VN: One of most attractive Asian investment destinations

Six topics of discussion at the VIF included: Post-WTO chances; Banking reform; Equitizing State-run enterprises; Infrastructure and real property market; Developing debt markets; Realities of stock market; and Role of private stocks.

In her address, Ms. Lê Thị Băng Tâm, Chairperson of the State Capital Investment Corporation (SCIC), informed foreign investors that, in 2006, Vietnam’s capital and financial markets saw a high growth rate. Last year, SCIC took over the ownership of State capital in 420 enterprises, with the total registered State capital of VND 3,400 billion. With such a growth, Vietnam will surely become an attractive investment destination for foreign investors and organizations.

According to Finance Minister Vũ Văn Ninh, to meet the need of capital to 2010 (about US$ 140 billion), Vietnam is paying greater attention to the development of different economic sectors and speeding up the equitization of the rest State-run enterprises. “The accelerated equitization will raise the need of capital,” said Minister Vũ Văn Ninh. “However, the capital supply much depends on domestic savings and external investments. So, the Vietnamese Government pledges to observe all integration requirements and further reform its regimes, policies, and business environment to provide better conditions to foreign investors.”

Mr. Michael Geoghegan, General Director of the Hong Kong and Shanghai Banking Corporation (HSBC), asserted that, to develop at a sustainable pace, Vietnam should simultaneously boost three factors: capital, talented human resource, and full legal frame. He highly applauded Vietnam’s robust development with a growth rate of 8% per year. According to Mr. Geoghegan, Vietnam’s large young population with bettered working skills is an ideal advantage for the country to become the biggest Asian market for investors. He also reminded Vietnam to pay more attentions to the improvement of transport, telecommunications as well as the application of scientific and technological advances to mobilize more long-term investment capital for economic development.

In his speech, Mr. Jean-Piere Bernard, Southeast Asia and India Director of the BNP Paribas Bank, also emphasized infrastructure development and capital growth demand. To help Vietnamese businesses develop stably, the Government should take more measures to reduce their dependence on banking loans and foreign investment capital, he asserted. He also added that, at present, many foreign companies are desiring to purchase bonds of some Vietnamese big groups and companies.

According to Mr. John Shrimpton, a founder of the Dragon Capital Group, the current laws on capital market in Vietnam are quite complete and sufficient. So, foreign investors can feel secure to set up long-term investment plans and make bigger deals in Vietnam. “One of Vietnam’s most attractive factors is her political stability,’ said Mr. Shrimpton. This is the most important assessment of Vietnam made by foreign investors.  

By Hoàng Nguyên Hồ