Vietnam ready to ride US investment wave

Automobile production at Ford Vietnam (Photo: VNA)

Vietnam is on the verge of seeing a massive influx of investments from the US, and stands ready to welcome the wave.

The Suntory PepsiCo Vietnam Beverage Company recently broke ground for its largest and most modern factory in the Asia Pacific region at the Huu Thanh Industrial Park in the Mekong Delta province of Long An.

Covering nearly 20ha, the 300-million-USD factory will be operated by renewable energy such as biomass fuel and solar energy, and launch products with packaging made from 100% recycled plastic. Once completed, it will have an annual output of 800 million litres, helping enhance the company’s ability to meet consumer needs and strengthen its leading position in the Vietnamese market.

Pepsico proposed the project to Prime Minister Pham Minh Chinh while joining the US-ASEAN Business Council (USABC) delegation to visit Vietnam and seek investment opportunities there last month.

Along with Pepsico, many other investors have expressed their interest and confidence in the Vietnamese market’s potential, including Energy Capital who wants to develop Long Son port in Ba Ria Vung Tau province and LNG project in Binh Thuan province, and global energy company AES who is preparing for the Son My combined cycle gas turbine power plant.

In a working session with Minister of Planning and Investment Nguyen Chi Dung during the USABC’s visit, renowned firms like Ford, Boeing and Viatris showed their strong commitment to continuing investment in Vietnam.

They said they have injected more than 1 billion USD into Vietnam through large corporations like VinGroup and Masan, and will seek further investment opportunities in the country.

Most recently, leaders of Rosen Partner said the group wishes to expand investment in Vietnam in the areas of realty and tourism while meeting with Deputy Prime Minister Le Minh Khai in the US.

More investments are likely to come in the areas of high technology, semiconductor and AI as US corporations said they will pour billions of US dollars into Vietnam in the fields.

Although US investors have been interested in the Vietnamese market, they have a relatively smaller presence in the country.

According to the Ministry of Planning and Investment, US firms registered only 17.26 million USD in Vietnam in the first quarter of this year, ranking 19 among countries and territories having investment in the country.

Dung said the ranking is not on par with the US investors’ potential as well as the sound Vietnam – US relations.

Laying a stress on the elevation of the bilateral ties to a Comprehensive Strategic Partnership as well as agreements on promoting cooperation in technology and innovation, including semiconductor industry, he highlighted that there is no barrier to the US investment wave to Vietnam and vice versa and even that from a third country.

According to Chairman of the American Chamber of Commerce (AmCham) in Hanoi Joseph Uddo, Vietnam should continue its reform to create a favourable investment climate, and an equal and transparent legal environment to lure new investments while maintaining and developing the existing ones.

Administrative procedures should be improved as well, he said, elaborating new laws and regulations have been put into place, slowing down the approval process and increasing burden on enterprises.

US firms also voiced their concern over energy for production and business activities, especially those operating in high technology, electronics and semi-conductor.

Deputy Regional Managing Director and Vietnam Chief Representative for the USABC Vu Tu Thanh held that Vietnam should pay due attention to its connectivity with other ASEAN member states to attract more investment from the US who sees ASEAN a large market./.