VietNamNet Bridge – The number of local companies making overseas investments have been on the rise, with their capital disbursed abroad totaling around US$4 billion out of some US$17 billion pledged for outbound investment, a ministry official said.

Deputy Minister of Planning and Investment (MPI) Dao Quang Thu had a talk Wednesday with local media on foreign direct investment and overseas investment situations, MPI reports on the web portal at mpi.gov.vn.

Outbound investments mainly focus on the industries suitable for the development strategy of Vietnam like petroleum, hydropower, industrial crops, telecom or manufacturing, Thu said.

A majority of large-scale investment projects by local firms are still being deployed overseas and some with effective operation have also achieved certain economic benefits for the investors, Thu said.

Assessing the efficiency of outbound investments should be based on foreign currency volume these activities bring home as well as the benefits they contribute to the development strategy of the country as a whole, he remarked.

“Overseas investments are necessary as they help strengthen Vietnam’s position in other parts of the world, contribute to carrying out the nation’s strategy and generate profits for the country and companies,” he reasoned.

In fact, a host of big Vietnamese enterprises making strong investment outside the country have been highly appreciated in recent times. Military-run telecom company Viettel is a typical example. The company so far has invested in seven foreign markets, namely Cambodia, Laos, Haiti, Peru, Mozambique, East Timor and Cameroon.

Similarly, Hoang Anh Gia Lai Group has also poured lots of money into a number of large-sized schemes in Laos, Cambodia and Myanmar in forest cultivation and high-end hotel-office-housing complex construction.

According to the planning ministry, local enterprises have already sent home profits worth hundreds of millions of U.S. dollars from overseas investments, mostly from petroleum exploitation, telecom services and rubber farming.

As for the management mechanism of outbound investment capital, overseas projects are all screened subject to relevant rules to ensure the harmony with the national strategy and operational efficiency as requested by the Government. A full set of regulations on management of capital flow and investment for outbound activities by the Government are also available at home.

Thu expected local enterprises in the near future to concentrate on investments in neighboring countries and continue making the most of strengths of the existing economic sectors to tap traditional markets like Laos, Cambodia and other Asian nations.

Local investors will gradually expand investments to new markets such as Latin America, Eastern Europe and Africa based on the comparative advantages and actual capabilities of Vietnam’s economic sectors, he is quoted as saying.

Source: SGT