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Investment in Vietnam appeals transnational corporations

Wed, 16 Apr 2014. Last updated Thu, 25 Jun 2015 08:42

Investment in Vietnam has witnessed a rapid growth in recent years with a large amount of capital from transnational corporations, of which many have decided to build basis of mass production and distribution.

According to the report of the Department of Foreign Investment, there have been 415 transnational corporations (TNC) registering at Vietnam by 2004, including 106 corporations listed in the top 500 largest TNC in the world. The investment situation of TNC in Vietnam achieves rapid growth. By 2013, Vietnam has attracted 15,932 FDI projects with the total registered capital over 234 billion USD and implemented capital over 234 billion USD, of which there were 500 projects of TNC with the registered capital about 140 billion USD. Projects of TNC concentrate on various areas like Research and Development, service, technology, and censorship of product quality…

The foreign investment in Vietnam in the period from 2006 to 2010 witnessed a significant rise of 5,441 licensed projects with 113,43 billion USD registered capital. Along with appealing new foreign investment, many projects which have implemented effectively have extended their business and production scale and increased the investment capital. According to a recent survey, 70% of the foreign invested enterprises have got plans to increase their capital, which shows their trust in Vietnam’s investment environment and Vietnam economy

 

Signing ceremony of an investment in Vietnam

 

Among foreign investment projects, industry and construction accounts for the highest proportion with over 8 thousand projects. Sectors attracting investment include oil exploration, exploitation and processing, electrical and electronic products, textile, construction material products, information technology and so on. The investment in service sector focuses on real estate, tourism, transportation and postal service. After conducting a survey, the American Chamber of Commerce in Shanghai has reconfirmed the investment attractiveness of Vietnam is growing potentially. Vietnam has become a preferred choice in Asia of international investors. It is proved through the presence and development of trusted names like Samsung, Intel, Nokia, Honda, Canon, and so on.

Most recently, Ariston, the leading trademark of water heater industry has decided to build a large-scale factory in Vietnam. This factory is the second largest in Asia. Mr. Stefano Cartoni, the Commercial Director of Ariston Thermo in Asia Pacific, also the CEO of Vietnam Ariston Thermo has said that Vietnam is recognized as a potential market with a young population and annual growth rate at close to double digits. In addition, Vietnamese is inquisitive, hard working and open to new technologies. As a market favorable for investment environment, labor, geographical location, and materials, Vietnam is always an ideal choice for any business. And Ariston Thermo is no exception.

At the seminar of “Vietnam and the big game of transnational corporations” hosted by the Investment Forum Journal in Hanoi, Mr. Nguyen Mai, the Chairman of Foreign Investor Association has emphasized that the presence of trusted major brands creates opportunities for Vietnamese consumers to purchase high-quality products. Furthermore, competition also helps domestic enterprises to improve their products in term of quality, brand promotion and consumer services as well.