Vietnam has rapidly become one of ASEAN’s most attractive host countries for Foreign Direct Investment (FDI), but the era of measuring success by volume of investment alone is coming to an end. The real challenge for the country is improving the quality of foreign direct investment to foster sustainable, long-term growth. The goal of attracting […]
The leading real estate group Cheung Kong Group of Mr Li Ka-shing and Orix Group of Japan, through their local partner Van Thinh Phat Group of Vietnam, had a meeting with Mr Phan Van Mai - Ho Chi Minh City President to discuss investment in the city.
Notably, the participants in this conference are all reputable parties. Among them, Orix Group is the ‘giant’ non-banking financial group in Japan, its financial business covers 27 countries around the world. Van Thinh Phat Group is also a famous local corporation in Vietnam. The three super-complexes with the local government have shown that Mr Li Ka-shing seems to want to do something big here.
Cheung Kong Group has committed to investing in high-end real estate projects in Ho Chi Minh City, including office buildings, commercial centres, entertainment facilities, and housing businesses. Other large-scale infrastructure projects will also be launched simultaneously, indicating a large amount of money will be invested in these areas soon. This has attracted the attention of the business community. With this meeting, it seems that Mr Ly Ka-shing, after withdrawing from Europe, will choose Vietnam as his next stop.
On April 30, Albert Song, a researcher at Tianjun, a politics and economics think tank, told The Epoch Times: “Li Ka-shing hastily moved his assets again and keenly explored Vietnam as the new investment territory because Vietnam’s economy is rapidly rising. Even in 2020, the worst year of the pandemic, its GDP growth rate still exceeds China’s and ranks among the top in the world.”
Song has 27 years of experience in China’s financial industry.
Amid the COVID-19 pandemic in 2021, Vietnam’s total import and export volume was still close to $670 billion; this increased nearly 23 per cent year on year, a record high. At the same time, Vietnam recorded a trade surplus for a sixth consecutive year of over $4 billion.
The Vietnamese stock market set a new record last year, with the Vietnam Index (VN-Index) reaching a trading record of 1,500.8 points on Nov. 25, up nearly 36 per cent from the end of 2020.
“Foreign trade is booming, domestic demand is boosted, asset prices are rising, and Vietnam has shown amazing economic dynamism,” Song said.
Vietnam’s exports in the first quarter of 2022 increased by 15.9 per cent year on year, while China’s Shenzhen exports fell by 14 per cent in the first quarter of this year. Shenzhen has been the city with the highest export value in China for 29 consecutive years.
Song believes that Vietnam’s implementation of “coexistence with the virus” has strengthened its position in the global industrial chain.
“For Vietnam’s economy, which relies on foreign trade, the rapid recovery of import and export trade has directly boosted the rapid recovery of Vietnam’s economy. Since this year, many Japanese, Korean, European, and American technology companies have transferred orders to Southeast Asia.”
Regarding China’s position in the global industrial chain, Song believes that “the risk of decoupling between China and the global industrial chain is increasing, and Europe and the United States are showing strong interest in Vietnam and other Southeast Asian countries, and Vietnam is becoming a new supply chain centre.”
“The total trade volume for the year is expected to exceed the $800 billion mark. Many factories in Vietnam are fully booked with orders this year, including many orders voluntarily transferred to Vietnam by Chinese companies. The total trade volume for the year is expected to exceed the $800 billion mark.”
In general, Mr Li Ka-shing's investments so far are considered very trendy and always create trends. Not only Mr Li Ka-shing, but international investors from different parts of the world also recognize Vietnam as a strategic investment plan. This means that Vietnam is considered highly a favourable environment for foreign investors, especially in real-estate businesses thanks to its potential development. The chances are wild open with preferential policies for further investment. So, it is time for investors to take a decisive move and harvest the “fruit” in Vietnam. With a leading role in professional and in-depth knowledge in the industry, Viettonkin will walk you through the complicated process of starting up a business in Vietnam. Contact us for further information.
