Businesses optimistic about 2011 capital sources
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Local businesses believe foreign investment will soon pour back into the Vietnamese market, both directly and indirectly, after a year of macroeconomic instability.
The real estate market is always promising to investors despite its current drawbacks like capital shortage, high interest rates, and tightened financial policies, Louis Nguyen, CEO of the Saigon Asset Management Corporation, said.
He believes investors will channel their sources into the realty sector again because the aforementioned problems are just short-term.
The property market is going to make a comeback late this year, he asserted.
Many Japanese businesses are now seeking opportunities to invest in Vietnamese enterprises that specialize in retail, distribution, and manufacture of agricultural products, according to Ho Van Tuyen, deputy director of Saigon Mekong Joint Stock Company.
Japan is now intensifying their overseas investments and Vietnam will be its preferable destination, he added.
As an example, Ministop – a convenience store chain under Japan-based retailer Æon Group – has just entered into a deal with Vietnamese coffee maker Trung Nguyen Corporation to operate the G7 Mart-Ministop chain store expected to be opened in May in Vietnam.
Two branches of Japan’s Mizuho Corporate Bank Ltd in Hanoi and Ho Chi Minh City have also been allowed to raise their registered capital to US$133.5 million from a mere $15 million, which is seen by investors as a good sign.
“This indicates an upcoming wave of Japanese investors,” an investor remarked.
Accelerating investment in Vietnam is part of the bank’s strategy to invest $1.2 billion in companies around Asia.
Meanwhile, the global SEAF Blue Waters Growth Fund (BWGF) is pretty optimistic about financing Vietnamese businesses this year, Nguyen Viet Quyen, BWGF business development director, confirmed.
“Small businesses without collateral can absolutely get access to our funding if they have a good business plan.”
