VIETNAMESE companies should further invest in and trade with Asean member countries like Myanmar, Thailand, Laos, and Cambodia, a forum heard in Ho Chi Minh City on Thursday.
Vietnam Chamber of Commerce and Industry (VCCI) vice-president Vo Tan Thanh told the Southeast Asia Outbound Investment Forum: “Thailand is Vietnam’s largest trading partner among Asean countries, with bilateral trade reaching over $17.5 billion last year, a year-on-year increase of 15 per cent.
“Vietnam’s trade with Cambodia, Laos and Myanmar also grew last year.”
Vietnam had a trade deficit with Thailand because it imported a lot of machinery and equipment, raw materials for domestic production and automobiles, he said.
Last year, Thailand was the biggest source of automobiles for Vietnam, he added.
Vietnam’s exports to these markets include mobile phones and components, computers, electronic products and components, iron and steel, machinery and equipment, vehicles and spare parts, garment and textile products, crude oil, and gasoline.
As of last year, Thailand was the ninth largest investor in Vietnam out of 130 countries and territories with $10.5 billion in 528 projects.
Laos ranked 52nd with $70 million, Cambodia was 56th with over $64 million and Myanmar, 99th with one project worth $800,000.
Vietnamese companies have invested in all these countries, including nearly $26 million in Thailand.
They have invested over $3 billion in Cambodia to make the country among the five largest foreign investors.
Vietnam was the seventh largest foreign investor in Myanmar with nearly $2 billion in 70 projects.
Investment and trade ties between Vietnam and these countries remain short of their potential and they are making efforts to set this right.
Vietnam and Thailand for instance have set a target of increasing their trade to $20 billion by next year, while Vietnam and Laos target 10 per cent growth in trade this year.
‘That can be replicated further’
To provide local companies seeking to expand operations in Southeast Asia with more information about these markets, VCCI in collaboration with Tilleke & Gibbins, a leading Southeast Asian law firm, held the first Southeast Asia Outbound Investment Forum, Thanh said.
Thomas Treutler, partner and managing director of Tilleke & Gibbins (Vietnam), said many foreign investors are coming to Vietnam because of the good quality of its products and services, skill of its workforce and the competence of its companies.
So there is no reason why these companies cannot go abroad and compete successfully there, he said.
“Many Vietnamese companies have succeeded overseas and that can be replicated further.”
He said companies should pay more attention to protecting their brands abroad.
Tilleke & Gibbins’ lawyers from its Cambodia, Laos, Myanmar, and Thailand offices spoke to attendees about market entry in their respective jurisdictions, the process and legal framework for doing business there and the market opportunities and challenges in each country. VIET NAM NEWS/ANN