Thailand has to date poured US$1.54 billion into 53 projects in Vietnam, holding the third position among ASEAN countries and the 12th out of 79 countries and territories directly investing in the country, the Ministry of Planning and Investment (MPI) reported.
Thailand’s 83 operational projects in Vietnam are employing 12,000 workers, and also indirectly create jobs for a remarkable number of laborers in the areas of construction and services.
Thai investment projects mostly concentrate on building infrastructure for industrial zones, new urban centers with hotels, and facilities for tourism and industry, and are located in Dong Nai and Binh Duong provinces, Hanoi and Ho Chi Minh City.
The Dong Nai-based CP Vietnam Animal Feeds Company in Dong Nai province is one of Thai projects operating profitably in Vietnam. The company, with a capital of US$328 million, earned revenue of US$300 million last year and has so far provided 5,000 jobs.
A 100-year-old economic group of Thailand, Siam Cement, is also successful Thai investor in Vietnam. The group has invested in five chemical and building materials projects in industrial parks in Binh Duong and Dong Nai provinces.
It decided to invest US$220 million to build a high-grade wrapping paper factory in My Phuoc industrial park, southern Binh Duong province after 10 years' operation in the country. The factory, with annually capacity of 220,000 tons of product, will be the biggest of its kind in Vietnam and is slated for operation in 2009.
While the Thai Chemical Group, which has ran many investment projects in Vietnam, also plans to enter a joint venture with the Vietnam Oil and Gas Corporation (PetroVietnam) to set up a petrochemical complex in southern Ba Ria-Vung Tau province capitalized at more than US$1.5 billion.
Phan Huu Thang, Director of the Foreign Investment Department, said that Vietnamese localities and businesses will increase efforts to attract Thai investment into the production of export goods, processing industry, service industry and agricultural and rural economic development, IT applications, biotechnology and electronics.
Two-way trade turnover between Vietnam and Thailand rose to US$3.7 billion in 2006, from US$3.1 billion in 2005, demonstrating a burgeoning economic relationship between the two sides. (Pioneer, VNA)
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