Could you brief on FDI in Vietnam in general and FDI by US businesses in Vietnam in particular after Prime Minister Phan Van Khai’s visit to the US in July 2005?

MoPI statistics show that Vietnam lured $6.8 billion last year, up 49.7% over the previous year. In the last 5 months of 2005 only, $3.6 billion of FDI was attracted.

In the January – July period this year, foreign investors put $3.7 billion in Vietnam, up 17.3% over a year ago. On the other hand, since the Prime Minister’s US visit, Vietnam has attracted around $7.3 billion of FDI capital.

Currently, US companies have 289 valid FDI projects in Vietnam with a total registered capital of over $2 billion. With a total realized capital of around $777 million, the US ranks 9th among 74 countries and territories with FDI in Vietnam.

In the first 8 months of this year, 25 US projects worth $444.2 million were licenced and in this period, the US ranked 3rd among 33 countries and territories investing in Vietnam.

In particular, since Intel injected $605 million in Vietnam early this year, US investors have shown special interest for the Vietnamese market. Microsoft Chairman Bill Gates paid visit to Vietnam, also.

Asian investors present over 70% of number of projects and registered capital while US firms make up only less than 5%. Could you explain this?

US investment in Vietnam has not matched potential. Despite the BTA playing an important role in promoting trade relations between the two countries, enhancing the business environment in Vietnam and improving investors’ confidence, FDI by US investors in Vietnam remains at a modest level.

However, if investment through a third country is included, FDI by US companies in Vietnam amounts around $3 billion and the US ranks 7th among 74 countries and territories with investment in Vietnam.

Vietnam is going to become a WTO member and the US will possibly grant PNTR to Vietnam this year. How will this impact FDI flow from the US into Vietnam in the future?

The US is big investor in the world. What concern US companies are tax preferences, market, business costs, labour skills, infrastructures, legal transparency and stability and administrative procedures.

With advantages in terms of capital and technology, US investors can operate in almost every field of the Vietnamese economy.

FDI from the US will likely to increase quickly after Vietnam becomes an official member of the WTO, opening up the service sector in accordance with the BTA and other WTO commitments.

Many believe that there will be a big flow of FDI into Vietnam in the coming time. How do you comment?

By implementing the Investment and Corporate Laws, Vietnam shows equal treatment for businesses of all sectors.

In addition, the Government’s efforts in improving infrastructures as well as advantages in terms of geographical location, human resources and natural resources will help Vietnam increase competitiveness to lure a new wave of FDI.

Moreover, WTO membership, socio-political stability and high economic growth rate also make Vietnam an attractive place for investors.

Can Vietnamese businesses invest in the US market and in which fields do you think?

So far, Vietnamese companies have had 16 projects worth a total of $7.4 billion in the US.

The numbers remain small; they indicate new developments in economic relations between Vietnam and the US.

The Vietnamese Government encourages companies in Vietnam, both local and foreign, to invest overseas. The encouraged fields are those requiring much labour exports, promoting traditional products of Vietnam; expanding markets in invested countries; and boosting exports.

Source: Vietnam Economic Times