Ge-Shen Sees Equal Sales From Local,Vietnamese operations by 2010

Reported in The Star,MD,Wong Yee Keh of Ge-Shen Corp Bhd which is a plastic moulding manufacturer located in Johore Bahru showed a lot of optimism of its investment in Vietnam.
Some interesting comments shared by him:

• the company had allocated about RM10mil from 2006 until 2011 for its Vietnamese operations in anticipation of good business growth;
• Vietnam offers good prospects for foreign investors as it is becoming more attractive even when compared with China;
• Prior to going to Vietnam,the Company actually looked at countries like China,Indonesia,Myanmar and Thailand for its first overseas venture;
• Vietnam is the most conducive place for the company due to its favourable investment climate;
• Many multinational corporations (MNCs) operating in China had relocated their operations to the former French colony;
• Many of these MNCs had found it more costly to do business in China and Vietnam offered a good alternative.;
• More obvious for manufacturers based along the coastal part of China,Beijing and Shanghai where there was a high concentration of manufacturing activities;
• Many MNCs operating in China,Malaysia and Thailand were expected to relocate the entire or part of their operations to Vietnam within the next two years;
• It posed an opportunity for the company to be near their clients so as to serve them better and more efficiently

As I have earlier given my two cent’s reading on Malaysian Reit:

“which I have mentioned there is a growing trend since beginning of 2006,many Malaysian companies are jumping into the bands wagon of unlocking their assets for cash by establishing REITs ranging from real estates,shopping complex,hotel and resorts,hospitals and even plantation”

My two cent on Vietnam’s investment is that:
there is a similar onslaught trend that many companies whether local Malasian or overseas MNCs are moving quite actively into Vietnam.

Presently,Vietnam is still plagued with corruption and inefficient bureaucracy but there are growing signs that the Vietnamese government is trying to improve the situation,perhaps it might be time for companies to at least explore such investment avenue as part of their medium term corporate strategies.

[Of course,India is also another potential investment area]

• Vietnamese Companies Wanting to list stocks on foreign markets through ‘backdoor’
• Exploring IPO In Vietnam
• CapitaMall Sees A Third Of Assets Abroad In 5 Years
• Vietnam- Stock Exchange And Stock Market Consider as “ Emerging China’
• Vietnam And China Business Forum
• Deutsche Bank In its Maiden Foray Into Vietnam
• Finance Work Flow:Within a Group of Companies (Local or Overseas)