Australian firms eye expanded Vietnam presence
At a recent Vietnam-Australia Investment Forum, Australian investors praised Vietnam as a potential market with a favorable geographic location, abundant labor resources, low production costs and rapid digital transformation.
According to Filip Jankovic, Country Manager for Linfox Vietnam, this company has been present in Vietnam since 2006. Linfox has invested in supply chain stages, including modern warehousing facilities in Bac Ninh Province, major distribution centers in Bac Ninh, Da Nang, Quang Binh and Binh Duong, and a network of trans-border transportation to Laos.
“We see many opportunities in the Vietnamese market and are willing to increase investment for sustainable development,” said Filip Jankovic, adding that Linfox will seek potential partners in Vietnam to increase its presence in this market.
Similarly, David John Whitehead, Chair of the Board of Directors at Mavin Group, said the group came to Vietnam in 2004 to open an animal feed plant in Hung Yen Province. Currently, it has five animal feed plants with modern equipment, and its products are sold nationwide.
Senator Don Farrell, Australian Minister for Trade and Tourism, said Vietnam and Australia have achieved successful cooperation results, with many Australian firms present in Vietnam since the 1990s with successful operations.
Vietnam’s economic growth strategy has interested Australian investors. “We have been striving for Australia to be a partner of Vietnam on its growth roadmap towards the goal of becoming a high-income nation by 2045 and achieving net-zero emissions by 2050, Senator Farrell emphasized.
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According to the Foreign Investment Agency under the Ministry of Planning and Investment, by March 2023, Australian investors had 593 ongoing projects in Vietnam with total registered capital of US$1.99 billion, accounting for 0.4 percent of total foreign direct investment (FDI) in Vietnam and ranking 20th among 143 countries and territories investing in Vietnam.
Vu Van Chung, Deputy Director of the Foreign Investment Agency, said FDI plays an important role in the Vietnamese economy. To attract foreign investment in general, and Australian FDI in particular, Vietnam continues implementing synchronous measures to maintain macroeconomic stability and accelerate public investment disbursement, while furthering institutional reforms and improving the investment and business environment.
According to Deputy Minister of Planning and Investment Nguyen Thi Bich Ngoc, Vietnam is implementing its national green growth strategy, restructuring the economy along with renovating the growth model, protecting the environment and ensuring social equality. Vietnam encourages and prioritizes quality FDI projects, especially in the fields of high technology, creative innovation, green and renewable energy, finance and banking, health, human resource training, infrastructure, and pharmaceuticals. Ngoc believes the potential of Vietnam-Australia cooperation is great.
| Australian FDI in Vietnam is concentrated in the processing and manufacturing industries, accommodations and catering services, agriculture, forestry and fishery. |
