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U.S. companies vow increased investment in Vietnam

The Saigon Times

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HCMC – U.S. firms are committing to substantial investment in Vietnam across a spectrum of sectors, including technology, electronics, aviation, electric vehicles, logistics, energy, healthcare, finance, e-commerce, food, and tourism.

“Vietnam is increasingly asserting its pivotal role in global manufacturing, a crucial element in the global supply chain, and (we) are eager to explore new collaborative opportunities with Vietnam,” said Ted Osius, former U.S. ambassador to Vietnam and chairman of the US-ASEAN Business Council (USABC).

The U.S. business community is impressed by Fitch Ratings’ upgrade of Vietnam’s credit rating at the end of 2023 and rejoiced over the enhanced bilateral relations, he added.

Osius was speaking during a meeting at the Government Headquarters on March 21, where Vietnam’s Prime Minister Pham Minh Chinh welcomed a delegation from the USABC.

At the meeting, U.S. businesses unveiled new investment initiatives. PepsiCo,  for instance, announced plans to invest in two state-of-the-art plants utilizing renewable energy: a food manufacturing facility in Ha Nam Province valued at US$90 million and a beverage manufacturing plant in Long An Province exceeding US$300 million in investment.

The USABC delegation urged Vietnam to continue enhancing its legal framework and simplifying administrative procedures, particularly concerning investment licensing, labor permits, and visas. They also advocated for incentives such as tax breaks in priority sectors to foster circular economy development, green economy initiatives, carbon emission reduction, energy transition, infrastructure, and logistics.

Responding to these proposals, Prime Minister Chinh urged U.S. companies to further expand investment and technology transfer, especially in high-tech sectors like the digital economy, circular economy, climate change adaptation, green transformation, sharing economy, and knowledge economy.

These sectors, he emphasized, are vital for promoting bilateral relations within the framework of comprehensive, inclusive, and effective development envisioned by General Secretary Nguyen Phu Trong and U.S. President Joe Biden.

To support and accompany U.S. businesses investing, producing, and conducting operations in Vietnam, thereby solidifying the Comprehensive Strategic Partnership between the two countries, the Vietnamese Government is committed to “three assurances” and “three togetherness.”

The “three assurances” entail ensuring that the foreign-invested economic sector remains an integral part of Vietnam’s economy, facilitating its long-term growth through conducive conditions, and promoting fair cooperation while ensuring a level playing field.

Emphasizing the principle of mutually beneficial cooperation, these assurances also underscore the protection of investors’ legitimate rights and interests. Vietnam reaffirms its commitment to upholding independence, sovereignty, territorial integrity, political stability, social order, and policy consistency to instill confidence among investors.

The concept of “three togetherness” underscores collaborative engagement, encompassing active listening and understanding of businesses and people’s needs. It also advocates for shared visions and concerted actions for economic development, fostering a robust Vietnam-U.S. partnership through joint efforts, shared successes, and mutual prosperity.

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