Vietnam Remains Attractive Destination for US Investors

Despite the complicated developments of the Covid-19 pandemic, many US businesses still consider Vietnam a safe and ideal investment location of the global supply chain.
December 30, 2021 | 14:25
Vietnam Remains Attractive Destination for US Investors
The recent signs of economic recovery have helped increase the confidence of First Solar Vietnam to expand investment. Photo: Nhipcaudautu

At the investment promotion event between Vietnam and the US, Sai Ramana Ponugoti, general director of P&G Vietnam said, despite being significantly affected by the fourth wave of the Covid-19 pandemic, the group made sure to make to have their products delivered to all consumers during these challenging times.

“Vietnam has well implemented the vaccination campaign to control the pandemic, helping the economy recover. This creates confidence for foreign investors. We will continue to invest, turn the factory in Vietnam into a large production center and export to many countries around the world," he said.

Recently, First Solar Vietnam also announced an investment expansion plan with a total value of US$1 billion to upgrade technology for a solar battery factory in Vietnam. According to KJ Ung, managing director of First Solar Vietnam, the recovery signals of the post-Covid-19 economy have helped increase business confidence, and First Solar Vietnam has kept its expansion plan as planned.

The belief of Sai Ramana Ponugoti Mr. KJ Ung is also the belief of many American investors who are choosing to stay in Vietnam in the context of the Covid-19 pandemic.

Development prospects

Vietnam-US relations are developing even during the pandemic, and this will be the premise to attract more high-quality investment capital. This statement was confirmed at the Vietnam-US Trade Forum held by the Ministry of Industry and Trade in collaboration with the American Chamber of Commerce in Hanoi (Amcham) in early December.

According to Deputy Minister of Industry and Trade Do Thang Hai, despite the effects of the pandemic that disrupted the global supply chain, bilateral trade and investment between Vietnam and the US have enjoyed impressive growth. The US continues to be Vietnam's top important partner in all aspects of cooperation. The US ranks 11th among investors in Vietnam, most of the large US corporations have a presence in Vietnam.

As of November, US businesses have invested in Vietnam with 1,135 projects with a total registered capital of more than US$10 billion.

A survey by Amcham just released shows that nearly 80% of US businesses have a positive assessment of medium and long-term prospects in Vietnam. In which, nearly 30% of US companies rated very positively about the medium and long-term prospects, and had investment plans to expand production and business. Along with that, nearly 50% of the assessments are positive, they plan to stay or can invest more.

Mary Tarnowka, executive director of AmCham Vietnam, said that up to now, Vietnamese companies and AmCham members have overcome difficulties, thanks to the government's efforts to bring life back to the new normal.

“We see the number of AmCham members continue to grow. Many companies expressed their desire to invest more in Vietnam. I think Vietnam is still an attractive destination for the manufacturing industry because companies want to diversify their supply chains,” said Mary Tarnowka.

Many potential areas for investment

Sharing about some potential investment fields of US businesses in Vietnam in the near future, Marie Damour, Chargé d'Affaires at the US Embassy in Vietnam said that they are energy, aviation, healthcare, technology.

The first is renewable energy. Vietnam committed to ambitious climate change goals at the 26th United Nations Climate Change Conference (COP26), and the United States pledged to support Vietnam to achieve those goals.

"Although it is not an easy goal, it is these challenges that will be an opportunity for businesses of both sides to develop sustainably," said Marie Damour.

The second is medical cooperation. Representatives of US businesses said that the pandemic has revealed many gaps in this field. The US has been and continues to support Vietnam to prevent the pandemic, ensuring deeper cooperation between the two sides.

Vietnam Remains Attractive Destination for US Investors
Many technology companies in Silicon Valley have plans to redirect investment in electronic equipment production to Vietnam. Photo: tinnhanhchungkhoan

The third is cooperation on digital transformation. With the advantage of possessing modern technologies, many American businesses have been providing electronic payment technology, artificial intelligence, and smart cities to partners in Vietnam.

In addition, the prospect of cooperation in aviation is also very large. With projects that Vietnam is implementing, such as the investment in Long Thanh airport, US businesses are committed to supporting Vietnam in providing virtual technology, ensuring aviation security, network security, providing the latest technology in this field.

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