New Leadership dipping their toes back in the water
Vietnam has a nominal GDP of $89.8 billion and a population of 88 million people. It is grouped with Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan,the Philippines, South Korea, Turkey as an N-11 nation (Next Eleven) achieving an economic growth rate of 6.18% in 2008, and 5.3% in 2009 attributed to increased productivity, capital accumulation and labor gains.
The economy has not been greatly affected by the world wide economic downturn and with a large amount of tourism, natural resources and the potential for a solid manufacturing base (2/3 of the country is under thirty years old), many analysts are saying that it may be the next China.
Conversely, Vietnam is still a risky country plagued by government fiscal and monetary policies that have been blamed for stints of inflation. All of the usual international risks still apply along with permits and cultural conflicts that come along with doing business outside of the United States.
Strategic Mining Corporation recently gained a license to engage in mining exploration and development of a high yield, precious mineral property in northern Vietnam. The company is the first Western company to be given this opportunity by the Vietnamese government since 1954. The area has been dormant for 50 years and according to the company is very under-explored for further investments.
On March 18th Ian Lambert was appointed as new director and officer of the company. He has nineteen years of experience managing a publicly traded Canadian Mining Company and commented for our article on SMNG and how they are positioned to take advantage of opportunity and timing. “Strategic Mining has been fortunate to become the first foreign company to begin exploration in northern Vietnam in over 50 years. This area is very under-explored, and yet has good infrastructure, low-cost labor, and strong government support to develop resources in this region. Our partnership with the local influential entity, Bah Dinh Mineral Company, has positioned us well in bringing North American exploration and mining expertise to bear on this region. We fully anticipate that these relationships that are now established will lead to further acquisitions in the region, permitting rapid growth for our Company.”
Additionally, two geologists, Bob Marvin and local Pham Van Vinh have been hired as consultants to oversee the project. Mr. Vinh is the Chairman of Geology of the Hoah Binh and Quang Tri provinces in Vietnam.
With all the potential that Asian markets have to offer there is likely to be increased ventures into the region as the capital structure of the countries becomes more solid and foreign direct investment increases.