Karnchana Theparuck, director of the Thai Trade Representative Office in Ho Chi Minh City, said more Thai companies were expanding their businesses to Vietnam, thanks to its fast-growing economy and trade incentives.

At least 16 projects of Thai companies will start in the country this year after business licences were granted by Vietnam's government, she said.

Operators include Siam Crafts, a packaging firm, a logistics provider and a leading furniture brand.

Recently, Thailand's leading food manufacturer, Charoen Pokphand Group, announced a plan to set up a manufacturing base integrated for livestock and aquaculture in Vietnam within 10 years.

So far, about 142 Thai companies have business licences in Vietnam.

Although Thai investors rank 12th among foreign investors in Vietnam, the num-ber will gradually increase as a result of the government's plan to stimulate off-shoring to Vietnam and other countries, Karnchana said.

Taiwan is the major investor in Vietnam, followed by Singapore, Japan, South Korea and France.

Karnchana said the government wanted the Kingdom to become a major supplier of consumer and industrial goods to Vietnam.

As Vietnam develops rapidly, it will require a large amount of imports. The government will promote exports to the country by conducting business match-ing and several trade exhibitions this year.

The Export Promotion Department will hold business-matching road shows in Ho Chi Minh City, Danang and other trading centres by the middle of the year. It will also stage the Thailand Outlets and Songkran Festival in Ho Chi Minh City from April 19-22 and the Thailand East-West Corridor event in Danang in November.

According to the Commerce Ministry, two-way trade between Thailand and Vietnam reached US$3.9 billion (Bt138 billion) last year.

Thailand has always enjoyed a trade surplus because of Vietnam's high demand for consumer and industrial goods. Exports to Vietnam jumped 30.1 per cent to $3.07 billion last year, while imports rose one per cent to $891.1 million.

The ministry targets export growth of 20 per cent to Vietnam this year.

Meanwhile, a private investor in Vietnam said the country could become a major competitor to Thailand in the next five years in attracting foreign investment and tourists.

Vietnam wants to build two international airports that would serve a combined 100 million passengers a year. They would be located in Van Dong Island in the north and in Long Thanh in the south. One would be Asia's largest international airport.

The government is now planning a feasibility study for the project.

The source said that Thai enterprise should start to take the opportunity, as a close neighbour of Vietnam, to do more business in the country. The country has high demand for investment in manufacturing and service industries.

If the airports project were successful, Thai investors would be able to enjoy more benefits as Vietnam could be considered the second home for Thai businesses, the source suggested.

Petchanet Pratruangkrai

The Nation