Over the past 2 decades, Vietnam has emerged as one of the most attractive destinations for U.S. foreign investment. More than half of U.S. Fortune 100 companies have established a presence in the country. This week’s edition of Vietnam in Close up reviews 20 years of U.S. investment in Vietnam.
General Electric, or GE was one of the first US companies to set foot in Vietnam in 1993, even preceding the lifting of the US Embargo. GE Vietnam Limited, a 100% GE capital investment, was founded in 2003, offering services in energy, aviation, medical equipment, oil and gas.
The firm plays a key role in the development of Vietnam’s first wind farm in Bac Lieu province. It is now supplying turbines to Tay Nguyen Wind Farm, potentially Vietnam’s largest capacity wind farm.
Vu Tu Thanh, Deputy Regional Managing Director of US-ASEAN Business Council, said: "US corporations, especially the large ones, have a long-term vision in Vietnam. They see Vietnam as a market with high potential and of strategic importance".
On July 1st, Vietnam’s Ministry of Finance held an investment promotion conference in New York. Entitled My Vietnam, Your Investment Destination, the event was aimed at boosting US investment in Vietnam’s financial markets.
Mr. Dinh Tien Dung, Vietnam’s Minister of Finance, said: "We hope that the event will help US investors understand more about Vietnam’s efforts and success in its renovation process. The Vietnamese government is resolute in running the economy based on market rules. We appreciate the foreign inflows of capital, especially those from the US".
Over 150 funds were represented at the event, including those that have already invested in Vietnam, as well as those considering the move.
At present, the U.S. ranks 7th out of the 101 countries and territories investing in Vietnam. Besides setting up wholly-owned subsidiaries or joint ventures, many US corporations are investing in Vietnam through a third country, meaning real US investment is actually significantly higher than the official FDI figures suggest.
