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US likely to become largest foreign investor in Vietnam within the next 2 years
This is the prediction of Matthew P. Daley, President of the US-ASEAN Business Council, at a press conference in Hanoi on May 13 regarding the US business delegation’s ongoing visit to Vietnam to seek investment opportunities.
Mr. Daley said US businesses have invested around US$3.86 billion, accounting for more than a half of Vietnam’s foreign direct investment (FDI) at present. He was also optimistic about the prompt recovery of Vietnam’s economy.
Despite the current global economic turndown, US companies remain enthusiastic about the opportunities to invest in and run businesses with Vietnam, he said.
Mr Daley said Vietnam-US relations have achieved remarkable successes in recent years and hoped that the Bilateral Investment Agreement would be signed as soon as possible in order to certify the accuracy of his prediction.
His viewed was shared by Stuart Dean, President of General Electric (GE) in the Southeast Asia and Chairman of the US-Vietnam Business Committee, who said that many leading US companies are keen on the Vietnamese market, especially in the field of infrastructure.
Mr. Dean affirmed that Vietnam will be a strategic market for GE in the near future as many foreign businesses see great prospects for economic growth and friendly environment in Vietnam.
Despite numerous difficulties caused by the current global recession, Vietnam’s economy still grows at a stable rate, he said.
Mr. Dean said many foreign investors are enjoying favourable conditions to apply for business licenses in Vietnam. He also revealed GE has officially broken ground on a factory in the northern port city of Hai Phong with an investment capital of US$100 million.
A representative from Chevron, a leading oil and gas group in the US, also analysed the attractiveness of Vietnam’s investment environment. He said that Chevron has been operating in Vietnam since 1990s and is expected to carry out many large projects in the country. At present, Chevron has invested US$300 million in a project to use gas to produce electricity in the Mekong Delta region, with the aim of ensuring a long-term power strategy for Vietnam.
He noted that using gas will reduce environmental pollution and make a profit of around US$15 billion within the next 20 years. The project will have a total investment of US$4 billion, including around US$2.5 billion from GE. This will help the US to secure first place on Vietnam’s largest investor list, he added.
According to Brett Krause, Managing Director of Citibank in Vietnam, the Vietnamese Government has taken many effective measures to control inflation and drive the national economic ship in a suitable way.
Vietnam, like many other countries in the world, has faced many challenges posed by the global financial crisis. However, the country has been successful in risk management and credit development by using bank interest rate tools. Citibank is keen on the Vietnamese market and willing to cooperate with Vietnamese trade partners, Mr Brett said.
Nevertheless, he emphasised that challenges remain ahead and affirmed that Citibank will allocate investment capital in both short-term and long-term projects in Vietnam.
Tran Ngoc
vov
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