remove restriction for foreign ownership limit at local companies.