A Close Neighbor, Vietnam Increases Investment

By Ros Sothea, VOA Khmer
Original report from Phnom Penh
26 August 2009

Through August this year, Vietnamese companies have invested nearly half a billion dollars, a giant increase in activity that makes the country a top investor, along with China, South Korea and Russia.

Economic conditions and the strong political relationship between the two countries have led to the increase, analysts say.

“There are narrow business markets in Vietnam, with a lot of business people facing high competition,” said Chan Sophal, president of the Economists Association of Cambodia.

“Furthermore, they have no free land to make investments. So they see our country as a neighbor with huge free land. It’s a good opportunity for them to invest in.”Meanwhile, a stall in investment from other countries has given Vietnam a better chance to invest than in past years, Chan Sophal said.

In 2008, fixed investment from Vietnam was just $20 million, according to government figures. That number is just a sliver of the $534 million invested in the first eight months of this year alone. Click to read more...