Hanoi, Vietnam – Prime Minister Pham Minh Chinh recently called on Oman to significantly increase the capital of the Vietnam-Oman Investment Fund (VOI) to $1 billion. This proposal was made during a meeting with Mr. Nasser bin Suliman Al Harthi, Vice President of the Oman Investment Authority (OIA), in Hanoi on May 29th. The move underscores Vietnam's ambition to accelerate development in critical sectors and attract substantial foreign direct investment (FDI) as it strives towards becoming a high-income economy by 2045.
Prime Minister Chinh lauded VOI's integral role over its 17-year presence in Vietnam, recognizing its strategic contributions to the nation's socio-economic advancement. He particularly commended VOI's long-term vision, its commitment to sustainable investment principles, and its steadfast dedication to Vietnam's developmental trajectory. Since its inception, VOI, a joint venture between the Oman Investment Authority and Vietnam's State Capital Investment Corporation (SCIC), has been instrumental in channeling capital into various strategic projects, demonstrating a proven track record of supporting Vietnam's growth agenda.
The Prime Minister’s proposal to scale up VOI's capital to $1 billion is aimed at more robustly addressing Vietnam's burgeoning investment and development demands. He specifically urged Omani investors to concentrate on key strategic areas, including transport infrastructure, essential for connecting economic hubs and improving logistics; water treatment, crucial for environmental sustainability and public health; renewable energy, vital for Vietnam's commitment to net-zero emissions by 2050 and capitalizing on abundant solar and wind resources; healthcare and education, sectors requiring modernization to meet the needs of a rapidly growing middle class; and consumer finance, reflecting the dynamism of Vietnam’s domestic market. Prime Minister Chinh emphasized that these investments should be structured with interest rates aligned with Vietnam's economic realities and capacity for repayment.
Furthermore, the Vietnamese leader encouraged enhanced cooperation in nurturing the nation's burgeoning private sector, a key driver of economic dynamism. He also highlighted the significant potential within the agricultural and food processing sectors, particularly emphasizing the burgeoning Halal industry. Vietnam, with its strong agricultural base, is increasingly looking to tap into the lucrative global Halal market, aligning with government initiatives to develop this specialized segment for export.
In response, OIA Vice President Nasser bin Suliman Al Harthi reaffirmed Oman's strong commitment to deepening its collaboration with Vietnam. He underscored that investment cooperation stands out as a high-potential area that has yielded tangible results in recent bilateral relations. Al Harthi announced that the Oman Investment Authority, in partnership with SCIC, has already established the 'Vietnam New Era Growth Fund' (VNEGF), with an initial capital commitment of at least $200 million. This new fund is poised to prioritize investments in forward-looking sectors such as advanced technology, telecommunications, innovative financial services, Halal-certified agriculture, and the broader digital transformation agenda. These areas are central to Vietnam's national digital transformation strategy, which aims to foster a robust digital economy and enhance e-governance capabilities.
The OIA's interest in Vietnam aligns with its broader strategy of diversifying its global investment portfolio and targeting high-growth emerging markets. Vietnam's stable political environment, consistent economic growth, and attractive FDI policies make it a prime destination for such strategic capital. The robust bilateral relationship between Oman and Vietnam, marked by growing trade volumes and diplomatic exchanges, provides a strong foundation for this expanded investment cooperation, paving the way for continued mutual prosperity.
[Copyright (c) Global Economic Times. All Rights Reserved.]
