Overseas investment efficiency of Vietnamese enterprises
Numerous investment projects have proved to be lucrative, resulting in around $2 billion being repatriated. Notable among these is PetroVietnam's oil exploration project in Russia, which generated a profit of $855 million, more than doubling its initial investment.
Vietnamese businesses have committed $22.1 billion to 1,660 foreign ventures across 79 countries and territories. These investments primarily focus on sectors like telecommunications, mining, agriculture, forestry, and fisheries. The top three beneficiaries of Vietnamese overseas investments are Laos, Cambodia, and Myanmar, accounting for nearly 40% of the total foreign endeavors.
The WTO Centre at the Vietnam Chamber of Commerce and Industry has assessed that this surge in foreign investments by Vietnamese companies has positively impacted Vietnam's economic growth and its integration into the global economy. It also underscores the entrepreneurial spirit, management prowess, vision, and strategic acumen of these businesses. The recent uptick in overseas investments can be attributed to streamlining investment processes and refining legal frameworks.
However, Vietnamese companies engaged in foreign investments still face a range of challenges, notably in legal matters that can lead to unforeseen disputes. Delays in obtaining investment permits and disparities in the skill levels of local workers are also issues. Moreover, there is a notable lack of cooperation and mutual support among Vietnamese enterprises operating in the same geographical regions.
To enhance the effectiveness of foreign investment activities and mitigate associated risks, Vietnamese companies must be well-prepared for legal complexities. They should proactively work to prevent disputes and improve information sharing. Accelerating the approval process for overseas investment projects, streamlining administrative procedures, and enhancing the role of Vietnamese ambassadors and commercial counsellors abroad as intermediaries between Vietnamese enterprises and foreign nations are necessary steps.
Furthermore, the government should introduce more substantial and appealing policies to encourage foreign investments by enterprises and intensify scrutiny of capital flows to mitigate negative impacts. Dealing effectively with challenges, obstacles, and risks in foreign investment activities is essential to ensure they align with the country's socioeconomic development strategy.
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