Vietnamese fishermen along the coast of Phu Yen have recently reported catching substantial amounts of anchovy, with each fishing vessel bringing back anywhere from two to three tons, and some reaching up to five to seven tons. With selling prices ranging from 12,000 to 15,000 VND per kilogram, the profits after deducting expenses can reach between 20 to 40 million VND per trip. Fishermen have shared reports of high volumes of anchovy appearing within 2 to 5 nautical miles from the shore, particularly over the past ten days. Each vessel typically employs eight to ten fishermen, who set out on fishing expeditions the evening preceding their return with the morning tide. If the catch is promising, each fisherman can earn between 1 to 2 million VND for their overnight effort.
This wave of success is not just limited to fishing activities but reflects the broader economic dynamics at play as Vietnam has increasingly become attractive for foreign investments since opening up to global markets at the end of the 1980s. According to the Ministry of Planning and Investment, Thailand ranks among the top investors, holding nearly 800 active projects with registered capital exceeding 14 billion USD as of mid-2024. Thai businesses are now present across 48 out of 63 provinces, thriving especially where infrastructure supports their operations—key areas include Hanoi, Ho Chi Minh City, Ba Ria-Vung Tau, Binh Duong, and Dong Nai.
Notably, the SCG Group stands out as one of the oldest industrial foundations from Thailand, having expanded its footprint across multiple sectors such as construction materials, petrochemicals, and packaging, significantly influencing Vietnam’s production capabilities. Since its entry to the Vietnamese market in 1992, SCG has established 27 subsidiaries and recorded total revenues of approximately 2.5 billion USD from the country, making Vietnam its second-largest market. Especially telling is the company's Long Son Petrochemicals Complex in Ba Ria-Vung Tau, which is claimed to be Vietnam's first petrochemical hub and SCG’s largest investment here, valued initially at 5 billion USD.
While SCG reports increased profits, the company also indicates challenges, facing project halts due to decreased demand, which has contributed to a significant drop—76%—in net profit over the past year. Despite this volatility, SCG plans to inject another 500 million USD for enhancing the Long Son facility, integrating upstream sourcing of ethane to boost output.
Another major player, the Charoen Pokphand Group (CP Group), known for its vast presence across the agriculture and food sectors, entered Vietnam with its representative office back in 1988. By 1993, it established C.P. Vietnam, focusing on animal feed production and processing, which has become immensely popular among consumers. Presently holding more than 20 factories nationwide, CP Vietnam reports substantial market share across livestock, feed, and processed food sectors.
2024 reports indicate CP's revenue from its Vietnamese operations reaching approximately 70 trillion VND, which starkly outpaces many local competitors, highlighting its dominant position. Notably, CP's revenue structure reveals 67% from livestock farming, demonstrating their pivotal role within the domestic agricultural economy.
The increasing Thai investments extend beyond mere establishment. They have also engaged aggressively in acquisitions of local enterprises, especially within the retail sector. TCC Group’s 2015 acquisition of Metro Cash & Carry, for about 879 million USD, was aimed at penetrating the retail market deeply, successfully rebranding as MM Mega Market. The 2017 acquisition of Sabeco, Vietnam's major brewery, for approximately 5 billion USD stands out as one of the most significant M&A events within Asia’s beverage sector.
Furthering Central Group's ambitions, it acquired full control of Nguyen Kim electronics chain and made waves acquiring the Big C supermarket chain for 1.05 billion USD, repositioning it as GO!. The group has ambitious plans, intending to increase its number of retail outlets to 600 and investing around 1.45 billion USD between 2023 and 2027 to expand its presence significantly.
Beyond the statistics, these investments symbolize not only capital inflow but also a transformative potential for Vietnam’s local economy, fostering infrastructural development, creating jobs, and enhancing productivity. At the same time, it raises pressing questions about local enterprise competition and economic sovereignty. Nevertheless, the role of well-directed policy loans remains pivotal. For example, the Quang Binh local government, under its social policy banking initiative, recently aided the Ploang community—a Bru-Van Kieu ethnic minority group—with loans amounting to 852 million VND, supporting 36 households to improve their living conditions through bolstered production capabilities.
These improvements reflect successful integration of funding strategies aimed at poverty alleviation, enabling families to not only meet their immediate needs but also invest back for sustainable development. Local engagement, represented through community-driven initiatives, interlaces with the influx of foreign investment, providing the foundation for consistent growth. The delicate balance between nurturing local enterprises and accommodating foreign players remains integral to shaping Vietnam’s economic future.