Thai investors expand operations in Vietnam

Mr. Praween Wirotpan, Chairman of the Thai Chamber of Commerce in Vietnam (ThaiCham).

Can you share about Thailand's investment capital flow into Vietnam and the "taste" of Thai investors?

Thailand ranks 9th among countries and territories investing in Vietnam, with total investment capital reaching 14.3 billion USD since 1988. We are the second largest investor in ASEAN, after Singapore.

The “taste” of Thai investors is very diverse, we have established a strong presence in many different sectors, from manufacturing, processing, to retail, electricity, logistics, banking and agriculture . Thai businesses are also active in the fields of food and beverage, construction materials, consumer finance, FMCG (fast moving consumer goods) and industrial real estate. Many large corporations such as ThaiBev, CP Group, SCG, Bangkok Bank, KBank, Central Group, Amata are operating very well in Vietnam.

Thai enterprises bring experience and high-quality investment capital to the Vietnamese market, with the presence of trusted brands through high-class products and services.

How has Thai businesses' investment expansion been recently, sir?

Thai businesses continue to promote production relocation to Vietnam, specifically building Amata industrial parks and snack factories in Binh Duong , to take advantage of opportunities in Vietnam as a global manufacturing center.

In addition, more and more Thai businesses are expanding their operations in the service sector such as retail and hospitality, to capture opportunities from the large population and rising middle class. Large Thai trading companies are also exploring the potential of the Vietnamese consumer market.

M&A in Vietnam is quite active, how do Thai investors take advantage of this opportunity?

The Vietnamese market has a lot of potential for Thai businesses to become good partners, promoting the manufacturing and service sectors.

With political stability, a high proportion of skilled workers, access to global markets through free trade agreements (FTAs) and favorable investment conditions, Vietnam has much room for cooperation with Thailand in areas such as logistics, renewable energy, automotive and semiconductor supporting industries.

Thai enterprises are very interested in M&A, in 2024, we will be the leader in M&A activities in Vietnam. Many famous M&A deals have been carried out by Thai enterprises such as Big C supermarket chain, Nguyen Kim, Sabeco, Duy Tan Plastic, Binh Minh Plastic... and are showing good results.

The dynamism, cultural similarities and human characteristics of the two countries help promote partnerships between Vietnamese and Thai businesses in the spirit of mutually beneficial cooperation, bringing better results.

In the future, will the Vietnamese market still be attractive to Thai investors, sir?

In the medium and long term, Vietnam still has great growth potential thanks to its stable macro situation and access to global markets. In addition, the middle class is increasing its spending on quality housing, healthcare, education, entertainment, electronics and branded products.

In the short term, however, Vietnam faces a number of hurdles to overcome. While ongoing restructuring and regulatory reforms may create a conducive investment environment, there are inconsistent policies and guidance on specific issues such as global minimum tax (GMT), extended producer responsibility (EPR) and renewable energy.

In addition, the instability in the tariff policy of the US President Donald Trump administration poses high competition with imported goods, especially with the trend of "roundabout exports" globally.

Source: https://baodautu.vn/nha-dau-tu-thai-lan-mo-rong-hoat-dong-tai-viet-nam-d278923.html