Investment from Thailand continues apace in Vietnam, with economists optimistic about the direction the two countries are taking, highlighting opportunities for economic development.
Statistics from The Foreign Investment Agency under the Ministry of Planning and Investment show that by the end of 2013, total investment from Thailand to Vietnam reached USD6.4bn, with Thailand ranking third among Asean member-states in direct investment, after Singapore with USD32.7bn and Malaysia with USD10bn.
Thai investors were targeting holdings in well-established Vietnamese firms, as well as agriculture and property development.
Billionaire Dhanin Chearavanont has had success with cattle feed products under the CP brand. In 2013, CP cattle feed products held 19.42 percent of the market, and continues to grow, with expansion plans in aquaculture and agriculture.
Other Thai investors built the five-star Melia Hotel in Hanoi and the Robin Retail centres in both HCM City and Hanoi.
A Robins retail centre in Vietnam
The USD22bn Nhon Hoi Mega Oil Complex in Binh Dinh Province was a major project for Thai energy firm PTT Pcl.
Pachara Chirathivat bought 49 percent of Nguyen Kim, while Charoen Sirivadhanabhakdi has taken 11 percent of Vinamilk and may buy 40 percent of Saigon Beer-Alcohol-Beverage JSC, with an offer of VND80,000 a share against the brewer's listed price of VND50,000.
There are concerns that Vietnamese companies and brands may be subsumed by foreign brand names.
But economist Pham Chi Lan said Vietnamese brand names will thrive, and foreign investment should boost both domestic consumption and Vietnam's overall economic development.
Economist Nguyen Tri Hieu said, "Mergers and acquisitions are normal activities. Thai investors surely won't disband already well-established companies to replace them with strange new brands. Only invaluable or weak companies face being shut down,"
Pham Dinh Toan, the chairman of Phu Thai Group, encouraged companies to sell as much as 49 percent to foreign investors to secure strong partners for global integration.
"Vietnam is integrating with the world so the retail sector will face tough competition," Toan said. "Vietnamese retail distributors don't have the capital or technology (and) won't be able to compete alone as Vietnam opens its retail sector."
Economist Bui Kien Thanh said recent mergers and acquisitions were conduits for foreign companies to invest in Vietnam and for Vietnam companies to mobilise capital.