Vietnam, Thailand seek stronger cooperation

Top leaders of Vietnam and Thailand have vowed to do their utmost to develop multifaceted bilateral cooperation in a deep and effective manner, contributing to ASEAN prosperity as well as peace, stability and development in the region and the world at large.

This affirmation was made by Vietnamese Prime Minister Nguyen Tan Dung and his Thai counterpart, Yingluck Shinawatra, at their talks in Hanoi on Nov. 30.

The two sides should promote their developing relations, particularly in trade, investment, education and training, health and agriculture, the two PMs said.

They discussed a number of measures to increase bilateral cooperation in various areas, including the implementation of existing cooperative mechanisms in bilateral, regional and international frameworks, such as joint sea patrols, fighting crimes, rice production and business.

Both PMs agreed to assign the two countries’ relevant agencies to convene a joint cabinet meeting soon.

They asked the relevant ministries and agencies to promptly realise the contents of the two PMs’ discussions to translate these talks into specific cooperative activities in various fields.

PM Dung said Vietnam encourages Thai businesses to invest in the country, especially in central provinces and engage in projects along the East-West Corridor.

He asked the two countries and concerned countries in the Mekong River Commission to work closely in utilising the Mekong River ’s natural resources in an effective and sustainable manner for the common benefit and sustainable development of countries in the region.

He took this opportunity to request Thai authorities at levels to continue creating conditions for the Vietnamese community to live stable lives in Thailand and serve as a bridge to boost friendly cooperation between the two countries.

PM Dung congratulated Yingluck on her election as the first female prime minister of Thailand and said her visit to Vietnam will contribute to the Vietnam-Thailand traditional friendship.

He said he believed that under the leadership of the Thai Government headed by PM Yingluck, Thailand will continue to develop a greater role and position in the region and the international arena.

PM Yingluck thanked Vietnam for its valuable assistance to Thailand during its recent historic floods.

She asked the two sides to simplify procedures to accelerate exchange of goods and tourism between the two countries.

The Thai Government is willing to cooperate with Vietnam in energy development, rice export and tourism, she affirmed.

The Thai PM asked the two countries to promptly complete a transport roak connectivity between Vietnam , Laos and Thailand and effectively implement cooperative mechanisms in the sub-region.

She invited PM Dung to visit Thailand and PM Dung accepted the invitation with pleasure.

Also the same day, President Truong Tan Sang received PM Yingluck, describing her visit to Vietnam as a vivid manifestation of Vietnam-Thailand neighbourliness and multifaceted cooperation.

PM Yingluck explained the outcomes of her talks with PM Dung, affirming that the two sides agreed to assign their diplomatic agencies, in collaboration with ministries and departments, to implement joint commitments.

Prime Minister Yingluck Shinawatra paid an one-day visit to Vietnam on Nov. 30 after she assumed office, in line with ASEAN practice.

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Investors doubt Vietnamese economy: survey

The last quarter of the year has seen a significant fall in private equity investors’ confidence in the Vietnamese economy, a recent report by audit advisory Grant Thornton Vietnam said.

According to the Investment Sentiment and Outlook Quarter 4 report released early this week, negative sentiments about Vietnam’s economy more than doubled to 51 percent compared to last year’s report.

The percentage of investors showing positive outlook also plummeted from 53 percent to 17 percent in the second quarter.

Over all, there was a decrease in confidence in Vietnam and private equity investors were much more cautious than 6 months ago which the report says reflect current challenges in Vietnam’s economy and the fall in GDP and consumer spending growth.

Almost 85 percent of respondents said the current macro-economic situation was the biggest obstacle to investment into Vietnam.

The attractiveness of Vietnam’s economy also reached the lowest point among the last 6 surveys. Particularly, only 38 percent of investors considered Vietnam as more attractive than other investment destinations, a decline of 16 percent compared to the previous survey.

The survey also shows that 41 percent of respondents said that Vietnam was less attractive or unattractive.

In line with the plunge in Vietnam’s attractiveness among private equity firms, the percentage of respondents who planned to increase their allocation to Vietnam decreased considerably to 29 percent in this survey compared to 53 percent in the previous one.

Meanwhile, 43 percent of participants said they were adopting a “wait and see” attitude and there was no change in their allocation of investment funds to Vietnam.

The previous figure was 28 percent.

35 percent of participants thought the most significant source of deals was private or family businesses, followed by secondary buyout deals, and only 10 percent of respondents said it was the public market.

Bill Hutchison, Grant Thornton Vietnam’s Advisory Services Partner, said this result was “unsurprising as the private sector contributed nearly half of GDP in Vietnam last year and has continually increased its contribution.”

However, he said the somber business outlook as confidence waned was making investors bide their time at the moment.

While the extremely high interest rates in Vietnam in the second and third quarter of the year had led to an increase in the number of distressed assets, especially in the real estate sector, the report shows a surprising finding that real estate had taken the position of the most attractive sector for investment.

It had overtaken education, which was ranked as the most attractive industry for private equity investment in a survey conducted in Q2.

But almost the same number of respondents rated the real estate sector as the least attractive sector.

Following real estate in this list were education, oil, gas and natural resources, and manufacturing sectors.

Weak macroeconomics was the most important obstacle to investment, followed by corruption and red tape.

Infrastructure and the inadequate legal system also affected investments.

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