Press conference hosted by USABC in Hanoi – Photo: VGP/HT
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During the press conference held by USABC in Hanoi on the evening of March 18, former Ambassador Ted Osius, Chairman and CEO of the US-ASEAN Business Council, said: “This is the largest American business delegation to visit Vietnam since the two countries upgraded their relationship to a comprehensive strategic partnership.”
Mr. Ted Osius analyzed: Last year witnessed a significant increase in foreign direct investment (FDI) flowing into Vietnam. This shows that legal framework reform is one of the driving forces attracting investment. However, Vietnam needs to make further efforts to catch up with leading countries in legal reform and investment attraction such as Singapore…
In fact, the actual investment from the United States is much higher than the statistics, as some large companies invest in Vietnam through Singapore (which is not included in the US FDI statistics).
“This delegation of companies will take new steps, applying a more comprehensive approach to both public and private sectors, in order to provide the best support for investment companies in Vietnam,” Mr. Ted Osius said.
Sharing the same viewpoint, Mr. Vu Tu Thanh, Deputy Regional Managing Director and Chief Representative in Vietnam of the US-ASEAN Business Council, further analyzed: American companies play a leading role in supply chains, which means they do not directly invest in constructing factories in Vietnam but require suppliers to invest, build factories and hire workers to produce goods in Vietnam in sectors such as electronics, leather shoes… generating billions of dollars in export value. Therefore, the importance of American companies is actually greater than the announced investment figure of over $11 billion.
Ambassador Marc Knapper, US Ambassador to Vietnam, shared that after 6 months since the two countries upgraded their relationship, this American business delegation’s visit to Vietnam not only reflects the commitment of the Government but also the proactiveness of the American private sector, based on the comprehensive strategic partnership framework. Ambassador Marc Knapper emphasized that Vietnam will play a crucial role in the global supply chain.
Looking back at 1995, the bilateral trade relationship had just reached a volume of about $100 million, and now Vietnam has become the 9th largest trading partner of the United States; conversely, the United States is the largest export market of Vietnam.
After the pandemic, Vietnam has played an increasingly important role in the supply chain with the dynamism of the economy, and there are major companies present in the United States.
“American companies are interested in Vietnam and desire to promote cooperation in various fields such as trade, investment to create good products that serve the interests of both countries,” Ambassador Marc Knapper affirmed.
Ms. Sarah Morgenthau, US State Department’s Special Representative for Commercial and Business Affairs, expects that this business delegation’s visit will help strengthen the increasingly close partnership between the two countries and promote cooperation and prosperity in the region. Many sectors in Vietnam are increasingly attracting the attention of American companies, such as healthcare, energy, telecommunications, restaurants, and hotels. Vietnam is also expanding investment in the United States in areas of strength, such as electric cars, creating thousands of jobs, in line with the goal of developing renewable energy between the two countries.
On the first day in Vietnam, a company in the USABC delegation signed a cooperation agreement with Vietnam. Ms. Reta Jo Lewis, Chairman of the US Export-Import Bank (US Eximbank), said that on March 18, the Vietnam Development Bank (VDB) and US Eximbank signed a memorandum of understanding (MOU) worth $500 million. VDB and US Eximbank will jointly study opportunities for cooperation in medium and long-term credit/insurance, promoting economic, trade, and investment cooperation between the two countries.
Representatives of some American companies and conglomerates participating in the 2024 Business Delegation all expressed their interest in the Vietnamese market. Mr. Joseph Uddo, the CEO of AES Vietnam, a company with direct US investment, said that the total investment scale of this company in Vietnam has reached billions of dollars. As a major investor in the energy market in Vietnam, AES representatives said they are inspired by the development orientation of Vietnam, which meets their expectations.
“We see great opportunities in Vietnam, a rapidly growing economy with a growing demand for electricity and energy supply. The Vietnamese market offers many opportunities, a population of 100 million with a young and dynamic workforce.”
From the perspective of companies that have been actively operating in Vietnam, Mr. Rafael Frankel, Head of Meta in Asia-Pacific, believes that this business delegation has made a significant step forward in the relationship between the US and Vietnam.
Representatives from Meta commented: Despite the challenges, all parties are optimistic about the immediate opportunities. The future of Vietnam’s digital economy is bright because both companies and people in Vietnam are hardworking and innovative. Meta has experience in supporting Vietnamese companies in digital economy, training thousands of human resources. If Vietnam has an open policy and develops the digital economy, artificial intelligence will definitely create additional opportunities to enhance its development position.
