In mid-May, TH Group started the construction of a dairy cow breeding and milk processing project in Russia’s Far East with a total investment of VND5.2 trillion (US$206.9 million), as an effort to realise its plan to pour US$2.7 billion into this market.
Recently, in its financial report in the second quarter of 2024, Viettel Global announced its impressive business performance, with sales and service revenue reaching nearly VND8.7 trillion, up 27% year-on-year, making it the quarter with the highest-ever takings of the company which is in charge of overseas investment of Vietnam’s largest telecommunications group.
As all the nine subsidiary companies of Viettel Group reported high growth rates in this quarter, Viettel said that it is seeking investment and business opportunities in other markets.
Similarly, the Vietnam Dairy Products Joint Stock Company (Vinamilk) also recorded the highest consolidated revenue in its history, with VND16.66 trillion. This result was attributed to increases in both domestic and overseas business activities.
Its companies in Cambodia and the US - Angkormilk and Dridtwood – reported a combined net revenue of VND1.38 trillion in Q2, up 21.8% year-on-year, and higher than the 9.6% increase rate of Q1.
However, it is noteworthy that there have been decreases in Vietnam’s overseas investment in recent years, due to common difficulties of the global and Vietnamese economies.
Data from the General Statistics Office (GSO) under the Ministry of Planning and Investment (MPI) showed that Vietnam’s overseas investment, including both newly-registered and adjusted capital, hit US$420.9 million in 2023, down 21.2% from 2022. The figure was only US$150.7 million in the first seven months of this year, equal to 47% of that in the same period last year.
Deputy head of the MPI’s Foreign Investment Agency Vu Van Chung said that the slowdown is just temporary, and the outlook for Vietnam’s overseas investment will be brighter in the coming time.
According to the Business Outlook Study 2024 (SMEs & Large Enterprises) conducted by Singapore-based United Overseas Bank (UOB), which surveyed over 4,000 companies across industries and seven markets, 90% of the enterprises are increasingly exploring opportunities beyond the domestic borders, with those in industry, oil and gas as well as manufacturing and engineering particularly interested in venturing abroad.
