Good opportunity to attract investment

The opportunity for Vietnam to call for foreign investment has come. Low Sin Leng, Executive Chair of Sembcorp Group (Singapore), the leading investor in Vietnam said. Her company has also invited other foreign businesses to invest in Vietnam.

Vietnam has many advantages, such as large-scale real estate accompanied by rich human and natural resources, said Leng. The initiative on economic cooperation and Vietnam Singapore Industrial Park (VSIP) project has been proposed and developed by the former senior leaders, at that time were prime ministers Vo Van Kiet and prime minister Goh Chok Tong.

The initiative was concretised in 1996, with an industrial park of 500 hectares land area built in Thuan An (Binh Duong).

After only ten years, the industrial park was fully occupied. The project then was expanded with 345 hectares in Ben Cat (Binh Duong), which also being fully occupied, and is being further expanded with 1,700 hectares land area.

For the above two parks only, Vietnam has attracted over 380 real estate lessees investing in production and import-export businesses, with over $2 billion in total capital and 63,000 employees. VSIP has been named “Best industrial developer” by UK’s Euromoney Liquid Real Estate magazine. VSIP has currently been developing in Bac Ninh. In addition, Sembcorp also invested in Phu My 3 power plant with 33 percent shares, and Norfolk hotel (Hochiminh City) with 49 percent shares, etc.

Answering the question on why choosing Vietnam as a destination for investment activities, Leng said she has belief in Vietnam’s potential and strengths. Eight years ago, her friends and business partners from Japan, the US, and the UK thought that they were wrong investing in real estates in Vietnam, with the target to develop those real properties into industrial infrastructure. Nevertheless, to date, they have to admit that she and Sembcorp were right, “and they go in company with us”, said Leng.

Leng said that Vietnam, firstly, is a young country with abundant human resource, aspiration and a vision to attract investments. Vietnam has large amount of real estate, “extremely favourable location for production, export activities, especially the proximity to the sea would be an advantage for storage and transportation”. It is not easy for other countries to have this favourable location of land.

The second thing Leng told her friends and partners is Sembcorp has been accompanying Vietnam in developing this field of business. Investment of Sembcorp in Vietnam itself has been the trustful “certificate” for other businesses to believe in Vietnam. Moreover, the partners will invest in Vietnam on the lands developed by Sembcorp and Vietnamese partners. They therefore have the advantages of infrastructure, human resources and a good location for developing businesses.

Leng commented that there still have barriers in administrative procedures that could be hurdles in attracting investment. They have given suggestions to the government. In addition, Vietnam also lacks of work force with high qualifications.

However, Leng still believes that Vietnam has made significant improvements. Therefore, Sembcorp will continue expanding investment project in Vietnam. The group also puts effort in attracting its partners to also invest in Vietnam. The investment of Sembcorp in the fourth VSIP in Hai Phong with the total area of 1,600 hectares in the beginning of 2010 could be an example.

Tags: invest in Vietnam, Vietnam FDI, Vietnam investment

Posted by VBN on Jul 1 2010. Filed under Investment. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry