VietNamNet Bridge – American are nearly secure in the No 1 position among biggest investors in Vietnam with the moves made recently by the US and Vietnamese business circles.
 | | Intel announces its $1bil project | While the Vietnam – US two-way trade has been growing at a dizzy speed after the Bilateral Trade Agreement (BTA), the US investment in Vietnam has still been below expectations. However, the situation has been improved.
The stamp of US investment
According to a report released recently by the Foreign Investment Agency (FIA), by mid May 2007, Americans had made investment in 325 projects with the total registered capital of $2.3bil, amounting to 4.4% of the total projects and 3.5% of total foreign direct investment (FDI) in Vietnam. The US ranks 8th among the 77 countries and territories that have investment projects in Vietnam.
Phan Huu Thang, Head of FIA, repeatedly said that the said figures did not reflect the actual US investment in Vietnam. Many big US groups, including Coca Cola, Procter & Gamble, Unocal and Conoco, have invested in Vietnam, but through other countries like the British Virgin Islands, Singapore or Hong Kong. That explains why the investment deals were not listed as US investment.
Statistics showed that 74 US invested projects in Vietnam have been carried out through third countries, totaling $2.4bil. As such, if counting on the investment through third countries, American have invested in 396 projects capitalized at $4.7bil, ranking the sixth out of 77 nations and territories that have FDI in Vietnam.
In 2006, through Hong Kong, the US-based Intel group registered the investment project on Intel Products Ltd, the maker if Intel chips, which had the total capital of $1bil. The project is expected to help lure more US investors to Vietnam in the time to come.
Therefore, it is understandable why in the recent reports on BTA implementation, experts from the project on BTA implementation support repeated the possibility to see the US as the biggest investor in Vietnam.
Many big companies and groups have been presented in Vietnam, namely Starwood Hotels & Resorts, Citigroup and American Group, New York & Company, Alfonso DeMatteis, Dickerson Knight Group and AIA. All of them have cemented their positions in the destination countries, and this is the convincing proof to show the attractiveness of Vietnam as an investment destination.
Marching towards the No 1 position
A bridge which aims to help boost trade and investment has been set up, the Vietnam – US Advisory Council. With the help of the bridge, over the last year, investors have suggested at least 10 projects in important fields, including oil and gas, power, aviation and information technology. Ten official members of the council, together with other US businesses, have committed to invest $4-5bil in Vietnam in two or three years.
Most recently, a delegation of 18 big US businesses came to Vietnam and had a meeting with Vietnamese Prime Minister Nguyen Tan Dung. The trip which has been assessed as very effective, and is hoped to bring more new investment projects to Vietnam.
US investors tend not to suggest big scaled investment projects. At the APEC summit week last year, US investors reached the agreement on the Mong Duong thermopower plant project and the Cai Lan port expanding project. Two US insurers, ACE and Liberty Mutual obtained the operation licenses sooner than expected. This shows the readiness of the both sides for the new era in the Vietnam – US business relationship. Big names in the IT sector like Microsoft, Unisys, Qualcom and Motorola are also seeking the way to boost cooperation projects with Vietnam. Qualcom, for example, wants to provide the infrastructure facilities for the 3G mobile network to EVN Telecom and Hanoi Telecom, and get involved in the project on wireless Internet for Vietnamese education.
Experts have predicted that many agreements will be signed between US and Vietnamese businesses in the visit by Vietnamese President Nguyen Minh Triet to the US.
The US visit by the then Vietnamese Prime Minister Phan Van Khai two years ago could help bring salient results in business commitments, while the President Nguyen Minh Triet’s visit is hoped to open a new chapter in the economic relationship between the two countries.
Phuoc Ha | 
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