Vietnamese enterprises remain optimistic about operations abroad

Military-run telecommunications group Viettel invests in Myanmar. The outlook for Việt Nam’s overseas investment is expected to be brighter in the coming time. — VNA/VNS Photo

HÀ NỘI — Vietnamese leading investors like Vingroup, TH Group, FPT, and Vinamilk have affirmed their intention to continue expanding their investments abroad in the coming time, given their effective business activities in the host countries.

In mid-May, TH Group started the construction of a dairy cow breeding and milk processing project in Russia’s Far East with a total investment of VNĐ5.2 trillion (US$206.9 million), as an effort to realise its plan to pour $2.7 billion into this market.

Recently, in its financial report in the second quarter of 2024, Viettel Global announced its impressive business performance, with sales and service revenue reaching nearly VNĐ8.7 trillion, up 27 per cent year-on-year, making it the quarter with the highest-ever takings of the company which is in charge of overseas investment of Việt Nam’s largest telecommunications group.

As all the nine subsidiary companies of Viettel Group reported high growth rates in this quarter, Viettel said that it is seeking investment and business opportunities in other markets.

Similarly, the Vietnam Dairy Products Joint Stock Company (Vinamilk) also recorded the highest consolidated revenue in its history, with VNĐ16.66 trillion. This result was attributed to increases in both domestic and overseas business activities.

Its companies in Cambodia and the US - Angkormilk and Dridtwood – reported a combined net revenue of VNĐ1.38 trillion in Q2, up 21.8 per cent year-on-year, and higher than the 9.6 per cent increase rate of Q1.

However, it is noteworthy that there have been decreases in Việt Nam’s overseas investment in recent years, due to common difficulties of the global and Vietnamese economies.

Data from the General Statistics Office (GSO) under the Ministry of Planning and Investment (MPI) showed that Việt Nam’s overseas investment, including both newly-registered and adjusted capital, hit $420.9 million in 2023, down 21.2 per cent from 2022. The figure was only $150.7 million in the first seven months of this year, equal to 47 per cent of that in the same period last year.

Deputy head of the MPI’s Foreign Investment Agency Vũ Văn Chung said that the slowdown is just temporary, and the outlook for Việt Nam’s overseas investment will be brighter in the coming time.

According to the Business Outlook Study 2024 (SMEs & Large Enterprises) conducted by Singapore-based United Overseas Bank (UOB), which surveyed over 4,000 companies across industries and seven markets, 90 per cent of the enterprises are increasingly exploring opportunities beyond the domestic borders, with those in industry, oil and gas as well as manufacturing and engineering particularly interested in venturing abroad.