AloTrip

Where do you travel?

trustpilot

More FDI for Vietnam from US

Mon, 04 May 2015. Last updated Mon, 01 Jun 2015 14:27

Related stories

Vietnam is on the line of becoming a new tiger in Asian economy. With the support from other countries, especially US, in the future, the wish of Vietnam will come true. At present, apart from invesments from Korea, FDI for Vietnam from US is increased.

TPP Agreement, low labor cost and benefits of macro and commodity are appealing a series US companies to come to Vietnam and seek opportunities in the country. Vietnam is taking its advantages to become a new "tiger" in the regional economy (fast growth and high living standard). According to Nikkei, it is not impossible when Vietnam has a young and abundant labor force; along with the flock of many US company to the country, and better Vietnam - US relation. 2015 marks the ending 40 - year war in Vietnam, and 20 - year relation of Vietnam and the United States. Vietnam started to implement Reform in 1986. Until 1995, the first foreign investment in Vietnam flew when Vietnam government established the official relation with the US, and Vietnam joined ASEAN.

In recent years, FDI for Vietnam increased significantly. South Korean companies are particularly interested in the market. Samsung Electronics is operating and having three plants at three locations in Vietnam - Ho Chi Minh City, Thai Nguyen and Bac Ninh. In total, the electronic giant has poured more than US $10 billion in Vietnam. It is also expected soon to welcome a "wave" of investment from US to Vietnam. Consumer goods manufacturer of Procter & Gamble (P&G) is building a factory in Binh Duong with the total costs of US $100 million. The plant will produce Gillette razors. Since starting its operation in Vietnam in 2008, Intel is also pouring more money into the country. The semiconductor giant is planning to manufacture in the country the most advanced processor for personal computers in the future. The other big names of the US expanding their businesses in Vietnam are Starbucks and McDonald's. They opened the first branch here in December 2013, and February 2014.

 

Opening ceremony of the 3rd factory of P&G in Vietnam

 

There are many factors making foreign investment in Vietnam mushroom. One of them is low labor cost. The cost of labor in China is increasing, resulting in the change in the direction of inter-national companies turning to Vietnam. In addition, the purchasing power of Vietnamese consumers raised, inflation curbed, and policy loosen are factors created more investments in Vietnam. However, the biggest attraction for most foreign investors is Trans-Pacific Strategic Economic Partnership Agreement (TPP) on free trade, in which Vietnam is one of 12 countries participating in the negotiation. In mid- 2015, General Secretary Nguyen Phu Trong will visit the United States. The TPP Agreement will be the main content of talks between Mr. Nguyen Phu Trong and US officials. If two countries can negotiate, the United States will become an important partner of Vietnam economy in the future. Since then, there is more FDI for Vietnam from US.

At a conference in January in Ho Chi Minh City, US Ambassador in Vietnam - Mr. Ted Osius expressed his optimism about economy in Vietnam and US investments in Vietnam. The TPP Agreement allows the US to become the number one investors and trading partner of Vietnam. Tighten the Vietnam - US relation helps Vietnam to gain many benefits in different fields. Among 4.5 million overseas Vietnamese people, there are about 2 million ones living in the US. Many of them become famous in their business. Namely, Mr. Henry Nguyen brought McDonalds to Vietnam, and David Thai established the Highlands Coffee chain in the country. According to the Vietnam Ministry of Foreign Affairs, there are about 180,000 companies in US owned by Vietnamese people reaching the revenue of US $20 billion. If the relation between Vietnam and US is strengthened, more investment will be added in the country, and trans-Pacific.

 

Ambassador Marantis and Minister of Vietnam Planning and Investment

 

The Ministry of Planning and Investment estimated that Vietnam only needs to spend US $500 billion in the next 10 years to develop infrastructure. However, Vietnam is said to meet 40% of the figure, from State budget, ODA, and private capital. The financial lack is the reason that Vietnam government wants to attraction foreign direct investment capital. Yet, the investment is not enough for Vietnam to maintain sustainable development. The financial flow needs control and technology transfer, if the government wants industries in Vietnam developed, and a strong economic growth. Vietnam Government sets target of creating an industrial economy by 2020. 6 prioritized sectors are agricultural and forest products processing, agricultural machines, shipping, environment, saving energy, and automobile manufacture. Transition from growth based on FDI into industrial-based growth can be rather difficult. However, Vietnam shows the world that the country is still serious and developed on their right direction.

  • View
    3122
  • Share
    1
  • Comment
    0
  • 2
  • 23
  • 0
Electronic industry in Vietnam attracts foreign investors
Electronic industry in Vietnam attracts foreign investors

According to Mr. Adam See, the Chairman of AIES (the Association of Electronic Industries in Singapore), the development of Electronic industry in Vietnam will be a phenomenon in the next years.

Vietnam economy with opportunities and challenges in 2015
Vietnam economy with opportunities and challenges in 2015

2015 is considered to be an important year of the further and greater international integration of Vietnam economy. This is a not only the golden time of FTA between Vietnam and other countries but also an important milestone of establishing AEC.

Businesses in Vietnam enhance Russian cooperation
Businesses in Vietnam enhance Russian cooperation

At the Vietnam Russian business meeting, business in Vietnam expressed their great goodwill to enhance cooperation with businesses in Russia. Accordingly, Vietnam and Russia will boost to cooperate in many fields to develop two sides’ economy and society.

Vietnam US exchange economic supports
Vietnam US exchange economic supports

During the first two working days with representative of US Trade- Michael Froman, Minister of Finance- Jack Lew, Minister of Commerce- Penny Prizker, and Professor Jeffrey Schott, Deputy PM Vu Van Ninh discussed issues of Vietnam US economic relation.

Vietnam ranks 2nd in ASEAN appealing foreign investment
Vietnam ranks 2nd in ASEAN appealing foreign investment

Vietnam is one of ASEAN countries appealing most foreign investors, especially American ones. The country attracts a large number of US investors by its available and low-cost human resource, along with a stable social security.

Vietnam GDP growth reaches 6.03 percent in Quarter I
Vietnam GDP growth reaches 6.03 percent in Quarter I

After the first three months of 2015, the Vietnam GDP growth reaches about 6 percent. It is the highest rate in the first quarter during 5 recent years. Among major sectors of economy in Vietnam, industrial sectors surpass others.

Vietnam will get 3.8 billion USD of preferential credit from WB
Vietnam will get 3.8 billion USD of preferential credit from WB

On July 17, 2014, at a press conference, President of World Bank, Mr. Jim Yong Kim informed that WB would provide over 3.8 billion dollars in the preferential credit for Vietnam to help the country raising the additional private capital.

Japan will invest in Mekong River Delta agriculture
Japan will invest in Mekong River Delta agriculture

Acknowledging Southwestern area is a precious land in the world, Japan decides to start is investment in Mekong River Delta agriculture. Both of two countries, Vietnam and Japan paid working visits to seek investment opportunities in two countries.

Developing industrial production in Central Highlands Vietnam
Developing industrial production in Central Highlands Vietnam

To immerse in the development of Vietnam economy in the international integration, industrial production in Central Highlands Vietnam needs developing more to catch up with other regions in Vietnam and enhance some key factors in the country economy.

Vietnam in top 10 biggest exporting countries to US market
Vietnam in top 10 biggest exporting countries to US market

In 2014, Vietnam replaced India to be shortlisted in 10 biggest exporting countries in American market. It is predicted that in future, if Vietnam makes successful reform, the country will attract not only US investors but also other foreign enterprises.

Vietnam contribution to UN peacekeeping missions
Vietnam contribution to UN peacekeeping missions

In the working visit of UN General Secretary highly appreciated the achievement of Vietnam in the contribution to UN peacekeeping missions. Therby, Vietnam thanked for the cooperation and contribution of UN in the socio-economic development of Vietnam.

Czech keeps supporting ODA for Vietnam
Czech keeps supporting ODA for Vietnam

In the working visit to Vietnam, representative of Czech Ministry of Foreign Affairs announced to continue to support ODA for Vietnam in small-scale projects relating to environment, climate change, and agriculture.

Children Day activities held in many places
Children Day activities held in many places

On occasion of this year June 1st, many attractive Children Day activities are held in amusement parks in large cities. Parents and their children will have a variety of choices of places, costs and forms of entertainment.

Korea and Hong Kong are largest investors in Vietnam market
Korea and Hong Kong are largest investors in Vietnam market

Since early this year, South Korea and Hong Kong have invested in more than 250 projects including new projects and refinancing ones in Vietnam market. The total value of investment reaches nearly $ 2 billion.

Vietnam Lao oil pipeline to be constructed
Vietnam Lao oil pipeline to be constructed

Vietnam Lao oil pipeline construction is a project of Vietnam and Lao government cooperation with total investment capital from Laos. The oil pipeline will be constructed from Hon La Port (Quang Binh) to Khammouane (Laos).

Vietnam real estate market 2015 will flourish
Vietnam real estate market 2015 will flourish

In a workshop on a subject of "Forecasting Vietnam real estate market in 2015" held in Hanoi and Ho Chi Minh City in this month, real estate experts predicted that according to Housing Development Strategy 2020, Vietnam real estate 2015 will flourish.

Vietnam digital business classified in Break Out Group
Vietnam digital business classified in Break Out Group

According to a survey carried by US researchers about digitization speed in 50 markets, Vietnam digital business is classified in Break Out Group which has great potentials in developing the strongest digital economy in the world.

Vietnam Airlines launches two new routes to Japan
Vietnam Airlines launches two new routes to Japan

Two new international direct routes to Tokyo, Japan's capital, namely Hanoi - Hanada and Da Nang – Narita will be exploited by Vietnam Airlines in forthcoming July this year.

France cooperates to push Ho Chi Minh City economy
France cooperates to push Ho Chi Minh City economy

In the time coming, Ho Chi Minh City economy will be enhanced with the cooperation of France. By dint of the cooperation, both two countries get benefits from each other.

Da Nang Tourism Logo and Slogan picked out
Da Nang Tourism Logo and Slogan picked out

Organizers of Da Nang Tourism Logo and Slogan Contest published first prize works on 30th April after more than 8 months of organization, from 13th July, 2013 to 20th March, 2014.

Landmark 81 – the highest building in Vietnam
Landmark 81 – the highest building in Vietnam

On December 13th, an 81-storey skyscraper named The Landmark 81, which belongs to luxury urban area Vinhomes Central Park was started construction by Vingroup. It is expected that this highest building in Vietnam will be inaugurated in 2017.

Starbucks Vietnam opens three stores in Hanoi
Starbucks Vietnam opens three stores in Hanoi

Starbucks will open its three coffee shops in Hanoi in the effort to conquer the demanding palates of residents in this city. According to a representative of Starbucks Vietnam, the first three stores will be opened in prime locations of Hanoi.

Ho Chi Minh City opens 2nd McDonalds restaurant
Ho Chi Minh City opens 2nd McDonalds restaurant

After the success of the first restaurant on Dien Bien Phu Street, District 1, McDonalds Ho Chi Minh City will open the second on May 16th. The new restaurant is located near Ben Thanh Market, on Tran Hung Dao Street.

Da Nang becoming the most worth-living city in Vietnam
Da Nang becoming the most worth-living city in Vietnam

39 years after the Vietnam Liberation Day, Da Nang has developed significantly in all aspects. More importantly, Da Nang City has leave impression on tourists and residents as the most worth-living city in Vietnam.

Vietnam economy forecasted to grow in 2014
Vietnam economy forecasted to grow in 2014

As global economy is having positive changes, Vietnam economy will be definitely boosted. It is expected to increase 5.6 percent in this 2014 thanks to the recovery of the United States and Eurozone in banking reforms.

Vietnamese middle class increases most rapidly in Asia
Vietnamese middle class increases most rapidly in Asia

According to a recent survey conducted by ANZ, it is reported that Vietnamese middle class increases most rapidly in Asia, about 2 million Vietnamese joining the middle-class of Vietnamese society every year.

Asia Park Da Nang begins forthcoming operations
Asia Park Da Nang begins forthcoming operations

Sun Group Corporation recently has celebrated groundbreaking ceremony to construct Asia Park Da Nang cultural park and recreation on 2/9 street with a total investment of $ 200 million.

Thu Thiem new urban area of Ho Chi Minh City in future
Thu Thiem new urban area of Ho Chi Minh City in future

Ho Chi Minh City decided to expand center area including the whole Thu Thiem new urban area. There are accordingly some changes in Ho Chi Minh districts as well as the city urban area.

Ho Chi Minh Vincom Center will open Kids World
Ho Chi Minh Vincom Center will open Kids World

The second Kids World will be opened on Dong Khoi Street by Ho Chi Minh Vincom Center, on April 25th. With a scale of more than 5000 square meters, Kids World is expected to be the paradise for children.

Attractive activities for Children Day in Hanoi
Attractive activities for Children Day in Hanoi

June 1st has been chosen as the International Children’s Day since 1950. On this occasion annually, a large number of attractive activities for Children Day in Hanoi will be celebrated in several attractions and amusement parks across the city.