Thuy Trieu
Andy Ho (pictured), managing director of VinaCapital, says Myanmar has yet to have a competitive edge over Vietnam in foreign investment attraction - Photo: Thuy Trieu
Ho said on Thursday at a press briefing on a VinaCapital investors conference in response to the Daily‘s question about the interest of foreign investors in Myanmar.
VinaCapital will hold a roundtable to discuss investment opportunities in Myanmar for those investors attending the conference. Besides, VinaCapital plans to open an office in Myanmar in the coming time to explore opportunities there.
However, in short term, Myanmar is still unable to compete with Vietnam in attracting foreign investment as its legal framework is not yet complete. Investors, when considering doing business in Myanmar, will care about issues like asset ownership and the stability of Myanmar’s currency.
“Foreign investors have thought about investment there but they have not poured money,” said Ho. Vietnam should worry about regional countries such as the Philippines and Thailand when it comes to attracting foreign investments, he noted.
Another point Vietnam should take into account is that foreign investors will withdraw money and place it in developed countries like the U.S. as prices of assets would turn cheap when the U.S. tapers stimulus. Currently, the U.S. spends US$85 billion a month buying long-term bonds but when the stimulus stops, investors will get back to America as seen through the recent capital outflows from India and Indonesia, according to Ho.
“If so, capital flow into Vietnam would partly decline,” said Ho.
Steve Almond, global chairman of Deloitte, earlier told the Daily that in addition to developing markets, Vietnam would have to compete with developed economies in attracting foreign investments as well.
VinaCapital is still calling for new capital from foreign investors. Around 80 foreign investors putting their money in the funds managed by VinaCapital gathered at the investors conference in Vietnam on Thursday to get a clearer understanding of the investment situation in Vietnam.
This is the eighth such annual conference held by VinaCapital. At the conference, Deputy Prime Minister Hoang Trung Hai fielded some questions of investors concerning the Government’s policies for foreign investments and economic stabilization in the coming time.
Investment funds managed by VinaCapital have paid dividends of around US$150 million to foreign investors in the past 18 months. VinaCapital forecasts VN-Index to stay at over 500 points late this year, according to Ho.
VinaCapital currently runs three closed-end funds trading on the London Stock Exchange, including Vietnam Opportunity Fund (VOF), VinaLand (VNL) and Vietnam Infrastructure Limited (VNI) having total net asset value of US$750 million, US$466 million and US$200 million respectively. Besides, VinaCapital together with Draper Fisher Jurvetson co-manages the technology fund DFJ VinaCapital L.P.
Đăng ký: VietNam News