Foreign investors plow $3 billion into Vietnamese firms

By    July 29, 2016 | 02:32 am PT
Global players have continued to see strong potential in Vietnamese companies over the past year.

Official statistics show foreign investors have become major shareholders in more than 1,700 local companies by acquiring 50 percent or more in them. Such majority investments, from July 1, 2015 to July 20, 2016, are estimated to have reached $1.89 billion, said the Foreign Investment Agency under the Ministry of Planning and Investment.

The property market was the top investment target for foreign investors, with 33 real estate companies attracting $350 million.

After real estate, Vietnam’s retail market has become increasingly attractive to global investors. Thailand’s Central Group’s $1-billion acquisition of Big C Vietnam in April has set a trend for foreign retailers who are rapidly expanding into Vietnam to sieze the opportunities offered in one the fastest growing retail markets in the Asia Pacific region.

The Foreign Investment Agency said foreign investors have bought $2.95 billion worth of shares in Vietnamese companies over the past year.

Given the fact that the Southeast Asian country has concluded a variety of free trade agreements, it is increasingly easier for foreign investors to enter the Vietnamese market. Besides, the Vietnamese government’s commitment to accelerate share sales in state-owned enterprises will provide more opportunities for foreign investors.

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