Thailand’s foreign direct investment into Vietnam has been increasing sharply in recent years, according to a survey report by researcher Pittaya Suvakunta from Thailand’s Thammasat University
Suvakunta’s report on Thai FDI in Vietnam was circulated at an international conference on Vietnam studies held in Hanoi recently.
The researcher cited data from Vietnam’s Ministry of Planning and Investment as saying that as of June 2016, Thailand had had 466 projects in Vietnam with total pledged capital of US$9.44 billion, ranking 10th out of the 116 countries and territories investing in Vietnam.
In 2015, as many as 53 new Thai projects were licensed into Vietnam, besides many others allowed to raise their investment capital, totaling US$262 million of fresh capital.
Key Thai investors in Vietnam include CP Vietnam Corporation with US$328 million of investment capital, SAS CTAMAD with US$72.6 million, Long Binh Development Joint Venture Company with US$46 million in Dong Nai Province, and TCP VINA Chemical Plastic Company with US$90 million in Go Dau Industrial Park, Dong Nai Province.
Thailand’s FDI in Vietnam flows into a wide range of sectors such as energy, retail, agriculture, processing, building material, and animal feed.
“Thousands of Thai firms wish to join hands with Vietnamese partners to leverage the existing potential of both countries,” said Sanan Angubolkul, president of the Thailand-Vietnam Business Council, at a recent press conference in Hanoi.
According to Tharabodee Serng-Adichaiwit, general manager of Bangkok Bank Public Company Limited in Vietnam, Vietnam is one of the best destinations for Thai investments in Asia and there will be more Thai investments into Vietnam in the near future.
Bangkok Bank has recently tripled its capital so that it can provide more loans for Thai investors to expand business in Vietnam.
Many Thai firms have plans at hand to expand their Vietnam operations.
For example, CP will spend US$150-200 million building a fish feed processing plant, and a processed chicken and cold storage plant in Vietnam.
Meanwhile, Siam Cement Group (SCG) is also seeking additional funds to increase investment in the domestic market and Southeast Asia. SCG is currently building a new petrochemicals complex in Vietnam and recently announced plans to inject at least 100 billion baht (US$3.3 billion) to expand operations in Southeast Asian markets.