Canadian entrepreneurs Sami Kteily and Adib Kouteili were among the first to invest in Vietnam as early as 1994, and the 19-year journey in this beautiful country of hospitable people was a remarkable success story.
Today, PEB Steel is a market leader and a major player in the design and manufacturing of steel structures used to build factories and warehouses. PEB Steel has built its own four fabrication facilities in Vung Tau and established three offices across Vietnam, and six sales offices in ASEAN (Thailand, Myanmar, Cambodia, the Philippines, Indonesia and Malaysia).
Every single year of the last 19 years (including the Asian crisis of 1997 and the world financial crisis of 2008/2009) has been successfully profitable for PEB Steel. And, despite the challenging macroeconomic situation in Vietnam in the last 3 years, PEB Steel Vietnam achieved double digit growth in each of the years 2010, 2011 and 2012. In the first 6 month of 2013, the company’s growth exceeded 25 percent y-o-y while operating at zero debt. Sometimes in 2005/2006, PEB Steel expanded its operations in Asia by setting up a big manufacturing facility in India (on a 50 percent joint venture) and a smaller one in Bangladesh (on a 50 percent joint venture).
PEB Steel manufacturing capacity in Asia now exceeds 120,000 MT per annum of complete pre-engineered steel buildings.
According to its managing director Mr Adib Kouteili, PEB Steel is confident that its robust growth will continue and the sky is the limit.
Talking about investment environment in Vietnam, Mr Sami Kteily, Executive Chairman of PEB Steel shared: “The investment environment in Vietnam is still good especially for existing investors who have become familiar with the way business is done in this part of the world. Also, if we compare Vietnam with other developing countries in the region, we give it high marks. Foreign investment and foreigners are very welcome in Vietnam and repatriation of profits can’t be any easier. Just pay your taxes regularly, submit your audited accounts to the authorities, and in no time your declared dividends can be remitted overseas in the currency of your choice, USD, Canadian Euro or whatever”.
According to Mr Sami Kteily, it comes as no surprise that foreign direct investment “disbursements “ in the last 3 years (which many consider challenging ) is still around US$10-11 billion per year and a big part of this investment comes from existing investors. PEB Steel itself expanded its manufacturing facilities in Vietnam 3 times. And still have plans for more expansion in North Vietnam as well as the South. “As a matter of fact, you will hear about a new expansion by the end of this year”, said Mr Sami Kteily.
In order to attract more foreign investment into Vietnam, Mr Sami Kteily suggests that Vietnam should re-instate the tax incentives (that were generous until 2008) especially for investment inside industrial parks and in high tech industry. The already approved reduction in corporation tax to 22 percent and 20 percent by 2015 is very welcome.
Vietnamese
