UK firms are eying projects under public-private partnership (PPP) form
in Vietnam, but they will only participate in these projects when the legal
framework for this format is completed, said the Lord Mayor of London.
Speaking at a press briefing in
HCMC on Wednesday, David Wootton said UK firms want to join PPP projects in
Vietnam. They have showed keen interest in Long Thanh Airport and Thu Thiem New
Urban Area, said the Lord Mayor of the City of London.
Many UK companies currently
active in Vietnam are experienced in developing PPP projects abroad. They are
operating in the fields of consultancy, technology, and project management,
such as Foster + Partners, RICS Vietnam, Arup Vietnam, Knight Frank, and
Savills Vietnam.
Nevertheless, the legal framework
for PPP must be perfected, a prerequisite for the UK-based firms to join such
projects, stressed Wootton.
Vietnam is an attractive
destination for UK investors thanks to its large market with 90 million people
and strong economic growth. However, the country needs to improve the legal
system, reform State-owned enterprises and restructure the banking sector in
order to lure investors, said the visiting Lord Mayor of London.
Wootton is heading a business
delegation to Vietnam from September 22 to 26. The main focus of the visit is
to further develop bilateral trade and investment opportunities between Vietnam
and the UK.
UK companies highly appreciate
the efforts of Vietnam to improve the investment environment as well as
stabilize the economy.
Nick Holder, chairman of the
British Business Group Vietnam (BBGV), said Vietnam is one of the nations where
UK investors are doing business well.
“As for the firms currently
operating in Vietnam, they see the strengths and the positive supports of the
Government, and they will carry on their businesses.”
“But as for those intending to
enter Vietnam, they often compare Vietnam with other countries in the region,
so Vietnam has to try more attract these investors,” said Holder.
He was speaking on the sidelines
of the signing ceremony for a memorandum of understanding between BBGV and the
UK Trade & Investment (UKTI) in HCMC on Wednesday, under the witness of
Lord Mayor David Wootton.
Many big UK companies have
invested in the financial sector in Vietnam, such as HSBC, Standard Chartered,
and Prudential, along with those active in real estate, production and service.
However, Holder said the
advantage of cheap labor cost will soon fade away once the living standard of
citizens is improved, plus the competition with the emerging markets like
Cambodia and Myanmar.
Therefore, the Government should
pay attention to infrastructure, intellectual property, technology, and high
value-added sectors, considering them as the nation’s competitive advantages.
Douglas Barnes, UK consul-general
in HCMC, said UK investment in Vietnam had exceeded $3 billion. The two
countries are aiming at a two-way trade of $4 billion in 2013, after achieving
$3.5 billion in 2011.
SGT
Business & Investment Opportunities
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