Investors discuss Viet Nam’s potential
CITY — Investors with total aggregate funds of some US$1
trillion took part in a seminar yesterday organised to draw
investment to Viet Nam, hosted by financial services firm
Some 60 representatives of major global commercial and
investment banking groups, pension funds and fund management
groups took part in the seminar.
"The seminar gathers a select but influential group of
investors, including several of the largest global financial
institutions and fund management companies," said Peter
Ryder, Indochina’s managing director.
Johan Nyvene, HSBC’s corporate and institutional banking
head gave participants an overview of the country’s economy,
which posted an 8.4 per cent GDP growth rate last year.
Export value reached more than $32 billion, up 22 per cent
from 2004. Viet Nam also attracted $5.8 billion in foreign
direct investment, up 38 per cent compared to 2004.
the end of last year, 2,600 State-owned enterprises (SOEs)
had been equitised, but some of the largest in the country
are yet to undergo the process.
"This year, 500 joint stock State-invested enterprises of
various sectors will be established and an additional 900
SOEs will be privatised," he said, adding that they would
open various opportunities for investment.
Vietcombank, the flagship State-owned bank is currently
positioning itself for the privatisation process.
"While local banks have been increasing capital to meet
international standards, foreign banks are allowed to buy
shares in local banks," said Nyvene.
According to Rick Mayo-Smith, managing director for
Indochina Land, a real estate offshoot of Indochina Capital,
the market offers several high potential opportunities for
investment. Demand for high-grade condominiums will outpace
supply for the foreseeable future with only 15,000 units to
come on stream in Ha Noi, HCM City and Da Nang over the next
The demand for quality retail and office space is also high,
on new foreign investment projects, new businesses to Viet
Nam, imminent WTO accession and local company expansion. The
hospitality industry is also looking good, with last year’s
tourist arrivals eclipsing 3.5 million, and forecasts of
10-15 per cent growth annually for the next five years. The
country’s tourism industry is attractive globally as Viet
Nam is rated highly in Asia concerning safety, culture and
Indochina Capital introduced its second real estate fund,
Indochina Land 2 for participants at the seminar. The
planned fund is expected to raise $150 - $200 million, to be
launched in several months.
first Indochina Land fund is now valued at around $45
million, with most of the money already invested in eight
projects, including the Nam Hai Resort in Hoi An and the
City Garden Apartments in HCM City.
Indochina Capital also plans to launch two other equity
investment funds this year.
Over the past 15 years, Indochina Capital and its principals
have invested almost $1 billion in 16 projects and companies
listed on the stock market. — VNS
Seminar discusses afforestation goals
NOI — A national seminar, held recently in the capital
discussed legal safeguards, opportunities and challenges
faced by the affonestation re-planting programmes that
follows the Clean Development Mechanism (CDM) in Viet Nam.
Jointly organised by the ministries of agriculture and rural
development, natural resources and environment, and the
International Union for the Conservation
of Nature (IUCN),
the seminar gathered opinions from related ministries and
sectors, international organisations and NGOs for improving
the forestry and agricultural sectors in the coming years.
the seminar, Deputy Director of the Forestry Department of
the Ministry of Agriculture and Rural Development, Pham Duc
Tuan, said CDM was one of the three mechanisms recommended
by the Kyoto Protocol for developing countries to lessen the
impact of climate changes and promote sustainable growth.
However, he said Viet Nam lacked policies to ensure CDM in
its afforestation and re-planting programmes. According to
Tuan, all current afforestation projects, covering an area
of 12.3 million ha across the country, could have apllied
CDM, keeping the environment safe and creating jobs for the
forest preservation programmes, undertaken by ministries and
the IUCN, would in a step-by-step manner focus on creating
legal framework for the application of CDM in forestry
development projects, he said.
Chairwoman of the Forest Preservation Office at IUCN, Nguyen
Thi Yen, said Viet Nam currently follows two strategies for
2004-10, namely the National Management of Natural Reserves
and the draft of 2006-10 National Forestry Strategy.
implementing these strategies, she called for increasing
awareness on CDM among organisations, individuals and the
community in general, and strict supervision of forestry
projects. — VNS