THURSDAY, March 28, 2024
nationthailand

More scope for US investment, forum told

More scope for US investment, forum told

A SEMINAR in Ho Chi Minh City has heard there is huge opportunity for Vietnam and the US to further boost investment and trade ties in many sectors.

Tran Dinh Thien, general director of the Vietnam Institute of Economics, told the “Meet the USA” forum on Wednesday that the US is among Vietnam’s largest trading partners and investors.
Bilateral trade increased from US$1 billion (Bt34 billion) 17 years ago to more than $46 billion last year.
The US ranks ninth among 119 countries and territories investing in Vietnam, with investments of around $12 billion, but the amount is modest compared to the potential, he said.
Deputy Foreign Minister Ha Kim Ngoc said during the US visit by Prime Minister Nguyen Xuan Phuc that the two sides pledged to promote economic ties.
The two economies are complementary rather than competing, so cooperation would result in a win-win situation, he said.
Nguyen Thanh Phong, chairman of the HCM City People’s Committee, said Vietnam, particularly HCM City, wants advanced technologies in manufacturing, environment and services from the US.
Smart city development, environment, agriculture and clean energy are among the sectors in Vietnam offering great incentives to investors, he said.
Nguyen Thien Nhan, the city party secretary, said Vietnam wants to cooperate with the US in the fourth industrial revolution. Vietnam is currently in the third, he said.
US firms can utilise the low labour costs in Vietnam – just $3 per hour compared to $30 in the US.
Many Korean and Japanese businesses have seen this advantage and invested in Vietnam, he said.
“Investment by South Korean firms now is five time that of US firms,” he said.
Fred Burke, managing partner of Baker & McKenzie Vietnam, said even without the TPP, investment and trade between the US and Vietnam would continue to increase.
Vietnam has done a lot of good things to make its investment environment better, and its robust implementation of the WTO Trade Facilitation Agreement would reduce its trade costs, making the country competitive as an investment.
“Those are the key drivers for increasing trade and investment with Vietnam, and US companies are watching that very closely.”
US Ambassador Ted Osius said American businesses want to bring innovative technologies to Vietnam, and to do this they need to develop effective partnerships with provincial governments and leaders.
US companies need confidence and security with respect to their investments here, he said.
This means a level playing field, especially in terms of property rights, and rules of competition that are clear and well informed, he said.
“US companies also need a platform of modern services and infrastructure that allows them to connect their global trade networks,” he said.
Jonathan Moreno, chairman of the American Chamber of Commerce in Vietnam-HCM City, said many US companies do not come to Vietnam because they worry about transparency, predictability and infrastructure.
So building a system of trade that is modern, predictable and transparent, where US companies do not have to worry about corruption, is needed, he said.
The supporting industry supply chain is not developed here yet, he said 
Agriculture, technology and healthcare (medical devices) are among the sectors with great business opportunities now, he added.
Vietnam has signed 11 free trade agreements, and US companies can take advantage of them.
 

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