US companies upbeat on investment opportunities in Việt Nam

March 23, 2023 - 16:38
Many US companies see Việt Nam as a manufacturing hub that provides services to increasingly wealthy consumers.


A Coca Cola factory in Việt Nam. The beverage giant was among companies joining the mission. Photo

HÀ NỘI — Senior executives from 52 US companies in the 'biggest-ever' US business mission to Việt Nam are discussing investment and sales opportunities in the country.

Chairman of the US-ASEAN Business Council (USABC) Ted Osius said the council was never as busy as it is now. Its services are in high demand because many US companies show great interest in the country.

He also said USABC representatives from other countries told him that they must act quickly because they were competing with Việt Nam. That was a way of saying Việt Nam has become a destination for growth and opportunities.

Rafael Frankel, Director of Public Policy at Meta, said the trip was the second time he had been to Việt Nam since the outbreak of the COVID-19 pandemic.

He appreciates the diligence of the Vietnamese workforce and sees a bright prospect for growth in the country. As such, he revealed the intention to invest in Việt Nam's digital economy and technological innovation in the short term.

The representative from the power giant AES Corporation said cooperation in the energy sector always lie at the heart of bilateral relations. He said AES-initiated projects would give a major boost to Vietnamese economic growth.    

SpaceX, Netflix, Coca-Cola, and Boeing are among the companies joining the mission. Boeing said its discussions with officials would centre around airline sustainability, which involves decarbonisation efforts across the industry.  

Deputy Chairman of the Vietnam Association of Foreign-Invested Enterprises Nguyễn Văn Toàn said the visit would herald waves of US investments in the country in the years to come.

He said Việt Nam is appealing to foreign investors because of its economic and political stability, and a favourable investment climate. However, the entry into force of the Global Minimum Corporate Tax would cancel out the tax incentives that it has laid down for years.

For that reason, the Vietnamese government is developing new favourable policies to keep the investment climate favourable to foreign investors, preparing for the institution of the global tax regime.

"US companies are on the lookout for suppliers and investment destinations to create new value chains. Việt Nam is an ideal candidate for their investments," said Toàn.  

On the downside, the deputy chairman underlined some obstacles ahead, including the weak ties between local and foreign companies, the underdevelopment of the support industries, and an infrastructure system that still has room for improvement.

USABC's representative in Việt Nam Vũ Tú Thành said some companies see Việt Nam as a manufacturing hub that provides services to increasingly wealthy consumers. They were also impressed with its annual economic growth of 8 per cent.

Director of Economica Vietnam Lê Duy Bình said US investments would improve Việt Nam's access to cutting-edge technologies whereas US companies have high environmental and social standards, which work in line with the country's development strategy.   

What Việt Nam has to do is to lay down more favourable conditions for the exodus of US companies to the country. 

Minister of Planning and Investment Nguyễn Chí Dũng said the Vietnamese and the US economies are mutually supplementary and still have ample room for cooperation.

He said Việt Nam would push ahead with its favourable policies to improve the investment climate. He also said US investors could turn to his ministry for support when they do their business in the country.  —VNS