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More firms set to invest overseas
Overseas investments in Vietnamese businesses are likely to make a leap this year, according to Bui Quoc Trung, Deputy Director of the Foreign Investment Agency under the Ministry of Planning and Investment.
Trung revealed that a number of projects invested in by Vietnamese businesses into foreign countries and territories, with large amounts of registered capital, were under negotiation and expected to be completed this year.
| Group continues planting rubber trees in Cambodia
The Viet Nam Rubber Group will invest US$55 million in growing another 20,000ha of rubber trees in five Cambodian provinces this year, said its Phnom Penh chief representative Leng Rithy.
The investment is part of the group's target of 100,000ha of rubber trees in Cambodia by 2012.
The group will grow the crop on 8,900ha of land in Kampong Thom, 7,500ha in Kratie, 1,500ha in Ratanakiri, 1,100ha in Stung Treng and 1,000ha in Preah Vihear.
Rithy said the plantations were expected to begin producing by 2017 with a total output of 150,000 tonnes increasing to 250,000 tonnes by 2020.
Cambodian Rubber Association president Mork Kim Hong said the association would boost Cambodia's economy and generate more jobs.
By the end of last year, Cambodia had 123,000ha of rubber trees, 50,000ha of which were yielding 50,000 tonnes of dry latex for export. | The total registered capital of projects invested in abroad by Vietnamese businesses this year would be higher than that of last year, Trung predicted. Despite the global economic slowdown, the country last year licensed 89 projects for overseas inrestment, and approved to lift the charter capital of another 20 projects to nearly US$2.5 million.
He also anticipated that this year, Vietnamese businesses would be interested in mining, industrial crop cultivation, exports, imports and processing industries when they invested abroad.
This year, traditional markets including Laos, Cambodia, Russia, Malaysia and Algeria will still be attractive destinations for Viet Nam investors. However, businesses will also expand their investments to the US, South Korea and Singapore.
The Government has ratified a plan to promote overseas investments by Vietnamese nationals.
The plan provides incentives for projects involving energy, power, petroleum, mining and the cultivation of crops used in industries such as rubber, cotton and palm oil.
The Government is also expected to approve a Ministry of Finance draft circular to encourage domestic businesses to invest abroad.
Under the draft tax circular, Vietnamese business leaders who invest abroad will be exempt from export and value-added taxes levied on machinery, equipment and other materials used for their projects.
Overseas Vietnamese firms will also not have to pay taxes on products made abroad and imported back into Viet Nam.
The draft regulations also suggest that corporate income taxes on Viet Nam's projects abroad be kept at 25 per cent. If those businesses have already paid taxes to foreign tax authorities, this will be deducted from taxes owed in Viet Nam.
According to MPI statistics, by the end of last year, Viet Nam had invested in 465 projects worth $7.73 billion in more than 50 countries and territories. Processing and manufacturing industries ranked first with 102 projects worth $429 million.
With nearly 170 projects worth $3.16 billion, Laos has so far been the most attractive destination for Vietnamese investors. Russia follows with 17 projects totaling $1.71 billion.
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