$300 mln Vietnam-Omani disbursement boon to critical development

The Vietnam Oman Investment (VOI) joint venture has disbursed more than $300 million in critical projects across Vietnam from an initial commitment of $100 million in 2009.

VOI, backed by Oman Investment Authority and Vietnam's State Capital Investment Corporation, was established in 2008 on the basis of mutual government support.

Notably, through its joint venture with CME Solar, Vietnam’s leading energy developer, VOI focuses on developing renewable energy like solar, wind, and biomass power, supporting the country to fulfill Prime Minister Pham Minh Chinh’s net-zero commitment at COP26.

"We have built 140 megawatts of solar power facilities in Long An and nearly 100 megawatts of rooftop solar to deliver renewable energy to hundreds of Vietnamese and foreign-backed enterprises," said VOI CEO Nguyen Hong Son.

Many water treatment plants in Ho Chi Minh City and Hanoi have been developed with financing from VOI, supplying people with millions of cubic meters of clean water daily.

In particular, the Duong river surface water plant, which started its first phase of operation in 2018, has helped Hanoi replace nearly 300,000 cubic meters of polluted groundwater with urban clean water, ensuring water security for three million people.

People in HCMC's Cu Chi district have had access to clean water since a joint venture between VOI and CII, one of Vietnam's largest infrastructure development firms, invested in an urban clean water distribution system in 2019.

VOI in February 2016 invested $10 million in Cacao Intercontinental Corporation's project to grow 1,000 hectares of cocoa in the Central Highlands, bolstering the country's agricultural strength. The project has helped Vietnam become one of the world's top cocoa exporters, producing the best grade cocoa, with export prices almost 70% more than the global average.

Besides economic efficiency, VOI's investments also focus on social security goals in education, like Van Lang University and HCMC University of Medicine and Pharmacy, as well as healthcare like Hanh Phuc International Hospital and VinMec Healthcare System.

With VOI's support, Aikya Corporation has produced more than 2.5 billion pills per year, and maintained a strong foothold in the Vietnamese pharmaceutical market. The company maintained its supply chain during the Covid-19 pandemic, providing medications and more than 40 million medical masks to aid pandemic prevention.

"We expect that the two governments will establish additional initiatives like the VOI joint venture to encourage financial flow from the Middle East to Vietnam, as well as provide Vietnamese enterprises the opportunities to expand in developing markets in Oman and the Middle East," said Nasser Al Harthy, chairman of VOI.

Al Harthy made the statement on the 30th anniversary of the establishment of Vietnam-Oman diplomatic relations on Thursday.

He also urged the establishment of direct flights and maritime routes, as well as attractive travel and work conditions between the duo in the near future, in order to create new development milestones in Vietnam-Oman ties.

Bilateral trade reached $338 million in 2021, twice the 2020 result, impressive growth during the pandemic.