Investment cooperation situation between Vietnam and Thailand

1. General situation:

As of December 31, 2021, Thailand has 645 valid projects with a total registered capital of over 13 billion USD, ranking 8th out of 140 countries and territories having foreign investment in Vietnam. second among ASEAN countries investing in Vietnam, after Singapore. The average project size is 20.1 million USD/project, higher than the average project size of 11.8 million USD/project.

In 2021, Thailand invests in 35 new projects, 20 projects to increase capital and 37 projects to contribute capital to buy shares with a total registered investment capital of 349.47 million USD, ranking 11th out of 106 countries and regions. investment territory in Vietnam.

Thailand’s FDI in recent years: In 2015, Thai investment in Vietnam only reached 337.35 million USD, but in 2016 there was a sudden increase. In this year alone, Thailand has invested in 35 new projects with a total investment capital of 732 million USD, increasing 2.17 times compared to 2015. In the following years (2017-2019), Thai investment stable, in 2017 it was 624.9 million USD, in 2018 it was 762.91 million USD, in 2019 it was 927.12 million USD. By 2020, Thailand’s investment will skyrocket to 1.8 billion USD, mainly due to the project of the Southern Vietnam Petrochemical Complex (Long Son Petrochemical Co., Ltd.) increasing investment capital by 1.386 billion USD, total capital investment of this project reached 5.156 billion USD.

In 2021, due to the general influence of the Covid-19 pandemic, which has affected Thailand’s investment flows in Vietnam, Thailand’s total investment capital in 2021 will only reach $349.73 million, equal to 19% of the year before. 2020. However, the number of new projects in 2021 still reaches 35 new projects, down only 14.7% compared to 2020. It shows that Thai investors still believe in the investment environment of Thailand. Vietnam, and the immediate epidemic difficulties are only temporary.

2. Regarding investment scale:

Among Thai FDI projects in Vietnam, there is only 1 project with an investment capital of over 1 billion USD (South Vietnam Petrochemical Complex – Long Son Petrochemical Co., Ltd), accounting for 0.2% of the total investment capital. projects but accounted for 39.6% of the total registered investment capital. There are 13 projects with investment capital over 100 million USD with total investment capital of 3.27 billion USD (accounting for 2% of total projects and 25.1% of total investment capital). Projects with scale from 50 to under 100 million have 17 projects with total investment capital of 1,157 billion USD (accounting for 2.6% of projects and 8.9% of total investment capital). From 10 to under 50 million USD, there are 116 projects with investment capital of 2.46 billion USD (accounting for 18% of projects and 18.9% of total investment capital).

The majority of Thai projects in Vietnam are small and medium sized. The number of projects under 10 million USD with 498 projects accounted for 77.2% of the total number of projects, but these projects only accounted for 7.4% of the total investment capital with a capital of 967.56 million USD.

3. Regarding the field of investment:

Thailand’s investment projects focus mainly on the processing and manufacturing industry with 242 projects and 9.78 billion USD of total registered capital, accounting for 37.5% of projects and 75.2% total investment capital of Thailand in Vietnam; second is the power generation sector with 11 projects, total registered investment capital of 997.16 million USD, accounting for 7.7% of total investment capital of Thailand in Vietnam; followed by real estate business with 21 projects with a total capital of 751.6 million USD, accounting for 5.8 total investment capital of Thailand in Vietnam.

4. Regarding the investment area:

Thailand has now invested in 48/63 provinces and cities of Vietnam, but mainly concentrated in big cities and provinces with relatively favorable infrastructure conditions such as: Ho Chi Minh City, Ha Noi. Noi, Binh Duong, Dong Nai.

Ba Ria – Vung Tau has only 9 projects of Thai investors but leads in total investment capital with 5.23 billion USD, accounting for 1.4% of projects but accounting for 40.24% of total investment capital. of Thailand in Vietnam; Dong Nai ranked second with 37 projects, total investment capital of 1.02 billion USD, accounting for 7.9% of total investment capital of Thailand in Vietnam. Third is Binh Duong with 40 projects, total investment capital of 685.8 million USD, accounting for 5.27% of total investment capital; Kien Giang ranked fourth with 4 projects with an investment capital of over 679 million USD, accounting for 5.21% of investment capital.

Ho Chi Minh City is the locality with the most Thai investment projects with 235 projects, accounting for 36.4% of the projects, but the capital is only 482 million USD, accounting for 3.7% of the total investment capital. Investment projects in Ho Chi Minh City are mainly small-scale projects, the largest project is the JST Vietnam Co., Ltd. project with a capital of 50 million USD invested in the field of technical consulting services. technology in the oil and gas, petrochemical and power industries.

Source: FIA