Vietnam’s overseas investment can top 1 billion USD annually: insider

Illustrative image (Photo: VNA)

Overseas investment by Vietnamese firms is growing and can surpass 1 billion USD per year in the future, from about 700 million USD at present, said Chairman of the Vietnam Association of Foreign Invested Enterprises Nguyen Mai.

Vietnam is currently investing more than 21.6 billion USD in 1,584 overseas projects. In the first nine months of 2022, its businesses poured over 347.3 million USD in 80 new projects, rising 2.31-fold year on year in value, according to the Ministry of Planning and Investment.

They invested in 13 sectors abroad during the period. The processing - manufacturing industry took the lead with over 291.6 million USD, equivalent to 55.2% of the total. It was followed by finance - banking - insurance, wholesale and retail, mining, and agriculture - forestry - fisheries.

Twenty-four countries and territories recorded Vietnamese investment in nine months, with Laos being the biggest destination, followed by Singapore, the US, Germany, and the Netherlands.

The surge in new overseas investments is partly attributable to five major projects worth over 34.68 million USD each by the Vines Energy Solutions JSC in the US, Canada, France, Germany, and the Netherlands.

Mai noted Vietnamese enterprises’ overseas investment has been on the rise with many big projects, adding that many projects on technology, rubber, and coffee production have reaped success and sent back profits to the homeland, helping with the balance of international payments and increase the country’s foreign exchange reserves.

Economic expert Tran Du Lich held that while a number of foreign businesses are acquiring Vietnamese companies, many enterprises of Vietnam have also been moving to purchase foreign firms so as to stretch their reach to the world.

He said he hopes the country will have international and regional-level brands in the time ahead, adding that many Vietnamese investors have been establishing themselves in the global markets as seen in their presence in Europe, the US, Australia, and China./.