General Electric (GE) has made positive contributions to Vietnam’s economy during its 20 years of operation in the country, especially in health, energy, construction and aircraft manufacturing fields. The operation of its production facilities in Haiphong City and its involvement in many important projects throughout the country affirm that GE is becoming a long-term partner for the sustainable development of Vietnam. Vietnam Business Forum interviewed Ms Nguyen My Lan, Chief Executive Officer of GE Vietnam, on this issue. Ngo Khuyen reports.
Headquartered in the United States, GE has a presence in many countries around the world. How do you assess GE’s development in Vietnam?
As one of the first US companies to have a presence in Vietnam, General Electric has accompanied its economic development process in the past 20 years, focusing mainly on the four key sectors of energy, aerospace, medical devices, and oil and gas.
In the energy sector, GE always strives to introduce effective renewable energy solutions in Vietnam to better meet growing business, production and livelihood demands. In 2010, GE established the first factory in Haiphong City to manufacture power generators, wind turbines and other energy products, which are being exported to GE production and services centres in Vietnam and around the globe.
In the aviation sector, GE Aviation's cooperation with domestic airlines in Vietnam is significantly contributing to carrying out safe and convenient flights. Currently, the airplane fleets of Vietnam Airlines, Jetstar Pacific and Vietjet Air are using GE's advanced engines.
In the oil and gas sector, GE Oil & Gas is focusing on high-tech machines, drilling and exploiting equipment and support services for big oil and gas projects in Vietnam such as BP gas pipeline project, Dung Quat oil refinery, Ca Mau gas - electricity - fertiliser complex and Vietsovpetro Joint Venture.
In the health sector, more than 50 percent of hospitals and clinics in Vietnam are using at least some GE equipment. In addition, the introduction of sophisticated medical devices with affordable costs to health facilities at all levels is also one of GE Healthcare's efforts to realise its commitments in the memorandum of understanding it signed with the Ministry of Health in 2012, which focused on enhancing creative capacity and developing products, human resources and technologies suitable for Vietnam’s health needs.
Besides, GE Vietnam always tries to raise the localisation rate of human resources to the highest rate possible. From a just few staff members in the early days, GE Vietnam has today built a strong workforce in Hanoi and Ho Chi Minh City offices. Particularly, GE Factory in Hai Phong and Vietnam Technical Design Centre (VEC) have created a dynamic professional working environment for more than 600 workers and more than 150 engineers of Vietnam.
GE is committed to further strengthening its role as a reliable partner of the Government and customers in Vietnam.
The early stable operation of Haiphong facility and business expansion show GE’s firm steps in Vietnam. What specific orientations and solutions have the leaderships of GE and GE Vietnam taken to achieve this?
The stable operation of the Haiphong plant in particular and GE Vietnam in general is the result of a long process when GE Vietnam aimed to become a strategic reliable partner for customers and the Government of Vietnam since 2010 and 2011. The focus of this strategy is that GE brings its strengths to support Vietnam’s development, based on the most urgent needs of the country such as infrastructure development, energy and healthcare. We call this strategy “Company to Country”.
Another important policy of GE in Vietnam is “localisation of resources”. This policy has encouraged and promoted talented leadership team of Vietnam in positioning GE Vietnam on the GE global investment map. At GE, every person has equal opportunities to develop professional knowledge and leadership skills which will be assessed by GE’s competency assessment system. Additionally, GE also has scholarship programmes, seeks and trains young talents and new graduates with the hope that they will become the key factors contributing to the future development of high-tech fields in Vietnam.
In recent years, GE has supplied a lot of equipment for wind power facilities in Vietnam. Would you talk about the advantages and difficulties in popularising and deploying renewable energy development solutions in Vietnam now?
Energy is vital to the development of all countries. The dependence on rapidly depleting fossil fuels requires the international community in general and Vietnam in particular to have quick, smart solutions to this global issue. And, one of the solutions needed to be popularised and widely deployed in the coming period is to produce and use renewable energies. The Government is drafting and perfecting policies on renewable energy development support; thus, we can expect a perspective of more active development in renewable energy field in the future.
Vietnam also has its unique advantages in this area as its renewable energy sources are widely distributed across the nation. The coast of near 3,400 km long provides abundant wind energy resources, estimated to produce approximately 5,00-1,000 kWh per square metres per year. Solar energy is also potentially rich thanks to the average sunshine radiation of 5kWh per square metre a day across the country. Besides, its technical potential of small hydropower plants is substantial. Currently, many foreign investors, especially Americans, want to make greater investments in the energy sector in Vietnam. In 2015, Vietnam and the US will celebrate its 20th anniversary of relations normalisation and it is certain that the US energy sector can support Vietnam in terms of expertise, technology and financial management when the latter produces renewable energy.
As for GE, we strive to cooperate with some local partners to invest and develop renewable energy in Vietnam, especially wind energy, and provide a lot of technical support for renewable energy projects and power generation in Vietnam. GE has supplied more than 62 wind turbines for the first two phases of Bac Lieu wind power project in the Mekong Delta and recently 14 turbines for Central Highlands wind-to-power farm in Dak Lak province. Earlier, in 2013, GE and the Electricity Regulatory Authority of Vietnam (ERAV) signed an agreement on "Renewable energy integration study" aiming to develop wind energy into a trust energy source for the national grid.
On the 20th anniversary of the normalisation of Vietnam - US relations (1995 - 2015), as a representative for a US investor in Vietnam, how do you and GE assess the prospects of the Vietnam - US economic and commercial cooperation now?
The relationship between Vietnam and the US is stronger and more constructive. This brings a lot of benefits and opportunities for the governments, people and businesses of the two countries. Vietnam is an economically developing country and if it has supports from the US for new advanced technology, engineering and innovative solutions as well as profound expertise and training, it can remove many barriers to trade, attract foreign investment, and develop a stronger economy. Moreover, the US can assist Vietnam to develop the fields that Vietnam currently cannot afford to do alone, thus helping address issues challenging the Government and investors because of no effective solutions, e.g. clean energy. The US is today also an important export market of Vietnam.
With Vietnam's potential market of 90 million people with steady economic growth and a healthy business environment, it comes as no surprise that the US sees Vietnam as an investment destination within its initiative related to the Asia - Pacific region. US companies will also have more opportunities to find investment markets and develop business in a more potential market with abundant resources and strong growth momentum.
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