The recent increase in investment flows from Thai enterprises has shownthat Vietnam is vital for Thailand's economy, especially after the ASEANEconomic Community comes into effect in 2015.
Recentinformation from the Thailand Board of Investment shows that thecountry's outward investment in ASEAN-member countries has undergone anupward trend since 2007, with last year's investment at 4.5 billion USD,equal to Thailand's investment in the EU.
Most of the Thaiinvestment in ASEAN was in Singapore, Indonesia, Vietnam and Myanmar,according to Chokedee Kaewsang, Deputy Secretary General of the ThailandBoard of Investment.
With more than 1.4 billion USD between2009 and 2013, Vietnam was ranked third in receiving investment fromThai enterprises, after Singapore and Indonesia.
Capital flow toVietnam has increased sharply recently, especially after the purchaseof Metro Cash & Carry Vietnam by Thailand's Berli Jucker, for 879million USD, earlier this month.
In addition, the Thai-ownedRobins department store made its Vietnam debut in Hanoi in April. Itwill also open a 12,000-square-metre store in Ho Chi Minh City'sCrescent Mall shopping center in District 7 in November.
It also plans to open stores in other major cities, including Hai Phong, Da Nang, and Can Tho in the Mekong Delta.
Several other Thai enterprises which have invested in Vietnam have also decided to accelerate their investments.
AmataCorporation, Thailand's largest industrial estate developer, whichbuilt a 70- sq.km2 industrial city in Thailand 25 years ago, has decidedto build a modern and integrated city industrial estate, Amata LongThanh, in Dong Nai province covering 1,285 hectares.
Accordingto a report in the Bangkok Post, the corporation has signed acooperative agreement with Dong Nai province's People's Committee todevelop the 530 million USD industrial estate.
With the ASEANEconomic Community taking effect next year, Thai investors are anxiousto take advantage of the Vietnamese Government's ambitious drive toincrease economic growth to more than 8 percent annually.
Twentyyears ago, Amata built the Bien Hoa Industrial Estate in Dong Naiprovince, and is now eyeing more opportunities in Vietnam.
Twoother Thai giants, Siam Cement Group and CP, which have had successinvesting in Vietnam, also have plans to expand, according to theVietnam Chamber of Commerce and Industry.
Early this month, the22 billion USD Victory petrochemical and oil refinery project funded byThailand's oil firm PTT and its strategic partner Saudi Aramco wasapproved.
The project will be located in central province of Binh Dinh.
PanpimonSuwannapongse, Thai Consul-General to HCM City, who recently organised atrip with Vietnamese provincial administrators along the SouthernEconomic Corridor, said that Thailand sees Vietnam as important becauseof its long coastline, which makes it convenient to transport goods byboat.
In the Mekong sub-region, Vietnam is the end-point of manymajor roads and the Mekong River, where goods can be easily transportedto the Thai mainland.
Vietnam's export potential and the coming single market in the ASEAN Economic Community are other factors as well.
Suwannapongsesaid that Vietnam and Thailand also plans to support less-developedcountries such as Cambodia, Laos, and Myanmar.
PanatKrairojananan, CEO at Surint Omya Vietnam, said that Thai businesspeoplewho have been working in Vietnam for several years said it is much moreconvenient to export goods to the US from Vietnam. He added that Thaicompanies could export commodities from Vietnam through Route R1.
"Thaibusinesspeople plan to pour cash into Vietnam for a long time.Previously, only a few Thai companies had entered Vietnam, but now thereare many more," he said.
Because of fears of economic stabilityat home, Thailand also wants to invest in a country like Vietnam thatcan share investment risks.
Similarity in culture and apredominantly young population of 90 million are other factors that haveinfluenced Thai interest in Vietnam.
"Although infrastructurein Vietnam is still not complete, it is a good time for us to come. Morecompanies from other countries will arrive in the future, and it willbecome more competitive for us," he said.
The Thai CEO said hiscompany, Surint Omya Vietnam, which has two factories producing calciumcarbonate, will open another facility in northern Vietnam.
TranHuu Phuoc, Deputy Chairman of Long An province's People's Committee, whovisited Thailand with other provincial leaders on the recent trip onRoute R1, said that Thai enterprises wanted to invest in Long Anprovince as well.
Phuoc added that there was still great potential for industrial, trade and tourism cooperation between the two countries.-VNA
Recentinformation from the Thailand Board of Investment shows that thecountry's outward investment in ASEAN-member countries has undergone anupward trend since 2007, with last year's investment at 4.5 billion USD,equal to Thailand's investment in the EU.
Most of the Thaiinvestment in ASEAN was in Singapore, Indonesia, Vietnam and Myanmar,according to Chokedee Kaewsang, Deputy Secretary General of the ThailandBoard of Investment.
With more than 1.4 billion USD between2009 and 2013, Vietnam was ranked third in receiving investment fromThai enterprises, after Singapore and Indonesia.
Capital flow toVietnam has increased sharply recently, especially after the purchaseof Metro Cash & Carry Vietnam by Thailand's Berli Jucker, for 879million USD, earlier this month.
In addition, the Thai-ownedRobins department store made its Vietnam debut in Hanoi in April. Itwill also open a 12,000-square-metre store in Ho Chi Minh City'sCrescent Mall shopping center in District 7 in November.
It also plans to open stores in other major cities, including Hai Phong, Da Nang, and Can Tho in the Mekong Delta.
Several other Thai enterprises which have invested in Vietnam have also decided to accelerate their investments.
AmataCorporation, Thailand's largest industrial estate developer, whichbuilt a 70- sq.km2 industrial city in Thailand 25 years ago, has decidedto build a modern and integrated city industrial estate, Amata LongThanh, in Dong Nai province covering 1,285 hectares.
Accordingto a report in the Bangkok Post, the corporation has signed acooperative agreement with Dong Nai province's People's Committee todevelop the 530 million USD industrial estate.
With the ASEANEconomic Community taking effect next year, Thai investors are anxiousto take advantage of the Vietnamese Government's ambitious drive toincrease economic growth to more than 8 percent annually.
Twentyyears ago, Amata built the Bien Hoa Industrial Estate in Dong Naiprovince, and is now eyeing more opportunities in Vietnam.
Twoother Thai giants, Siam Cement Group and CP, which have had successinvesting in Vietnam, also have plans to expand, according to theVietnam Chamber of Commerce and Industry.
Early this month, the22 billion USD Victory petrochemical and oil refinery project funded byThailand's oil firm PTT and its strategic partner Saudi Aramco wasapproved.
The project will be located in central province of Binh Dinh.
PanpimonSuwannapongse, Thai Consul-General to HCM City, who recently organised atrip with Vietnamese provincial administrators along the SouthernEconomic Corridor, said that Thailand sees Vietnam as important becauseof its long coastline, which makes it convenient to transport goods byboat.
In the Mekong sub-region, Vietnam is the end-point of manymajor roads and the Mekong River, where goods can be easily transportedto the Thai mainland.
Vietnam's export potential and the coming single market in the ASEAN Economic Community are other factors as well.
Suwannapongsesaid that Vietnam and Thailand also plans to support less-developedcountries such as Cambodia, Laos, and Myanmar.
PanatKrairojananan, CEO at Surint Omya Vietnam, said that Thai businesspeoplewho have been working in Vietnam for several years said it is much moreconvenient to export goods to the US from Vietnam. He added that Thaicompanies could export commodities from Vietnam through Route R1.
"Thaibusinesspeople plan to pour cash into Vietnam for a long time.Previously, only a few Thai companies had entered Vietnam, but now thereare many more," he said.
Because of fears of economic stabilityat home, Thailand also wants to invest in a country like Vietnam thatcan share investment risks.
Similarity in culture and apredominantly young population of 90 million are other factors that haveinfluenced Thai interest in Vietnam.
"Although infrastructurein Vietnam is still not complete, it is a good time for us to come. Morecompanies from other countries will arrive in the future, and it willbecome more competitive for us," he said.
The Thai CEO said hiscompany, Surint Omya Vietnam, which has two factories producing calciumcarbonate, will open another facility in northern Vietnam.
TranHuu Phuoc, Deputy Chairman of Long An province's People's Committee, whovisited Thailand with other provincial leaders on the recent trip onRoute R1, said that Thai enterprises wanted to invest in Long Anprovince as well.
Phuoc added that there was still great potential for industrial, trade and tourism cooperation between the two countries.-VNA
