Media Release

Thursday, 18 August 2003 - MVT62/2003

Vaile Welcomes Major New Investment In Vietnam

Australian investment in Vietnam is fast approaching the $1 billion mark with BHP Steel’s decision to build a $160 million flat steel metallic coating and painting facility in southern Vietnam, Trade Minister Mark Vaile said today. 

“BHP Steel’s announcement to build the facility involves one of the largest investments by an Australian company in Vietnam and is tangible evidence of the benefits of Vietnam's ongoing market liberalisation and increasing participation in the global economy,” Mr Vaile said.

“Vietnam is increasingly seen as an attractive market for Australian investors. It has been experiencing rapid economic growth and expansion of the private sector in recent years and the Australian Government welcomes Vietnam’s participation in the global economy.”

As at December 2002, there were 76 operational, licensed Australian investment projects in Vietnam, valued at about $769 million.  About 20 percent of these projects were in the construction sector.  Other sectors in Vietnam with significant Australian investment are food and beverages and education.

“This new investment by BHP Steel brings total investment by Australian companies in Vietnam to more than $920 million,” Mr Vaile said.

“The Government has been fully supportive of BHP Steel’s investment plans.  I made representations on behalf of BHP Steel during my visit to Vietnam in March this year.“  Foreign Minister Alexander Downer also spoke in support of BHP Steel during a recent visit and our embassy in Hanoi has been active on the issue for many months.

“The decision by BHP Steel to proceed with the project is particularly timely with this year marking the 30th anniversary of the establishment of diplomatic relations between Australia and Vietnam.  The granting of the licence is further evidence of the strengthening relationship between our two countries.”

Contact:  Matthew Doman  02 6277 7420