Investors from the US are holding a third to a half of foreign indirect investment poured into Vietnam as of the mid 2006, said James Riedel, senior official of assistance project for Vietnam-US Bilateral Trade Agreement (BTA).
At the seminar to discuss the BTA’s impacts on the trade and economic structure in Vietnam on July 17, James Riedel said foreign investors, especially the US ones, have been increasing their indirect investment into Vietnam.
The US traders buy shares of Vietnamese companies via the local stock market and auctions. They are increasing their investment through foreign investment funds, the official said.
It is estimated that the US investors have poured at least US$1 billion into Vietnam from the implementation of BTA to June 2006.
Steve Parker, senior economic advisor of the assistance project, said that big international institutions are also interested in Vietnam’s capital market. About a third to half of flows from foreign countries to Vietnam came from the US investors.
The improvement of legal framework and business climate and the recent publication of Securities Law have prompted the US investors to come to Vietnam, Steve Parker explained.
The sustainable and robust economic growth and the speeded process of state-owned enterprises in the country are reasons for the arrivals, he added.
Despite the increase of foreign capital into Vietnam based on economic fundamentals, it could make great impacts on Vietnam’s financial system and macro economy, Riedel said, recommending that Vietnam needs prudent management polices.
Investment flows from the US to Vietnam will continue to increase in the future along with the participation of investment banks and institutional investors from the US, he said.
At present, the US investors pumped money into Vietnam via some big names as Indochina Capital, Vietnam Partners, Dragon Capital and IDG.
Some big organizations have been given securities trading codes in Vietnam, such as Merrill Lynch, JP Morgan and Citigroup. (Pioneer, VietnamNet)
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