Qatar Investment Authority, the sovereign fund of the Gulf state, is to invest $1 billion in a joint investment fund with Vietnam's State Capital Investment Corp. (SCIC), a local senior official said Friday. SCIC and Qatar have agreed in principle to establish the fund, said Tran Van Ta, CEO of SCIC. The two parties have yet to decide what the fund will invest in, he added. Vietnam's State Capital Investment Corp. and the Qatar Investment Authority have signed a memorandum of understanding to prepare the establishment of an investment fund between the two countries, the official said. The MOU was signed Wednesday in Hanoi and witnessed by the prime ministers of the two countries, said the official. SCIC and QIA will set up the fund to invest in oil, power, infrastructure and property projects in Vietnam, he said. SCIC is Vietnam's government investment arm. It manages state funds in more than 850 companies with a total market capitalization of 30 trillion dong ($1.9 billion; €1.2 billion) at the end of 2007. QIA is a sovereign fund that invests internationally for Qatari state in companies and property. Domestically in Qatar, it invests in the non-energy sector. Last year, Vietnam attracted record foreign investment pledges of $20.3 billion (€13 billion). It has attracted more than $5 billion (€3 billion) in pledges in the first quarter of this year. Two-way trade between Vietnam and Qatar stood at US$32.8 million (€21 million) in 2007, with Vietnam's exports to the emirate worth US$12.8 million (€8.2 million), according to Vietnam News Agency. Qatari Prime Minister Hamed Bin Jasim Bin Jabr Al-Thani is wrapping up on Thursday a two-day official visit to boost bilateral trade and investment relations between the two countries. Meanwhile, in Berlin, banking corporation Credit Suisse has reported that Vietnam will become the second largest “global enterprise” in Asia. Thanks to structural reform, political stability, pricing advantage, low costs, and younger population in Asia, Vietnam has become extremely attractive, especially after it joined the World Trade Organisation (WTO) in November, 2007, Credit Suisse said in its news network. Vietnam now belongs to those countries whose market economy has highest growth rate, it added. Vietnam has developed into a market-oriented economy from the planned one. After joining the WTO, Vietnam has enjoyed an easier approach and integration into the world market, thus helping the country increase its exports. __
