Promoting Vietnam - Malaysia Business Cooperation

VCCI said the event this year, to be chaired by Vietnamese Minister of Industry and Trade Tran Tuan Anh and Malaysian Minister for International Trade and Industry Mustapa Mohamed, will draw the attendance of leaders of major businesses of Malaysia and Vietnam.

 

The event will be a good opportunity for Vietnamese and Malaysian businesses to update new, accurate information on business policies and environment in Vietnam and Malaysia. This will be a chance for businesses of both nations to meet, exchange information and seek partners to expand business networks and investments.

 

Notably Malaysian attendants include Mr Tan Sri Dr Munir Majid - President of ASEAN Business Club; Mr Dato Sri Nazir Razak - President of CIMB Group; Mr Tan Sri Tony Fernandez - CEO of AirAsia; Mr Tengku Dato Sri Zafrul Tengku Abdul Aziz - CEO of CIMB Group Holdings Berhad / President of KLBC; Mr Dato Sri Ambrin Awaluddin - CEO of Media Prima Berhad / Vice President of KLBC; Mr Tan Sri Dato Ir Gan Thian Leong - CEO of Brunsfield International Berhad / Board Member of KLBC; and Mr Dato Sandra Wong - CEO of Mediharta Sdn Bhd / Budgetary Director of KLBC.

 

In addition, members of some big banks and financial institutions of Malaysia will be present at the roundtable, including Mr Fad’l Mohamed - Deputy General Director of Maybank / Board Member of KLBC; Mr Steve Clayton - CEO of JPMorgan Chase Bank; Dr Od Phongsavanh - CEO of Phongsavanh Bank Limited; Mr Mubashar H. Khokhar- Managing Director/CEO of Bank Islam Brunei Darussalam Berhad; Mr Datuk Michael Tang - CEO of Mettiz Capital Limited; Mr Datuk Zainal Amanshah Zainal Arshad - CEO of Invest KL Corporation; and Mr Mirzan Mahathir - President/CEO of Crescent Capital Sdn Bhd.

 

The bilateral trade turnover between Vietnam and Malaysia has been on the sharp rise in recent years. The value climbed from more than US$3.6 billion in 2007 to US$5.5 billion in 2010 and more than US$9 billion in 2013. Due to economic volatility, the figure slid to US$7.7 billion in 2015, down 4 per cent from 2014. In the first six months 2016, the two-way trade valued nearly US$4 billion.

 

Vietnam’s major exports to Malaysia include computers, electronic devices, telephones and parts, crude oil, rice, rubber, iron and steel, coffee and petroleum.

 

Meanwhile, its top imports are petroleum, computers, electronic devices and components, animal and vegetable oil, plastic, chemical, iron and steel.

 

On investment, Malaysia is the second largest ASEAN investor in Vietnam with 547 projects and US$13.9 billion of registered capital, just after Singapore. In 2015, Malaysia had 27 fresh projects licensed and 15 projects allowed to add their investment capital, totalling US$2.4 billion. In the first six months of 2016, Malaysia injected US$307 million into Vietnam, of which US$250 million came from 18 new projects and nearly US$57 million came from existing 12 projects. The formation of the ASEAN Economic Community (AEC) provides great investment and trade opportunities for its member states and foreign partners.

 

By industry, Malaysian investors have invested in six out of 21 industries in Vietnam. Most of Malaysia's projects are engaged in power, oil and gas production and distribution, hot water, boiler and air conditioning. Its Duyen Hai 2 Thermal Power Plant costs US$2.4 billion in Tra Vinh province.

 

By locality, Malaysian investors have been present in 14 out of 63 provinces and cities in Vietnam, led by Tra Vinh province with US$2.4 billion. Quang Ninh province was the second biggest recipient of Malaysian investment with five projects and US$54.5 million.

 

Meanwhile, Vietnam only invested US$270,000 in two projects in Malaysia by the end of 2015.

 

Foreign trade has become a driving force of economic development of Malaysia. The country has also introduced a lot of suitable foreign trade development policies for specific periods, including introducing investment incentives (both domestic and foreign investment), tax reduction and exemption for export projects, establishing free trade agreements (FTAs), encouraging export, providing insured export credit insurance to offset export risks, and regularly restructuring exports. 

 

In particular, the Government of Malaysia allows foreign investors to own 100 per cent of stake in exporters if such exporters sell 80 per cent or more of products abroad. It also hosts many export promotion events and sends trade delegations to foreign countries to study business opportunities.