I. FDI from Australian companies in Vietnam
By the end of June of 2015, Australian investors ranked 20 among 103 foreign countries and territories in Vietnam with 333 existing projects worth 1.62 billion USD. The scale of an Australian project is quite small with around over 4.8 million US doller per project.
-By sector:
According to statistics, Australian investors had invested in 17 business sectors in Vietnam.
In particular, the field of manufacturing and processing industry topped the list with 120 projects worth $1.05 billion US dollar in registered capital, accounting for 64.7 percent of total investment.
The sector drawing the second-most attention from Australian investors is agriculture, forestry and fishery sector with 16 projects worth 122.1 million US dollar accounting for 7.5 percent of investment.
- By forms of investment:
Firms managed by Australian investors in Vietnam mainly uses form of a 100-percent foreign-owned firm. With this form, Australian investors had 245 projects with $1.1 billion, accounting for 69% of total investment. The form of joint venture has 75 projects with 417 million US dollars, accounting from 25.6 percent of total investment. The others are joint stock and business co-operation contract.
- By province:
Australian investors have invested in 40 out of 63 provinces and cities in Vietnam, with investment focusing on large cities with better infrastructure development. The most are located in the southern cities of Vietnam, such as Ba Ria Vung Tau (11 projects with 322 million US dollar), Ho Chi Minh City (132 projects with 166.8 million US dollar). It is followed by Ha Noi, Tien Giang and Hai Phong.
II. Investment from Vietnam firms in Australia
Until now, Vietnam has 15 projects investing in Australia, with total investment of 147.48 million US dollar. These projects are focusing on manufacturing and processing industry and doing business in real estate.
The Australian investors ranked 20 among 103 foreign countries and territories in Vietnam. This position is not corresponding with the potential cooperation between Vietnam and Australia. It may be because that Australian firms do not have much information regarding Vietnam investment environment. Therefore, in order to strenthen the economic cooperation between Vietnam and Australia, both sides need:
- To create the opportunities for firms of both countries to exchange information by organizing investment forums or exhibitions.
- To organize investment promotion actitvities in Australia and Vietnam with aims to help firms of both sides more understand the investment environment in each country.
- To encourage firms do invest in sectors that Australia and Vietnam firms have a strong advantage and potentials. For instance, Australia is strong at mining sector, agriculture and processing industry which Vietnam have potentials in.