Vietnam is witnessing a new and strong investment flow from the US, expected to climb to US$8 billion this year, double last year’s figure, according to the US Government forecast quoted by the Crains New York Business.
This is good news for Vietnam’s foreign direct investment (FDI) attraction since it became a WTO member and was granted permanent normal trade relation (PNTR) status with the US, the paper said.
US investors have been taking braver steps into the Vietnamese market since late 2006, and particularly since the country had gained a ticket to the WTO, said a senior official from the Ministry of Planning and Investment (MPI).
According to MPI’s latest statistics, the ministry has so far this year received many mammoth projects from US companies worth billions of dollars, a sharp increase from US$2.3 billion in the same period of 1998.
A delegation from 18 leading groups arrived in Vietnam in early May to attend the “Vietnam - a bright future for US businesses” forum, aiming for potential investment opportunities.
The US’s Eminence Group kicked off a US$30 billion steel in Nghi Son Economic Zone in central Thanh Hoa province.
Many US businesses are earning big profits in the Southeast-Asian market, Vietnam state media reported. Dichkerson Knight Group announced profits rising 50 per cent in 2006. Meanwhile Leon D. DeMatteis Construction Corporation is supervising 28 construction projects and employing more laborers for their operation expansion in the country. Starwood also plans to build another hotel in Hanoi.
Intel’s US$1 billion hi-tech project in Ho Chi Minh, the US’s largest project in Vietnam so far, proves the strong US investor confidence in Vietnam’s growing economy.
Most recently, Jabil Vietnam Company was allowed to invest in electronic and telecommunication projects in Ho Chi Minh City with total investment of US$100 million. IBM decided to launch a global service center, also in the southern hub.
Not only investment, but also bilateral trade relations have been on the rise, the new sources said.
Deputy Chairman of the Ho Chi Minh City Knitting, Embroidery, Textile and Garment Association Diep Thanh Kiet revealed Vietnam’s garment and textiles exports to the US have increased remarkably, up 40 per cent in late 2006, and 30 per cent in Jan-Apr this year against the previous year.
Economic experts said the US investment wave into Vietnam has just started, noting the US is the most the promising investor for the country in the near future. (Labour)
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