Many Thai enterprises have expressed confidence in the bright future of the Vietnamese economy following the country’s success in promoting its economic recovery in the wake of the COVID-19 pandemic.
In the context of the global economic slowdown and spillover from geopolitical tensions, Vietnam’s economy is still projected by many international organizations to expand 6.3-6.5% this year.
During recent business forums between Thailand and Vietnam, including the Thailand-Vietnam Business Forum held in Bangkok on August 15, many Thai businesses gave optimistic assessments for the Vietnamese economy, noting its strong fundamentals and growth – the highest in the Asia-Pacific this year. They further projected that owing to the effective actions and policies of Vietnam’s government, the country’s economy has a bright future ahead.
This in turn makes Vietnam an attractive investment destination with a conducive business climate.
According to Aswin Techajareonvikul, President and CEO of Berli Jucker Public Co, the group’s business in Vietnam has recovered to pre-pandemic levels and its investment projects are making good progress. He added that thanks to the Vietnamese government’s various policies to attract foreign investment, the economy has seen rapid growth, noting that this is why Thai and other Southeast Asian companies wish to invest even further in Vietnam.
Amata Vietnam CEO Somhatai Panichewa called Vietnam one of the economic bright spots of Asia, as it was the only economy to record positive growth during the pandemic. From her experience in developing industrial park projects across Vietnam, Ms. Somhatai said the Vietnamese government should step up investments in infrastructure, especially in the central region. She said this was a sincere request from the heart, as someone who loves Vietnam as though it were her own homeland.
Mr. Harald Link, Chairman of B.Grimm Power – an energy corporation that has invested in Vietnam for the past 22 years, viewed Vietnam’s government and people as always having the spirit of reaching forward to bring prosperity to the nation. He expressed his confidence about Vietnam becoming more prosperous thanks to having a hard-working population and a government that works to promote economic development and support foreign investors.
The B.Grimm Power Chairman said his only advice was that its government should continue doing well what it has done so far.
Vietnam’s economy saw a strong rebound in 2022, with growth reaching 8.0 percent, exceeding its average rate of 7.1 percent from 2016 to 2019. This growth was partly due to a low base effect, driven by a rebound in domestic private consumption after the pandemic and solid performance in export-oriented manufacturing.
Apart from major groups and investment projects that are operating successfully in Vietnam, more and more Thai enterprises have shown interest in the market. According to a 10-year assessment by Bangkok Bank, Vietnam will remain a destination with optimistic investment opportunities for Thai businesses. Additionally, Thai companies have been active in community support projects, spending millions of US dollars helping vulnerable Vietnamese villages and local residents.
Since the establishment of diplomatic ties in 1976, Thailand-Vietnam relations have developed well across all fields with many remarkable achievements, especially in the areas of diplomacy, trade and investment. The two countries also maintain regular high-level exchanges and consultations through unique cooperation mechanisms. Furthermore, they agreed on the need for continuing their close coordination in maintaining ASEAN solidarity and centrality, especially in resolving maritime territorial disputes, fostering the COC progress and Myanmar issues.
Thailand is currently Vietnam’s largest trading partner in the ASEAN region, with a bilateral trade turnover of more than 21.6 billion USD in 2022. The two nations aim to reach their target of 25 billion USD in trade turnover by 2025. What’s more, Thailand is the ninth largest foreign investor in Vietnam and the second largest in ASEAN, with a total value of 13.1 billion USD across more than 670 active projects. (NNT)
