New Vitality for US Investment in Vietnam

New Vitality for US Investment in Vietnam

When U.S. President Donald Trump selectes Vietnam as the first destination in Southeast Asia, it is entirely possible to expect and believe that U.S. -Vietnam cooperation, especially investment field, will take a new leap.

Big names like Sheryl Sandberg, Facebook CEO; Nathan Blecharczyk, Chief Strategy Officer, Airbnb; Scott Price, Vice President of Walmart International; David Cunningham, CEO of FedEx Express; Aran Maree, Johnson & Johnson Medical Director; Robert S. Franklin, Deputy Director of ExxonMobil ... attended the APEC CEO Summit 2017.

They accompanied U.S. President Donald Trump to the APEC Summit on November 10 and were also the first US president to visit Vietnam in the first year of his term.

President Tran Dai Quang, in a meeting with more than 60 large U.S. companies on November 8, said that this visit was not only important for bilateral relations, but also a message of U.S. policies towards the Asia-Pacific region. In the fruit of bilateral relations, there was a very important contribution of the American and Vietnamese business community.

At the meeting, President Tran Dai Quang highly appreciated the fact that many leading U.S. corporations in the fields such as information technology, pharmaceuticals, foodstuff, health care, hi-tech ... had participated in the APEC activities from the beginning of the year to date, as well as U.S businesses invested in Vietnam in the fields of strength such as high technology, energy, structure and Infrastructure…

The purpose of the U.S. giants behind this visit is not clear yet, but it is not difficult to realize that many of them are planning to invest in Vietnam. For example, FedEx Express is moving very fast in the Vietnamese express delivery market; Walmart also stepped into the retail market. Meanwhile, although Airbnb - a well-known global start-up in the area of accommodation sharing - has had a system of 6,500 to 7,000 establishments in Vietnam involved in this network, after only a very short time ...

The emergence of these big names, perhaps  added "new vitality" to US investment flows into Vietnam, which was pushed to new heights after the US visit by Prime Minister Nguyen Xuan Phuc in the middle of this year. At that time, nearly 20 contracts were signed between the U.S. and Vietnam business, with total value of up to $ 10 billion. And then, in turn, large U.S. corporations came to Vietnam to seek investment opportunities.

There are also new cooperation agreements signed in this time. Warburg Pincus, for example, did not hesitate to sign a strategic cooperation agreement with Becamex IDC to set up a joint venture with the starting capital of $ 200 billion, the aim of developing logistics warehouses and ready-bulit factories according to international standards. With a development vision in the next 4-5 years, this venture can even raise capital to $ 1-2 billion.

The question is, can these new agreements "heat up" the capital inflow of US investment into Vietnam, which has been only modest number previously?  Firgures to October 20, 2017, the United States only registered 848 new projects with a total capital of $ 9.4 billion, ranking ninth among countries and territories investing in Vietnam. Vietnam, but much lower than the tens of billions of dollars that Korean, Japanese, Singaporean investors ... have poured into Vietnam. In the first 10 months of this year, US investors only registered investment over $ 400 million in Vietnam, a figure shows that It is still not deserving with their true potential.

The visit of U.S. President Donald Trump to Vietnam this time, will certainly create new momentum to promote investment cooperation between the two countries.

Source: Investment Newspaper 

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