With great potential and opportunities for investments, Vietnam and Africa have increased their investments and opened up new opportunities for the future. According to experts, bilateral Vietnam-Africa investments will increase vigorously in the coming years if related governments sign early agreements on investment encouragement and dismantle constraints for businesses.
Among 91 countries and territories investing in Vietnam, 6 are from Africa (Seychelles, Morocco, Nigeria, Guinea-Bissau, South Africa) with 13 projects and investment capital of US$11.48 million. African investment projects focus on processing, manufacturing, wholesale and retail, repairing, hotels and restaurants.
Investing in Vietnam, African countries focus on cities and provinces of good infrastructure such as Vinh Phuc, Dong Nai, Binh Duong, Ho Chi Minh City, Tra Vinh and Quang Nam. Some of important projects are Cheng Dian Vietnam project producing industrial springs, Son Nhat Pham paints and products.
For its part, Vietnam investments in Africa are more active especially in gas and oil industries. So far, PetroVietnam has engaged in gas and oil investments with Algeria, Congo, Madagascar, Tunisia, Mozambique, Angola, and Sudan with 12 projects worth US$776.45 million.
In addition to energy sector, Vietnamese businesses have also diversified their investments in Africa. Vinashin group has establishedand operated a motorbike-assembly factory in Mali with 100 percent investment capital by Vietnamese side. In early 2011, Viettel group received license for investment in Mozambique in telecom infrastructure and service. Most recently, FPT group signed MOU with 21st Century Technologies (Nigeria) on cooperation in telecom, education and equipment. While Truong Thanh Furniture Corp (TTF) has just completed the first training course for 21 South African trainees at Dak Lak Wood Processing Centre in the framework of TTF-South Africa investment cooperation in wood processing, forestation and show room of products in South Africa.
Regarding agriculture, on December 13, 2011, Vietnam Prime Minister signed Decision 70/2011/QD-TTg on regulations concerning agricultural cooperation with African countries in 2012-2020 including direct investments of Vietnamese businesses in agricultural development especially in wet rice production. In addition, aquaculture and agricultural processing are also profitable for investments and Sudan is encouraging foreign investments in those fields. According to Vietnam Cashew-nut Association, some of its members are interested in investing in cashew-nut producing countries such as Ivory Coast and Nigeria. Presently, no Vietnamese enterprise invests in Ivory Coast, which is calling for investments in processing cashew nut. The cashew nut output of Ivory Coast is some 400,000 tonnes a year while the processing capacity is only 3 percent of the output.
Most African countries are encouraging investments in all fields with preferential investment credits, tax reduction, simplified formalities and non-nationalization of property.
Thu Phuong
Vietnamese
