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Thai investors start turning to Viet Nam
Higher production and salary costs as well as a stronger baht have caused the Thai business community to think more aggressively about investing in Viet Nam.
Representatives of about 40 Thai businesses paid a visit to southern Binh Duong Province on Apr. 7 to seek investment and co-operation opportunities in the country.
Many Thai companies think this is a good time to move to other countries with cheaper labour costs, such as Viet Nam.
Representatives of small-and medium-sized companies said they planned to set up factories in Viet Nam and sell products within the country as well as to Thailand and other countries.
The Thai business community said it preferred to manufacture energy-saving electronic products, animal feed, pharmaceuticals, packaging and invest in food processing.
Viet Nam's large population is a potential market for goods.
"If we go to Laos and Cambodia, the market is too small, but Viet Nam has a large population and people are becoming more and more wealthy. It's a good chance for companies," he said.
Viet Nam now has an annual income per capita of US$1,200; annual income per capita in Thailand is $4,500.
"The Vietnamese are very smart and hard-working, which are the other advantages for us to invest here," he said.
They met briefly with the province's leaders and Becamex IDC, the country's largest infrastructure and industrial park operator located in the province, before their field trip to Ecolake Residential Area, Binh Duong New Township and My Phuoc Industrial Parks.
The Thai business visitors, however, spoke about their concerns about the quality of the power supply and human resources in the locality.
Best place
Tharabodee Serng-Adi-chaiwit, senior vice president and general manager of Bangkok Bank in Viet Nam, which plays a role as a bridge to bring Thai enterprises to Viet Nam, met with representatives from the province's Customs Bureau, Department of Planning & Investment and the Industrial Zone Authority.
He said that Viet nam was the best place to invest. "That's why we try to bring our customers to Viet Nam." This was the first time the bank organised such a tour, and similar trips will be held this year for others who could not travel this time.
"At least 10 per cent of all companies that have taken part in the trip to the country will sign a contract to invest here," Thara-bodee said, adding there were thousands of Thai enterprises interested in investing in Viet Nam.
"Binh Duong is one of the best provinces in Viet Nam to invest. The province has reformed administration and has the one-door policy. Viet Nam and Thailand have similar culture, so enterprises of the two countries can work together successfully."
During the trip to Viet Nam, the businesspeople also visited Dong Nai Province's Amata Industrial Park and HCM City.
On the next trip, the bank will organise a tour to Ha Noi and Hai Phong.
Thai companies have invested $5.4 billion in Viet Nam, with more than 200 projects, ranking as 10th largest investor.
Recently, Thai Garment Manufacturers Association have pushed five major Thai garment manufacturers to relocate to Viet Nam as production costs have climbed in Thailand and Viet Nam has become a more competitive manufacturer of textiles for foreign companies.
According to the association, their factories in Viet Nam are expected to start operations within this year, employing 24,000 workers.
More Thai garment businesses may move to more competitive-labour countries such as Viet Nam, Bangladesh, Indonesia and Cambodia, the Bangkok Post reported recently.
Binh Duong Province, with annual GDP growth rate at 14 per cent and bordering HCM City to the south, is one of the fastest growing locations in Asia.
Four years on top
The province has consistently over the last four years topped the Provincial Competitiveness Index, which rates the business climate in all of the provinces of Viet Nam.
The business delegation was also introduced to Binh Duong New Township, which will have all modern amenities and infrastructure. It is being built near the old provincial capital.
The New City is being planned with French, Singaporean and other international support.
Van Dat
vietnamnews
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