Domestic firms keen to expand overseas

A number of Vietnamese businesses are currently investing a total of $10.8 billion in 627 projects overseas, according to the Ministry of Planning and Investment (MPI).

Now present in 55 countries and territories worldwide, these Vietnamese businesses have ambitions of expanding their markets even further to increase their profit margins.

Apart from familiar markets such as Laos , Cambodia and Russia , Vietnamese businesses have now also penetrated Africa and Central America .

Of this total overseas investment, $3.4 billion has gone to Laos , mainly into telecommunications, hydroelectricity, transport infrastructure and banking operations.

This also indicates that Vietnam is making an effort to help Laos make the most of its true potential and develop its strengths, so it can improve living standards around the country.

Vietnamese businesses have injected a total of $776 million into small and medium-scaled projects in Russia , mostly focusing on building markets and shopping centres and the processed foods industry.

Other notable projects include a $806 million Ha Se San II hydro power station capable of producing 400 MW, a project to plant rubber trees on 4,000 hectares by the Chu Se Vietnam Rubber JSC in Cambodia and a $408 million telecommunications project in Peru by the military-run telecoms group Viettel.

Viettel is also seen as a leading service provider in Laos and Cambodia .

The MPI said that these projects have all raised sufficient capital and are currently examining local needs and demands as well as the different legal systems in each country.

In recent years the Vietnamese Government has made it much easier for businesses to operate overseas while still managing the flow of investment.

The MPI has been directed to oversee businesses that operate overseas and to adopt measures to ensure the security of foreign currency reserves.

Other promising markets in South Asia, South America, Russia and Southeast Asia are also being scrutinised by the Vietnamese businesses community for possible opportunities in the future.

Source VIR/VNA