Besides traditional markets like Laos, Cambodia and Myanmar, the firms have also launched investment projects in new markets including Cuba, which has emerged among the top three countries receiving Vietnamese investment in the period with nearly $20 million.
TH Corporation is also preparing to produce milk in Russia for the first time
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Many other projects are also planning, such as a five-star hotel and offices project for lease invested by Hanel and a Cuban partner, and Vico’s washing powder manufacturing project. In addition, Viglacera is aiming for a joint venture in ceramic manufacturing, and Hung Thang Co. is planning to manufacture bottled water.
Vietnamese firms have been interested in the potential market for years. Few years ago, it was forecast that following Laos, Cambodia, and Myanmar, Cuba would emerge as a popular destination for Vietnamese companies, because this country has huge potential as a new market in a period of openness.
After general secretary Nguyen Phu Trong’s visit to Cuba in March 2018, many new opportunities for collaboration have sprung up. During the visit, a number of agreements were signed. The most noteworthy event was the closure of the official negotiation of the Trade Agreement between Vietnam’s Ministry of Industry and Trade and Cuba’s Ministry of Foreign Trade and Foreign Investment. Accordingly, both parties will commence the legal processing necessary to sign as soon as possible and to put the agreement into practice in order to promote commercial growth and attract foreign investors.
In the framework of the general secretary’s visit, Vietjet also reached an agreement to cooperate with Cuba Airlines. Additionally, agreements over hotel and resort development projects were signed.
The flow of Vietnamese overseas investment is likely to increase more significantly in the time to come, said Dang Phuong Linh from the Vietnam University of Commerce.
In fact, successful overseas business is a springboard for many Vietnamese companies to continue investing in other countries.
According to Viettel, the group will officially provide telecommunications services in Myanmar in the second quarter of this year, marking its presence in the tenth foreign market, after Cambodia, Laos, East Timor, Haiti, Peru, Mozambique, Cameroon, Burundi and Tanzania.
TH Corporation is also preparing to produce milk in Russia for the first time after the introduction of cows from the US and the opening of TH Corp.’s first farm in Russia earlier this year.
In order to encourage Vietnamese firms to invest abroad, Linh suggested that the State and relevant sectors should foster co-operation with the governments of countries where the firms have investments with a focus on creating a transparent and stable investment climate for businesses.
Promoting investment and providing domestic firms with effective information about overseas investment should also be included, she said.
Linh also emphasized the importance of hosting frequent dialogues among governments, Vietnamese enterprises, embassies, trade offices abroad, consulates and trade unions to solve difficulties the firms have encountered in a timely manner.
As far as businesses are concerned, she said, they need to study the laws and policies of the country where they want to invest.
Besides drawing up effective investment strategies for specific countries, they should sharpen their competition and management capacities, speed up the technological appliance and develop new products to gain more profits when investing abroad, she added.
