According to General Department of Statistics, by November 2001, the US had 22 projects in Vietnam with registered capital of US$82,184,000. By now, it has 129 projects with investment capital of over US$1 billion.
They include 86 projects already implemented with capital of nearly US$500 million focusing on industry (82 projects and 58.6 % of investment capital), services (transport, post, financial, banking, culture, health and education) with 31 projects and 27.9 % of total investment capital, agriculture-forestry-fisheries with 16 projects and 13.5 % of investment capital.
Over half of US projects are wholly foreign investment. US projects are present in 26 provinces and cities in Northern, Central and Southern Vietnam, mostly in Ho Chi Minh City, Hanoi and Dong Nai where infrastructure and business opportunities are better. Most of US projects are well operated.
According to Ministry of Planning and Investment (MPI), by the end of November 2006, the US had 305 FDI projects with registered capital of US$2,112 million and implemented capital of US$730 million, ranking 9th among 75 countries and territories investing in Vietnam. However, according to experts, US investment should also be included from offices in Hong Kong, Singapore, British Virgin Island of big American groups such as Coca Cola, Procter & Gamble, Unocol, Conoco.
Also according to MPI, the US has 74 projects with capital of US$2.4 billion investing through third countries into Vietnam bringing to total to US$4.4 billion and ranking 5th among 75 countries and territories investing in Vietnam.
On May 26, US Ambassador Michael W. Michalak reaffirmed that Vietnam-US economic relations will continue to develop. At a round table “Vietnamese businesses with 15 years of normalization of Vietnam-US relations”, Mr. Michalak said that with the record of the past 15 years, American businesses will have big opportunities in Vietnamese market. American businesses have advantages to compete in telecom, IT, oil and gas. VNPT has recently signed with an American satellite company on second commercial satellite. Vinacomin and Independent Power Producer (IPP) cooperate in the building of a power station in Quang Ninh.
In 2001, bilateral trade value was only US$1.4 billion. In 2009, it increased to US$15 billion and the US becomes Vietnamese biggest export market. Vietnamese exports to the US are accorded with preferential import taxes, Vietnamese export value to the US increased from US$1.05 billion in 2001 to US$12 billion in 2009. Meanwhile in the conditions of global economic crisis in 2009, US export to Vietnam increased 11 % compared with other ASEAN countries. According to Mr. Nguyen Cam Tu, Vice Minister of Industry and Trade, the US continues to be the most important export market in the economic-trade development strategy of Vietnam. Vietnam-US economic-trade relations will be most important for Vietnamese international economic integration.
In the first half of 2010, US export value to Vietnam posted at US$1.6 billion. US investment in Vietnam continues high growth rates. According to Dow Jones Newswire, Quang Nam People’s Committee has granted permit to two American companies to invest US$4.15 billion in an eco-tourism project. The project will be Dragon Beach eco-tourism and the biggest FDI project in Central Vietnam.
MPI considers the US as the focus of trans-national companies with strong financial potential, modern technology, international market network and business management skill. Once those potentials are combined with Vietnamese comparative advantages, they will bring significant interests for both sides. Vietnam will approach and attract American investors in both directions: implementing big projects of high technology to increase export, encouraging trans-national corporations to develop research centres, hi-tech incubators together with human resources development. Vietnam wants big corporations and businesses invest more in Vietnam.
With only five projects of American investors in the last two years, the registered capital is already US$12-13 billion, equivalent to over 50 % that of 2009. The newest project is Dragon Sea international conference exhibition and tourism centre of Sky Bridge Intercontinental Development Corporation in Vung Tau city. The investment capital is over US$900 million, equivalent to nearly half of investment capital in the first three months of 2010.
The real estate project is divided into eight phases and will be completed in 10 years at maximum. Another big project is in Sang Tao city, Phu Yen province. According to Galilepo Group, the investor, Phase I of the new city comprises of 1,100 hectares and with investment capital of US$1.68 billion. The project will expand to 5,600 hectares with minimum investment capital of US$11.4 billion. While recently licensed Dragon Beach project in Quang Nam is worth US$4 billion.
In the coming years, Vietnam wishes to see the US as investor No. 1 in Vietnamese market. On April 14, 2010, in Washington DC, Prime Minister Nguyen Tan Dung met WB President Robert Zoellick and proposed increased assistance so that Vietnam can have more resources for the reform, restructuring and overcoming impacts of economic crisis. The Prime Minister asked WB to continue high IDA and IBRD resources for Vietnam and maintain preferential IDA terms for Vietnam until after 2015.
WB President Robert Zoellick highly evaluated WB-financed projects in Vietnam and considered them as good examples for other countries. Mr. Robert Zoellick reaffirmed WB continued assistance to Vietnam in socio-economic development of 2011-2015.
Mai Xuan
Vietnamese
