USABC delegation tours the country

Former battlefield foes find common ground in the business world

President of the council (USABC), Matthew Daley, said members of the mission had long-term perspectives and did not come to Vietnam to look for short-term gains. “I am very confident that two or three years from now, someone from the US business community will proudly say that the US has become the largest foreign investor in Vietnam,” Daley said.

The mission, which included 23 leading American companies, many of them listed Fortune 500’s – five of them in the top seven – took a three-day tour to Hanoi from May 5-7. Members had 15 meetings with top Vietnamese business, agency and ministry leaders, and, according to the chairman of the US-Vietnam Business Committee, Stuart Dean, discussions were “fruitful and detailed”.

“We are confident about investing in Vietnam,” said Dean, who is also president of General Electric Southeast Asia. He said that although no particular contracts were signed, half of the members of his mission were prepared, and looking at, making investments in Vietnam.

“In all meetings, Vietnamese Government agencies expressed very strong support (for making) those investments happen soon. So, we are very enthusiastic,” said Dean. He also said the American companies were particularly focused on investing in manufacturing, infrastructure, sourcing and sales opportunities.
“We also want to transfer advanced technology to Vietnam, such as clean energy, energy efficiency, aircraft and information and communication technology,” he said.

Daley said two members of the mission were interested in two particular projects. One of the projects is for float-glass production to meet Vietnam’s increasing demand for glass for buildings, car making.
However, Daley said the two projects could not be concluded during the visit because the two members needed more time for research.

“For example, to build a float-glass factory, many questions have to be answered, such as where to locate the plant, whether good sources of material , such as sand, are available, and if the energy to operate the factory is sufficient,” said Daley.

In response to press questions about how the economic difficulties Vietnam is facing would affect American companies intending to invest, Daley said he believed the country would continue its good growth pace.
He said the Vietnamese Government was determined to fight inflation instead of pursuing high growth.

He described this as a good decision, adding that the American companies were prepared to be patient.
“We understand that the inflation problem cannot be dealt with by the end of this month. At the same time, US companies have long-term perspectives,” said Daley. “We do not consider our investment decisions on a weekly or monthly basis, but on the basis of years, decades or even generations.

“It shows that Vietnam is becoming a great and major destination for American investors,” said Daley.
During a meeting with the USABC companies in New York last September, Prime Minister Nguyen Tan Dung challenged the US to become the “number one investor in Vietnam”. The prime minister recalled this goal in the meeting with the business mission on May 6.

“I believe that we have the basis for this goal,” said Daley, adding that he welcomed the prime minister’s message that Vietnam was ready to negotiate a bilateral investment treaty with the US. “The treaty will remarkably boost US investment in Vietnam when it comes into effect. The council and its members commit to support the treaty,” he said.

At present, the US is the sixth largest foreign investor in Vietnam with total investment capital of about $7 billion. The US is likely to take number one position in the near future because its companies have submitted big projects for approval.

These include the $1.4 billion, 1,000 MW Mong Duong thermo-power plant by the AES Company in Quang Ninh province, and two projects in which American companies are the main investors. These are the $4.2 billion tourism project at Ho Tram in Ba Ria Vung Tau province and an infrastructure project on Phu Quoc Island worth about $10 billion.