February 27, 2007

WTO access encourages CP Group to look at Vietnam

The Charoen Pokphand (CP) Group plans to set up its second manufacturing base for livestock and aquaculture in Vietnam within 10 years, thanks to the country's flourishing trade and investments.

Sooksunt Jiumjaiswanglerg, president of Charoen Pokphand Vietnam, said CP will develop a manufacturing base integration from farm to finished product because of the Vietnamese government's provision of many privileges to foreign investors. 

Vietnam's recent accession to the World Trade Organisation (WTO) will also make it one of the world's most attractive investment magnets for foreign investors, he said.

In a seminar concerning Vietnam's membership to the WTO, Thai government officials and private enterprises warned local enterprises to accelerate upgrading their business; otherwise, the country could win out over Thailand. Thai industry players believe Vietnam could become the world's major exporter of agricultural and industrial goods, as well as a major provider of services.

The CP Group, Thailand's biggest agro-conglomerate, has invested in Vietnam for more than 15 years and enjoyed annual revenue growth of 10 to 15 percent. However, sales have jumped by 30 per cent in the past few years and the company expects to keep that pace up for another year due to rising market demand.