Vietnam: Investing in in Binh Duong Province’s My Phuc Industrial Park

Thai investors remain wary of challenges in Vietnam
For full article in the Bangkok Post Click Here.

HO CHI MINH CITY : Thai investors that are still deciding whether to invest in Vietnam may be disappointed to hear a lot of other businesses from the region may have beaten them to the punch.

The newly launched Becamex department store is a smaller version of Bangkok’s Central Chidlom. Despite the efforts to lure Thai investors, very few companies have decided to take the plunge.

“There has been some interest from Thai companies to invest in Vietnam but very few have so far materialised,” said Soraya Runkel, an executive at Runkel & Associates, which is advising Becamex, an investment body tasked with developing 38,000 rai of land within an hour’s drive from Ho Chi Minh City.

Driving through the various phases of the industrial estate that is meant to be the showpiece of the current economic development programme, only a few Thai companies are visible _ Siam Cement Plc and agricultural conglomerate Charoen Pokphand Group.

Becamex is a state-owned but spun-off entity set up to develop infrastructure for Vietnam. The industrial estate in Binh Doung is one of its largest projects and a shift away from building roadways.

Becamex has been trying to invite foreign companies to undertake various projects but very little interest has been shown by Thai companies. Businesses from Singapore, Malaysia and South Korea have all taken the plunge to participate in the economic boom of Vietnam.

Thai investors in Vietnam have been located mostly in Ho Chi Minh City, Binh Duong, Dongnai and Vungtau, the Southern Key Economic Zone (SKEZ). The SKEZ creates 75% of the country’s revenue. Many Thai companies emphasise longer-term investment, such as Siam Cement and CP, with factories located in Binh Duong province’s My Phuc Industrial Park.

For full article in the Bangkok Post Click Here.

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