According to the report of the Foreign Investment Agency of the Ministry of Planning and Investment, in the first quarter of 2013, the reimbursement of foreign investment to Vietnam are up to US$2.7 billion, increasing by 7.1 percent compared to the last year. The figures show that despite the crisis, Vietnam is still an attractive destination for foreign investors.
Recently, the rushing flows of investments from foreign investors to Vietnam create a wave of investment. The foreign investors from different countries Japan, Korea and U.S poured their money to most of business lines in Vietnam.
Economic opportunities
Some sectors such as distribution, retailing, information technology, electronics gain most benefits from investment. A conference to review 25 years of Foreign Direct Investment (FDI) in Vietnam held by the Ministry of Planning and Investment has shown the significant figures. From 1987 to February, 2013, Vietnam has attracted 14,550 valid projects with total registered capital of US$211 billion and working capital nearly of US$100 billion. According to many forecasts, future investment activities will also be promoted strongly with emerging investors from other countries.
The good news is that more and more foreign investors will create many benefits from capital investment, technology transfer, innovation, management skills, R&D for the whole economy and businesses.
Challenges of acquisition
A rising concern is that FDI in many sectors will make Vietnamese companies more dependent but vulnerable to "foreign goods". This puts the Vietnamese companies at risks of acquisition. Typically, in the March last year, the case of Thailand Plastics Company Industry Nawaplastic suddenly announcing its becoming a major shareholder with 16.72 percent capital of Binh Minh Plastics Company and 22.6 percent of Tien Phong Plastics Company makes public surprised. Another case is that the largest shareholder of Bibica, the Lotte group of South Korea proposed a new name of Lotte - BIBICA, thought as a plan to acquire Bibica. "The key to success", a television programme for both CEOs, raised a topic on "Adjusting business strategies - Attracting foreign investment for competitiveness", airing on Sunday morning, April 21, 2013, 10:00 on VTV1.
The CEO of the programme at this point that companies should not receive foreign investment. Instead, companies should invest in their own technology development and at the same time, self-promote business activities with discounts, promotions, and boosting online sales.
In long term, companies should focus on R&D activities to launch unique but diversified products. According to the Board of Management of the company, the CEO, first, needs analyze the changes of market factors and evaluate company resources and capacities before giving any decision on business goals, development strategies and type of strategic alliances. If the company could gain benefits from strategic alliance, it could cooperate with foreign partners. However, it is necessary for the company to analyze and evaluate the match between two parties before making any decision. In addition, the CEO should plan a long-term strategy with clear action plans before joining any business alliance.
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