Oman boosts investments from Gulf region to Vietnam

Oman boosts investments from Gulf region to Vietnam

A four-day working trip by the deputy president of the Oman Investment Authority (OIA), Nasser bin Suliman Al Harthi, yielded several positive outcomes, paving the way for billions of dollars in capital flows from Middle Eastern countries to Vietnam.

During the OIA delegation's visit from May 27 – 30, deputy president Nasser bin Suliman Al Harthi had effective meetings with leaders of the government, ministries, and large enterprises to encourage trade cooperation between the two countries, while opening up opportunities to entice the engagement of other investors from the Gulf region.

In a meeting on May 29, Prime Minister Pham Minh Chinh described Oman as one of the leading potential partners in the Middle East region. Cooperation between the two countries has achieved positive results, with ample room for expansion.

The Vietnam-Oman Investment Fund (VOI) serves as testament to the pioneering and strategic relations between the two countries. Founded in 2008, this is the first intergovernmental investment fund between Vietnam and a Gulf country. The fund has two founding shareholders, the OIA and State Capital Investment Corporation (SCIC).

After 17 years of presence in Vietnam, the fund has successfully executed over 20 investments across critical sectors including infrastructure, energy, industry, finance, education, healthcare, and real estate. The fund has deployed more than $384 million, significantly exceeding its initial $100 million commitment. The fund also adheres to three core values ​​of sustainability, cooperation, and integrity in all activities, from governance to investment, to maintain stable and long-term growth for all parties.

Prime Minister Pham Minh Chinh receives deputy president of the Oman Investment Authority (OIA) Nasser bin Suliman Al Harthi. Photo: VGP

Chinh acknowledged that the fund demonstrated a long-term vision, sustainable investment thinking, and a commitment to accompanying Vietnam's socioeconomic development. The prime minister asked the OIA to expand and raise the scale of the fund to $1 billion to better support Vietnam's investment and development needs, aligned with its economy’s scale.

Agreeing with the prime minister, Harthi said, “The figure of $1 billion is not a big barrier. The fund has poured about $400 million through the VOI fund and has just signed an MoU to establish the Vietnam New Era Growth Fund with a minimum capital of $200 million.”

Nguyen Chi Thanh, chairman of SCIC's Board of Members, and Nasser bin Suliman Al Harthi, deputy president of the Oman Investment Authority, signed the MoU

The fund will give priority to investments in digital infrastructure, telecommunications, and technology; minerals and metallurgy; finance and state enterprise equitisation; and agriculture.

According to Harthy, there is ample potential for economic cooperation between Vietnam and Oman. Therefore, the establishment of the Vietnam New Era Growth Fund is considered a new step in strengthening and expanding economic cooperation between the two countries. Through investments in four key sectors, the fund not only contributes to promoting economic growth but also creates long-term value towards a sustainable and prosperous future for the stakeholders.

Given that international capital flows are shifting strongly due to global fluctuations, raising the scale of the investment fund is a strategic move. It will help to attract capital from Oman and other Middle East countries to Vietnam. Through the partnership, the VOI fund can solidify its important role as a bridge to facilitate Vietnamese businesses looking to penetrate the Gulf market.

Nguyen Chi Thanh, chairman of SCIC's Board of Members, said, “Through this MoU, SCIC aims to establish a new cooperation platform, mobilising capital from Omani investors specifically and inviting additional partners from the broader Gulf region to invest in Vietnam.”

Harthy said, “If there are any potential investment opportunities, the fund will consider and encourage other investors in the region to jointly invest in Vietnam.”

After the trip, the deputy president of the OIA was upbeat about the investment climate in Vietnam, which is becoming increasingly stable and transparent. He cited the issuance of Resolution No.68-NQ/TW on private sector development and Resolution No.57-NQ/TW on science and technology, innovation, and digital transformation as important and necessary reforms.

“This shows that Vietnamese leaders pay a lot of attention to foreign capital attraction to give investors peace of mind during investment promotion here. The government’s efforts to improve macroeconomic stability, administrative reforms, and the investment environment have also had a positive impact on the stable development of the VOI fund,” added Harthy.

Working with the Ministry of Finance, Harthy committed to facilitating foreign strategic investors while strongly reforming investment licensing procedures to shorten processing times to just a few days.

Minister Thang said, “The VOI is a successful model of cooperation between two countries. We urge the OIA to uphold international standards of efficiency and transparency while focusing on sectors, including state enterprise equitisation, public infrastructure investment, green energy, high-tech sectors, and halal requirements from the food industry. We ask the OIA to contribute knowledge and technical expertise to the plan to develop international finance centres in Ho Chi Minh City and Danang.”

In response to this proposal, Harthy said, "Oman is preparing to establish a new financial centre. Thus, the OIA has extensive experience in this field and is willing to share it with Vietnam. We hope to explore long-term investment opportunities in listed companies on the Vietnamese stock market, as well as key equitisation projects."

Bilateral trade between Vietnam and Oman reached $250 million last year. Of that figure, Vietnam exported $54 million and imported $196 million. Regarding foreign direct investment, Oman currently has three valid projects in Vietnam, with the total registered investment capital of almost $20.8 million, located in Hanoi and Ho Chi Minh City.

VIR