Japan’s Sumitomo Mitsui Finance Group (SMFG) outlaid 1.37 billion USD for 49 percent of FE Credit. Illustrative image (Photo: https://baodautu.vn)
- Despite a year-on-year slip in foreign direct investment (FDI) to
Vietnam in the first four months of the year, foreign investors still signed
major deals in the country and confirmed its ongoing investment appeal.
early April, the SK Group of the Republic of Korea announced the signing of an
agreement with the Masan Group Corporation to acquire a 16.26 percent stake in
VinCommerce, a Masan subsidiary, for a cash consideration of 410 million USD.
Sumitomo Mitsui Finance Group (SMFG) then outlaid 1.37 billion USD for 49
percent of FE Credit.
two deals warmed up Vietnam’s merger and acquisition (M&A) market, confirming
that it is still attractive and that investors are still seeking valuable
the first four months of the year, FDI in Vietnam was not far below the figure in
the same period last year thanks to major projects being signed, including a
3.1 billion USD gas-fuelled power plant in Long An province, the 1.31 billion
USD O Mon II thermal power project in Can Tho city, and the adding of 750
million USD to the LG Display project in Hai Phong city.
attracted a total of 12.25 billion USD worth of FDI in the period, equal to 99.3
percent of the figure in the same period last year, including 8.5 billion USD going
to new projects.
to Nakajima Takeo, Chief Representative of the Japan External Trade
Organisation (JETRO) in Hanoi, its survey on business trends showed that the majority
of enterprises believe it will be difficult to expand production and business
in the next one or two years but still consider Vietnam to be a leading investment
destination among ASEAN member countries.
a recent survey by EuroCham revealed that European firms in Vietnam are
confident about recovery in the country, with its Business Climate Index (BCI) hitting 73.9 points.
asked about the prospects of Vietnam’s business environment in the next
quarter, 67 percent predicted either “excellent” or “good” - a 12 percent
increase compared to the previous quarter.
business leaders are also more optimistic about their own companies. More than
two-thirds (68 percent) predict that orders and revenue will remain steady or
increase over the next three months, which is a 25 percent increase compared to
the fourth quarter of 2020.
President Alain Cany attributed the results to European firms’ confidence in
the Vietnamese market, where business has not been greatly interrupted by the COVID-19
amid fierce competition from other countries in FDI attraction, experts said that
Vietnam should work harder to win favour.
Vice Chairman John Rockhold said that the country should consider non-carbon
facilitation, while Nguyen Hai Minh, Vice President of EuroCham, held that it needs
more high-tech human resources to meet investor needs./.