Metfone, a telecommunications project of Viettel in Cambodia. (Photo: Viettel)Hanoi (VNS/VNA) - Vietnamese firms have been increasing their overseasinvestments in recent years in an effort to expand their global reach.
The Ministryof Planning and Investment’s report recently submitted to the Government showedthat Vietnam registered 528.78 million USD in 172 projects in 33 countriesand territories in 2019, representing a year-on-year increase of 10.7 percent.
Of note, allthe registered overseas projects last year were of private companies in Vietnamand there were no new overseas projects by State-owned enterprises (SOEs).
The ministrysaid that more private companies were increasing investment abroad, such asVingroup, Vietjet, Thaco, FPT, T&T, Vinamilk and TH Group, even todeveloped markets.
As of the endof 2019, Vietnamese firms have so far registered to invest a total of 20.6billion USD in 1,321 projects in 78 countries and territories.
Fivecompanies with more than 1 billion USD in registered overseas investment werePetroVietnam, Viettel, Vietnam Rubber Group, Hoang Anh Gia Lai Group and LongThanh Golf Investment and Trading Joint Stock Company.
Of thefigure, some 9.49 billion USD was disbursed, mainly in the sectors of mining (3.5billion USD), telecommunications (1.61 billion USD), agriculture (1.56 billionUSD), electricity production (809 million USD), financial and banking (787million USD) and real estate (384 million USD).
Theministry’s statistics also showed that the profit remitted totalled 3 billion USDand around 363 million USD in profit was kept for reinvestment.
Around10,000 labourers from Vietnam were working at Vietnam’s overseas projects.
Laos was thelargest receiver for Vietnam’s overseas investment with a total registeredcapital of 4.9 billion USD, followed by Russia (2.8 billion USD), Cambodia (2.7billion USD), Venezuela (1.8 billion USD), Myanmar (1.3 billion USD), Algeria (1.2billion USD), the US (690 million USD) and Australia (400 million USD).
Regardingoverseas investment of SOEs, the ministry’s statistics showed that SOEsregistered to invest 13.8 billion USD abroad, 6.7 billion USD of which wasdisbursed.
PetroVietnaminvested in 27 projects abroad with a total registered capital of 7.1 billionUSD. Viettel had 10 overseas projects worth 3 billion USD. Vietnam Rubber Groupinvested in 23 projects worth 1.3 billion USD.
The ministrysaid that some overseas projects of SOEs were running efficiently while somewere struggling.
Around halfof overseas projects of PetroVietnam were in stagnation or could not beimplemented, the ministry pointed out.
VietnamNational Coal and Mineral Industries Group was also seeking totransfer five projects in Cambodia and Laos due to inefficiencies.
VietnamAirlines was also seeking to divest from the loss-making Cambodia Angkor Air inwhich it held a stake of 49 percent.
The ministryalso warned about several risks in overseas investment.
Someprojects were heavily dependent of banking loans for capital, the ministrysaid, urging reviews to be carried out to ensure safety and efficiency for thebanking system.
The ministryalso warned about risks which might arise when investing in localities involvedin armed conflicts or with political-social instabilities, localities withlegal risks and tax havens.
Currently,there were no regulations which set requirements or limit investments in theserisky localities, the ministry said.
TheGovernment Office has asked the ministry to evaluate the results of 10 yearsimplementing the project of promoting overseas investment and developorientations for investing abroad by 2025 then report to the Prime Ministerwithin the last quarter of this year.
The Ministryof Finance was asked to study amendments to the law on State capital atenterprises towards tightening overseas investment of SOEs to improveefficiency.
The StateBank of Vietnam would cooperate with the Ministry of Planning and Investment toevaluate overseas investment of commercial banks, loans to overseas projects toensure system safety.
A list ofrisky localities for investment would be developed to limit risks forVietnamese investors.
Theministry’s statistics revealed that Vietnamese firms invested 222.67 millionUSD abroad in the first half of this year, up by 11.4 percent against the sameperiod last year./.
VNA
