(VEN) - In July, Vietnam and the United States successfully celebrated the 15th anniversary of bilateral diplomatic relations. This diplomatic relationship is developing in many different fields of business. Trade between Vietnam and the US has reached nearly US$16 billion. In 2010, the US is the largest foreign investor in Vietnam. Like other American businesses, a high-ranking delegation from the Port of Houston Authority (PHA), Texas, arrived at Ho Chi Minh City in August 2010 with the hope to expand cooperation between the Port of Houston and Vietnamese partners and facilitate trade between the US and Vietnam.
What are you looking for in the Vietnamese market during this trip?
We are here to better understand the commodities Vietnam is exporting to the US, and to discuss how Houston is a premier option for reaching the US growth market. Among the top Vietnam export commodities that make sense for Vietnamese companies to transport directly through the Port of Houston Authority are coffee, garments and seafood. Of course, there are many more cargoes of interest, but these represent three of the greatest opportunities for mutual benefit. We are here to discuss why those cargos should move from here to the US via the Port of Houston rather than via the west coast.
Why do you choose Vietnam as the destination for your business?
As a matter of fact we see the potential for increased trade because the historical statistics and trends are very clear; in 2009, even during a global economic downturn, Vietnam-US trade reached almost US$16 billion. Trade volumes in 2010 are on track to be even larger. So despite the global downturn, the trade with the Vietnam is actually increasing. It is a unique situation because our market area has only 100 million people. We have been very fortunate that the US economy is actually doing very well. The Port of Houston, despite the global downturn of the last couple of years, has maintained its cargo volume, and in some instances, it has even risen. The economy in Texas has performed very well. Vietnam has also experienced the same level of growth so there is a very good opportunity for both regions of the world where their respective economies are growing and doing well. In the US, Houston is one of the fastest growing regions for the amount of export cargo going to Vietnam right now. Our job is to always expand the diversity and amount of products coming into the market while keeping it as affordable as possible. So we look around the world for emerging markets to understand the opportunities represented by those places. Today, Vietnam is the largest coffee producer in the world and the Port of Houston is handling a lot of green coffee coming from Vietnam. The Port of Houston and Gulf want to expand the volume of green coffee imported. Specifically, the Port of Houston and Gulf want to assist Vietnamese exporters in moving green coffee to Europe's National Coffee Association to help promote overall growth.
Compared to some other American investors, your company comes to Vietnam later. Can you explain this?
In the late 1980s or the early 1990s, we had a lot of services acquiring cargo to and from Asia to Houston. Most of the trade with Vietnam has been received on the US west coast and moving to the Midwest markets via train. In 2000 there were no direct all-water services between the Port of Houston and Asia Ports. That is not the case today. Now we have one service that is direct and two services that transit. We are here to develop additional services. So it is not that we are late, it is just that the changing cargo routes now enable us to focus on growth directly with the countries of origin of these cargoes.
What benefit will Vietnamese partners get from the Port of Houston?
We came to Vietnam to meet with companies about directly accessing the Houston market, and US Midwest markets via Houston, because we think it is a great opportunity for them to directly reach these fast-growing markets rather than shipping cargo to Los Angeles and then shipping by rail to the markets. If you look at transit times for door-to-door deliveries, what we offer is very competitive. We don't have the long delays associated with packing cargo from ship to train or truck, nor do we have congestion delays that are seen in West Coast ports. What we offer is a direct reach to abundant US markets through our expansive infrastructure and vast rail/road connections. The Port of Houston is a modern port with abundant facilities to accommodate movement of cargo to regional and inland markets. Quite simply, Houston is the gateway to the heartland of America, so companies in Vietnam will naturally want to do business with the port of entry that offers the best and most efficient way to access the country's most vibrant growth markets for the products they sell./.
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