US billionaire amazed at Vietnam’s economic change
US billionaire amazed at Vietnam’s economic change
Foreign investors see Vietnam as a safe country and an attractive destination of international capital flows, especially in the field of manufacturing and real estate.
"I went to Vietnam for the first time in 2001. At that time, many families still drove bicycles. Recently, I visited Vietnam and I saw them owning cars and even big hotels. Obviously, Vietnam has had impressive economic growth and I personally think that this is the safest country in the world," he said.
This investor has assets of about $3 billion and is the 603rd richest person in the world, according to Forbes.
He praised the business environment in Vietnam, for its efforts to reform the economy, including tax policy reform and the loosening of ownership of shares for foreign investors. The 78-year-old billionaire said that Vietnam’s major industries for export and property would thrive and be worth investment interest.
The President of Harbinger Foundation, Mr. Philip A. Falcone, eight years ago decided to invest in the $4 billion Ho Tram resort in the southern city of Vung Tau.
"Many investors asked me why I chose Vietnam, a country far away from the US with economic and business culture different from the US. I chose Vietnam because I believed in the development of an economy with nearly 90 million people, mainly the young, who are enthusiastic and work hard to overcome difficulties," said Falcone.
He said that in the past eight years, his project in Vietnam experienced numerous ups and downs, but he was happy to be the American pioneer to invest in the tourism and resort industry in Vietnam.
Vice President of Manulife, Mr. Peter F. Wilkinson, said 16 years ago his company went to Vietnam because it saw many advantages in the business environment.
"We have invested in many countries and we see a bright future in Vietnam and we want to invest more in this country," Wilkinson said.
Currently, Manulife is in the top 3 life insurance companies in Vietnam and it is managing an investment fund with total assets of $486 million by the end of 2014.
Vietnamese Finance Minister Dinh Tien Dung said the US is one of the largest economic - trade - investment partners of Vietnam. As of February 2015, the US had invested $11 billion, ranking 7th in 101 countries and territories investing in Vietnam. On the capital market, there are about 995 active US investors, making up a relatively large proportion of foreign investors granted trading codes in Vietnam.
However, the Minister said that while Vietnam is one the three countries in Asia with the highest growth rates, US indirect investment in Vietnam is still modest. "The capital market segment still has potential for US investors," Dung said.
Concerning reform of State enterprises, Dung said Vietnam has pursued the police for nearly 20 years. The total value of equitized businesses is estimated at $25 billion, with shares worth around $3.75 billion to be offered to outside investors.
"The Vietnamese government hopes that foreign investors, including US investors, will be interested in opportunities in Vietnam, especially opportunity from the equitization process and investment on the stock market," Dung said.
Regarding Decree 60, which was issued three days before the conference, allowing foreign investors to own at unrestricted rate of public companies in Vietnam, except in those operating in the limited areas, with business conditions, Mr. Vu Bang, Chair of the State Securities Commission, said this decision shows Vietnam’s warm welcome to foreign investors.
"At its opening, Vietnam's stock market stipulated a maximum percentage of ownership of foreign investors at 30%, then it rose to 49%, and now it is 100%. This move expresses Vietnam’s determination for economic modernization and integration," said Bang.
The investment promotion conference in America was held on the occasion of the 20th anniversary of normalization of diplomatic relations between the two countries.
The event attracted more than 100 international investors. Some large corporations of Vietnam including the State Capital Investment Corporation (SCIC), the Vietnam Textile Garment Group (Vinatex), the Bank for Investment and Development of Vietnam (BIDV), and Vietnam Coal - Minerals Corporation (Vinacomin), among others, also participated to seek strategic investors.
