The favorable business environment and free trade agreements (FTAs) are expected to help increase US investment capital in Vietnam in the near future. Ngoc Thao reports on VEN.
The US has been a leading economic and trade partner of Vietnam for many years. According to the General Department of Vietnam Customs, in 2018, Vietnam exported goods worth US$47.5 billion to the US, accounting for more than 20 percent of Vietnam’s export value in the same year, and up 14.2 percent from 2017.
The country imported goods worth US$12.8 billion from the US, up 36.4 percent from the previous year. In the first seven months of this year, bilateral trade reached US$41.1 billion, 24 percent more than in the same period last year.
The US has become a top 10 foreign investor in Vietnam with total registered capital of more than US$9.3 billion. Meanwhile, Vietnam’s ranking as an exporter to the US has improved from 12th place in 2018 to the 9th place in 2019.
Mary Tarnowka, Executive Director of the American Chamber of Commerce in Vietnam (AmCham Vietnam) said the Vietnamese market is growing steadily with many advantages such as abundant human resources, and favorable policies and investment environment. Vietnam is expected to attract US businesses operating in the fields of culture, health, education, telecommunications, aviation, digital economy, renewable energy, and finance and banking, she said.
She spoke at the Vietnam-US Trade Forum 2019 held by the Ministry of Industry and Trade in association with the American Chamber of Commerce in Vietnam (AmCham Vietnam) in Ho Chi Minh City.
US firms still regard Vietnam as having advantages related to low labor cost, a welcoming business environment, and education reform, which partly meet international corporations’ demand for human resources. In addition, trade agreements between Vietnam and other countries have provided opportunities for production and trade expansion. Many US businesses have begun to shift their investment from China to other countries, including Vietnam.
Deputy US Consul General in Ho Chi Minh City Timothy E. Liston said US businesses rate the potential and investment opportunities in Vietnam highly. Quality US investments will promote economic growth, create jobs, encourage innovation and help improve the investment environment in Vietnam.
Amcham is working with other organizations to help Vietnam overcome infrastructure difficulties, improve investment transparency and become an attractive investment destination.
By Ngoc Thao @ VEN