AmCham Chairwoman: Foreign companies believe in Viet Nam’s long-term growth potential

10:39:12 AM | 12/1/2021

Many foreign companies have stayed committed to Viet Nam despite the pandemic situation back in the first half of 2021 because they believe in the country’s long-term growth potential.

Ms. Virginia Foote, Chairwoman of the American Chamber of Commerce in Viet Nam (AmCham) made the above statement in a recent interview with VGP.

Regarding the Government’s efforts in fostering economic recovery over the last few months, Virginia said: “The Vietnamese government had done great work to encourage and foster economic recovery before the Delta variant hit, and of course new challenges emerged after. During the high-ranking official working trips to U.S and to Europe, we can see that the government is being proactive in engaging with foreign companies to encourage businesses in Viet Nam, and many MoU have been signed with the witnessing of the State President and the Prime Minister with American and European companies.”

Additionally, in Viet Nam, the Prime Minister has held meetings with most major foreign Chamber of Commerce such as AmCham, EuroCham and KorCham to listen to the Foreign Invested Enterprises’ (FIE) challenges and problems during the pandemic in Viet Nam, especially under the delta variant period.

The Prime Minister not only acknowledged foreign enterprises’ problems, he also direct relevant ministries/ministerial-level addressing those problems and promises to improve the investment environment for FIE in the upcoming time.

All member of Amcham was very grateful for the productive meeting with the PM and it greatly reaffirms Viet Nam’s position as a reliable investment destination with the FIE communities.

Ms. Virginia expressed her belief that Viet Nam still has huge potential to develop under the new normal policy. Many foreign companies have stayed committed to Viet Nam despite the pandemic situation back in the first half of 2021 because they believe in the country’s long-term growth potential. Naturally, they will utilize the new policy to resume production as soon as possible.

With the potential of CTPPP becoming effective at the beginning of next year and the existing EVFTA, RCEP, these FTA would open more opportunities for new FDI and expand the Vietnamese market, but the ease of cross border travel will need to come with it for vaccinated expats.  

In addition, the Government is very active in attracting more new investment with many favorable policies and the signing of many MoUs in their foreign trips such as those by the Prime Minister, the State President, the Chairman of the National Assembly and Ministers. 

Thus if Viet Nam government continues to create globally harmonized policies on the digital economy, tax, clean energy, and clean environment, the future is bright.

Questioned about how Viet Nam should address the labor shortage and supply chain disruption, Virginia said the problem of labor shortage and supply chain disruption is not only Viet Nam problem but the world problem post-pandemic age.

The Vietnamese Government and businesses can learn from other countries’ cross border and cross provincial policies but adapt them to fit in the situation of Viet Nam at the moment.

For in the short term, the Government and businesses have to offer some such as provide free transportation, free Covid test, housing aids for those who temporary cannot find accommodation after return, monthly aids or other benefits to encourage workers to return to the city to work.

The Government should also listen to factories, production and logistics companies to know their issues and concern and address them accordingly in the policies supporting these businesses.

In the long run, Viet Nam should shift to greater use of the digital economy, and focus on training and developing a skilled labor workforce to allow a broader range of workers' skill sets in the future.

Vietnamese and FDI companies can work together to identify strengths and weaknesses in the domestic and international supply chains to come up with appropriate and flexible strategies going forward.

Referring to measures AmCham should take to promote investment and trade ties between enterprises of Viet Nam and the U.S., Virginia said: With work between the U.S. Chamber in Washington and AmCham Viet Nam Ha Noi, we expect US$1 million of Covid related medical equipment will be donated to Viet Nam in the near term.

AmCham Viet Nam Ha Noi members have donated millions more in equipment generally to Viet Nam and support for their workers in particular. 

Between December 2021 to the first quarter of 2022, AmCham intended to jointly-organized a few investment/trade promotion events to attract more American as well as other foreign investors into Viet Nam, along with two additional programs set for early 2022.

AmCham is also working with provinces to help them attract FDI and host trade shows and events.

AmCham is trying to work with the Government to come up with more incentives or create more favorable conditions for our member to increase their investment in Viet Nam.

Source: VGP