A Land of Opportunity for Malaysian Businesses

Vietnam and Malaysia formally established Diplomatic relations on 30 March, 1973. After the South of Vietnam was liberated (1975), Malaysia was also the first member of ASEAN to recognize the Republic Revolution Provisional Government of the South of Vietnam.

 

In the past years, both countries have seen many positive signs in diplomatic ties in terms of culture, education, labor cooperation, etc. In terms of economic relation, both sides have developed and expanded in many areas.

 

In terms of investment, Malaysia ranks the third among foreign investors in Vietnam. By October 2009, Malaysia had 337 investment projects with a total capital of 18.06US$ billion. According to Azahar Mohamed, Malaysian Trade Commissioner, Vietnam is considered as a land of opportunity for Malaysian businessmen. Malaysia would like to grow together in the development of Vietnam. Currently many Malaysian companies have been awarded with projects ranging from infrastructure, residential and commercial development, water treatment, and in manufacturing too. Malaysia has many large-scale projects in Vietnam including a US$9.8 billion project to build the Ca Na Steel complex in Ninh Thuan province – a jointly developed by Malaysia’s Lion Group and Vietnam’s state-run Vinashin, and a US$3.5 billion project to build a university urban area in Ho Chi Minh City. The 1st Joint Trade Committee Meeting was held on 12 November 2009 on the sideline of APEC Meeting in Singapore, Hong Leong Bank of Malaysia was the first South East Asia's 100 % foreign owned Bank operating in Vietnam. Other Malaysian banks operating in Vietnam are MAYBANK and VID Public Bank.

 

In terms of trade, the two-way trade turnover between Vietnam and Malaysia increases average 20 % per year, from US$160 million (1992) to US$ 4.55 billion (2008).

 

At present, Malaysia is Vietnam’s 9th biggest trade partner. Vietnam exports to Malaysia crude oil, rice, coffee, sea products, etc. In 2009, Vietnam’s export to Malaysia fell 12.15 % compared to the same period of 2008. In 2009, crude petroleum was Vietnam’s largest export item to Malaysia, with US$735.59 million in value, an increase of 0.21 % compared to 2008. Among the top export items of Vietnam to Malaysia, the export value of some products such as computers, electronic products and components continued to increase 24.17 %, following a sharp increase of 50.6 % in exporting this item in 2008, rice export to Malaysia slightly increased by 3.86 %.

 

Vietnam imports from Malaysia steel, iron, petroleum, oil, computers electronic products, fats and vegetable oils, machineries, instruments and parts, petroleum, plastic materials, etc. In general, in 2009, the import value of most of Vietnam’s main import items went down in comparison to 2008 as the results of global economic recession.

 

“Although there was a slight drop in bilateral trade between Vietnam and Malaysia in 2009 (compared with 2008), but we anticipate an increase for 2010 as we aggressively promoting our products to Vietnam via few activities, mainly by participating in 3 major exhibitions in Hanoi and HCMC. We will also be organizing a specialized marketing mission in Franchise and specialized marketing mission in construction and construction related services. Vietnam is an important partner of Malaysia, Malaysia always encourage its businesses to invest in Vietnam”, added Azahar Mohamed.