Scope for Australian investment in Vietnam to increase, workshop told

28 Dec '21

2 min read

Pic Andrey Sirant | Dreamstime.com

Australia’s investment, which is now modest in Vietnam, would grow further, thanks to free trade agreements (FTAs), a virtual workshop in Hanoi was told recently. By November this year, Australia had 545 projects worth $1.94 million in Vietnam, according to Nguyen Thi Thu Trang, director of the Vietnam Chamber of Commerce and Industry’s (VCCI) Centre for WTO and Economic Integration.

Citing statistics by the ministry of planning and investment's foreign investment agency, Trang said the capital accounts for only 0.5 per cent of the total FDI poured into Vietnam, ranking Australia 19th among countries and territories investing in the country.

However, Trang said, as the two countries share three FTAs, including two new-generation ones—the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP)--the three together with 12 others to which Vietnam is a signatory, would help to unlock opportunities to attract more Australian investors.

Australian ambassador to Vietnam Charles Thursby-Pelham said both sides have officially announced their enhanced economic engagement strategy, with the aim of doubling investment and becoming top ten trading partners, according to Vietnamese media reports.

To make use of the opportunities, Vietnam should study and address problems hindering Australian businesses to land their investments in the country, he said.

He also suggested Vietnam to comprehensively reform the public sector, regularly review local legal regulations, and fulfil international commitments to investment and creating a fair, transparent business environment for foreign investors, including those from Australia.

Fibre2Fashion News Desk (DS)

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