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French pledge to step-up investment
The doors are set to be open wider for a wave of French investors to Vietnam. French Prime Minister Francois Fillon last week paid a two-day visit to Vietnam to strengthen relations with 40 top French firms present to capitalise on new business opportunities.
The companies included Fives, AI Group, Alstom International Altereo, AXA, BNP Paribas, EADS, EDF and Arianespace. During the visit, Vietnam and France signed agreements in various fields such as education, infrastructure development and nuclear power cooperation.
Speaking at the Vietnam-France Entrepreneurs Forum in Hanoi last week, Fillon said the cooperation agreements would pave the way for French investors to Vietnam. France is Vietnam’s third largest European trade partner, with bilateral trade turnover in 2007 surpassing $2 billion and in 2008 about $1.8 billion.
French investors have registered to invest $3 billion into 216 foreign direct investment projects in Vietnam. “The economic relationship between Vietnam and France is not reflecting the real potential of the two countries. France’s investments and trade turnover in Vietnam are still modest.
“French investors have to strengthen their footholds in Vietnam and understand this market further. It will be a pity if French companies miss business opportunities in Vietnam,” Fillon added. Vietnamese Deputy Prime Minister Nguyen Sinh Hung said the Vietnamese government would create more favourable investment conditions for French investors.
“I expect French investors to have a long-term investment strategy in our country. More French investments in Vietnam will tighten the relationship between Vietnam and France,” Hung said. Frédéric Sanchez, chairman of the France-Vietnam Businessmen Council, said many French companies were eyeing Vietnam as an attractive destination for investments.
At the entrepreneur forum, 15 contracts and memorandums of understanding, worth about $9.5 billion, were signed between Vietnamese and French companies. At a meeting with the Minister of Planning and Investment Vo Hong Phuc, Sanchez said France’s investment levels would soon increase.
He said French companies were especially interested in infrastructure projects in Vietnam, which would be invested under the build-operate-transfer or public-private partnerships (PPP) forms. “We have experience in developing PPP projects,” said Sanchez.
The equitisation of Vietnamese state-owned enterprises was also attracting French companies. Sanchez said buying stakes in existing companies in Vietnam would be a fast way to penetrate the market.
For instance, France Telecom was discussing buying a stake in Vietnam’s MobiFone (See story on page 17) and AXA Group plans to buy a 16.6 per cent of stake in Bao Minh Insurance Joint Stock Corporation.
vietnamnet, vir
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