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Thai companies encouraged to invest in Vietnam
Thai companies are being encouraged to seek offshore loans for investments in Vietnam, where interest rate is on the rise, Thailand’s media reported, citing an executive of Bangkok Bank (BBL).
The Bangkok Post quoted Tharabodee Adichaiwit, BBL's senior vice-president and general manager for its Ho Chi Minh City branch, as saying that opportunities had arisen for Thai and other foreign firms to invest in manufacturing facilities for export, as well as infrastructure development and the hospitality sector.
According to Tharabodee, lending rates in Vietnam have been increased to 21% from 8.5% earlier in order to cool down the economy, resulting in higher financial cost for companies operating there. But foreign companies could use offshore borrowing to finance their investments, for example with interest of about 4-5% in Thailand, to lower their financial costs.
He added that industrial land-leasing prices in Viet Nam were still reasonable, while wages also remained competitive.
Thailand currently ranks 13th among foreign investors in Vietnam with accumulated investments of 1.6 billion USD, the paper said.
VNA
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