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(VEN) - Vietnam-Malaysia trade and investment relations have been growing well in recent years, while the two countries are seeking ways to further bilateral cooperation in trade, investment and many other fields.
Malaysian investment in Vietnam has increased continually. Investors from Malaysia and many other countries and territories have obtained as good achievements as they expect. Malaysian investment in Vietnam increased from US$1.6 billion in 1988 to US$18 billion in 2009 and is mainly found in construction, electric power, water, gas, mechanical, and banking industries. In 1991 Petroliam Nasional Bhd (Petronas), a leading Malaysian investor, began working with the Vietnam National Oil and Gas Group (PetroVietnam) to survey and mine oil and gas. Other successful Malaysian investors in Vietnam include the IGB, which constructed the New World Hotel in Ho Chi Minh City, Parkson (Lion Group), Sheraton Hotel of the Faber Group, and the APL rubber factory.
In April 2010, Vietnam's Ministry of Industry and Trade and Malaysia's Janakuasa Company signed a memorandum of understanding (MoU) on developing a US$1.5 billion, 1,200MW Duyen Hai 2 thermoelectric plant, a BOT (build, operate, transfer) project, in Tra Vinh Province. Under the plan, Janakuasa will begin the plant's construction in 2011, while the plant is expected to start production in 2014 or 2015.
The JAKS Resources Berhad (Malaysia) signed four MoUs with Vietnamese partners to construct two 600MW thermoelectric plants in Hai Duong Province at a total cost of US$2 billion. Project construction will begin in the fourth quarter of 2010, while one plant is expected to start production in the fourth quarter of 2014 and the other plant is expected to begin production in the second quarter of 2015. These two plants are expected to satisfy 10 percent of the national grid's demand for power.
SaigonBank Berjaya Securities Joint Stock Company (SBBS) Managing Director Josephine Yei said that Malaysian businesses are increasing their investment in Vietnam because Vietnam is a good environment for foreign investors. She noted that the Vietnamese Government realized many preferential policies to attract foreign direct investment (FDI). Malaysian businesses should take the advantage of these policies to develop and do long-term business in Vietnam, while Malaysian investment in Vietnam is expected to be expanded to other provinces/cities in Vietnam, apart from Hanoi, Ho Chi Minh City, Binh Duong and Dong Nai.
Vietnam is an important trade partner of Malaysia and vice versa. Bilateral trade increased from US$600,000 in 1999 to almost US$4.6 billion in 2008. Although the 2009 bilateral trade decreased due to the global financial crisis it reached US$3 billion.
At the ASEAN (Association of Southeast Asian Nations) Summit that took place in April 2010, Vietnam and Malaysia agreed to stimulate joint trade and investment promotion activities to strengthen bilateral trade exchange and assist Vietnam to reach a trade balance. Increasing the exchange of high-ranking delegations, maintaining trade joint committee meetings, promoting the cooperation between the Malaysia External Trade Development Corporation (MATRADE) and the Vietnam Trade Promotion Agency (VIETRADE) and regularly organizing business delegations and trade fairs/exhibitions are one of the activities. The two countries should consider possibilities to sign agreements for mutual recognition of food quarantine and safety and cooperation in processing food according to the Islamic standards in Vietnam.
Regarding industry, Vietnam suggests that the two countries consider cooperation possibilities in the fields of minerals, wood exploitation, hydroelectric power, electrical equipment production, power grid development and clean energy, apart from oil and gas, vegetable oil production, glass bottles, textile/garment, tobacco/cigarette, chemicals and coal import./.
By My An
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