Vietnam attracting more American investments

Vietnam is enlarging its influence in the global supply chains, as more American investment capital is flowing into the Southeast Asian country, according to media reports.

Despite the impact of COVID-19, many US corporations in 2021 announced new investments in Vietnam. For example, Intel poured additional US$475 million to Intel Products Vietnam. Ford also plans to boost production capacity and recruit more workers in the country.

One of the US’ three major energy suppliers, First Solar decided to produce thin-film PV panels at its factory in Ho Chi Minh City, with its total investment there exceeding US$1 billion. Silicon Valley-based Hayward Quartz Technology is building a US$110 million semiconductor factory at the Danang Hi-Tech Park in central Vietnam. ExxonMobil Group also plans to develop several gas power generation projects in Vietnam.

According to reports by Vietnamnet and VIR, the US has regarded Vietnam as a key part of its global supply chain. More American funds are flowing into Vietnam’s digital economy, green energy, and healthcare sectors.

American businesses that have invested in Vietnam or planned to do so include 3M, Amway, Apple, the Bank of America, Boeing, ExxonMobil, Google, Medtronic, Netflix, Nike, Roche, UPS, and Visa. Meanwhile, GE Group, Cantor Fitzgerald, DeLong, Valero, AGP, and UPC Group also plan to increase their stakes in Vietnam.

In its new strategy to attract foreign direct investment (FDI), Vietnam places more emphasis on high-tech, digital transformation, and clean energy projects, Vietnam’s prime minister Pham Minh Chinh said. Vietnam is reopening its economy and relaxing travel restrictions to increase foreign investors’ confidence in the country, he said.

The Vietnamese government is also lending more support to entrepreneurship and new startups.

For American companies, Vietnam has become a foothold for producing value-added products, rather than just low-value goods as in the past.

American Chamber of Commerce in Vietnam executive director Adam Sitkoff said bilateral trade volumes and investments will grow rapidly. The Vietnamese government’s willingness to improve the trade environment and reduce barriers for investors is a prerequisite for American businesses to bring more capital to Hanoi.

After the Vietnam War ended in 1975, Vietnam and the US re-established diplomatic relations in 1995. Their two-way trade volume has since increased from US$450 million to US$11.11 billion in 2021, data from Vietnam’s General Statistics Office showed.

By the end of 2021, the US is the top export destination for Vietnam, which collected US$95.6 billion from exports to the US, up 24.1% year-on-year. Imports from the US were the sixth-largest for Vietnam with an annual import volume of US$15.5 billion, up 12.9% on year.

Among Vietnam’s 141 FDI sources, the US ranked No.11 with 1,145 operating projects worth more than US$10.3 billion as of February 20, 2022. In turn, Vietnam has 208 investment projects in the US, amounting to US$1.06 billion, Vietnam’s Foreign Investment Agency said.

Leave a Reply

Your email address will not be published. Required fields are marked *