Thai and Indian Companies Interested in Vietnam
Apr. 20 – More and more small and medium-sized Thai and Indian businesses are looking for investment opportunities in Vietnam.
There are many reasons why Vietnam is attractive for foreign investors. According to Tharabodee Serng-Adichaiwit, general manager of Bangkok Bank in Vietnam, in comparison to Thailand’s other bordering countries like Laos and Cambodia, Vietnam has a large market, skilled workers and a good investment environment while still maintaining lower production costs due to lower wages then in India or Thailand.
Some 1,000 clients of Bangkok Bank want to invest in Vietnam, but on the last assembly of Thai firms with Becamex IDC Corp. the bank chose to bring not more then 37. Tharabodee assume that at least 10 percent of the companies are going to invest in Vietnam and more businesses are expected to follow this year. Five companies signed already a contract to lease land at Becamex IDC’s industrial park this year. All in all, Thai companies invested more than US$5.8 billion in 244 projects in Vietnam.
Indian companies are also planning to invest more and more money into Vietnam in the future. Two weeks ago, 62 Indian companies visited Vietnam to look for investment opportunities. One additional reason why Indian firms are getting more interested in Vietnam is the India- ASEAN (Association of Southeastern Asian Nations) Free Trade Agreement, decided on August 13, 2009 in Bangkok and effective from January 1, 2010.
The Vietnam-India bilateral trade relationship was worth US$2.75 billion last year. In January and February 2011 the bilateral trade value stood at US$643 million and it seems to be rising.
Dezan Shira & Associates is boutique professional services firm providing foreign direct investment business advisory, tax, accounting, payroll and due diligence services for multinational clients in Vietnam. To contact the firm, please email email@example.com, visit www.dezshira.com, or download the firm’s brochure here.
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