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Domestic saturation pushes sales overseas
Several Vietnamese enterprises are expanding into foreign countries, including Africa, Middle East and Latin American, because the domestic market has become saturated.
Statistics released by the Ministry of Planning and Investment's Foreign Investment Agency at a recent conference held in HCM City showed that Viet Nam has around 600 projects invested in foreign markets with a total registered capital of US$10 billion. Of the total, $2.6 billion was invested in foreign markets while return profit was $270 million in the first nine months this year.
It also said Vietnamese investment into foreign countries had rapidly increased in several sectors and models, mainly focused on minerals, electricity, rubber and coffee industries.
Chairman of Vinamilk Company Mai Kieu Lien said the firm had directly exported its products to Middle East market since 1997. In other markets including the US and Australia, the company has exported its products with a yearly turnover of $1-$2 million.
Lien said they had actively co-operated with foreign partners to take advantages of their strengths, including global distribution networks and marketing strategies.
The exports had brought $130 million a year for the company, especially in the Middle East, Cambodia, Philippines and Australia.
According to Viet Nam Association of Seafood Exporters and Processors, several Vietnamese exporters in agriculture and seafood sectors had targeted Saudi Arabia and Egypt which had been Viet Nam's biggest importers over the last two years.
Frozen tra fish had been a strategic product in the markets with an increase of 10 per cent in quantity and 24 per cent in value, followed by frozen shrimps and canned tuna. The association said an abundant supply, stable prices and low content of cholesterol had been advantages for the products to penetrate the Middle East market.
Telecom providers had also entered foreign markets because the Vietnamese market had become saturated.
Military-run Viettel Group and FPT Group had invested in remote and poor markets in Africa.
FPT Group has signed a memorandum of understanding with Nigerian 21st Century Company in telecommunications, education and equipment production while Viettel has received an investment licence in Mozambique as well as launching its mobilephone network in Haiti.
A representative from Viettel said the economic crisis would be an opportunity for them to exploit opportunities.
However, concerns for the effectiveness of and investment in foreign countries had required a tighten management from authorities.
The foreign investment agency said management authorities had faced difficulties in managing and controlling activities of investment projects in foreign markets as existing regulations were not suitable under the current situation.
Head of the Foreign Investment Agency Do Nhat Hoang said a new decision on investment into foreign countries with 20 revised articles including granting licences and responsibilities to report profits would be submitted to the Government this month to better manage the activities.
vietnamnet
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