Investors upbeat about Vietnam long term
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| Deputy Prime Minister Nguyen Thien Nhan (L) talks with Walter Blocker on the sidelines of the Asian Corporate Conference - Photo: Van Nam |
Vietnam’s short term economic picture remains dismal but the local and foreign companies interviewed by The Saigon Times Daily on the sidelines of the Asian Corporate Conference in HCMC on Thursday expressed optimism about the long haul of the domestic economy. Excerpts:
Jeffrey M. Dilley, chairman and CEO of Exsero Limited Company of the U.S.
- Vietnam is gradually walking to a new base line of international economies. Vietnam’s economy seems to be doing well again. Like other countries in Asia such as India, China and Indonesia, Vietnam, hopefully, will see a 
quick economic turnaround in the coming time, especially in the development of trade, manufacturing and investment.
Dale E. Washington, president of Tan Hung Investment Joint Stock Company in HCMC’s District 1:
- The company is seeing a good opportunity to invest in apartment construction, and still seeing progressive and supportive investments in Vietnam. Vietnam’s economy will be brighter because Vietnamese are very optimistic people. Young people here are eager to work.
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| Syamal Gupta, chairman of India's Tata International Limited - Photo: Thanh Trung |
Calvin Tai Lam, president of Vinawood Company Limited in HCMC’s Thu Duc District:
- The export of wooden furniture is in a difficult position because construction in the world is still in stagnancy. The situation could possibly be better within one year and a half It’s important for domestic wooden furniture producers to consider more competitive export prices to ship their products to near markets like China, Malaysia and Indonesia. In comparison to other countries in Asia, Vietnam is less impacted by the global economic recession, so in theory its economy will recover sooner, hopefully in the middle of 2010.
Walter Blocker, chief executive officer of Gannon Group:
- It’s not likely for foreign investors to come into the country in the short term because many of them are still scared of the crisis. In the second quarter of this year, our business in Vietnam is much better than in the first. A number of economic indicators are showing growth. Things are fundamentally OK for the businesses.
Toshio Kashiwagi, general manager of Mitsubishi Corporation’s HCMC representative office:
- The Vietnamese economy is still much better than some other countries. Besides, Vietnamese people are young, confident and optimistic. I think the difficulties in Vietnam will be overcome soon. I believe Mitsubishi will grow in Vietnam. So despite the increasingly bad news about the state of the global economy and the financial markets, we are also looking for new opportunities to invest in fields such as food, coffee, shrimp and power. We still see Vietnam as an important destination in Asia.
Fooh Choon Hee, representative of Malaysia’s Gamuda Land and head of operations HCMC Gamuda-Namlong Development LLC:
- The current real estate market is in difficulty, but Gamuda is still interested in the sector and is looking for new projects apart from the two projects licensed in Hanoi and HCMC. I believe the Vietnam economy will turn around soon. We see long-term potential for real estate in Vietnam and are looking for new projects via local partners in major cities. I think now is the time to invest because of reasonable prices and good selections. The market went wild in the past when prices skyrocketed.
Syamal Gupta, chairman of India’s Tata International Limited:
- Tata and its partners in Vietnam are accelerating procedures for a steel project worth US$5 billion in Ha Tinh Province despite the global economic recession. Tata Steel is committed to long-term investment in Vietnam and the difficulties faced by the Vietnamese economy will soon be over. Tata Steel will cooperate with two local firms to develop the steel mill in three phases in Vung Ang Economic Zone, with the ultimate capacity reaching 4.5 million tons a year. Tata considers Vietnam one of the most important Asian markets in its international expansion strategy. Tata is also considering investing in hotel, auto and power projects, and discussing with a local partner, Vinamotor, over a project to manufacture vehicles including trucks and light commercial vehicles.
The Vinh Luong, management executive of Singapore’s CapitaLand:
- We believe the economy of Vietnam will soon return to its fast growth path. That’s the reason we’re here to attend the conference. The population of Vietnam is very young, so demand for houses is high. We will continue to invest in real estate projects besides a project in HCMC and another in Ha Dong (Hanoi).
Reported by Van Nam and Quoc Hung