Bangkok, September 6, 2023 – Thai businesses are displaying unwavering confidence in the robust trajectory of Vietnam’s economy, buoyed by its remarkable recovery in the aftermath of the COVID-19 pandemic. This optimism comes at a time when the global economy faces headwinds due to geopolitical tensions and a general slowdown, with Vietnam still projected by international organizations to achieve a growth rate of 6.3-6.5% this year.
Recent business forums, including the Thailand-Vietnam Business Forum held on August 15 in Bangkok, have served as platforms for Thai entrepreneurs to voice their positive assessments of Vietnam’s economic landscape. Many Thai enterprises have cited the country’s strong fundamentals and remarkable growth rate, the highest in the Asia-Pacific for the current year. These companies are confident that Vietnam’s effective government policies and actions are paving the way for a bright economic future, making it an attractive destination for investments in a conducive business climate.
Aswin Techajareonvikul, President and CEO of Berli Jucker Public Co, proudly noted that the group’s business in Vietnam has not only recovered to pre-pandemic levels but is also making significant progress in various investment projects. He attributed this success to the Vietnamese government’s proactive policies aimed at attracting foreign investment. Techajareonvikul emphasized that these factors have stoked the interest of Thai and other Southeast Asian companies, prompting them to explore further investments in Vietnam.
Somhatai Panichewa, CEO of Amata Vietnam, went a step further by hailing Vietnam as one of Asia’s economic bright spots, the sole economy to record positive growth during the pandemic. Drawing from her extensive experience in developing industrial park projects across Vietnam, Panichewa urged the Vietnamese government to bolster investments in infrastructure, particularly in the central region. She made this request with a deep affection for Vietnam, akin to her own homeland.
Harald Link, Chairman of B.Grimm Power, an energy corporation with 22 years of investment history in Vietnam, commended the government and people of Vietnam for their unwavering commitment to national prosperity. Link expressed his confidence in Vietnam’s path to greater prosperity, highlighting the diligent workforce and a government dedicated to economic development and supporting foreign investors. His only advice was for the government to continue the successful strategies it has pursued thus far.
Vietnam’s economic resurgence in 2022, with an impressive 8.0% growth rate, surpassing the 7.1% average from 2016 to 2019, can be attributed to various factors, including a low base effect, rebounding domestic private consumption post-pandemic, and robust performance in export-oriented manufacturing.
Beyond the notable success stories of major groups and investment projects in Vietnam, an increasing number of Thai enterprises are expressing keen interest in the Vietnamese market. A decade-long assessment by Bangkok Bank underscores Vietnam’s enduring appeal as a destination brimming with promising investment opportunities for Thai businesses. Furthermore, Thai companies are actively engaged in community support initiatives, committing millions of US dollars to assist vulnerable Vietnamese villages and local residents.
Since the establishment of diplomatic ties in 1976, Thailand and Vietnam have nurtured a flourishing relationship across multiple domains, marked by remarkable achievements in diplomacy, trade, and investment. The two nations maintain regular high-level exchanges and consultations through unique cooperation mechanisms, underscoring their commitment to ASEAN solidarity and centrality, especially in addressing maritime territorial disputes, advancing the Code of Conduct progress, and addressing Myanmar-related issues.
Thailand presently holds the distinction of being Vietnam’s largest trading partner in the ASEAN region, with a bilateral trade turnover exceeding $21.6 billion USD in 2022. Both nations have set their sights on reaching a target of $25 billion USD in trade turnover by 2025. Notably, Thailand ranks as the ninth-largest foreign investor in Vietnam and the second-largest in ASEAN, with investments valued at a total of $13.1 billion USD spread across more than 670 active projects.