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Many Vietnamese enterprises investing in Laos and Cambodia got defrauded

Monday 20, 02 2017
Besides the advantages brought by investment in foreign countries exist many risks of being swindled.
As reported by the Department of Foreign Investment, Ministry of Planning and Investment, up to Jan, 2017, there had been 1,188 investment projects
Many Vietnamese enterprises investing in Laos and Cambodia got defrauded

Besides the advantages brought by investment in foreign countries exist many risks of being swindled.

As reported by the Department of Foreign Investment, Ministry of Planning and Investment, up to Jan, 2017, there had been 1,188 investment projects in 70 countries and territories, with a total registered investment capital of USD 21.395 billion.

Major investment markets of Vietnam’s enterprises are Laos (270 projects worth USD 5.12 billion), Cambodia (191 projects worth USD 2.89 billion), Russia and some African countries. Agriculture, forestry, telecommunications, mining, health care services… are among the main investment fields of Vietnam in Laos and Cambodia.

However, when investing in Agriculture in foreign countries, many Vietnamese enterprises have been swindled due to their subjectiveness and lack of knowledge.

Mr. Dau Anh Tuan - Head of the Legal Department of Vietnam Chamber of Commerce and Industry said that Vietnamese enterprises should not be ignorant about the legal systems of other countries because the nature of land ownership, regulations and legal compliance in each country are different. Therefore, Vietnamese enterprises should understand the customs and practices of each country better than anyone else.

According to Mr. Pham Quang Tu, representative of Oxfam in Vietnam, currently, Vietnamese enterprises when investing in Cambodia still work with agent provocateurs to speed up the administrative procedures.

In some cases the agent provocateurs even came to our country, brought along with paper land of large area and low cost and talked the enterprises into investing. Thinking that they will get fat profits, a company even invested more than USD 1 million. However, when coming to Cambodia, that piece of land does not even exist or is owned by another person.

To constrain the risks of getting swindled, Tu said that the Government should support enterprises when investing in foreign countries.

>>> "Doing Business in Vietnam 2018" – Useful guidebook for your endeavour to expand business in Vietnam

-Compiled by VietnamCredit-

Categories:
Financial News

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