More foreign investors have already come up trumps in Vietnam

The Hanoitimes - Vietnam is still ranked among the 20 top prospective host economies for foreign direct investment.

According to the “World Investment Report 2012” released by the United Nations Conference o­n Trade and Development (UNCTAD) early this month, Vietnam kept its 11th position as the most prospective economy for investment during 2012-2014. The ranking is based o­n the respondents of 174 validated transnational companies (TNCs).

“Obviously, many TNCs still eye Vietnam as a top investment destination,” said Nguyen Mai, chairman of Vietnam Association of Foreign Invested Enterprises, adding that recent investments by Bridgestone, Nokia and General Electrics were clear proof of this.

The UNCTAD report, released in the context of Vietnam facing an economic downturn and a straight decline in foreign direct investment (FDI) commitments in the last three years, signals bright FDI prospects for Vietnam.

Vietnam’s economy o­nly accelerated 4.38 per cent in 2012’s first half because the government implemented tightened monetary and fiscal policies to tame high inflation. Meanwhile, foreign direct investment commitments dropped 27.7 per cent year-on-year, as foreign investors raised concerns about the economic downturn.

However, Mai said foreign investors believed Vietnam would overcome its current economic downturn.

Herb Cochran, executive director of AmCham in Vietnam, said a large, young workforce and a growing consumer market would continue attracting foreign investors to Vietnam.

In addition, he said foreign investors were interested in Vietnam’s political and social stability with a “business-like” government, improving infrastructure including industrial parks, transportation, telecommunications and strong trends of economic and social development.

Japan’s Nidec Seimitsu Corporation, a subsidiary of Nidec Group and the world’s largest mobile phone vibration motor manufacturer, has decided to build its first factory in Vietnam and the 11th o­ne in this country.

The company said it had decided to establish its subsidiary and factory in Vietnam, after concluding it as appropriate as the company’s third motor-producing site, “based o­n the country’s abundant human resources and advantageous geographical conditions.”

Hari Achuthan, managing director of New York-based ACO Investment Group, said while the investment climate was challenging globally, in Asia-Pacific region appeared to be an attractive place for growth opportunities.

“We see strong growth opportunities in Vietnam as long as the necessary reforms are established, especially for American firms to sell equipment and services here and bring their operational expertise to help produce value added products and services,” said Achuthan.

ACO Investment Group is now looking for investment opportunities in renewable power, consumer goods and infrastructure sectors in Vietnam.