Vietnam has many opportunities and is ready to open its doors to welcome investment from the United States.
 |
| Ford factory in Hai Duong. |
Open doors to capital
Suntory PepsiCo Vietnam Beverage Company Limited has just started construction of its 6th factory in Vietnam. Located in Huu Thanh Industrial Park (Long An), with an investment capital of up to 300 million USD, this will be Suntory PepsiCo's largest and most modern factory in the Asia-Pacific region.
The plant is expected to be powered by renewable energy, significantly reducing greenhouse gas emissions throughout its operations. It will also produce products with packaging made from 100% recycled plastic. “The plant will help raise the bar for productivity and sustainability, paving the way for the Company’s long-term growth,” said Jahanzeb Khan, CEO of Suntory PepsiCo Vietnam.
This is the project that the leaders of PepsiCo (USA) mentioned to Prime Minister Pham Minh Chinh, as well as leaders of ministries and branches, when they came with the delegation of the US-ASEAN Business Council (USABC) to explore investment opportunities in Vietnam. Along with this project, another 90 million USD project will soon be built in Ha Nam province.
PepsiCo is one of the US corporations that invested in Vietnam very early, since 1994 and this year marks 30 years. The appearance of the Suntory PepsiCo brand only started in April 2013, after Japan's largest beverage company, Suntory, acquired 51% of PepsiCo Vietnam's beverage division; the remaining 49% is still held by PepsiCo.
“We believe in the potential and development of the Vietnamese economy. This sixth factory will contribute to strengthening the leading position of Suntory PepsiCo Vietnam,” said Mr. Takayuki Sanno, CEO of Suntory Beverage and Food Asia Pacific, adding that Vietnam is one of Suntory’s key markets.
In fact, not only Suntory or PepsiCo, many foreign investors, including US investors, have recently affirmed their confidence in the potential of the Vietnamese market. The recent visit of the USABC business delegation to Vietnam, which according to Mr. Ted Osius, President and CEO of USABC, was “the largest ever”, is one of the proofs.
During a meeting with Minister of Planning and Investment Nguyen Chi Dung, many US investors expressed their desire to invest and expand their investment in Vietnam. For example, Energy Capital is looking to invest in the construction of the Long Son Port Project (Ba Ria - Vung Tau), and is in the process of applying for permission to invest in the construction of the LNG Project at Ke Ga Cape (Binh Thuan). Meanwhile, AES is working with its partners to prepare for investment in the Son My gas - power project chain.
Ford, Boeing, Viatris… all shared their commitment to continue investing in Vietnam. “We have invested more than 1 billion USD in Vietnam through large corporations such as Vingroup, Masan… We will continue to look for opportunities to increase investment in Vietnam,” said the leader of KKR Investment Fund.
Recently, when Deputy Prime Minister Le Minh Khai visited the United States, the leader of Rosen Partner Group also shared that the Group wishes to expand investment in Vietnam in the fields of real estate and tourism, including world-class entertainment complexes.
And certainly, there are also investments in high-tech, semiconductor, and AI sectors in Vietnam. In their search for investment opportunities last year, leaders of many US corporations said that they would invest billions of dollars in Vietnam in this 4.0 industry sector.
Removing barriers, attracting more investment from the United States
Although US investors are very interested in the Vietnamese market, investment capital from the US into Vietnam is still quite modest. According to data from the Ministry of Planning and Investment, in the first quarter of 2024, US investors only registered to invest 17.26 million USD in Vietnam, ranking 19th. If calculated cumulatively, the figure is 11.8 billion USD, ranking 11th among countries and territories with large investments in Vietnam.
“This ranking is still modest and does not match the potential. The potential of US investors is huge, and the relationship between the two sides is also very good,” said Minister Nguyen Chi Dung.
We hope that US businesses will trust and invest and expand their investment in Vietnam. Any businesses that have not invested yet, please invest quickly, we will work together to solve difficulties and obstacles to promote investment. 
- Minister of Planning and Investment Nguyen Chi Dung
Emphasizing that last year Vietnam and the United States upgraded their relationship to a Comprehensive Strategic Partnership and reached agreements to promote cooperation in the fields of technology and innovation, including the semiconductor industry, Minister Nguyen Chi Dung said that there are “no barriers” to investment flows from the United States to Vietnam, or from Vietnam to the United States, as well as investment through third countries.
In fact, the modest investment of US businesses in Vietnam has been mentioned a lot. The enforcement of intellectual property rights, transparency and consistency of policies, quality of human resources, etc. are always pointed out as some of the biggest obstacles for the US to increase investment in Vietnam.
At the recent Vietnam Business Forum (VBF), Mr. Joseph Uddo, Chairman of AmCham Hanoi, mentioned the phrase “better, faster, easier” to talk about the issues that Vietnam needs to continue to reform to welcome foreign capital in general, and investment capital from the United States in particular. “The most important factor creating a favorable investment environment is a fair, transparent, predictable and streamlined legal environment that values innovation to not only attract new investment, but also to maintain and develop existing investment projects,” said Mr. Joseph Uddo.
He also stressed the need for Vietnam to continue reforming administrative procedures, as a number of new laws and regulations are still being introduced, delaying approval procedures and increasing administrative burdens for businesses.
Along with that, AmCham expressed concerns about the issue of energy for investment, production and business activities. This is not only a concern for US investors. Japanese and Korean investors are also particularly concerned about this issue, especially investors with projects in the fields of high technology, electronics and semiconductors. Power shortages and unstable power supply are major concerns.
“Data centers, semiconductor and electronics factories need a stable energy supply. To develop the digital economy, cloud computing, AI, etc., we cannot ignore the issue of energy, especially clean energy,” said Mr. Vu Tu Thanh, Deputy Executive Director of USABC.
Speaking at a recent seminar on promoting investment from the United States, Mr. Vu Tu Thanh also said that Vietnam needs to pay attention to its connections with ASEAN countries, because when investing in the region, US businesses will not see any country as a single market. “They consider ASEAN a large market. Therefore, if Vietnam wants to attract investment from the United States, it must connect with ASEAN countries,” Mr. Vu Tu Thanh said.
This is clearly a matter of concern and could also be a way for Vietnam to attract more investment from the United States.
Source
Comment (0)