Last updated: Tuesday, May 21, 2013
Malaysia's Investment into Vietnam Keeps RisingPosted: Tuesday, March 27, 2012
The two-way trade turnover between Vietnam and Malaysia exceeded US$4 billion in 2011 and is expected to achieve US$7 billion in a couple of years. In 2011, Malaysia ranked fifth out of 92 countries and territories investing in Vietnam, with 386 projects and US$18.78 billion of investment capital.
The Foreign Investment Agency (FIA) under the Ministry of Planning and Investment said Malaysia had 402 valid investment projects with a total registered capital of US$11.079 billion in Vietnam as of March 20, 2012. Investments into the real estate industry took the lead with 15 projects worth US$5.532 billion, followed by water supply and waste treatment sector with four projects capitalised at US$2.340 billion. Classified by investment form, 298 projects worth US$9.171 billion were wholly invested by Malaysia; 81 projects valued at US$1.137 billion were joint ventures; and 15 projects worth US$535 million were joint stock companies.
In addition, according to the Ministry of Planning and Investment, Malaysian direct investment flows into Vietnam keep rising, especially into Ho Chi Minh City. One of most outstanding Malaysian investors is Petroliam Nasional Bhd (Petronas) which partnered with the Vietnam National Oil and Gas Group (PetroVietnam) to explore and produce oil since 1991. A lot of other Malaysian companies are doing successful business in Vietnam, like IGB with New World Hotel in Ho Chi Minh City, Faber Group with Sheraton Hotel in Hanoi City, Lion Group with Parkson retail chain; and APL with rubber plants. Notably, PetroVietnam and Petronas also cooperated to explore and produce oil and gas in Malaysia and provide oil and gas industry technical services for other nations.
With its ICT strengths, many Malaysian companies have made a presence in Vietnam to collaborate with Vietnamese scientists to develop this high-tech industry. As of March 3, 2012, Malaysian investors had 24 ICT projects valued at US$11.927 million in Vietnam.
According to economic experts, Vietnam can learn from the economic development experience from Malaysia, especially in infrastructure construction, electronics industry and the food industry. On macro level, the two countries necessarily strengthen cooperation in trade, investment, culture and society in the future. Accordingly, the two sides need to make another step in Joint Declaration for Comprehensive Cooperation Framework in the 21st Century and coordinate in implementing the ASEAN Charter to build a powerful ASEAN community.