Vietnam on ‘radar’ of US investors

10:11' 17/06/2007 (GMT+7)

Mr William Daley and VietNamNet Chief Editor Nguyen Anh Tuan. VietNamNet Bridge - Former Secretary of Commerce of President Bill Clinton’s administration, William Daley, said it was possible that the US’ direct investment in Vietnam would begin taking off within the next five years. Mr Daley, currently a Chairman of JP Morgan Chase, believes that US investment into Vietnam will rapidly increase because Vietnam is now ‘on the radar screens’ of US investors, including JP Morgan Chase. On his first visit to Vietnam, Mr Daley talked with VietNamNet Editor-in-chief Nguyen Anh Tuan about US-Vietnam relations on the occasion of the upcoming visit to the US by Vietnamese President Nguyen Minh Triet. Vietnamese President Nguyen Minh Triet is about to officially visit the US in the next several days. In your opinion, what opportunities will this trip create for US-Vietnam relations? William Daley was born in Chicago, Illinois, on August 8, 1948. He graduated with a B.A. from Loyola University Chicago, and an LL.B. (later amended to Juris Doctor) from John Marshall Law School. Except for a period from 1977 to 1980, during which time he sat on the Advisory Council of Economic Opportunity, Mr Daley practiced law privately with the firm Daley and George. He became associated with Amalgamated Bank of Chicago, where he was first vice chairman (1989-1990) and then president and chief operating officer (1990-1993). Mr Daley returned to the practice of law, as a partner with the firm Mayer, Brown & Platt from 1993 to 1997. In 1993, he served as special counsel to the President on issues related to the passage of the North American Free Trade Agreement (NAFTA). In 1997, Mr Daley became Secretary of Commerce in the second administration of President Bill Clinton, and he remained in that post until July 2000, when he became chairman of Vice President Al Gore’s presidential campaign, where he was in charge of choosing a vice presidential nominee. In December 2001, he was appointed President of SBC Communications Inc. to help reform the company’s image. In May 2004, Daley was made Midwest Chairman of J.P. Morgan Chase and Bank One Corp. to oversee post-merger operations from Chicago. Mr Daley currently serves on the Boards of Directors of Boeing, Merck & Co., Inc, Boston Properties, Inc., and Loyola University Chicago. He also sits on the Council on Foreign Relations. The visit of a chief of state to another country is always a good chance to develop bilateral ties. So I think that the upcoming visit by President Nguyen Minh Triet is a wonderful opportunity for US leaders and people to understand more clearly about Vietnam. I know that Mr Triet will visit New York, Washington and Los Angeles, three important cities of America. However, as a Chicago citizen, I still hope that a Vietnamese leader will visit Chicago, which is called the “Heartland of America”. Mr Triet’s visit is an opportunity to talk about changes in Vietnam, especially an opportunity for Mr Triet to share his vision about Vietnam in the next 5 or 10 years, about the goals that Vietnam aims to achieve in the coming time. I also want to say that at those meetings, the two sides should aim for more profound and comprehensive awareness of trade issues between the two countries. The more trade exchanges, the more problems emerge. The only way to avoid trade conflicts is no goods exchange, but nobody likes this because international trade benefits all countries. In some aspects, commercial conflicts between Vietnam and the US are a sign of the increasing value of Vietnam-US economic ties. In a recent issue of Foreign Affairs magazine, some American researchers said that it was time for Vietnam and the US to build a better partnership. What do you think about this? I think President Bush and his administration have made positive contributions to the development of Vietnam-US relations. The government of any US president is always interested in ties with Vietnam and will make efforts to develop the ties widely and better. I believe in and am optimistic about this. About the development of Vietnam-US ties, I think that the two sides should try their best to expand the scope of relations, not only in economics and trade. We should not forget other fields with potential, such as education cooperation. Another thing is the role of the community of Vietnamese Americans. I’ve met many Vietnam Americans in different regions, in different circumstances and of different generations. The y oung see a new Vietnam with new ties. Cooperation in education, culture, tourism will be good ways to create sustainable connections. The upcoming trip by President Triet is expected to encourage US companies to invest more in Vietnam. Do you think so? I don’t think so. The strongest statements were made by the US government when the two countries normalised their relations, and the US supported Vietnam’s WTO accession. Big opportunities in Vietnam make Americans realise the activeness and the great potentials of the Vietnamese economy. On the way to the airport (Noi Bai Airport in Hanoi), you can feel it clearly and get a sense of the dynamics of the Vietnamese economy. The global community of businesses is very dynamic and I don’t think we (US investors) have to wait till the US government tells us about it. Many think that the US will be the largest investor in Vietnam. However, the US currently ranks sixth among foreign investors in Vietnam. What should Vietnam do to attract more investment from the US? I don’t know specific statistics but I can say that previously American companies focused their investment in China. For a long time, those projects didn’t yield profit, but recently they have begun to reap profit. US investors are seeking new opportunities, particularly in Asia, including Vietnam. I think Vietnam can be a destination for direct investment of the US because Vietnam is now appearing on the radar screens of US investors. I would not be surprised if five years from now the US’ direct investment in Vietnam was increasing rapidly. Perhaps the US will not be the top investor but its investment will surely increase. What should Vietnam do to compete with China in FDI attraction? I don’t think any country should directly compete with China. All nations look at the current situation and think that they must compete with China. However, governments must determine their own situations, competitive advantages and seek their own directions. Through Vietnam News, I know that the Vietnamese government is in the re-organisation and restructuring process in an effort to become more effective. I applaud those efforts by the Vietnamese government. That’s the big step that each government must perform to adapt and to send a message to the private sector that the government is serious about creating differences in legal aspects and to help the state machinery operate more effectively and to focus on dealing with the biggest issues. As a former government official, and now a businessman, do you see any differences in Vietnam? Actually, in the two positions, as an official of the White House and a businessman, I see many similar things. I want to emphasise that globalisation has changed the outlook of Americans and has made them pay more attention to Vietnam. Americans’ recognition of Vietnam’s vast potential and the possibilities of gaining more in the relations with Vietnam are shown through the US’ support for Vietnam’s accession to the WTO. I want to emphasise the meaning of this to enterprises. But as you know, there are many difficulties that accompany normal changes in countries. Some businessmen don’t properly evaluate or understand the value of those changes. We, JP Morgan Chase, with rich experience in Eastern Asian countries, are very pleased with the changes in Vietnam. Two months ago, JP Morgan Chase’s Chairman came to Vietnam to learn about these opportunities. We are in the process of infiltrating deeper into the Vietnamese market in the field of banking. We see many big opportunities. We are researching and considering the possibility of bringing financial resources into Vietnam. But we want to study very carefully to build a long-term and proper business strategy in Vietnam. But JP Morgan Chase has still not entered the Vietnamese market. What do you think about this fact? We are in the preparation phase and we are making great efforts. We want to do the right things. Vietnam’s WTO commitments have changed the banking system of Vietnam. We expect that those commitments will be executed well. I can’t confirm the specific time that JP Morgan Chase will enter Vietnam, but in fact, our leaders are seriously considering taking part in the Vietnamese market in the context of normal changes happening in Vietnam. We understand that everything is changing very quickly in Vietnam. And we want to be part of those changes and dynamics. What do you need from the market and the government of Vietnam to decide to enter the Vietnamese market? The most important thing is not what the Vietnamese government would do but what we could do and contribute in Vietnam. Of course, we also have to see what we could do in other places in the world. With what things are happening, I think Vietnam is on the right path. We want to be a long-term player in Vietnam. Note by Phuong Loan