Speaking at a press briefing in HCMC on last Wednesday, David Wootton said UK firms want to join PPP projects in Vietnam. They have showed keen interest in Long Thanh Airport and Thu Thiem New Urban Area, said the Lord Mayor of the City of London.

Many UK companies currently active in Vietnam are experienced in developing PPP projects abroad. They are operating in the fields of consultancy, technology, and project management, such as Foster + Partners, RICS Vietnam, Arup Vietnam, Knight Frank, and Savills Vietnam.

Nevertheless, the legal framework for PPP must be perfected, a prerequisite for the UK-based firms to join such projects, stressed Wootton.

Vietnam is an attractive destination for UK investors thanks to its large market with 90 million people and strong economic growth. However, the country needs to improve the legal system, reform State-owned enterprises and restructure the banking sector in order to lure investors, said the visiting Lord Mayor of London.

Wootton is heading a business delegation to Vietnam from September 22 to 26. The main focus of the visit is to further develop bilateral trade and investment opportunities between Vietnam and the UK.

UK companies highly appreciate the efforts of Vietnam to improve the investment environment as well as stabilize the economy.

Nick Holder, chairman of the British Business Group Vietnam (BBGV), said Vietnam is one of the nations where UK investors are doing business well.

“As for the firms currently operating in Vietnam, they see the strengths and the positive supports of the Government, and they will carry on their businesses.”

“But as for those intending to enter Vietnam, they often compare Vietnam with other countries in the region, so Vietnam has to try more attract these investors,” said Holder.

He was speaking on the sidelines of the signing ceremony for a memorandum of understanding between BBGV and the UK Trade & Investment (UKTI) in HCMC on Wednesday, under the witness of Lord Mayor David Wootton.

Many big UK companies have invested in the financial sector in Vietnam, such as HSBC, Standard Chartered, and Prudential, along with those active in real estate, production and service.

However, Holder said the advantage of cheap labor cost will soon fade away once the living standard of citizens is improved, plus the competition with the emerging markets like Cambodia and Myanmar. Therefore, the Government should pay attention to infrastructure, intellectual property, technology, and high value-added sectors, considering them as the nation’s competitive advantages.

Douglas Barnes, UK consul-general in HCMC, said UK investment in Vietnam had exceeded $3 billion. The two countries are aiming at a two-way trade of $4 billion in 2013, after achieving $3.5 billion in 2011.