Thai investment in Vietnam more than doubles in 2020
THAILAND had 40 new registered projects, 23 projects registering for capital adjustment and 100 capital contribution and share purchases in Vietnam with total registered capital of nearly $1.8 billion last year, according to Vietnam’s Ministry of Planning and Investment.
This number was more than double compared to 2019 and nearly seven-fold compared to the 2015-2020 period.
Thailand currently is one of the nine largest investors in Vietnam with a total accumulated investment capital of $12.8 billion by the end of last year, equivalent to 603 projects.
Thai investors are interested in diverse fields in Vietnam, mainly processing and manufacturing, clean energy and real estate.
Thai Trade Counsellor to Vietnam Pannakarn Jiamsuchon told Cong Thuong (Trade and Industry) newspaper that in addition to the constantly improving investment environment, Vietnam’s participation in many free trade agreements (FTAs) was highly appreciated by Thai businesses and they were very interested in expanding investment in Vietnam.
Thai investors in Vietnam also wanted to expand their investments, while new investors were also interested in seeking investment opportunities in the country to benefit from the FTAs.
The strategic partnership between Vietnam and Thailand is developing strongly and comprehensively in all fields, especially economic, trade and investment cooperation.
In the context of the Covid19
pandemic, Thai investors are increasing their investment, merger and acquisition activities in Vietnam.
Gulf Energy Development Plc, a leading Thai private power producer, recently announced plans to acquire 70.5 per cent of Global Mind Investment Management’s (GMIM) shares from Nech Opportunities Fund VCC, worth $40 million to expand investment in Vietnam.
The Thai government has adopted a strategic plan on the bio, circular and green (BCG) economy to drive economic growth from 2021 to 2026.
The five-year strategic plan was approved at the first meeting of a management committee to drive the BCG economy chaired by Thai Prime Minister Prayut Chano-cha on January 13.
The BCG strategic plan covers four sectors – farm and food; healthcare and medical services; energy and biochemicals; and tourism and the creative economy.
According to the Thai trade counsellor, his government first plans to develop the bioeconomy, as Thailand has more than 30 million people working in the farm sector, yet most of them remain in poverty.
The development plan calls for the government to increase the value of farm products and generate more income for the farm sector.
It aims to generate 4.4 trillion baht ($147 billion) worth of income, or 24 per cent of gross domestic product (GDP), and create 16.5 million jobs by next year, up from 3.5 trillion baht in 2019.