Optimistic about Viet Nam ’s rapid economic growth and accelerated reforms, foreign investors show their confidence in their success and are investing large amounts into the country.

This statement is typical of comments from many participants at a seminar titled “ Viet Nam : A rising star – Prospect for Investment and Business” held in Ha Noi on November 26.

Malaysia ’s Ireka Development Management President and Chief Executive Officer Lai Voon Hon reiterated the sentiment by saying Viet Nam ’s recent high economic growth is appealing to Malaysian investors.

Hon said Viet Nam ’s estimated gross domestic product (GDP) of 8.5 percent, per capita GDP of 1,000 USD and foreign direct investment of 16 billion USD this year – 2.5 times higher than that of Malaysia – are key factors that will fuel further flow of investment into the country.

He said Ireka’s decision to invest in Viet Nam is not just because of cultural similarities between the two nations but also because the Vietnamese government encourages and supports foreign investors.

“This is the reason for us to choose Viet Nam as an important investment destination in the future,” he said.

Hon said his firm intended to focus on infrastructure and real estate development in Viet Nam in the future.

Carlos Nascimento, Dinh Vu Development Joint Venture Company Deputy General Director, for his part said that after operating in the country for a decade he understands Viet Nam ’s strengths.

These include strategic geographical location, political stability, improved policies and business environment, he said.

Nascimento also emphasised the government’s efforts to reform investment and export activities as one of the vital factors for his company to inject money in Viet Nam .

He also said the Dinh Vu Industrial Zone (IZ) will become a “general headquarters” for steel and cattle feed producers as well as oil and natural gas depots because of its convenient location.

The IZ is located in the Hai Phong-Ha Noi-Quang Ninh economic development triangle, making it accessible for sea and railway transportation through the Ha Noi-Hai Phong-Kunming ( China ) route.

Meanwhile, General Electric Southeast Asian President Stuart Dean underlined the fact that Viet Nam ’s preferential tax policies has created momentum in wooing foreign investors.

Recent Ministry of Planning and Investment statistics show Viet Nam attracted more than 15 billion USD in foreign investments in the first 11 months of 2007, a year-on-year increase of 38.4 percent and substantially higher than the set target.

The figure is forecast to hit 16 billion USD for the overall year
Source: Vietnam Agency