US Investors Invest in Ho Chi Minh City

Ho Chi Minh City (HCMC) is an exciting investment destination with total FDI capital reached 40 billion USD. With many advantages in economic development and business environment, foreign investors have been coming to set up business in Ho Chi Minh City.

Mr Dinh La Thang, Party Secretary of Ho Chi Minh City (HCMC) has met group of United States (US) investors led by Mr Howard Lutnick, Chairman and CEO of Cantor Fitzgerald Financial Group come to explore investment opportunities in HCMC.

Highly appreciated the US investors have chosen HCMC to invest in Financial Tower project, Mr Dinh La Thang committed that the city would create the most favorable conditions for US businesses as well as other international investors, bringing benefits to the enterprise and also the city.

At the same time, the city desires Cantor Fitzgerald Group and US investors will soon implement the Financial Tower project in Thu Thiem urban area, bringing Thu Thiem into a financial center in the region, attracting more investors and large financial corporations of the US and the world.

The city also believes that with the visit of US President Barack Obama to Vietnam, a new wave of investment from US will increase rapidly, especially when the Trans-Pacific Partnership (TPP) Agreement takes effect.

With its dynamic, HCMC is training human resources to be able to meet the needs of development and investment.

According to Cantor Fitzgerald Group, the reason for choosing Vietnam as investment destination was calculated very carefully, because Vietnam is an important destination for the circulation of financial flows in Southeast Asia in the coming time. Moreover, Ho Chi Minh City is a vibrant and dynamic place with strong entrepreneurship, especially among the young.

With great financial strength, the Cantor Fitzgerald Group wants to invest and along with HCMC to grow prosperously.

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Thailand’s FDI into Vietnam Reached 8.13 billion USD

By the end of March 2017, Thai investors had invested in 458 projects with a total registered investment capital of 8.13 billion USD, standing at the 10th position out of 115 countries and territories investing into Vietnam.

With the determination of the two Governments and the proactive of businesses, the economic cooperation between Vietnam and Thailand will grow strongly and reach the target of 20 billion USD in bilateral trade by 2020. Vietnam-Thailand trade relation has grown by more than 40% during the past five years. Specially in 2016, the growth rate continues to reach 10% with total turnover of nearly 13 billion USD. In the coming years, the two countries’ trade will increase as the two countries move towards the implementation of the ASEAN Free Trade Agreement and other general agreements.

On the Vietnamese side, as of January 1st 2015, Vietnam has cut its tariffs by 0% on more than 8,600 tariff lines. The remaining 669 tariff lines will be reduced to 0% by 2018. On the Thai side, currently more than 9,500 tariff lines under the tariff reduction schedule of the ATIGA have been fully abolished since 2012. In that context, the two sides should organize activities to promote trade and investment; continue to encourage Thai businesses to invest in Vietnam, support Vietnamese businesses to expand their business to Thai market, contributing to balance the trade balance.

In fact, Vietnam is Thailand’s second largest trading partner in ASEAN and Thailand is the largest trading partner of Vietnam. The two countries are located on the mainland with convenient transportation. The two countries also have open policies, implementing many measures to reduce barriers, facilitate the flow of goods.

Not only a major trading partner, Thailand is also one of the countries having cooperative investment with Vietnam very early, right after Vietnam implement the policy to open and attract foreign investment. In the past few years, Thai businesses have made specific plans to increase their investment capital in advantageous areas in Vietnamsuch as retail, building materials production, thermal power, animal feeds…

The establishment of the ASEAN economic community (AEC) is a great motivation for Thai investors to bring capital to Vietnam and expand their business area. Not only towards the market of 90 million people in Vietnam, Thai businesses are far more visionary to penetrate the AEC market with a population of 600 million and a total GDP of 3,000 billion USD.

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Capital from China’s ‘Ring Road and Route’ Is Coming to Vietnam

 In response to the China Government’s initiative to build the 21stCentury Silk Road running across the Eurasian, the Chinese’s construction enterprises are actively coming to Vietnam.

Chairman of the Hong Kong Trade Development Council (HKTDC) Vincent HS Lo has just led a delegation of 40 investors and experts to visit Hanoi and Ho Chi Minh City. The delegation includes large domestic firms (including Hong Kong) in the fields of finance, consulting, architecture, energy, water and waste treatment, engineering and construction, law and accounting, transportation…

According to Mr Vincent HS Lo, the delegations have goal to invest in areas that specially focusing on the implementation of the “Ring Road and Route”, which is implemented by the Chinese government to develop the infrastructure of the area. Vietnam is determined locating in a critical position to invest in infrastructure, so that is the key to promote trade and commerce among nations.

The delegation also has meeting with Prime Minister Nguyen Xuan Phuc, Minister of Planning and Investment Nguyen Chi Dung, Deputy Minister of Transport Nguyen Hong Truong and leaders of Hanoi and Ho Chi Minh City. Along with that, they also have meetings with many Vietnamese businesses, including big names such as Van Thinh Phat Investment Group or Sunny World Real Estate Development Company.

According to Mr Johnson Choi – CEO of Sunwah Group, with a very flexible policy of the Government of Vietnam, he believes that investment in infrastructure in Vietnam is quite feasible in comparison with other countries in Asia. Together with many businesses introduced by the HKTDC, Sunwah will work with other partners to express special interest in the 1,000 km North-South Expressway project.

Also according to Mr Choi, the Vietnamese Government is showing their support to businesses as committed. Compared with other countries in the region, the liquidity of the Vietnamese currency is at a better level. Over the past twenty years, Chinese investors have moved overseas remittances to Hong Kong quite easily.

Chairman of HKTDC Mr Vincent HS Lo believes that businesses in Hong Kong and China will have strength on infrastructure investment and set-up company in Vietnam thanks to the abundant capital and good experience. Hong Kong is the financial center of the world, so it’s easy for them to raise funds from everywhere to invest. At the same time, they have experience in most services, from consulting to construction and operation.

According to Mr Vincent HS Lo, businesses in Hong Kong and China are open to the investment and cooperation models with Vietnamese enterprises. However, the Chinese are particularly interested in the form of PPP. At the same time, the joint venture model is also considered more than the 100% capital investment to take advantage of local market knowledge of Vietnamese enterprises.

On May 14th, Chinese President Xi Jinping hosted the “Ring Road and Route” forum, with nearly 30 leaders in the world. This is an action to promote the “Ring Road and Route” initiative, in order to revive the “Silk Road” connecting Asia and Europe. Accordingly, Credit Suisse Group forecasts that China could pour more than 500 billion USD into 62 countries over the next five years to implement plans to promote its soft power.

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