Over 160 foreign investors attending the conference on portfolio investment promotion named “MY VIETNAM – YOUR INVESTMENT DESTINATION” in the United States on 1/7/2015 has showed particular interests of the international investors in Vietnam – a friendly and potential market.
Minister of Finance Mr. Đinh Tiến Dũng chairs the investment promotion conference in the USA
729 investment projects in Vietnam with total capital of about USD 11 billion, ranking the 7th among 101 countries and territories who have direct investments in Vietnam and 995 investors... (by 2/2015) are impressive figures but yet reflect full trade collaboration and investment potential between the two countries who are consolidating comprehensive collaboration in line with the directing spirit of the two countries’ leaderships.
While noting and highly appreciating the roles and presences of American financial groups and investors in Vietnam as well as their important contributions to Vietnam’s economy and financial sector, the Minister also observes the indirect investment of the United States in Vietnam is at this moment still modest compared to capacity of the United States’ investors as well as capital absorbing capability of Vietnam’s market. Therefore, the capital market sphere still has large and new rooms for the two countries’ collaboration and potential for the United State’s investment.
Vietnam, with its growth rate in the top 3 of Asia over the last 10 years (6.4%/year), determines to develop market based economy, at the same time to advance toward a modern Government by bold reform of administrative procedures, application of information technology in governance and commitments to international integration acceleration. To date, Vietnam has joined numerous Free Trade Agreements with various major countries and regions such as the United States, EU, Japan, Korea and imminent Trans-Pacific Partnership Agreement, opening huge opportunities for Vietnam’s economy and investors who are interesting in Vietnam.
Reforming progress on the state-owned enterprises (SOE) in 2015 of Vietnam with 289 SOEs of on-going equitization, other 300 divesting ones - of which many are large enterprises, total value of equitized SOEs will be about USD 25 billion with selling shares worth roughly USD 3.75 billion. Beside, the Decree no. 60/2015/NĐ-CP officially increasing the foreign ownership ratio in public enterprises, excepting for the restricted or condition applied business lines and sectors, according to which, the foreign investor ownership ratio is not limited as committed to the WTO, are information welcomed by the United States’ investors.
Sharing at the Conference, US billionaire Wibur L. Ross, who owns over USD 3 billion of wealth, ranks th 200th in the USA and the 600th globally said: Việt Nam is an attractive destination of investment capital flows, especially investment in the stock markets and equitized SOEs. “The first time I was in Vietnam in 2001, at that time, most of families there used bicycles. Recently, I have a chance of return to Vietnam and realized that many families have owned cars, even very large hotels. Clearly, Vietnam has made impressive economic advancements and my perception is that this is the safest country in the world”, billionaire Wibur L. Ross said. Two points that Mr. Wibur L. Ross mentioned that the US investors should pay attention to Vietnam were its endeavor to reform the economy, of which tax administration reform and loosening room for foreign investors are strongly carried out by the Government of Vietnam. This 78 year old billionaire observes that, businesses of Vietnam exporting advantages and real estate field would see strong development and rising foreign interest in the future.
Harbinger Fund chairman, Mr. Philip A Falcone reiterated his story of investment decision 8 years ago in Hồ Tràm resort in Vũng Tàu city. “Many investors back then asked me why choosing Vietnam, a distant country with economy, business culture divergence versus the USA?”... “I chose Vietnam at that time because I believe in the development of an economy with nearly 90 million people, most are young people, enthusiastic and working hard to overcome hardship”, Philip A Falcone recalled.
Harbinger Fund chairman added, over the last 8 years, the project in Vietnam has encompassed bumping periods too, but he is happy about the pioneering American made huge investment in the hospitality business in Vietnam and always believing that his project is made in good opportunity, time and place. “The project will bring about benefits to all parties, our-self and Vietnam friends”, Harbinger stressed.
Manulife vice chairman, Mr. Peter F. Wikinson, who is responsible for Governance relationship said 16 years before, Manulife came to Vietnam because it realized the business environment there was favorable and the Government has actively support businesses, particularly enterprises. “We have experienced investment in many countries and found cherished future in Vietnam and wished to invest more in this country”, Mr. Peter F. Wikinson highlighted. At the present, Manulife is one of three leading life insurers in Việt Nam and managing an investment fund worth USD 486 million at the end of 2014.
Many questions raised, many stories and experiences shared from the US investors; suggestions, answers and strong commitments from the financial regulators; determination of restructuring and desires for finding out strategic investors for partnership, co-development from Vietnam enterprises and economic groups assured the success of the portfolio investment promotion conference “My Việt Nam – Your Investment Destination”. The outcomes from this Conference will contribute to foster Vietnam – USA finance, investment and trade relation for the common prosperity.